Recall specifications and upgrade into national legislative plan

Earlier this month, the Legal Affairs Office of the State Council issued the "Regulations on the Recall of Defective Automobile Products (Draft for Soliciting Opinions)" and publicly solicit opinions from all sectors of society. According to relevant officials of the General Administration of Quality Supervision, Inspection and Quarantine, the Regulations on the Administration of Recall of Defective Automobile Products has been included in the State Council's legislative plan and it is estimated that it will be introduced this year.

Recall of reality and disconnection from automobile powers The current "Regulations on the Recall of Defective Automotive Products", which was jointly issued by the AQSIQ and other four departments, was formally implemented on October 1, 2004. In more than seven years, a total of 370 vehicles and over 6 million vehicles were recalled. However, compared to the annual number of car recalls in developed countries such as the United States, the annual number of car recalls in China is not commensurate with the size of the world's largest new car market and the number of cars that exceed 100 million vehicles.

According to the data released by the General Administration of Quality Supervision, Inspection and Quarantine, in 2009, the sales volume of new cars in the United States was 10.43 million, and 17.84 million vehicles and 571 vehicles were recalled. In Japan, 4.6 million new vehicles were sold, and 3.11 million vehicles and 291 vehicles were recalled; while the sales volume of new cars in China was 13.64 million. Only 1.36 million vehicles and 56 recalls were recalled. The number and the number of recalls in the Chinese auto market have not reached the average level of the world average. The auto recall system is in urgent need of improvement.

Under this background, in July 2010, the General Administration of Quality Supervision, Inspection and Quarantine had issued the "Regulations on the Supervision of the Recall of Automobile Products (Draft for Comment)" and publicly solicited opinions from the public. The "Regulations on Recalling Defective Auto Product Management (Draft for Soliciting Opinions)" just announced by the State Council Legislative Affairs Office, on the basis of summarizing the implementation experience of the current departmental rules and the drafting of the former regulations, can tighten the "recall fence" from the system level.

Recall conditions threaten safety Needs to be recalled The new consultation draft clearly defines the "defects": the prevalence of personal and property risks in a batch, model, or category of automotive products due to design, manufacturing, marking, etc. The unreasonable risks include: Failure to comply with national standards, industry standards and requirements for the protection of human health and personal and property safety; compliance with national standards, industry standards and requirements for the protection of human health and personal and property safety, but may still endanger Human health and personal and property safety. In addition, the draft of the draft resolution further clarified the recall activities. Specifically, the specific way of recalling is that “producers shall promptly adopt measures such as amendments or supplementary signs, repairs, replacements, returns, etc. to eliminate defects existing in the sold automotive products”.

Non-compliance penalties may revoke relevant licenses It is worth noting that once the vehicle recall regulations are upgraded to regulations, the scope of supervision, supervision, deterrence, and penalties for auto recall management will be fully upgraded. For automobile manufacturers, the relationship between brand integrity and recall will be even closer. “Inadvertently and all-in loses” is by no means an alarmist.

A major highlight of the mandatory force of the Regulations on the Supervision of Auto Product Recall Supervision (Draft for Soliciting Opinions) is “ordering a recall”, which stipulates that “producers should recall defective automotive products in accordance with the provisions of this Regulation; producers should recall defective automotive products without implementing them. In case of a recall, the quality inspection department of the State Council shall order it to recall defective automotive products in accordance with the provisions of these Regulations." If the producer is ordered to recall and refuse to recall, if the circumstances are serious, the permitting agency shall revoke the relevant permit.

Insiders pointed out that although the new manuscript seems to have reduced penalties compared with manuscripts, in fact, on the other hand, there is a possibility of more "deterring." Because the new draft is clear, any unit or individual may complain to the quality inspection department of the State Council about possible defects in the automobile products and expand the subject who claims rights.