China’s latest policy：Ministry of Commerce and Other Five Departments’ Notice on Organizing and Carrying Out Pilot Work for Second-hand Goods Circulation

 Shangban Liutong Xun [2024] №474

Screenshot of the official website：商务部等5部门办公厅关于组织开展二手商品流通试点工作的通知

To:
Departments of Commerce, Development and Reform, Public Security, Natural Resources, and Market Supervision of Provinces, Autonomous Regions, Municipalities directly under the central government, and the Xinjiang Production and Construction Corps:

The development of second-hand goods circulation is of significant importance to revitalizing idle social resources, meeting people’s differentiated, diversified, and personalized consumption needs, and promoting the formation of a green production and lifestyle. To promote the high-quality development of the second-hand goods circulation industry, pilot work will be carried out. The “Second-hand Goods Circulation Pilot Work Plan” is now issued. Please thoroughly review the basic situation and development status of the second-hand goods circulation industry in your area, and have provincial-level commerce authorities, in collaboration with relevant departments, organize the declaration of pilot cities and enterprises. The implementation plan for the pilot work should be submitted to the Ministry of Commerce by January 24, 2025.

Contact Person:
Meng Chen, Department of Circulation Development, Ministry of Commerce
Contact Number: 010–85093765
Address: №2, East Chang’an Street, Dongcheng District, Beijing
Ministry of Commerce Office, National Development and Reform Commission Office, Public Security Ministry Office,
Natural Resources Ministry Office, State Administration for Market Regulation Office

Date: December 11, 2024

Attachment
Second-hand Goods Circulation Pilot Work Plan

To implement the spirit of the “Notice of the State Council on Issuing the ‘Action Plan for Large-scale Equipment Renewal and Consumption Goods Replacement’” (Guofa [2024] №7), and based on the “Notice on Issuing the ‘Action Plan for Promoting the Replacement of Consumption Goods’” (Shangxiaofei [2024] №58) issued by 14 departments, the pilot work for second-hand goods circulation will be carried out.

I. Overall Requirements

Following the principle of “tailored to local conditions, with different focuses,” the pilot work will focus on second-hand mobile phones, clothing, furniture, and other goods. Over three years, the goal is to form a set of replicable and scalable second-hand goods circulation cases. By 2027, the second-hand goods circulation policy system will be further improved, the operational levels of second-hand goods transaction markets and enterprises will be upgraded in terms of professionalism, standardization, specialization, and branding, and second-hand goods trading platforms will be developed in a more regulated manner.

II. Cultivating Diverse Second-hand Goods Circulation Entities

1. Building Second-hand Goods Transaction Markets:
   Second-hand goods circulation outlets will be included in urban commercial outlet planning. Markets for second-hand goods and rural trade centers will be built to meet the consumption characteristics of urban and rural residents, facilitating the healthy development of second-hand goods collection, sales, consignment, and other businesses.
2. Developing Online Second-hand Goods Transactions:
   The primary responsibility of online platforms will be emphasized, encouraging the development of “Internet + second-hand goods” models. Platforms will be encouraged to strengthen their transaction rules and enhance their information service capabilities to improve the standardization and regulation of second-hand goods transactions.
3. Developing Community-based Second-hand Goods Transactions:
   Communities with favorable conditions will be encouraged to use vacant houses or hire professional management companies to set up second-hand consignment shops. Regular community second-hand goods trading events, including holiday “flea markets,” will be organized to promote the circulation of idle goods among neighbors.

III. Innovating Second-hand Goods Circulation Methods

1. Developing New Business Models:
   Second-hand goods trading markets, platforms, and operating enterprises, including individual operators, will be supported in exploring the development of “Internet-based second-hand goods,” as well as new business formats such as second-hand goods rental, auctions, bulk sales, and buy-back services.
2. Enhancing Network Layout:
   Second-hand goods operators will be encouraged to establish chain operations, franchising models, and integrated outlets that combine second-hand goods sales, trade-ins, and exchanges, to facilitate the circulation of second-hand goods.
3. Empowering Digitally:
   Second-hand goods operators will be encouraged to use new-generation technologies such as the Internet, big data, cloud computing, and artificial intelligence during acquisition, identification, evaluation, repair, and sales. Leading enterprises in second-hand goods circulation will be encouraged to build digital platforms for the entire process of circulation, driving information and resource sharing across upstream and downstream industries.

IV. Regulating Second-hand Goods Circulation Order

1. Implementing Acquisition Registration Systems:
   Second-hand goods operators must strictly implement acquisition registration systems in accordance with laws and regulations, recording the name, characteristics, and other details of acquired items. If stolen goods or other illegal items are suspected during acquisition, operators are required to promptly report to the public security authorities and cooperate with investigations.
2. Regulating Online Circulation Order:
   Supervision of second-hand goods trading platforms will be strengthened. Platforms will be required to comply with e-commerce laws, and illegal actions such as displaying or trading prohibited second-hand goods will be harshly punished.
3. Sales in Compliance with Laws and Regulations:
   When selling second-hand goods, operators must inform consumers about the condition of the goods (such as repairs or refurbishing), as well as key information regarding quality and performance. Necessary and reasonable after-sales services should be provided, with agreed-upon service periods and conditions.
4. Protecting Information:
   Second-hand goods operators must comply with personal information protection laws and regulations, ensuring that consumer data is not disclosed to third parties without authorization, and not restoring data on second-hand mobile phones or other devices without permission.
5. Improving Regulations and Standards:
   Research and implementation of local regulations for second-hand goods circulation will be carried out, improving standards covering acquisition, identification, evaluation, repair, sales, and after-sales services.
6. Strengthening Supervision:
   Serious actions will be taken against illegal activities such as selling stolen goods, smuggling, or affixing counterfeit trademarks or certification labels on second-hand goods. In cases of suspected crimes, law enforcement agencies will be promptly informed for criminal investigations.

V. Conclusion

All regions should fully recognize the importance of developing second-hand goods circulation, use key times such as National Energy Conservation Week and National Ecology Day to promote knowledge of second-hand goods circulation, and create a green, low-carbon, and simple lifestyle atmosphere. Local governments should formulate development plans for the second-hand goods circulation industry, strengthen support for the sector, and enhance investment in the infrastructure of second-hand goods circulation networks.

Provincial commerce departments should guide the application for pilot cities and enterprises, and develop the implementation plans based on local conditions and the specific characteristics of second-hand goods circulation. The plans should clearly define pilot goals, tasks, and specific measures.

Attachment: Key Points for Preparing Second-hand Goods Circulation Pilot Work Implementation Plans

1. Basic Situation of Second-hand Goods Circulation Work:

• Main categories of second-hand goods, annual transaction volume or transaction value, and transaction methods.
• Basic information about second-hand goods transaction markets, platforms, enterprises, and individual operators.
• Status of related policies, planning, standards, and regulations.

2. Main Goals:

By 2027, the pilot cities’ second-hand goods transaction scale should show significant growth compared to 2024. The growth of transaction scale in pilot categories, and the cultivation of second-hand goods operating entities will be monitored.

3. Pilot Areas:

Specific categories of second-hand goods for pilot work will be defined based on local conditions.

4. Pilot Work Content:

Focus on diversifying circulation entities, innovating circulation methods, and regulating market order, with specific actionable plans.

5.Support Measures:

Establish coordination mechanisms, clear division of responsibilities, and detailed implementation. Ensure sufficient support for the development of the second-hand goods circulation industry.

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