Decree of Sichuan Provincial People’s Government No.212 The "Measures" for the administration of road freight transportation in Sichuan Province have been adopted at the 114th executive meeting of the Sichuan Provincial People’s Government on April 3, 2007, and are hereby promulgated and shall come into force as of May 25, 2007. Governor: Jiang Jufeng April 24th, 2007 Chapter I General Provisions Article 1 These Measures are formulated in accordance with the Regulations of the People’s Republic of China on Road Transport and the Regulations of Sichuan Province on Road Transport Management, in combination with the actual situation of Sichuan Province, for the purpose of regulating road freight transport, road freight transport stations, freight transport agents and cargo transport stowage business activities, maintaining the market order of road freight transport and protecting the legitimate rights and interests of the parties involved in road freight transport. Article 2 All units and individuals (hereinafter referred to as operators) engaged in road freight transport (hereinafter referred to as freight transport), road freight transport stations (hereinafter referred to as freight stations), freight forwarders (hereinafter referred to as freight forwarders) and cargo transport stowage (hereinafter referred to as freight stowage) within the administrative area of Sichuan Province shall abide by these measures. Operators engaged in international freight forwarding shall follow the relevant provisions of the state. Article 3 The traffic administrative departments at or above the county level shall be in charge of the management of freight, freight stations, freight forwarders and freight stowage operations within their respective administrative areas, and the road transport management institutions at or above the county level shall be responsible for the specific implementation of the management. Article 4 Road transport management institutions shall guide the development of road freight transport in accordance with the road transport development plan, and encourage operators to improve service quality and expand service areas to meet the needs of economic construction and people’s lives. Article 5 Encourage the intensive, large-scale and specialized operation of freight transportation, promote the development of special vehicles such as containers, closed vans, multi-axle heavy-duty and tank vehicles and energy-saving and environmental-friendly vehicles, and advocate bulk material units to determine the carrier operators through bidding. Chapter II Business License Article 6 An applicant for freight business shall apply to the road transport management institution for a freight business license according to law. Engaged in general freight and one, two or three large-scale goods transportation and freight station management, apply to the local county-level road transport management institution; Engaged in four large-scale goods transport, special transport and dangerous goods transport business, to the local city (state) road transport management agencies to apply. Article 7 The road transport management institution that accepts the application for the operation of four-level large-scale goods transport shall organize experts to verify and comprehensively evaluate the vehicles, managers and technicians. Article 8 A container transport operator shall meet the requirements stipulated by the state and our province, the driver shall have the qualification to drive a car or train, the towing capacity of the towing vehicle shall be more than 20 tons and a real-time dynamic driving recorder shall be installed, and the semi-trailer shall have a lock-turning device. Ninth engaged in the transport of dangerous goods, should have the conditions stipulated by the state, and in accordance with the relevant provisions of the state and our province to assess the safety production situation of dangerous goods transport enterprises. Dangerous goods transport enterprises should implement corporate operation. Tenth engaged in freight forwarding and freight stowage business, should meet the following conditions and handle the business license in accordance with the law before operating: (1) Having a fixed office space and necessary communication and computer equipment; (2) Having professionals and managers suitable for their business; (3) Having sound business operation rules and management systems. Eleventh engaged in freight forwarding and freight stowage business, it shall, within 15 days from the date of opening, file with the local county-level road transport management institution, and submit the following filing materials: (1) An application form for filing freight forwarders and freight stowage; (2) The original and photocopy of the organization code certificate, industrial and commercial business license and tax registration certificate; (3) A copy of the ID card of the legal representative; (4) Certificate of house property right or house lease agreement; (five) the text of business operation rules and management system. Twelfth freight operators to set up a branch engaged in freight business, shall apply to the county road transport management institution where the branch is established and submit the following materials: (1) The original and photocopy of the applicant’s organization code certificate, business license and road transport business license; (two) the legal proof of the land and houses used by the branch; (3) the text of the safety management system of the branch; (4) A copy of the post-holding document and ID card of the person in charge of the branch. The road transport management institution shall verify the above materials within 15 days from the date of receipt, and issue a copy of the road transport business license of the branch company if it meets the requirements. After obtaining a copy of the business license of the branch company, the operator shall go through the relevant formalities at the original road transport management institution. Chapter III Operation and Management Thirteenth freight operators should use vehicles that meet the requirements of the state and our province on energy consumption and environmental protection to engage in freight operations, improve the degree of transportation organization, reduce empty cars and save energy. For vehicles that do not conform to the provisions of the preceding paragraph, freight operators shall carry out transformation or scrap and update in accordance with the relevant provisions of the state and our province. Fourteenth freight operators shall, in accordance with the relevant provisions of the state and our province, maintain and test freight vehicles to ensure that the technical conditions of freight vehicles are good. Freight vehicle maintenance is divided into daily maintenance, primary maintenance and secondary maintenance. Daily maintenance is carried out by the driver before driving, during driving and after receiving the car; First-level maintenance and second-level maintenance are carried out by motor vehicle maintenance enterprises. The mileage of the first-level maintenance interval shall not exceed 2500 kilometers; If the mileage is inconvenient to count, the interval of 1 month shall prevail. The mileage of secondary maintenance interval shall not exceed 15,000 kilometers; If the mileage is inconvenient to count, the interval of 3 months shall prevail. After the two-level maintenance of freight vehicles, freight operators shall record the two-level maintenance of vehicles in the technical files of vehicles in a timely manner, and properly keep the certificate of completion of the two-level maintenance. Fifteenth freight forwarders and consignors shall conclude a contract of carriage in accordance with the provisions of the Contract Law. Freight forwarders shall sign transport contracts with the shipper and the carrier respectively to clarify their respective rights and obligations. Sixteenth freight operators shall not carry goods prohibited by laws and administrative regulations. For the goods that can be transported only after going through the relevant formalities according to laws and administrative regulations, the shipper of the goods shall go through the relevant formalities according to the provisions of the state, and the freight operator shall check and carry the relevant formalities with the vehicle. Seventeenth freight operators to transport large objects, should develop a road transport organization plan, four large object carriers should submit the road transport organization plan demonstrated by experts to the relevant departments for the record. Involving transfinite transportation, it shall go through the relevant formalities such as the "Vehicle Pass for Transfinite Transportation" at the road administration institution with a copy of the road transport business license and the vehicle road transport certificate. Article 18 Operators of dangerous goods transport shall establish a dispatching management system for dangerous goods transport, arrange qualified vehicles and personnel to transport dangerous goods according to the dispatching management system, and issue road dangerous goods waybills according to regulations. Without the organization and dispatch of dangerous goods transport operators, dangerous goods transport vehicles shall not carry dangerous goods without authorization. Article 19 When transporting dangerous goods, the vehicle shall carry a Road Transport Dangerous Goods Safety Card that meets the requirements of the rules for transporting dangerous goods by car and is consistent with the goods transported. Vehicles shall hang special signs for transporting dangerous goods in accordance with state regulations and transport them in strict accordance with the rules for transporting dangerous goods. In case of accidents such as burning, explosion, pollution, poisoning, theft, loss, dispersion and leakage during the transportation of dangerous goods, drivers and escorts shall immediately report to the local public security department and their transportation enterprises. Article 20 If a freight operator uses a vehicle registered in another province (municipality directly under the Central Government or autonomous region) and engages in freight business activities in our province for more than one month, he shall apply to the local county-level road transport management institution for filing formalities with the road transport certificate of the vehicle, receive the Registration Card for the Operation of Vehicles from Other Provinces in Sichuan, and pay fees according to the regulations of our province for management. The "Record Card for the Operation of Vehicles from Other Provinces in Sichuan" shall be carried with the vehicle and used together with the road transport certificate of the vehicle. Twenty-first operators should employ employees who meet the prescribed conditions, formulate annual training plans for employees, and regularly provide employees with safety and professional ethics education, business knowledge, operating procedures and emergency response training. Operators of dangerous goods transport shall improve the recruitment, training, assessment, reward and punishment, elimination and other systems for drivers, escorts and handling management personnel of dangerous goods transport, and implement unified management for drivers. The implementation of freight vehicle drivers, dangerous goods transport practitioners professional management and qualification management system. Drivers of freight vehicles and employees engaged in the transport of dangerous goods shall obtain corresponding qualifications in accordance with the relevant provisions of the state and our province before they can engage in business. Road transport management institutions shall, in accordance with the relevant provisions of the state and our province, implement professional management and qualification management system for freight vehicle drivers. Twenty-second freight operators should strengthen safety management, equipped with full-time safety management personnel to adapt to the scale of operation. Dangerous goods transport enterprises (units) shall be equipped according to the standard of 1 full-time safety management personnel for every 20 vehicles, and the minimum number of full-time safety management personnel shall not be less than 3. Twenty-third road transport management institutions shall supervise and inspect the operating conditions and behaviors of operators. Operators shall accept the supervision and inspection of road transport management institutions. Article 24 The road transport management institution shall establish a quality and credit evaluation system for freight operators, regularly evaluate their operating conditions, operating behaviors, safety management and service quality, and announce the results to the public. The evaluation results will serve as the basis for expanding the business scope of freight operators and rating freight enterprises. Twenty-fifth dangerous goods transport operators shall purchase carrier liability insurance according to law. Twenty-sixth road transport management institutions shall accept complaints about the quality of road freight transport and mediate quality disputes in accordance with the provisions of the contract of carriage of goods and relevant regulations. Chapter IV Legal Liability Twenty-seventh in violation of the provisions of these measures, one of the following acts, the road transport management institution at or above the county level shall order the operator to make corrections within a time limit, and may be fined from 200 yuan to 1000 yuan: (1) Carrying goods that should be handled according to law but have not gone through the formalities of quasi-shipment; (2) The transport operator of dangerous goods fails to issue the waybill of road dangerous goods as required; (three) without the organization and dispatch of dangerous goods transport operators, dangerous goods transport vehicles carry dangerous goods without authorization; (four) the vehicle carrying dangerous goods does not carry the "Road Transport Dangerous Goods Safety Card" which is consistent with the dangerous goods transported. Twenty-eighth in violation of the provisions of these measures, one of the following acts, the road transport management institution at or above the county level shall order the operators to make corrections within a time limit, and if they refuse to make corrections, they may be fined from 200 yuan to 1000 yuan: (a) the operator fails to train the employees according to the regulations; (two) engaged in freight forwarding and freight stowage business, not to the road transport management agencies for the record. Twenty-ninth in violation of the provisions of these measures, dangerous goods transport operators have one of the following major security risks, the road transport management institution at or above the county level shall order it to make corrections within a time limit and impose a fine of 20 thousand yuan or more and 50 thousand yuan or less; Failing to make corrections as required, the road transport business license shall be revoked by the original licensing authority: (1) Failing to establish a dispatching management system for the transportation of dangerous goods as required; (2) arranging unqualified vehicles to transport dangerous goods; (3) arranging unqualified drivers, escorts and handling management personnel to engage in the transportation of dangerous goods; (four) failing to provide safety management personnel in accordance with the provisions; (five) there are other major security risks. Thirtieth in violation of the provisions of these measures, the establishment of a branch company fails to apply for a copy of the road transport business license, and the road transport management institution at or above the county level shall order it to make corrections within a time limit and may impose a fine of not less than 3,000 yuan but not more than 10,000 yuan. Thirty-first operators in violation of the provisions of these measures, other laws, regulations and rules have been punished, from its provisions. Road transport management institutions in the supervision and inspection found unlicensed behavior or freight forwarders and freight stowage operators do not have the corresponding conditions are still engaged in related business, handed over to the administrative department for Industry and commerce for punishment. Chapter V Supplementary Provisions Article 32 The freight yard mentioned in these Measures refers to the comprehensive freight yard, container transfer station, logistics center, parking lot and other business places that provide paid services for the society with the functions of warehousing, storage, stowage, information service, loading and unloading, tally and so on. The term freight forwarder as mentioned in these Measures refers to the business activities that operators are entrusted by others to provide transportation procedures, freight forwarding, freight forwarding and freight forwarding services. The term "cargo stowage" as mentioned in these Measures refers to the business activities of providing vehicle and cargo information, assembling goods on behalf of the vehicle and assembling vehicles on behalf of the vehicle. The term "special transportation" as mentioned in these Measures refers to the transportation of goods by special vehicles such as containers, refrigeration and fresh-keeping equipment and tank containers. Article 33 The identification and grading of large objects as mentioned in these Measures shall be carried out in accordance with the standards stipulated in the Measures for the Administration of Road Large Objects Transportation of the Ministry of Communications. Article 34 These Measures shall come into force as of May 25, 2007. On January 8, 1991, Sichuan Provincial People’s Government issued Order No.18, and on December 29, 1997, Sichuan Provincial People’s Government issued Order No.103, the Interim Measures for the Administration of Highway Freight Transportation in Sichuan Province was abolished at the same time.