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Ministry of Commerce: Lifting of Used Car Sales Restrictions “Crystal Clear”

China’s Ministry of Environmental Protection and Ministry of Commerce (MOFCOM) have jointly issued the Notice on Strengthening the Supervision Work of Environmental Protection Standard of Second-Hand Cars, clarifying the lifting of restrictions on used car sales across the country.

An official of MOFCOM’s Market System Development Department said that the standards of the new policy are crystal clear. The municipal and provincial governments shall not set up barriers for used car registration for those motor vehicles falling within the validity period of environmental protection periodic inspection verification and safety testing, and complying with the emissions standards requirement for on-road vehicles of the relocated place. Exemptions are given to key regions for national air pollution control and vehicles required to be phased out under national policy.

The official said further that the vehicle emissions standards refer to the standards for on-road vehicles in the area and not those required for new vehicles sold in the area. In other words, any cars permitted on the road of the area are entitled to be registered.

The official said that there is clear guidance on the exemption under the new policy, which includes only "vehicles required to be phased out under national policy". Currently, the so-called yellow-label cars – gasoline-powered vehicles that fail to meet National I emissions standards and diesel-powered vehicles that fail to meet National III emissions standards – are being taken off the road under national policy.

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