(Adopted at the 20th meeting of the Standing Committee of the Eighth National Congress on 5 July 1996, amended in accordance with the Decision on Amending the Auction Law of the People's Republic of China at the 11th meeting of the Standing Committee of the Tenth National People's Congress on 28 August 2004)
Chapter I General Provisions
Article 1 This Law is formulated in order to regulate auction behavior, maintain auction order and protect the legitimate rights and interests of all parties involved in auction activities.
Article 2 This Law shall apply to auction activities conducted by auction enterprises within the territory of the People's Republic of China.
Article 3 Auction refers to the mode of sale in which specific articles or property rights are transferred to the highest bidder in the form of public bidding.
Article 4 Auction activities shall abide by relevant laws and regulations and the principles of openness, fairness, impartiality, honesty and credibility.
Article 5 The department in charge of the auction industry under the State Council shall supervise and administer the auction industry throughout the country.
The people's governments of provinces, autonomous regions and municipalities directly under the Central Government and the people's governments of cities with districts are responsible for the supervision and administration of the auction industry by the departments in charge of the auction industry within their respective administrative areas.
Chapter II Auction Subjects
Article 6 The auction target shall be the articles or property rights owned by the trustee or disposable according to law.
Article 7 Goods or property rights prohibited by laws and administrative regulations shall not be used as auction targets.
Article 8 Goods or property rights that require examination and approval to be transferred in accordance with the law or the provisions of the State Council shall go through the examination and approval formalities according to law before auction.
Cultural relics entrusted to auction shall be appraised and licensed by the administrative department for cultural relics in the place where the auctioneer is located before auction.
Article 9 Articles confiscated by state administrative organs according to law, articles that are paid taxes, fines and other articles that should be auctioned in accordance with the provisions of the State Council shall be auctioned by auctioneers designated by the people's governments of provinces, autonomous regions, municipalities directly under the Central Government and the people's governments of cities with districts where the property is located. The provisions of the preceding paragraph shall apply to the auction of articles confiscated by the people's court according to law, articles that are charged with taxes and fines, and items that cannot be returned.
Chapter III Auction Parties
Section 1 Auctioneers
Article 10 An auctioneer is an enterprise legal person established in accordance with this Law and the Company Law of the People's Republic of China to engage in auction activities.
Article 11 Auction enterprises may be established in cities with districts. The establishment of an auction enterprise must be examined and approved by the departments responsible for the administration of the auction industry under the people's governments of the provinces, autonomous regions and municipalities directly under the Central Government where it is located, and shall apply to the administrative departments for Industry and Commerce for registration and obtain a business license.
Article 12 The establishment of an auction enterprise shall meet the following requirements:
(1) The registered capital of RMB 1 million or more;
(2) having its own name, organization, domicile and articles of association;
(3) Auctioneers and other staff who are suitable for the auction business;
(4) Having auction business rules in conformity with this Law and other laws and regulations;
(5) Complying with the relevant provisions of the State Council on the development of auction industry;
(6) Other conditions prescribed by laws and administrative regulations.
Article 13 An auction enterprise operating an auction of cultural relics shall have registered capital of more than 10 million yuan and personnel with expertise in the auction of cultural relics.
Article 14 Auction activities shall be presided over by auctioneers.
Article 15 Auctioneers shall meet the following requirements:
(1) having a college degree or above and professional knowledge of auction in Institutions of higher learning;
(2) Working in an auction enterprise for more than two years;
(3) Good conduct. An auctioneer who has been dismissed from public office or whose qualification certificate for an auctioneer has been revoked for less than five years or who has been penalized for intentional crime shall not serve as an auctioneer.
Article 16 The qualification assessment of auctioneers shall be organized by the auctioning industry association in a unified way. If they pass the examination, the Auction Industry Association shall issue the Auctioneer Qualification Certificate.
Article 17 The Auction Industry Association is a legal person of a social organization established in accordance with the law and a self-disciplined organization of the auction industry. In accordance with this Law and in accordance with its articles of association, the Auction Industry Association shall exercise supervision over auction enterprises and auctioneers.
Article 18 An auctioneer has the right to require the trustee to explain the source and defects of the auction target. The auctioneer shall explain to the bidder the defects of the auction target.
Article 19 An auctioneer shall have the obligation to keep the goods delivered by the trustee for auction.
Article 20 After an auction has been entrusted, no other auctioneer may be entrusted to auction without the consent of the trustee.
Article 21 Where a client or buyer requests confidentiality of his identity, the auctioneer shall keep it confidential.
Article 22 Auctioneers and their staff members shall not participate in auction activities organized by themselves as bidders, nor shall they entrust others to bid on their behalf.
Article 23 An auctioneer may not auction his own articles or property rights in an auction activity organized by himself.
Article 24 After an auction is concluded, the auctioneer shall deliver the price of the auction target to the trustee in accordance with the agreement, and hand over the auction target to the buyer in accordance with the agreement.
` Section 2 Principal
Article 25 A trustee means a citizen, legal person or other organization that entrusts an auctioneer to auction articles or property rights.
Article 26 A trustee may handle the entrusted auction formalities on his own, or his agent may handle the entrusted auction formalities on his behalf.
Article 27 The trustee shall explain to the auctioneer the source and defects of the auction target.
Article 28 The trustee shall fix the reserve price of the auction target and require the auctioneer to keep it confidential.
If an auction of state-owned assets needs to be evaluated in accordance with the law or the provisions of the State Council, it shall be evaluated by an evaluation institution established in accordance with law, and the reservation of the auction target shall be determined according to the evaluation results.