Notice of Seven Departments Including Shanghai Municipal Commission of Commerce on Printing and Distributing the Procedures of Shanghai Municipality on Auction of Public Resources

SMCC D [2020] No. 1

Attention:all relevant units:

With a view to strengthening the administration of public resources auction, promoting the opening of government affairs and the building of a clean government, ensuring the unity, standardization, transparency and efficiency of public resources auction, improving the quality and efficiency of public resources auction, and safeguarding pubic interests effectively, we hereby formulate, print and distribute to you the Procedures of Shanghai Municipality on Auction of Public Resources, and request you to implement them conscientiously.

Shanghai Municipal Commission of Commerce

Shanghai Municipal Commission of Economy and Informatization

Shanghai Municipal Administration for Market Regulation

Shanghai Municipal Public Security Bureau

Shanghai Municipal Finance Bureau

Shanghai Municipal Government Offices Administration

Shanghai Customs District

January 6, 2020

　　

Procedures of Shanghai Municipality on Auction of Public Resources

Chapter I  General Provisions

Article 1(Purposes and Basis)

With a view to implementing the Notice of the General Office of the State Council on Printing and Distributing the Work Plan for Establishing a Unified Platform of Public Resources Transaction, strengthening the administration of public resources auction of this Municipality, promoting the opening of government affairs and the building of a clean government, ensuring the unity, standardization, transparency and efficiency of public resources auction, improving the quality and efficiency of public resources auction, and safeguarding pubic interests effectively, these Procedures are formulated in accordance with the Auction Law of the People’s Republic of China, the Measures for Auction Administration and other relevant laws, rules and regulations, and in the light of the actual circumstances of this Municipality.

Article 2(Definition)

The public resources in these Procedures mean the resources involving public interests and public security and having the nature of public ownership and welfare.

The public resources auction means the mode of buying and selling in the form of open bidding, which transfers certain public resources to the bidder who offers the highest bid, and it includes such procedures and contents as entrustment of the auction target, public notice of the auction, exhibition of the auction target, organizing of the auction, settlement of the auction price, delivery of the target, and case closing and filling.

Article 3(Application Scope)

These Procedures apply to the activities of public resources auction and to the operation, service and regulation of the related platform within this Municipality.

A public resources auction shall, in principle, be conducted via the platform of public resources auctions unless otherwise provided for by laws, rules or regulations of the State.

Article 4(Principles)

A public resources auction shall abide by the principles of openness, fairness, impartiality and honesty, disclose the information and the bidding fully, ensure a unified transaction entry, a unified network platform, and unified public notice promulgation, and be subject to unified regulation and unified fund management.  

Article 5(Regulation Departments)

Shanghai Municipal Commission of Commerce shall coordinate in handling major matters involved in the public resources auction in this Municipality according to its function and duty.

Shanghai Municipal Economy and Informatization Commission, Shanghai Municipal Administration for Market Regulation, Shanghai Municipal Public Security Bureau, Shanghai Municipal Finance Bureau, Shanghai Municipal Government Offices Administration, Shanghai Customs District and other relevant departments shall conduct regulation over the activities of public resources auction in this Municipality according to their respective functions and duties. 

Article 6(Regulation Mode)

All regulation departments shall hold meetings at irregular intervals as needed to conduct regulation through joint discussions.

All regulation departments may conduct dynamic data collecting and online real-time regulation via the information system with the functions of both auction service and auction regulation—a system established by the platform of public resources auction. 

Chapter II  Rules on Organizing Auctions

Article 7(Platform of Public Resources Auction)

The platform of public resources auction shall have the corresponding network system, facilities, equipment, and the function of online and offline integration, and be able to conduct on-the-spot auction, on-the-spot and online simultaneous auctions, and online auction.

Article 8(The Principal)

The principal of a public resources auction means a legal person or other organization of various kinds that handle, transfer or manage public resources according to law.

Article 9(Auctioneer)

The auctioneer of public resources shall be a registered enterprise legal person that meets the following requirements:

1. having obtained the license for the auction service;

2. having a good business credit and a sound financial and accounting system;

3. having the equipment and professional technical capability necessary for fulfilling the contract of auction entrustment;

4. having a good record of paying taxes and social insurance premiums according to law; and

5. having no record of serious violation of laws or regulations or bad credit record in the recent two years.

Where the principal has a special requirement, the auctioneer shall meet the requirement.

Article 10(Bidder)

The bidder of a public resources auction means a citizen, legal person or other organization participating in the bidding for the target of the public resources auction.

The bidder shall go through the formalities for bidding registration according to the time, place and requirements specified in the public notice of the auction, and abide by such auction documents as the auction stipulations and the bidding rules.

Where laws, rules or relevant provisions have requirements on the bidder’s qualifications, the bidder shall meet such requirements.

Article 11(Auction Deposit)

The auction deposit means the performance guarantee fund that the bidder submits to promise to abide by the rules and relevant agreement so as to participate in the public resources auction and bear the bidding responsibilities.

The bidder shall pay the auction deposit in full according to the time and method agreed upon.

Article 12(Public Notice of the Auction)

The auctioneer shall publicize the notice of the public resources auction via the media and the public auction platform simultaneously according to law.

The principal may require the auctioneer to publicize the auction notice in a designated media according to the characteristics of the public resources.

Article 13(Retentive Auction Price)

The retentive auction price means the bottom price that the principal determines for his/her auction deal according to relevant provisions of the State, based on which an auction deal may be made.

The principal shall notify the auctioneer of the retentive auction price in writing before the auction.

Article 14(Bidding Mode)

A bidder may participate in an auction in person or by entrusting an agent. In the case of an agent participating in the auction, the agent shall show the power of attorney signed by the bidder as well as copies of the bidder’s and the agent’s identity cards. The power of attorney shall specify the agent’s name, the matter of the agency service, the purview and the time limit.

Article 15 (Record of the Auction)

The auctioneer and the public resources auction platform shall record, save, and properly keep the whole-process video of the on-the-spot auction, the data of the online auction, and the written record and materials of the auction for no less than five years.   

Article 16(Settlement of the Auction Price)

The buyer shall abide by the auction rules and pay the transaction price and the due auction price such as the commission and service fees in full and on time.

Where the buyer does not pay the auction price, he/she shall bear the responsibility of default, and the auctioneer may handle him/her according to law and the agreement.

The auction deposit paid by the bidder that has failed to win the bid shall be returned to the bidder via the original channel by the payee (the auctioneer or the public resources auction platform) after the auction is concluded. 

Article 17(Delivery of the Auction Target)

Where a buyer pays off the auction price, the auctioneer shall, upon the principal’s confirmation, assist the buyer to handle relevant matters of the delivery and handover of the target.

Article 18(Case Conclusion and Filing)

The auctioneer shall sort and file relevant materials of the auction upon the completion of an auction and submit a report of the case conclusion to the principal according to relevant provisions.

　

Chapter II  Rules on Operation and Management of the Platform

Article 19(The Function of Organizing)

The platform of public resources auction shall establish a corresponding organization to formulate the operation rules and management system and ensure efficient and orderly operation of the public resources auction and the safety of the network and information.

Article 20(The Function of Implementation)

The platform of public resources auction shall strictly implement the laws, rules, regulations and relevant policies concerning public resources auction, and report to the regulation department its work news, the auction results of important targets and the major events in the forms of newsletters and briefings.

Article 21(Routine Management)

The platform of public resources auction shall establish a credit appraisal system and a check-up system on auction enterprises, better guide auctioneers, buyers and public resources auctions to follow the norms, and shall take effective measures to stop the violations of laws, rules or regulations in auctions and promptly report them to relevant superior regulation departments.

Chapter III  Handling of Violations

Article 22(Handling of the Auctioneer’s Violations)

Where an auctioneer has any of the following cases in public resources auction, the platform of public resources auction may suspend or terminate the on-the-spot auction, and report to the relevant regulation departments, which shall handle the auctioneer according to laws and regulations and their respective functions and duties:

1. not organizing the auction according to the unified requirements by the public resources auction platform;

2. not taking effective measures to prevent or stop the buyers’ acts of malicious conspiracy or disturbance of the auction order;

3. not fulfilling the auctioneer’s relevant responsibilities and obligations of organizing auction activities such as notice publicity, deposit return and target delivery;

　4. making a deal before the retentive auction price is reached, adopting unjustifiable measures to prevent a buyer from participating in the auction, or deliberately misleading a buyer in the bidding;

5. other violations of the Auction Law, the Measures for Auction Administration or the provisions of relevant laws, rules or regulations of the State that cause a major impact or loss of public resources or property.

Article 23(Handling of Violations by the Platform and Its Employees)

The public resources platform auction and its employees shall be punished according to law if they accept bribes, practice favoritism and irregularities, disclose secrets, make falsification, or neglect their duties; and if they are suspected of a crime, they shall be transferred to the judicial organ for handling according to law.

Article 24(Handling of the Bidder’s Violations)

Where a bidder and relevant personnel disturb the public resources auction, collude in bidding, or destroy and disturb the operation of the network auction system, the platform of public resources auction shall criticize, educate and warn them; if the case is serious, the said platform shall report to the relevant regulation department, which shall handle them according to law.

　　

Chapter V  Supplementary Provisions

Article 25(Interpretation)

Shanghai Municipal Commission of Commerce shall be responsible for interpreting these Procedures.

Article 26(Effective Date)

These Procedures shall be effective as of March 1, 2020, and be valid until December 31, 2025.