On April 27, 2021, State Administration of Market Regulation (SAMR) issued Order No. 40, which officially announced Administrative Provisions on Vehicle Emission Recall (hereinafter referred to as "the Provisions"). The Provisions have been approved at the 6th executive meeting of SAR on March 30th 2021 and was officially issued with the consent of Ministry of Ecology and Environment (MEE).
In the provisions, the product recall is extended from safety recall to emission recall in the purpose of effectively protecting and improving environment and ensuring human health. The provisions will enter into force on July 1, 2021.
For the newly released and to-be-implemented provision, the basic interpretation is summarized as follows:
I. Background
Environmental protection recall of motor vehicle is one of the important means to prevent and control the emission pollution of motor vehicles. Many countries have established the environmental protection recall system of motor vehicles through laws (Directives), such as Clean Air Act of the United States, the European Union Motor Vehicle Emission Council Directive 70/220/EEC and 88/77/EEC of EU, and Environmental Basic Law and the Basic Environment Law of 1993 and Air Pollution Control Act of Japan.
The introduction of the Provisions is not only the requirement of its superior law, but also takes consideration of the practical needs. The Law on Air Pollution Prevention and Control, adopted in August 2015, clearly stipulates in Article 58 that China should establish an environmental protection recall system of motor vehicles and non-road mobile machinery.
From the perspective of real life, the establishment of a regulation on vehicle emission recall is in line with the current needs of China's economic and social development. At present, the pollution of mobile sources (mainly including motor vehicles and non-road mobile machinery) is becoming an increasingly prominent problem and has turn out to be an important source of air pollution.
II. Interpretations
1) Scope
According to Law on Air Pollution Prevention and Control, the scope of environmental protection recall includes motor vehicles and non-road mobile machinery. The Provisions specify that it applies to the implementation, supervision, and management of vehicle recall, and the implementation, supervision, and management of environment protection recall for non-road mobile machinery in China shall also comply to it.
2) Roles and responsibilities of authorities
a. Vehicle emission recall is jointly managed by State Administration of Market Regulation and Ministry of Ecology and Environment.
b. Ministry of Ecology and Environment is responsible for collecting and analyzing the information of vehicle emission inspection and detection, pollution control technology and reports on emission, and shall ensure the information sharing with State Administration of Market Regulation;
c. State Administration of Market Regulation is responsible for establishing the information system of motor vehicle emission recall, receiving the report on producer recall plan, releasing recall information to the public, carrying out information and technology consultation together with Ministry of Ecology and Environment, defect investigation and identification, supervision of recall implementation, as well as effect evaluation, recall directive, etc..
3) Relations with the safety recall of defective automobile products
China has issued Regulations on the Administration Recall of Defective Automobile Products (hereinafter referred to as “the Regulations”) on October 22, 2012, but the recall stipulated in the regulations refers to safety recall of automobile products.
4) Approaches of information collections
a) The relevant authorities shall collect and share information..
b) Manufacturers should report relevant information.
c) Operator and component manufacturers shall report relevant information.
5) Recall conditions: according to the Provisions, manufacturers should recall the motor vehicles once there are emission hazards. The emission hazards refers to following three situations:
a) Air pollutants emitted by motor vehicles exceed the standard due to design and production defects,.
b) Air pollutants emitted by motor vehicles exceed the standard due to the non-compliance with the environmental protection durability requirements.
c) Motor vehicles have other non-compliance with emission standards or unreasonable emissions due to design and production reasons, motor vehicles.
6) Standards on Investigation and Identification
The basic process of the Provisions and the Regulations is the same, yet some process steps have added the requirements of joint administration of State Administration of Market Regulation and Ministry of Ecology and Environment. It mainly involves:
a) Jointly carry out emission hazard investigation.
b) Jointly handle manufacturer objections.
c) Jointly implement the recall order.
7) Other Explanations
a) The provisions creatively proposes that the emission recall should be connected with the vehicle emission inspection. The provisions clarified that in the annual inspection of motor vehicle emissions, the inspection organization shall remind the owners of the recall scope, urge the owners to cooperate to complete the recall of environmental protection and effectively reduce the emission pollution.
b) In comparison with the regulations, the provisions add that if the producers of the parts and components for motor vehicles find that there may be emission hazards, they shall report to State Administration of Market Supervision and inform the motor vehicle manufacturers of the provisions.
III. Effects
1) Industrial Status
Automobile industry is an important pillar of Chinese economy. In 2020, China's auto sales continued to rank first in the world. The profit of automobile manufacturing industry increased by 4.0%. In 2020, the number of motor vehicles in China will reach 372 million, including 281 million automobiles; there are 70 cities has more than 1 million automobiles in China.
2) Expected effects by the Implementation of the Provisions
Emission recall is an international common practice, which has been implemented in the United States, Europe, Japan and other developed countries for decades. It plays an significant role in reducing the emission level of motor vehicles and improving the effect of environmental protection. The implementation of emission recall is an irreversible trend. The Provisions will drive the motor vehicle industry pay more attention to emission technology research and development and related standards, and force enterprises to take the initiative to upgrade their technology.
If you need more information, please contact
assistant@bestao-consulting.com