iSinoLaw Weekly

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Volume 38, Oct 16 ¡V Oct 22, 2006

²Ä38´Á¡A2006¦~10¤ë16 - 10¤ë22¤é

 

 

I.                  Highlights of New Laws

 

Five Government Departments Issued the ¡§Measures¡¨ to Rectify Unfair Trading Conduct between Retailers and Suppliers

 

 

Recently, the domestic retail industry has been developing rapidly. It is evidenced by unceasing rise of chained supermarkets and home electric appliance flea markets. The new commercial mode of such kind of retail has produced significant effect on promoting commodity flow and consumption expansion. Unfortunately, some retailers abuse their advantageous position as the terminal of sale. Thus, ¡§large shops deceiving customers¡¨ is a common phenomenon which results in detriments to the legitimate rights and interests of suppliers. In order to regulate the conduct of trading between retailers and suppliers, maintain the order for fair trading and protect the legitimate rights and interests of consumers, the Ministry of Commerce, the National Development and Reform Commission, the Ministry of Public Security, the State Administration of Taxation and the State Administration for Industry and Commerce jointly promulgated the ¡§Measures on Administration of Fair Trading between Retailers and Suppliers¡¨ (iSinolaw Reference ID: 10019863, hereinafter referred to as the ¡§Measures¡¨) on October 13, 2006.

 

The Measures mainly focus on the stronger party in the retailer-and-supplier trading, i.e. imposing mandatory restrictions on the retailers with more bargaining power with an aim to adequately protect the interests of suppliers. The Measures prescribe that a retailer shall not take the advantage of its superior status to conclude the supply contract with a supplier regarding specific commodities and refuse to accept such commodities after both parties reach a consensus regarding the specifications, models and designs of the commodities. A retailer shall neither compel a supplier to sale and return profits unconditionally nor compel a supplier to purchase the designated commodities or accept the designated service. A retailer shall not request suppliers to send their personnel to the retailer business site to provide service. Also, if a retailer replenishes the stock of a commodity at a lower price during the promotion period and return the residual stock of such commodity at a normal price after the promotion period, the supplier concerned shall have the right to reject the returned goods.

 

In order to deter the retailers from willful delay of payments to suppliers, the Measures provide that a retailer and a supplier shall clearly stipulate the term of payment for commodities in the contract based on the attribute of the commodities. However, the stipulated term of payment shall not exceed 60 days after receiving the commodities. Delay of the payment on certain excuses is held unacceptable under the Measures.

 

The Measures shall be effective as of November 15, 2006. With the implementation of the Measures, the conduct of trade between retailers and suppliers are probably regulated through legal means. The healthy development of retail industry, maintenance of social stability and protection of legitimate rights of consumers will be facilitated.

 

(Translator: JS)

 

II.               Major Laws and Regulations in the Week

 

1.       Laws and Regulations Promulgated in the Week

NO

Title

Promulgation Date

Effective

Date

1

Notice of the National Taxation Bureau and Local Taxation Bureau of Shanghai Municipality on Conscientiously Implementing the ¡§Administrative Measures of the State Administration of Taxation on Levyof Regular Fixed Tax over Individual Business Entities¡¨ 

19/10/2006

19/10/2006

2

News Release of the ¡§Guiding Opinions on Several Issues Concerning the Application of Laws in Hearing the Cases on Damage Compensation for Road Traffic Accidents¡¨

18/10/2006

18/10/2006

3

Guiding Opinions of the Higher People¡¦s Court of Chongqing Municipality on Several Issues Concerning the Application of Laws in Hearing the Cases on Damage Compensation for Road Traffic Accidents

18/10/2006

1/11/2006

4

Public Announcement No.59 of 2006 of the General Administration of Customs¡X¡Xon Implementing Interim Anti-dumping Measures on Imported Electrolytic Capacitor Paper Originated from Japan

18/10/2006

20/10/2006

5

Notice of the State Grain Administration on Establishing the National Monitoring System on Grain Quality

17/10/2006

17/10/2006

6

Policy on Development of Cement Industry

17/10/2006

17/10/2006

7

Notice of the National Development and Reform Commission on Issuing the Special Planning for Development of Cement Industry

17/10/2006

17/10/2006

8

Public Announcement No.80 of 2006 of the Ministry of Commerce¡X¡Xon Preliminary Adjudication of the Anti-dumping Investigation on Imported Electrolytic Capacitor Paper Originated from Japan

16/10/2006

16/10/2006

9

Notice of the Securities Association of China on Amending the Relevant Articles of the ¡§Interim Measures for Appraising the Securities Companies Engaging in the Relevant Innovative Activities¡¨ and the ¡§Interim Measures for Appraising the Standard Securities Companies¡¨

16/10/2006

16/10/2006

10

Notice of the Ministry of Commerce on the Implementation of the ¡§Thousand-Hundred-Ten Project¡¨ in Service Outsourcing

16/10/2006

16/10/2006

 

 

2.       Laws and Regulations Coming into Force in the Week

NO

Title

Promulgation Date

Effective

Date

1

Notice of the National Taxation Bureau and Local Taxation Bureau of Shanghai Municipality on Conscientiously Implementing the ¡§Administrative Measures of the State Administration of Taxation on Levyof Regular Fixed Tax over Individual Business Entities¡¨ 

19/10/2006

19/10/2006

2

News Release of the ¡§Guiding Opinions on Several Issues Concerning the Application of Laws in Hearing the Cases on Damage Compensation for Road Traffic Accidents¡¨

18/10/2006

18/10/2006

3

Public Announcement No.59 of 2006 of the General Administration of Customs¡X¡Xon Implementing Interim Anti-dumping Measures on Imported Electrolytic Capacitor Paper Originated from Japan

18/10/2006

20/10/2006

4

Notice of the State Grain Administration on Establishing the National Monitoring System on Grain Quality

17/10/2006

17/10/2006

5

Policy on Development of Cement Industry

17/10/2006

17/10/2006

6

Notice of the National Development and Reform Commission on Issuing the Special Planning for Development of Cement Industry

17/10/2006

17/10/2006

7

Public Announcement No.80 of 2006 of the Ministry of Commerce¡X¡Xon Preliminary Adjudication of the Anti-dumping Investigation on Imported Electrolytic Capacitor Paper Originated from Japan

16/10/2006

16/10/2006

8

Notice of the Securities Association of China on Amending the Relevant Articles of the ¡§Interim Measures for Appraising the Securities Companies Engaging in the Relevant Innovative Activities¡¨ and the ¡§Interim Measures for Appraising the Standard Securities Companies¡¨

16/10/2006

16/10/2006

9

Notice of the Ministry of Commerce on the Implementation of the ¡§Thousand-Hundred-Ten Project¡¨ in Service Outsourcing

16/10/2006

16/10/2006

10

Provisions on Administration of Import and Export of Easily-Drug-Making Chemicals

21/9/2006

21/10/2006

11

Administrative Measures for Establishment of Service Network in Direct Selling Industry

20/9/2006

20/10/2006

 

 

* For the full text of the laws and regulations stated in this Weekly, please see http://www.isinolaw.com

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