Auction rules

The overseas auction rules shall be based on local laws. If there is any attention, the company will solicit notice of release.

Amends to the Eleventh Meeting "Decision on Amending the Auction Law of the People's Republic of China"



Chapter 1 General

Article 1 This Law is formulated in order to regulate auction behavior, maintain the order of auctions, and protect the legitimate rights and interests of parties to auction activities.

Article 2 This Law applies to auction activities conducted by auction enterprises within the territory of the People's Republic of China.

Article 3 An auction refers to the sale and purchase of specific items or property rights to the highest bidder in the form of an open auction.

Article 4 Auction activities shall abide by relevant laws and regulations and follow the principles of openness, fairness, impartiality, and good faith.

Article 5 The department of the State Council responsible for the management of the auction industry shall exercise supervision and administration over the national auction industry.

The people's governments of the provinces, autonomous regions, and municipalities directly under the Central Government and the people's governments of the cities divided into districts shall be responsible for the supervision and management of the auction industry in the administrative region.


Chapter II of the auction target

Article 6 The subject matter of an auction shall be the property or property rights owned by the principal or that may be disposed of according to law.

Article 7 The articles or property rights that are forbidden to be bought or sold by laws or administrative regulations shall not be used as auction targets.

Article 8 In accordance with the law or the provisions of the State Council subject to examination and approval of the transfer of goods or property rights, prior to the auction, they should go through the examination and approval procedures.

The cultural relics commissioned for auction shall be certified and licensed by the administrative department for cultural relics at the location of the auctioneer before the auction.

Article 9 Articles confiscated according to law by state administrative organs, articles subject to taxation, penalties and other articles, which shall be entrusted to auction in accordance with the provisions of the State Council, shall be the people's governments of the provinces, autonomous regions, and municipalities directly under the Central Government where the property is located, and the people of the cities divided into districts. The government-designated auctioneer auctions. The provisions of the preceding paragraph shall apply to auctioning articles confiscated by the People's Court according to law, articles that are taxable, fines, and items that cannot be returned.



Chapter III Auction Parties

Section I Auctioneers

Article 10 An auctioneer refers to an enterprise legal person engaged in auction activities established in accordance with this Law and the "Company Law of the People's Republic of China."

Article 11 An auction company may be established in the city where the district is located. The establishment of an auction enterprise must be subject to the approval of the department of auction industry management by the local people's government of the province, autonomous region, or municipality directly under the Central Government, and apply to the administrative department for industry and commerce for registration and business license.

Article 12 The establishment of an auction enterprise shall meet the following conditions:

(1) Registered capital of RMB 1 million or more;

(b) have their own name, organization, residence and statute;

(3) There are auctioneers and other staff who are suitable for the auction business;

(4) There are auction business rules that comply with this Law and other laws and regulations;

(5) complying with the provisions of the State Council concerning the development of the auction industry;

(6) Other conditions stipulated by laws and administrative regulations.

Article 13 Where an auction enterprise engages in the auction of cultural relics, it shall have a registered capital of more than 10 million yuan and have personnel with expertise in the auction of cultural relics.

Article 14 Auction activities shall be hosted by auctioneers.

Article 15 The auctioneer shall meet the following conditions:

(1) Having college education or above and auction professional knowledge;

(b) working for more than two years in an auction enterprise;

(3) Good conduct.

A person who has been expelled from public service or whose auctioneer qualification certificate has been revoked for less than 5 years or who has been punished by deliberate criminal offences may not serve as an auctioneer.

Article 16 The qualifications of auctioneers shall be uniformly organized by auction industry associations. After passing the examination, the auction industry association will issue the auctioneer qualification certificate.

Article 17 The auction industry association is a social organization legal person established according to law and a self-discipline organization of the auction industry. The auction industry association shall supervise auction companies and auctioneers in accordance with this law and in accordance with the articles of association.

Article 18 The auctioneer has the right to require the trustor to explain the source and defect of the auction target.

The auctioneer shall explain to the bidder the flaws of the auction object.

Article 19 The auctioneer shall have the obligation to keep the articles submitted by the client for auction.

Article 20 After an auction accepts an entrustment, no other auctioneer may be entrusted to auction without the consent of the trustor.

Article 21 Where the client or buyer requests to keep his identity secret, the auctioneer shall keep it confidential.

Article 22 Auctioneers and their staff members may not participate in auction activities organized by themselves as bidders, and may not entrust others to bid on their behalf.

Article 23 The auctioneer may not auction his own articles or property rights in the auction activities organized by himself.

Article 24 After an auction is concluded, the auctioneer shall, in accordance with the contract, submit the price of the auction target to the client, and hand over the auction target to the buyer in accordance with the contract.



Section II Principals

Article 25 A client refers to a citizen, legal person or other organization that entrusts an auctioneer to auction an item or property right.

Article 26 The trustor may handle the entrusted auction procedures on his own, or his agent may handle the commissioned auction procedures on his behalf.

Article 27 The client shall explain to the auctioneer the source and defect of the auction target.

Article 28 The principal has the reserve price for determining the auction target and requires the auctioneer to keep it confidential.

If an auction of state-owned assets needs to be evaluated in accordance with the law or the provisions of the State Council, it shall be evaluated by an evaluation agency established according to law, and the reserve price of the auction target shall be determined based on the evaluation results.

Article 29 The client may withdraw the auction object before the auction begins. Where the client withdraws the auction object, he shall pay the auctioneer the agreed fee; if no agreement is made, the auctioneer shall pay the auctioneer a reasonable fee for the auction sale.

Article 30 The principal shall not participate in the bidding or entrust others to bid for it.

Article 31 Where, in accordance with the contract, the trustee hands over the object of auction, the consignor shall hand over the auction target to the buyer after the auction transaction.



Section 3 Bidders

Article 32 A bidder refers to a citizen, legal person or other organization that participates in bidding for an auction target.

Article 33 Where laws and administrative regulations stipulate the conditions for the sale and purchase of auction objects, the bidder shall meet the prescribed conditions.

Article 34 The bidder may participate in the bidding by himself or may entrust his agent to participate in the bidding.

Article 35 Bidders have the right to know the flaws of auction objects. Have the right to examine the auction target and consult the relevant auction information.

Article 36 A bidder may not withdraw his offer once it has been paid. When other bidders have a higher price, their bid price is not binding.

Article 37 Between bidders, between bidders and auctioneers, malicious collusion shall not be allowed, which will harm the interests of others.



Section 4 Buyers

Article 38 A buyer refers to a bidder who purchases an auction target at the highest price.

Article 39 The buyer shall pay the auction price in accordance with the contract. If the buyer fails to pay the price as agreed, he shall bear the liability for breach of contract, or the auctioneer shall obtain the consent of the client and auction the auction object again. Where an auction object is auctioned on its own, the original buyer must pay the commission that should be paid by the principal and the client in the first auction. If the price for the re-auction is lower than the original auction price, the original buyer shall make up the difference.

Article 40 Where a buyer fails to obtain the subject matter of an auction in accordance with the contract, he shall have the right to require the auctioneer or the trustee to bear the liability for breach of contract.

If the buyer has not received the auction target in accordance with the contract, he shall pay the resulting storage fee.





Chapter IV Auction Procedures

Section I Auction Entrustment

Article 41 Where an entrusting party commissions an auction of an article or property right, it shall provide proof of its identity and proof of ownership of the auction target required by the auctioneer, or a certificate and information of the auction target in accordance with law.

Article 42 The auctioneer shall verify the documents and documents provided by the client. If the auctioneer accepts the entrustment, it shall sign a commissioned auction contract with the consigner.

Article 43 Where an auctioneer believes that an auction object is required to be appraised, it may conduct appraisal.

Where the conclusion of the appraisal is not in conformity with the status of the auction object stated in the entrusted auction contract, the auctioneer has the right to request the alteration or rescission of the contract.

Article 44 The entrusted auction contract shall specify the following items:

(1) The name or address of the principal or auctioneer;

(2) The name, specification, quantity and quality of the auction target;

(3) The reserve price proposed by the client;

(4) The time and place of the auction;

(5) The time or method of delivery or transfer of the auction target;

(6) The commissions and payment methods and deadlines;

(7) Payment methods and deadlines for price payments;

(8) Liability for breach of contract;

(9) Other matters as agreed by both parties.



Section 2 Auction Announcements and Presentations

Article 45 The auctioneer shall publish the auction announcement before the auction day.

Article 46 The auction announcement shall specify the following items:

(a) the time and place of the auction;

(b) of the subject matter of the auction;

(3) The time and place of the auction target;

(4) the formalities for participating in bidding;

(5) Other matters that need to be announced.

Article 47 Announcements for auctions shall be published through newspapers or other news media.

Article 48 The auctioneer shall display the auction objects before the auction and provide the conditions and materials for viewing the auction objects.

The time for the auction target is not less than two days.



Section III Implementation of Auction

Article 49 The auctioneer shall announce the auction rules and precautions before the auction.

Article 50 If there is no reserve price for an auction target, the auctioneer shall explain it before the auction.

Where there is a reserve price for an auction target and the maximum price of the bidder does not reach the reserve price, the price shall not be valid and the auctioneer shall stop the auction of the auction target.

Article 51 After the highest bid price of the bidder has been confirmed by the auctioneer or confirmed by other publicly stated purchase methods, the auction is concluded. Article 52 After the auction is completed, the buyer and the auctioneer shall sign a confirmation of the transaction.

Article 53 When an auctioneer conducts an auction, he shall make an auction transcript. The auction transcript shall be signed by the auctioneer and the recorder. After the auction is completed, the buyer shall also sign the auction record.

Article 54 The auctioneer shall properly keep complete books, auction records and other relevant information concerning business operations.

The period for keeping the account books, auction records and other relevant materials as prescribed in the preceding paragraph shall not be less than 5 years from the date of termination of the entrusted auction contract.

Article 55 Where an auction object requires the alteration of a license certificate or the transfer of property rights in accordance with the law, the principal and the purchaser shall go through the formalities with the relevant administrative authorities with the transaction certificate and relevant materials issued by the auctioneer.



Section IV Commission

Article 56 The principal and the buyer may agree on the commission ratio with the auctioneer.

Where the principal, the buyer and the auctioneer do not agree on the proportion of the auction commission, and the auction is concluded, the auctioneer may collect commissions of up to 5% of the auction price from the client and the buyer. The proportion of commission received is determined in accordance with the principle of inversely proportional to the auctioned transaction price.

If the auction has not been completed, the auctioneer may charge the commissioner an agreed fee; if no agreement is made, the auctioneer may be charged a reasonable fee for the auction.

Article 57 Where an auction item is stipulated in Article 9 of this Law, the auctioneer may charge the buyer a commission not exceeding 5% of the auction price. The percentage of commission received is determined in accordance with the principle of inversely proportional to the transaction price of the contract.

At the end of the auction, the provisions of the fourth paragraph of article 56 of this Law apply.



Chapter V Legal Liability

Article 58 Where a trustee violates the provisions of Article 6 of this Law and entrusts the sale of goods or property rights that he does not have ownership or may not be punished according to law, he shall be liable according to law. If the auctioneer clearly knows that the consignor has no ownership of the auctioned article or property right, or if it cannot be punished according to law, it shall bear joint and several liability.

Article 59: In violation of the provisions of Article 9 of this Law, state organs shall authorize the auctioneer designated by the people's government of the province, autonomous region, or municipality directly under the Central Government where the property is located or the people's government of the city divided into districts to auction items without authorization. The person in charge who has direct responsibility and other directly responsible personnel shall be given an administrative sanction in accordance with law and shall cause losses to the country, and shall also be liable for compensation.

Article 60 In violation of the provisions of Article 11 of this Law, if an auction enterprise is registered without authorization, the administrative department for industry and commerce shall ban it, confiscate the illegal gains, and may impose a fine of not less than one time but not more than five times the illegal gains.

Article 61 Where the auctioneer or the trustee violates the provisions of Article 18, paragraph 2 and Article 27 of this Law and fails to explain the flaw of the auction target and causes losses to the buyer, the buyer has the right to The auctioneer claims compensation; if it belongs to the responsibility of the trustee, the auctioneer has the right to seek compensation from the client.

If the auctioneer or the consignor declares that the authenticity or quality of the auction object cannot be guaranteed prior to the auction, the auctioneer and the consignor shall not assume the responsibility for the obligatory warranty.

Where there is no declaration due to the existence of an auction object, the limitation period for claiming compensation shall be one year, counted from the day when the party knows or should know that his rights have been damaged.

The period of limitation of action for claims for compensation for personal and property damage due to defects in the auction targets applies to the relevant provisions of the "PRC Product Quality Law" and other laws.

Article 62 If the auctioneer and his staff violate the provisions of Article 22 of this law and participate in the bidding or entrust others to bid, the administrative department of industry and commerce shall give a warning to the auctioneer and may be more than double the auction commission. The following fines; if the circumstances are serious, the business license shall be revoked.

Article 63 Where an auctioneer violates the provisions of Article 23 of this law and auctions his own goods or property rights in an auction organized by himself, the administrative department for industry and commerce confiscated the proceeds from the auction.

Article 64 Where the principal violates the provisions of Article 23 of this law and the principal participates in the bidding or entrusts another person to bid for it, the administrative department for industry and commerce may impose a fine of less than 30% on the auction price of the client.

Article 65 In violation of the provisions of Article 37 of this Law, if there is malicious collusion between the bidders, the bidder and the auctioneer, causing damage to others, the auction is invalid and shall be liable for compensation according to law. The administrative department for industry and commerce shall impose a fine of 10% to 30% on the bidder's highest price for participating in malicious collusion, and a fine of 10% to 50% on the highest bidder's price for the malicious bidder.

Article 66 Where a commission is charged in violation of the provisions of section IV of Chapter IV of this Law concerning commission rates, the auctioneer shall return the overcharged part to the principal and the buyer. The price control department may fine the auctioneer more than twice as much as five times as much as the auction commission.



Chapter VI Supplementary Provisions

Article 67 This law shall apply to foreigners, foreign enterprises and organizations entrusting an auction or participating in bidding within the territory of the People's Republic of China.

Article 68 If an auction enterprise established before the implementation of this Law does not meet the requirements of this Law, it shall meet the conditions stipulated by this Law within the prescribed time limit. If the time limit fails to meet the conditions stipulated by this Law, the industry and commerce administrative department Cancellation of registration, collection of business licenses. The specific implementation measures shall be separately formulated by the State Council.

Article 69 This Law shall come into force on January 1, 1997.






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