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A few days ago, the new version of the measures for the Administration of Recycling of scrapped Motor vehicles was officially released, and documents of the State Council show that the measures will come into effect on June 1, 2019. At the same time, it means that the old version of the "measures for the Management of scrapped cars Recycling", which has been implemented for 18 years, is about to stop.

The new version of the measures for the Management of scrapped Motor vehicles has been revised in terms of the entry threshold for motor vehicle recycling enterprises, the lifting of the ban on remanufacturing of five major assemblies, and the lifting of the ban on recycling prices. The implementation of the qualification recognition system for scrapped motor vehicle recycling enterprises and allowing the five assemblies with remanufacturing conditions to be recycled have been retained, but the terms of recovery price have not been retained.

Among them, the state implements a qualification recognition system for scrapped motor vehicle recycling enterprises. Without qualification confirmation, no unit or individual may engage in the recovery of scrapped motor vehicles. At the same time, the state encourages motor vehicle manufacturing enterprises to engage in scrapped motor vehicle recycling activities. Those who intend to engage in scrapped motor vehicle recycling activities shall apply to the local government department responsible for the management of scrapped motor vehicle recycling.

The "five assemblies" refer to the automobile engine, steering gear, transmission, front and rear axle and frame. The new administrative measures stipulate that if the "five major assemblies" of disassembled scrapped motor vehicles have the conditions for remanufacturing, they may be sold to enterprises with remanufacturing capacity for recycling in accordance with the relevant provisions of the state; if they do not have the conditions for remanufacturing, they shall be sold as scrap metal to iron and steel enterprises as raw materials for smelting.

The revised measures focus on three aspects of reform: first, abolish the requirement of total quantity control of scrapped automobile recycling and disassembly enterprises, and implement the system of license before approval; second, allow disassembled and recycled parts to enter the market circulation and carry out green car consumption; third, encourage the "five assemblies" to be handed over to qualified remanufacturing enterprises for remanufacturing.

After the revised measures, the purchase price of scrapped motor vehicles will be abolished with reference to the provisions on the pricing of scrap metal prices, and the pricing will be negotiated independently by the market entities.

Some people in the industry said that the introduction and implementation of the new management measures will further promote the system reform of the scrapped car recycling industry and guide the scrapped car industry to an orderly, standardized and market-oriented development model.

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