Decree of Shanghai Municipal Peoples Government

No. 27

Procedures of Shanghai Municipality on the Administration of Business Activities of Cultural Relics in Private Collections were adopted at the 74^th Routine Meeting of the Municipal People’s Government on December 16, 2019, and are hereby promulgated. They shall be effective as of March 1, 2020.

Mayor: Ying Yong

December 25, 2019

Procedures of Shanghai Municipality on the Administration of Business Activities of Cultural Relics in Private Collections

(Promulgated by Degree No. 27 of Shanghai Municipal Peoples Government

on December 25, 2019)

Chapter I  General Provisions

Article 1(Purpose and Basis)

With a view to strengthening the administration of business activities of cultural relics in private collections, promoting the healthy and orderly development of cultural relics market in this Municipality, and protecting the excellent historical and cultural heritages, these Procedures are formulated in accordance with the Law of the Peoples Republic of China on the Protection of Cultural Relics and the Regulations for its implementation, the Regulations of Shanghai Municipality on the Protection of Cultural Relics and other laws and rules, and in the light of the actual circumstances of this Municipality.

Article 2(Scope of Application)

These Procedures shall apply to the purchase, sale, auction and other business activities of cultural relics in private collections within the administrative areas of this Municipality (hereinafter referred to as cultural relics business activities) and their supervision and control.

Article 3 (Basic Requirements)

The circulation of cultural relics in private collections shall be protected by law, but it is not allowed to handle those relics expressly prohibited by the State, nor transfer, lease or pledge to foreigners those relics prohibited by the State from the exit.

Article 4(Departmental Responsibilities)

The municipal department in charge of cultural relics shall be responsible for the licensing, supervision and administration of the business activities of cultural relics in this Municipality.

The district departments in charge of cultural relics shall be responsible for the supervision and administration of the business activities of cultural relics within their areas of jurisdiction.

The departments of market supervision, commerce, public security and customs shall, in accordance with their respective duties, jointly supervise and administer the business activities of cultural relics.

Article 5(Government Affairs Services) 

Departments in charge of cultural relics, market supervision and commerce shall streamline administration, delegate power, improve regulation and optimize service requirements, make use of information technology to simplify administrative examination and approval procedures, strengthen in-service and after-service supervision, and constantly improve the efficiency of service and supervision over the business activities of cultural relics.

Article 6(Self-discipline) 

The relevant trade organizations of cultural relics in this Municipality shall strengthen the self-discipline of the industry, formulate the management norms, develop the integrity system, guide and urge members to carry out cultural relics business activities according to law, and promote fair competition and healthy and orderly development of the industry.

　

Chapter II  Business Units

Article 7(Cultural Relics Shops)

Cultural relics shops established with the approval of the municipal department in charge of cultural relics may, in accordance with the law, engage in the purchase, sale and operation of cultural relics.

Article 8(Auction Enterprises Engaged in the Cultural Relics Auction)  

Auction enterprises that have been issued an auction license for cultural relics by the municipal department in charge of cultural relics may, in accordance with the law, engage in the operation of cultural relics auction.

Article 9(Antique Second-hand Goods Market)  

Where the organizing units of antique and second-hand goods markets engage in the purchase and sale of cultural relics, they shall obtain the license for opening such shops according to law.

Merchants in antique and second-hand goods markets may, in accordance with the law, engage in the purchase, sale and operation of cultural relics by the license for opening cultural relics shops uniformly obtained by the market organizer.

Article 10(E-commerce Operators)  

Through self-established websites, e-commerce platforms or other network services, e-commerce operators engaged in the purchase, sale and operation of cultural relics shall obtain the license for opening cultural relics shops according to law; an e-commerce operator engaged in the auction of cultural relics shall obtain an auction license for cultural relics according to law.

Article 11(Application for License)  

Application for a license for opening a cultural relics shop or a license for the auction of cultural relics shall meet the requirements prescribed by laws and rules and shall be filed with the municipal department in charge of cultural relics.

When uniformly applying for a license for opening a cultural relic shop, the organizer of the antique and second-hand goods market shall, at the time of applying, submit the basic information of the merchants engaged in the purchase, sale and operation of cultural relics within the market.

The municipal department in charge of cultural relics shall, within 15 working days from the date of accepting the application, make a decision on approval or disapproval. If the application is approved, the relevant license shall be issued; if the application is not approved, the applicant shall be notified in writing and the reasons shall be given.

Article 12(Alteration Requirements)

Where the units that have obtained the license for opening cultural relics shops or the license for the auction of cultural relics need to alter the items prescribed by laws and rules, they shall go through the relevant alteration procedures with the original issuing departments according to law.

If there is any alteration in the merchants engaged in the purchase and sale of cultural relics in the market, the organizer of this antique and second-hand goods market that uniformly obtained the license for opening cultural relics shops shall, within 15 days from the date of the alteration, alter the relevant information with the municipal department in charge of cultural relics.

Article 13(Cancellation Procedures)

Units that have obtained the license for opening cultural relics shops or the license for the auction of cultural relics shall, within 30 days from the date of the cessation of operation, go through the relevant cancellation procedures with the original license-issuing departments according to law.

Article 14(License-related Prohibited Acts)

Those who have not obtained the license for opening cultural relics shops or the license for cultural relics auction shall not engage in such operation activities.

It is prohibited to alter, resell, rent or lend cultural relics shops licenses or auction licenses for cultural relics, or illegally transfer relevant licenses in other forms.

　

Chapter III  Business Practices

Article 15(General Requirements)  　　

Cultural relics shops that have obtained the license for opening shops or for the auction of cultural relics, auction enterprises engaged in the auction of cultural relics, antique and second-hand goods markets and merchants engaged in the purchase, sale and operation of cultural relics in the markets, and e-commerce operators (hereinafter generally referred to as the cultural relics business operation units) shall set up a sound system of operation and management of cultural relics, be honest and self-disciplined, conduct legitimate business, accept social supervision, and take up social responsibility.

Article 16(Information Publicity)

Cultural relics shops, auction enterprises engaged in the auction of cultural relics, and the organizing units of antique and second-hand goods markets engaged in the purchase, sale and operation of cultural relics shall publicize their business licenses, licenses for opening cultural relics shops, or licenses for the auction of cultural relics in prominent places of their business sites.

Where the uniformed license for opening cultural relic shops is obtained in the antique and second-hand goods market, the market organizer shall, in a prominent place in the market, publicize the certificates and licenses provided for in the preceding paragraph and the basic information of the merchants engaged in the purchase, sale and operation of cultural relics within the market.

An e-commerce operator engaged in the business of cultural relics through self-established websites, e-commerce platforms or other network services shall, in a prominent place on the home page of the self-established websites or the home page of the business activities of e-commerce platforms or other network services, publicize relevant certificates and licenses or link the identifiers according to law.

Article 17(Employee Training)

Cultural relics operation units shall train the employees in relevant laws, rules, regulations and professional knowledge concerning the protection and management of cultural relics, and establish training files.

The training files may be used as the basis for the relevant industry organizations to carry out credit evaluation.

Article 18 (Operation and Record-keeping Requirements)

Cultural relics operation units shall ensure that the source of the cultural relics they handle is legitimate, and shall truthfully provide the name, age, appearance, defects and other basic information of the cultural relics; cultural relics prohibited by the State from exit shall be made clear and be informed to the buyers.

Cultural relics operation units shall keep records of the purchase, sale or auction of cultural relics in accordance with the relevant provisions of the State and shall, within 30 days from the date of the sale or auction of cultural relics, report to the municipal department in charge of cultural relics for the record. 　　

The municipal department in charge of cultural relics shall keep the relevant records confidential according to law for 75 years.

Article 19(Examination of Cultural Relics Auction Targets)

Auction enterprises shall, before auctioning cultural relics, submit the targets to be auctioned to the municipal department in charge of cultural relics for examination and verification. Auction enterprises shall report all the targets to be auctioned for examination, and the professionals of cultural relics auction shall jointly sign the collection and appraisal opinions on the targets, and shall not conceal, omit, replace them, or otherwise evade the examination and verification of the auction targets for cultural relics.

Auction enterprises shall, in a prominent place on the auction catalogue or the online auction page, publicize the examination and verification decision or the document number of the municipal department in charge of cultural relics.

Article 20 (Responsibilities of the Organizer of Antique and Second-hand Goods Market)

The organizing units of antique and second-hand goods markets shall strengthen the daily inspection of the operation of cultural relics in the market, and if such illegal acts are found as engaging in the operation of cultural relics without permission or dealing with cultural relics prohibited by state decrees, they shall stop those acts first, report to the relevant administrative departments immediately and assist them in the investigation and punishment.

If the license is uniformly obtained for opening cultural relics shops, the organizer of the antique and second-hand goods market shall also fulfill the following administrative responsibilities:

1. establish and improve the management system for the purchase, sale and operation of cultural relics in the market, formulate relevant management standards, and clarify the rights and obligations of all parties as well as the requirements of relevant operation standards with merchants engaged in the purchase, sale and operation of cultural relics in the market through contracts, conventions and other means;

2. establish the archives of merchants engaged in the purchase, sale and operation of cultural relics in the market, truthfully record the source, purchase and sale situation, credit status and other information of cultural relics operation conducted by merchants, and summarize them and report to the municipal department in charge of cultural relics for the record;

3. organize professional and technical personnel to provide counseling services for the purchase, sale and operation of cultural relics in the market, and offer  professional guidance for the storage and conservation of cultural relics; and

4. other managerial responsibilities prescribed by laws, rules and regulations.

Article 21(Responsibilities of E-commerce Platform Operators)

Where an e-commerce platform operator registered or having an actual business site in this Municipality provides services on a network cultural relics operation platform, he/she shall fulfill the following administrative responsibilities:

1. make real-name registration of cultural relics operation units within the platform, verify their trading qualifications, and shall not provide online cultural relics trading platform services to units and individuals that have not obtained the license for cultural relics shops or the license for auction;

2. conduct daily inspection on the operation activities and information of cultural relics on the platform, report to the relevant administrative department immediately the activity suspected of violating laws and rules, and assist in investigating and dealing with;

3. if the operator of the platform is found to have engaged in the operation of cultural relics without permission, or engaged in the operation of cultural relics prohibited by the State to be traded or in other serious illegal acts, he/she shall immediately be stopped from being provided the online platform service for cultural relics;

4. record and preserve the transaction information of cultural relics on the platform in accordance with provisions for a period of not less than 3 years from the date of transaction completion; and

5. other administrative responsibilities prescribed by laws, rules and regulations.

Article 22(Prohibited Operations for Cultural Relics)

It is prohibited to engage in the following acts in the operation of cultural relics:

1. imitate cultural relics for sale;

2. defraud fees for the identification, testing, exhibition, service and customs declaration of cultural relics by means of fictitious auction or false identification;

3. mislead purchasers of cultural relics through false publicity; and

4. other acts provided for by laws, rules and regulations.

Chapter IV  Service and Supervision

Article 23(One Access through Internet and Information Disclosure)

The municipal department in charge of cultural relics shall, through online government service platforms and mobile terminals, provide online handling services for administrative licensing matters such as opening cultural relics shops, auction licenses, and the examination and verification of cultural relics auction targets. If the application materials are complete and meet the statutory requirements, one or zero visit by the applicant can assure completion of the matter from application acceptance to settlement.

The municipal department in charge of cultural relics shall, in accordance with the relevant provisions on government information disclosure, disclose such administrative licensing information as opening cultural relics shops, the auction license, and the examination and verification of cultural relics auction targets.

Article 24(Cultural Relics Appraisal Counseling Service)

This Municipality establishes appraisal counseling service mechanism for the cultural relics in private collections. The municipal department in charge of cultural relics may recommend to the society the public counseling and appraisal institutions for cultural relics in private collections to provide free appraisal and counseling services by using their professional knowledge and skills in accordance with the relevant working regulations.

Article 25(Personnel Training and Professional Title Assessment)

This Municipality supports cultural relics operation units, trade organizations related to cultural relics, institutions of higher learning, secondary vocational schools and professional institutions in establishing cultural relics appraisal personnel training bases and carrying out professional knowledge and skill training of such appraisal.

Professional and technical personnel working in cultural relics operation units in this Municipality shall be encouraged to participate in the professional title appraisal of cultural relics and museums series.

Article 26(Credit Management)

The municipal department in charge of cultural relics shall be responsible for establishing the credit archives of the cultural relics operation units, recording the information related to those units, such as their operation qualifications, the purchase and sale or auction of cultural relics, the daily supervision and inspection, and the investigation and punishment of illegal behaviors, and dock the relevant information with the municipal public credit information service platform.

Article 27(Admonition)

The competent department for cultural relics may admonish the legal representative or principal responsible persons of a cultural relics operation unit if it falls into any of the following cases:

1. being repeatedly complained about, reported on or exposed by the media;

2. failing to rectify in a timely manner the problems discovered in the course of supervision and inspection; or

3. other circumstances as the competent department for cultural relics deems necessary to admonish.

Article 28(License Revocation) 

If the cultural relics operational unit no longer meets the relevant licensing requirements, the municipal department in charge of cultural relics shall order it to make rectification within a time limit. If it fails to make rectification within the time limit or fails to meet the relevant permit conditions after rectification, the municipal department in charge of cultural relics shall revoke the permit according to law and go through relevant revocation procedures.

Article 29(Law Enforcement Cooperation)

The municipal department in charge of cultural relics shall, together with the departments of market supervision, commerce, public security and customs, establish a working mechanism for law enforcement cooperation, and share information on the acquisition, alteration and revocation of the business license and permit of the cultural relics operation units. Any illegal act discovered beyond the scope of the administrative functions and powers of this department in the course of supervision, inspection and law enforcement activities shall be promptly notified or transferred to the relevant department for investigation and punishment according to law.

Article 30(Identification of Cultural Relics Involved in Cases)

Where relevant administrative departments, in the process of operation and law enforcement of cultural relics, need to conduct appraisal of the cultural relics involved in cases, they shall entrust the appraisal institution accredited by the administrative department for cultural relics under the State Council to conduct appraisal.

The institutions that conduct appraisal on cultural relics involved in cases shall carry out law enforcement activities for the cultural relics operation and provide the appraisal services and technical support for relevant administrative departments.

The municipal department in charge of cultural relics shall strengthen the guidance and coordination provided for in the preceding Paragraph on the work of such appraisal institutions.

Chapter V  Legal Liability

Article 31(Guidelines)

For the acts that violate the provisions of these Procedures, if the law of the Peoples Republic of China on the Protection of Cultural Relics and the regulations for its implementation, the law of the Peoples Republic of China on E-commerce and other laws and rules provide the processing provisions, such provisions shall prevail. The public security organ shall, in accordance with the law, impose an administrative penalty on the act that violates the administration of public security; if the case constitutes a crime, the criminal liability shall be investigated according to law.

Article 32(Penalty for Permitting Relevant Prohibited Acts)

Whoever, in violation of Paragraph 2 of Article 14 of these Procedures, alters, resells, rents or lends the license for opening cultural relics shops or the license for the auction of cultural relics, or illegally transfers the relevant license by other means, shall be imposed a fine of not less than 10,000 yuan but not more than 50,000 yuan by the department in charge of cultural relics; if the circumstances are serious, a fine of not less than 50,000 yuan but not more than 100,000 yuan shall be imposed.

Article 33 (Penalty for Violation of Information Disclosure)

Where cultural relics shops, cultural relics auction enterprises, or the organizing units of antique and second-hand goods markets, in violation of the provisions of Paragraph 1 and Paragraph 2 of Article 16 of these Procedures, fail to publicize relevant certificates, licenses or information as required, the departments in charge of cultural relics shall order them to make corrections within a prescribed time limit; those who fail to make corrections within the time limit shall be fined between 1,000 yuan and 5,000 yuan; if the circumstances are serious, a fine of not less than 5,000 yuan but not more than 10,000 yuan shall be imposed.

Article 34(Penalty for the Organizing Units of Antique and Second-hand Goods Markets that Fail to Fulfill Their Administrative Responsibilities)

The organizing unit of antique and second-hand goods market, in violation of Article 20 of these Procedures, fails to fulfill the relevant management responsibilities, the department in charge of cultural relics shall order it to make corrections and impose a fine of not less than 10,000 yuan but not more than 50,000 yuan. If the circumstances are serious, he/she shall be fined not less than 50,000 yuan but not more than 100,000 yuan.

Article 35(Penalty for Prohibited Operation of Cultural Relics)

Whoever, in violation of the provisions of Article 22 of these Procedures, commits any of the following acts in the operation of cultural relics shall be fined between 10,000 yuan and 100,000 yuan by the department in charge of cultural relics; if the circumstances are serious, he/she shall be fined not less than 100,000 yuan but not more than 300,000 yuan:

1. imitate cultural relics for sale;

2. defraud fees for the identification, testing, exhibition, service and customs declaration of cultural relics by means of fictitious auction or false identification; or

3. mislead purchasers of cultural relics through false publicity.

Article 36(Administrative Responsibility)

Where the relevant departments of cultural relics, market supervision, commerce and public security and their work staff violate the provisions of these Procedures and fall into any of the following circumstances, the responsible persons in charge and other directly responsible persons shall be given administrative sanctions according to law; if the case constitutes a crime, criminal liability shall be investigated according to law:

1. abuse the power of examination and approval;

2. fail to perform their duties or fail to investigate and deal with any illegal act; or

3. cause damage to or loss of valuable cultural relics under state protection incurred from abusing their power, neglecting their duties or engaging in malpractices for personal gains.

Chapter VI  Supplementary Provisions

Article 37(Date of Implementation)

These Procedures shall be effective as of March 1, 2020. Procedures of Shanghai Municipality on the Administration of Cultural Relics promulgated by Order No. 94 of Shanghai Municipal Government on January 9, 2001, revised and re-promulgated on the basis of the Decision of Shanghai Municipal Peoples Government on Amending 148 Municipal Government’s Regulations such as the Temporary Provisions on Agricultural Machinery Accident Disposal in Shanghai Municipality promulgated by Order No 52 of Shanghai Municipal Government on December 20, 2010, shall be repealed simultaneously.