Regulation of Shanghai Municipality on the Administration of Commodity Transaction Markets

• Area of Law： Industrial and Commercial Management
• Level of Authority： Provincial Local Regulations
• Date issued：11-25-2005
• Effective Date：03-01-2006
• Status： Effective
• Issuing Authority： Shanghai Municipality

Announcement of the Standing Committee of the People's Congress of Shanghai Municipality
(No. 56)
The Regulation of Shanghai Municipality on the Administration of Commodity Transaction Markets, which was adopted at the 24th Session of the Standing Committee of the 12th People's Congress of Shanghai Municipality on November 25, 2005, is hereby promulgated, and shall come into force as of March 1, 2006.
Standing Committee of the People's Congress of Shanghai Municipality
November 25, 2005
Regulation of Shanghai Municipality on the Administration of Commodity Transaction Markets
(Adopted at the 24th Session of the Standing Committee of the 12th People's Congress of Shanghai Municipality on November 25, 2005)
Chapter I General Provisions
Article 1 The present Regulation is formulated in accordance with the relevant laws and administrative regulations and in combination with the reality of this Municipality, and for the purpose of promoting the development of commodity transaction markets, maintaining the order of commodity transaction markets, and ensuring the lawful rights and interests of market operation managers, intra-market operators, and commodity purchasers.
Article 2 Commodity transaction market as mentioned in the present Regulation shall refer to a fixed place, which is operated and managed by a market operation manager and where many intra-market operators carry out centralized spot commodity transaction independently by themselves.
Market operation managers as mentioned in the present Regulation shall refer to the enterprise legal persons established in accordance with the law, which use their own fixed place or rent a fixed place or obtain a fixed place by other means, and organize the intra-market operators to carry out centralized spot commodity transaction, and engage in market operation and management through providing places, relevant facilities, realty services and other services.
Intra-market operators as mentioned in the present Regulation shall refer to the enterprises, other organizations, and individual businesses, which engage in spot commodity sale independently in their own names within the commodity transaction market.
Article 3 The present Regulation shall be applicable to the setting-up, operation and management, and intra-market transaction of the commodity transaction markets within this administrative region and the relevant supervision and management activities thereof.
Article 4 The administrative department of economy and trade of this Municipality and those of the districts (counties) shall be responsible for compiling the development plans for commodity transaction markets in light of their division of work, give guidance to the operation activities of commodity transaction markets, and coordinate with the relevant departments of the government to implement the present Regulation together.
The administrative department of industry and commerce at all levels shall be responsible for making confirmation on the qualification of the participants in commodity transaction markets and making supervision and administration on their operation acts.
Other relevant administrative departments shall, according to their own functions, make supervision and administration on commodity transaction markets according to law.
Article 5 The lawful rights and interests of market operation managers, intra-market operators, and commodity purchasers shall be protected by law.
Market operation managers and intra-market operators shall follow the principle of honesty and good faith, and carry out operation activities according to law.
Chapter II Functions of the Government
Article 6 The people's government of this Municipality shall strengthen planning and management on the setting-up of commodity transaction markets.
For the setting-up of any commodity transaction market whose overall arrangement plan needs to be compiled by the municipal people's government, the administrative department of economy and trade of this Municipality shall, together with other relevant administrative departments, compile setting-up plan, and implement it after reporting it to the municipal people's government for approval.
For the setting-up of the market for wholesale of edible agricultural products, the municipal administrative departments of economy and trade shall compile setting-up plan along with the administrative department of planning at the corresponding level, and ensure the land used for the planning, and implement the setting-up plan after reporting it to the municipal people's government for approval. For the setting-up of the market for retail of edible agricultural products, the administrative department of economy and trade at the districts (counties) shall, along with the administrative department of planning at the corresponding level, and in light of the principle of being convenient for citizens, compile the setting-up plan, and implement it after reporting it to the people's governments of the districts (counties) for approval.
Article 7 For the important commodity transaction markets that concern the economic and social development of this Municipality, the municipal people's government shall formulate corresponding supporting policies.
Where a commodity transaction market is set up with the place provided by the government, the relevant administrative departments shall choose market operation managers by way of public bidding and tendering in light of the principle of openness, fairness, and justness.
Article 8 The relevant administrative departments of the people's governments of this Municipality and those of the districts (counties) shall, in light of the requirements for publishing government information, publish such information as the laws, regulations, rules, regulatory documents concerning management on commodity transaction markets, and the setting-up of commodity transaction markets, and provide convenience for the general public to consult the information.
Article 9 In case there is necessity to make on-site testing on the commodities transacted at the markets for wholesale of edible agricultural products and other wholesales markets, the relevant administrative departments shall dispatch testing personnel in the markets, provide corresponding testing equipment and reagents, or entrust the operation managers of the wholesales market that have testing conditions to make test, and the staff members undertaking the testing shall be qualified after training.
Article 10 The administrative departments of industry and commerce, food and drug supervision and administration, and fire control shall establish patrolling system, and make supervision and administration on commodity transaction markets according to their own functions.
The administrative departments of industry and commerce, food and drug supervision and administration, and quality and technology supervision shall publicize within the commodity transaction markets the information on government affairs relating to the supervision functions of their own departments and the names, addresses, and contact telephones of the management institutions and the detached offices.
Each relevant administrative department shall, after receiving any tip-off or complaint, make a good record, and make investigation and handling in a timely manner, and give reply to the person making the tip-off or complaint.
The administrative departments of industry and commerce, food and drug supervision and administration, and quality and technology supervision shall make investigation on and punish the illegal operation activities of market operation managers and intra-market operators.
Article 11 The administrative departments of quality and technology supervision shall make supervision and inspection on the measuring instruments subject to mandatory inspection within the commodity transaction markets.
The administrative departments of quality and technology supervision, food and drug supervision and administration, and agriculture shall carry out regular spot check on the commodity quality within the commodity transaction market according to their own functions, and make public the result of the spot check within the commodity transaction markets.
Chapter III Market Operation Managers
Article 12 The enterprise legal person registration system shall be applied to the opening of commodity transaction markets.
A market operation manager shall make registration at the administrative department of industry and commerce according to law, and obtain business license of an enterprise legal person. If there is necessity to handle other operation permits, it shall handle them at the relevant administrative departments according to law.
Article 13 Such words as the “market operation and management” shall be included in the enterprise name of an operation manager of a commodity transaction market, and the business scope thereof shall be consistent with that in the industry and commerce registration.
The place of registration of a commodity transaction market shall be consistent with the actual business place of the market. In case any market operation manager establishes another commodity transaction market at another place other than its place of registration, it shall go through the formalities for registration of the branch at the administrative department of industry and commerce at its locality.
Article 14 The choosing of the place for a commodity transaction market shall comply with the requirements for land use as determined in urban planning and the provisions of Article 6 of the present Regulation.
The internal arrangement of a commodity transaction market and the equipment of the facilities thereof shall comply with the relevant standards and criterions of the state and this Municipality, and meet the requirements for environmental protection, city appearance and environmental sanitation, fire control, and other public security requirements.
Article 15 The principle of combining service provision and implementation of management shall be followed for the operation and management of commodity transaction markets. Market operation managers shall formulate the relevant intra-market management system, organize to inspect the implementation of the relevant systems regularly, and take necessary measures in a timely manner according to the inspection result.
Article 16 The market operation managers of the markets on retail of edible agricultural products shall arrange a special area of not less than 5% of the business area of their markets within the markets for the farmers to sell their self-produced edible agricultural products.
Article 17 A market operation manager shall sign entry-market operation contract with intra-market operators, and stipulate the contents of operation, intra-market orders, the rights and obligations of the two parties, the liabilities for breach of the contract, ways of dispute resolution, and other matters by referring to the model text of the entry-market operation contract.
The model text of the entry-market operation contract shall be formulated and recommended for use by the administrative department of economy and trade of this Municipality together with the administrative department of industry and commerce of this Municipality.
Article 18 The market operation managers shall check the business licenses of the operators that enter into the market, their tax registration certificates and the various kinds of operation permits.
Article 19 The market operation managers shall urge the intra-market operators to abide by the relevant legal provisions and market management system, strengthen bona fide service and the consciousness of civilized business operation, and advocate good operation morality and commercial ethics.
In case any market operation manager discovers any illegal act of any intra-market operator, it shall make persuasion, and report to the relevant administrative departments in a timely manner.
No market operation manager shall provide any place, preservation and warehouse conditions for any intra-market operator that undertakes illegal transaction.
Article 20 The market operation managers shall maintain the various operation facilities within the markets and the facilities of fire control, environmental sanitation, security safeguard, and other facilities, so as to have the relevant facilities be in good status, and eliminate the various hidden trouble of safety in a timely manner.
The market operation managers shall prevent intra-market operators from occupying the roads, putting up constructions, or peddling in the markets, so as to keep the intro-market environments neat, and ensure that the channels in the markets be smooth and unblocked.
Article 21 Market operation managers shall make registration on the measuring instruments that are used in the markets and fall within the scope of mandatory inspection, and organize the intra-market operators to apply for regular inspection to the designated measurement inspection institution, and urge the intra-market operators to use and maintain the measuring instruments correctly according to law.
Market operators shall set up re-inspection measuring instruments that comply with the requirements for measurement within the market.
Article 22 A market operation manager shall hang business license, tax registration certificate, and the relevant licensing certificate of its own enterprise in an eye-catching place of the market, set up a bulletin board at an eye-catching place, and announce the market management system and the address and telephone of the organs that accept the complaints of the consumers about their rights and interests.
Article 23 In case any intra-market operator that violates the lawful rights and interests of consumers has left the commodity transaction market, the consumers may request the market operation manager to give compensation. After the market operation manager has undertaken the compensation liabilities, it may require the intra-market operator who is liable to give compensation.
Article 24 In case any commodity market stops business operation or terminates business operation, the market operation manager shall make handling in light of the following provisions: (1) Notifying the intra-market operator three months beforehand, unless there are otherwise stipulations by the contract, such stipulations shall be followed; or (2) For a commodity transaction market on retail, a public notice shall be posted at the entrance of the market three months beforehand.
Chapter IV Intra-market Operators
Article 25 The intra-market operators shall fulfill their commitments, compete fairly, and make lawful operation, and hang relevant certificates and licenses at the eye-catching place of their business places as required.
The farmers shall, when selling edible agricultural products that he produces and markets on his own, hold relevant effective certificates, and operate within the special areas as arranged by the market operation managers.
Article 26 The intra-market operators shall check the commodity quality when purchasing commodities, and preserve continuously the invoices and documents that can prove the source of the goods for half a year after having completed the sale of the commodities.
With regard to the brand commodities of special sale, an intra-market operator shall get the authorization certificate.
Article 27 An intra-market operator shall, when selling commodities, issue the vouchers of purchases to commodity purchasers in accordance with the relevant state provisions or commercial practices, but a farmer who sells edible agricultural products that he produces and markets on his own shall be excluded from doing so.
Article 28 An intra-market operator shall, when operating commodities concerning personal health and life security, and commodities of important production materials, establish ledgers for purchasing and selling commodities, and require the suppliers to provide the relevant certificate documents.
Article 29 An intra-market operator shall have the right to propose opinions on improvement to the issues concerning intra-market management orders and hidden security trouble, and report to the relevant administrative departments, if necessary.
Chapter V Legal Liabilities
Article 30 Any act in violation of the provisions of the present Regulation shall be punished in accordance with the provisions of punishment of any law or regulation, if any.
Article 31 In case any market operation manager violates the provisions of Article 19 of the present Regulation by failing to report to the relevant administrative departments in a timely fashion when discovering any illegal act of any intra-market operator, the relevant administrative departments shall order it to correct according to their respective functions, and impose upon it a fine ranging from 2,000 yuan to 20,000 yuan.
Article 32 In case any market operation manager violates the provisions of Article 24 of the present Regulation on suspension of business or termination of business operation of the commodity transaction market, namely, the commodity transaction market on retail fails to post public notice at the entrance of the market three months beforehand, the administrative department of industry and commerce at the districts or counties shall order it to correct within a prescribed time limit; if it fails to correct within the time limit, it shall be given a fine ranging from 1,000 yuan to 10,000 yuan.
Article 33 In case any intra-market operator violates the provisions of Article 28 of the present Regulation by failing to establish ledgers for purchase and sale of the commodities or by failing to require the suppliers to provide conformity certificate when it operates the commodities concerning personal health and life security, and commodities of important production materials, the administrative department of industry and commerce shall order it to correct and impose upon it a fine ranging from 1,000 yuan to 5,000 yuan.
Article 34 In case any person in charge who is directly responsible or any other person directly liable in the relevant administrative departments neglects his duties, abuses his powers, or practices favoritism for himself or his relatives, his entity or the competent department in charge at the upper level shall give him an administrative punishment; if a crime is constituted, he shall be subject to criminal liabilities according to law.
Chapter VI Supplementary Provisions
Article 35 The present Regulation shall come into force as of March 1, 2006.