Price Law of the People's Republic of China

Price Law of the People's Republic of China PRICE LAW OF THE PEOPLE'S REPUBLIC OF CHINA (Issued on December 29, 1997 and by President's decree of PRC (No. 92). Adopted at the 29th Meeting of the Standing Committee of the Eight National People's Congress and implementation as of May 1, 1998.) CONTENTS CHAPTER ONE GENERAL PROVISIONS CHAPTER TWO PRICE BEHAVIOR OF BUSINESS OPERATORS CHAPTER THREE PRICE BEHAVIOR OF GOVERNMENT CHAPTER FOUR CONTROL AND ADJUSTMENT TO GENERAL PRICE LEVEL CHAPTER FIVE MONITORING AND CHECKING OF PRICES CHAPTER SIX LEGAL LIABILITIES CHAPTER SEVEN SUPPLEMENTARY PROVISIONS CHAPTER ONE GENERAL PROVISIONS Article 1 This law is formulated with a view to standardizing price behavior so as to strengthen their role in rational disposition of resources, stabilize the general price level of the market, protect the lawful rights and interests of consumers and business operators and then promote the healthy development of the socialist market economy. Article 2 The law is applicable to all the price behaviors that occur within the territory of the People's Republic of China. The term "price" used in the law includes prices of all kinds of merchandise and prices of all kinds of services. The term "price of merchandise" refers to the prices of all kinds of tangible and non-tangible assets. The term "price of services" refers to fees collected for services rendered. Article 3 The State shall introduce and gradually improve the mechanism of regulation of prices mainly through market force and under a kind of macroeconomic control. Under such a mechanism, pricing should be made to accord with the value law with most of the merchandises and services to adopt market regulated prices while only a few of them to be put under government-set or guided prices. Market-regulated prices refer to prices fixed independently by business operators through market competition. "Business operator" used in this law refers to legal persons, other organizations or individuals that engage in production or marketing of merchandises or provide paid services. Government-guided prices refer to prices as fixed by business operators according to benchmark prices and range of the prices as set by the government department in charge of price or other related departments within their term of reference. Government-set prices as fixed by the government department in charge of prices or related departments within their term of reference according to the provisions of this law. Article 4 The State shall support and prompt fair, open and legal market competition, maintain normal price order and exercise administration, regulation and necessary control over conduct of prices. Article 5 The State Council department in charge of prices shall be responsible for the administration of the work related to prices in the whole country and other related departments shall be responsible for such work within their terms of reference. Price departments of the people's governments at and above the county level shall be responsible for the work related to prices within the regions under their jurisdiction. Price departments of the people's governments at and above the county level shall be responsible for the work related to prices within their terms of reference. CHAPTER TWO PRICE BEHAVIOR OF BUSINESS OPERATORS Article 6 Prices of all merchandises and services, except those as set in Article 18 of this law to adopt government-set or guided prices, shall be subject to market regulation to be fixed by business operators independently according to the provisions of this law. Article 7 In fixing prices, business operators should follow the principle of fairness, lawfulness, honesty and trustworthiness. Article 8 Prices should be fixed by business operators basing on the cost of production or operation and market supply and demand. Article 9 Business operators should strive for a better management to their own production and business operations so as to lower cost and provide consumers with merchandises and services at reasonable prices while obtaining lawful profits in market competition. Article 10 Business operators should establish and improve their system of internal price management, accurately record and verify the cost of production or operations for their merchandise or services, in which any deception or forgery is not allowed. Article 11 Operators shall enjoy the following rights in pricing: 1. To fix prices that are subject to market regulation; 2. To fix prices within the guided range as set by the government; 3. To fix prices for new products which are subject to government-set or guided prices, except special products for trial sales; and 4. To report or claim against actions that have infringe upon their rights of independent pricing. Article 12 In their work related to prices, business operators should strictly keep up with laws, regulations, government guided-prices, government-set prices, legal price intervention measures and emergency measures adopted by the government according to law. Article 13 In marketing and purchasing merchandises or providing services, business operators should clearly tap the related prices, specify names, places of origin, specifications, grades, price units, prices or items, fee collection standards and other related information according to the government's regulations. Business operators must not sell merchandises at prices above the marked prices or collect fees not specified. Article 14 Business operators must not act whatsoever in the following ways to effect abnormal price behaviors: 1. To work collaboratively with others to control market prices to great detriments to the lawful rights and interests of other business operators or consumers; 2. To engage in dumping sales (except the cases of sales of fresh and l......