No. 56

Decision of Shanghai Municipal People’s Government on Amending the Procedures of Shanghai Municipality on the Administration of Renewable Resource Recovery was adopted at the 139th Routine Meeting of the Municipal People’s Government on September 13, 2021, and is hereby promulgated. It shall be effective as of December 1, 2021.

Mayor: Gong Zheng

September 24, 2021

Procedures of Shanghai Municipality on the Administration of

Renewable Resource Recovery

(Promulgated by Decree No. 87 of Shanghai Municipal People’s Government on September 17, 2012; amended and re-promulgated in accordance with Decree No. 56 of Shanghai Municipal People’s Government on September 24, 2021)

Chapter I  General Provisions

Article 1 (Purposes and Basis)

With a view to strengthening the management of recovery of renewable resources, saving resources, protecting the environment, and maintaining the public order, these Procedures are formulated in accordance with the Circular Economy Promotion Law of the People’s Republic of China, the Cleaner Production Promotion Law of the People’s Republic of China, the Law of the People’s Republic of China on Prevention and Control of Environmental Pollution by Solid Wastes, the Regulations of Shanghai Municipality on Solid Waste Management and other laws and rules, and in the light of the actual circumstances of this Municipality.

Article 2 (Application Scope)

Renewable resources mentioned in these Procedures refer to various kinds of wastes that are produced in the process of social production, business operation and personal consumption, which have lost all or part of their original value for use, and can regain their use value after recovery, storage, processing and treatment.

Where laws, rules and regulations have other provisions on the recovery of scraped motor vehicles, waste electric and electronic products, hazardous wastes and medical wastes, such provisions shall prevail.

Article 3 (Duties of the Administrative Departments)

The municipal commerce department is the competent administrative department of the renewable resource recovery industry, which shall be responsible for formulating and implementing the development plan of the renewable resource recovery industry, guiding the formulation of operating norms of the recovery industry and strengthening credit supervision of the industry.

The municipal development & reform department shall be responsible for formulating policies to promote the development of renewable resources, and organizing the implementation of the popularization and application of new technologies and equipment for the utilization of renewable resources and for industrialization demonstration.

The landscaping and city appearance department shall be responsible for organizing, coordinating, guiding and supervising the management of recyclable materials recovery, and promoting the construction of recyclable materials recovery service stations, transfer stations, and collection and distribution yards.

The departments of economy and informatization, planning and resources, State-owned assets, finance, housing and urban-rural development administration, housing administration, public security, market regulation, ecology and environment, urban management and law enforcement, emergency management, education and statistics shall, according to their respective functions and duties, do well the  management of renewable resource recovery.

Article 4 (Duties of the District People’s Government)

The district people’s governments shall strengthen the leadership over the renewable resource recovery work within their own administrative areas, establish and improve the accountability system and appraisal system for promoting renewable resource recovery, urge and coordinate the district commerce department and other departments to perform the duties of promoting the recovery of renewable resource and strengthening the administration over the renewable resource recovery.

The sub-district offices and the town/township people’s governments shall cooperate with relevant departments in conducting good management performance in renewable resource recovery.

Article 5 (Industry Organization)

The industry organization of renewable resource recovery (hereinafter referred to as “the industry organization”) shall enhance self-regulation, cooperate with the commerce department in studying and formulating the industry development planning, industry policies and operating norms, and conduct consultation service, business training, and industry information release according to law.

The industry organization shall accept professional guidance of the commerce department, and assist relevant departments to exercise administration over the renewable resource recovery industry.

Chapter II  Construction of Recovery System

Article 6 (Industry Development Planning and Recovery Guidance Catalogue)

The municipal commerce department shall, according to this Municipality’s national economic and social development planning, and development planning for recycling economy as well as the development situation of the renewable resource recovery industry, organize the preparation of the development planning for the renewable resource recovery industry.

The municipal commerce department shall, jointly with the municipal departments of development & reform, landscaping and city appearance, ecology and environment, housing and urban-rural development administration, economy and informatization, etc., draw up and make public the Guidance Catalogue for Renewable Resource Recovery, clarify recovery types and norms of renewable resources and the related utilization guide, and update the Guidance Catalogue for Renewable Resource Recovery as needed.

Article 7 (Network Layout Planning and Facilities Construction)

The municipal and district commerce departments shall organize the preparation of the layout planning of renewable resource recovery site network according to the principles of “overall planning and rational layout”, and the actual circumstances of their respective administrative areas including the economic development level, population density, environment and resources, and bring such planning into corresponding territorial space planning upon approval through prescribed procedures.

The layout planning of renewable resource recovery site network and the related facilities construction shall be integrated with the planning and construction of sanitation facilities, so as to realize the compatibility and sharing of the renewable resource recovery system and the domestic garbage sorting and removal system.

The “renewable resource recovery site network” mentioned in this Article includes various sites where the renewable resources stay in the process of recovery, transit, distribution, processing and handling.

Article 8 (Development of New Technologies and New Methods)

Enterprises shall be encouraged to adopt technologies and methods such as “internet + recovery” and smart recovery machines to realize the organic combination of online and offline recovery of renewable resources and promote convenient trading methods.

Related enterprises shall be guided to cooperate with renewable resources recovery operators (hereinafter referred to as the Operators) to promote green consumption and renewable resource recovery.

Article 9 (Compulsory Recovery of Partial Products and Packages)

Enterprises that manufacture the products and packages listed in the State’s compulsory recovery catalogue shall recover such end-of-life products and used packages.

A manufacturer may entrust sales enterprises, the Operators or other organizations to conduct the recovery. The trustees shall be responsible for the recovery according to the provisions of relevant laws and rules, and the contract agreements.

Article 10 (Recovery of Waste Commodities That Are Easy to Pollute Environment)

The municipal commerce department shall, jointly with the municipal departments of development & reform, and ecology and environment, take measures to encourage and support the recovery of waste commodities that are easy to pollute environment.

The municipal and district commerce departments shall organize the Operators and the enterprises that have corresponding handling capability to establish a recovery network for waste commodities that are easy to pollute environment including discarded energy-saving lamps, batteries, ink cartridges, and launch recovery of waste commodities that are easy to pollute environment.

The municipal and district departments of commerce, ecology and environment, and landscaping and city appearance shall strengthen guidance on the recovery and transport of those waste commodities that are easy to pollute environment.

Such matters as the recovery type of and norms for waste commodities that are easy to pollute environment shall be integrated into the Guidance Catalogue for Renewable Resource Recovery.

Chapter III  Recovery Operation Norms

Article 11 (Establishment Registration of Recovery Operators)

Those who engage in renewable resource recovery operations shall register themselves as market entities according to law, and obtain a business license.

Article 12 (Record of Recovery Operators)

The record items filed by the Operators shall be integrated into the business license. After the market regulation department approves the registration of market entities, relevant information shall be shared with relevant departments through the municipal big data resource platform. If the record items of the renewable resource recovery operators have changed, the market regulation department shall share the changed record information to relevant departments in a timely manner through the municipal big data resource platform.

The renewable resource recycling enterprises that recover scrap metals from production (hereinafter referred to as “production scrap metals”) and the renewable resource recovery operators that recover non-production scrap metals shall also file with the local district public security department within 15 days after obtaining their business license.

When the record items specified in Paragraphs 1 and 2 above are changed, the renewable resource recovery enterprises that recover production scrap metals and the Operators that recover non-production scrap metals shall, within 15 days from the date of change, go through the change procedures with the district public security department.

Article 13 (Trading Requirements for Waste Production Subjects)

The renewable resources produced by enterprises and public institutions shall be sold or transferred to the Operators except for those used for recycling purposes and invested in re-production. Among them, the production scrap metals shall be sold, with an inventory of articles, to the recorded recovery enterprises of production scrap metals (hereinafter referred to as the Recovery Enterprises).

The scrap metals from municipal utilities that have to be discarded by the development units, maintenance units, and management units of municipal works shall be sold to the Recovery Enterprises that are published in the catalogue by the municipal commerce department, and an inventory shall be issued as well. The Recovery Enterprises on the list shall be determined through fair competition, including bidding at regular intervals by the municipal commerce department jointly with the municipal public security department and the industry organization, and be made public.

Article 14 (Daily Behavior Norms for Recovery Operators)

The Operators shall observe the following provisions in the process of collecting, storing, handling and transporting the renewable resources:

1. strengthening security management over fire and power source;

2. taking appropriate measures of covering, setting up retaining walls, and sanitation to prevent the occurrence of environment pollution including flying-off, splashing, spilling, odor diffusion, and explosion;

3. keeping the surrounding environment clean, conducting regular sterilization, and strictly controlling the pollution of noises, dust, sewage, or peculiar smell, to prevent the impact on surrounding residents’ working and living environment; and

4. other regulatory provisions on ecology and environment, city appearance and sanitation, safe production, prevention and control of occupational hazards, firefighting and public security, and operating norms for recovery.

The operating norms for the the Operators shall be formulated by the municipal commerce department jointly with relevant departments and the industry organization.

Article 15 (Purchase and Transport of Production Scrap Metals and Scrap Metals from Municipal Utilities)

The Recovery Enterprises shall sign purchasing contracts with the sales units of scrap metals, check the inventory of articles issued by the sales units, and set up an account which shall truthfully record the name of the sales unit, ID information of the responsible person, and the name, quantity, specifications and conditions of the articles, and shall be kept for at least two years.

Where the development units, maintenance units, and management units of municipal utilities or the Recovery Enterprises transport by themselves or entrust others to transport the scrap metals from municipal utilities, they shall issue a certificate in advance, identifying the type, quantity and destination of those scrap metals from municipal utilities, and affix an official seal. Such certificates shall be kept for reference in the process of transportation.

The public security department shall inspect according to law the vehicles and vessels transporting the scrap metals from municipal utilities. Where other departments find that the transporter of those scrap metals from municipal utilities cannot provide relevant certificates, they shall promptly notify the public security department to handle the case on the spot.

Article 16 (Treatment of Renewable Resources)

The Operators shall deliver the recovered articles that can be reused or recycled to those production operators with corresponding conditions for reusing or recycling; those recovered articles that cannot be reused or recycled shall be delivered to enterprises with the corresponding treating capability for decontamination.

The relevant provisions of the State and this Municipality shall be observed in treatment of wastes to ensure safe production, prohibit illegal treatment and prevent pollution of the environment. The use of the technologies and techniques that are eliminated under State order shall be prohibited.

Article 17 (Supervision over Recovery of Wastes Generated from Construction Sites)

At the time of inviting tenders or contracting for construction engineering or demolition of buildings/structures, the enterprises and public institutions shall make clear in the bidding documents and the contract that the construction unit shall sell production scrap metals to recorded Recovery Enterprises, and properly dispose of construction wastes of other types that can be recycled according to the requirements on comprehensive utilization of resources.

The district housing and urban-rural development administrative department shall strengthen supervision and administration over the construction units that sell the production scrap metals and dispose of other construction wastes, and bring them into the scope of safe construction site appraisal in this Municipality.

Article 18 (Articles Prohibited to Be Recovered)

The Operators shall not recover the following articles:

1. stolen articles wanted by the public security department in its circular or articles that are suspected as stolen;

2. scrap metals from municipal utilities whose legal source cannot be proved;

3. highly toxic, radioactive materials and related containers; and

4. other articles prohibited from recovery by laws, rules and regulations.

Upon identifying stolen articles wanted by the public security department or articles that are suspected as stolen in the process of operation, the Operators shall report to the public security department immediately. The public security department shall handle the case according to law.

Article 19 (Tip-offs and Rewards)

The public security department shall reward the informer according to relevant provisions where his/her tip-offs on the Operators’ illegal acts including recovering prohibited articles, arbitrarily engaging in recovering the scrap metals and materials from municipal utilities are verified by the public security department.

Chapter IV  Supporting Measures

Article 20 (Formulation of Policies and Measures)

The municipal and district people’s governments and their relevant departments shall, according to their respective functions and duties, formulate and implement policies and measures on promoting renewable resource recovery, encourage units and individuals to collect and deliver renewable resources, and encourage colleges and universities, R & D institutes, and relevant enterprises to conduct scientific studies and develop and promote technologies on the recovery and treatment of renewable resources.

Article 21 (Public Information Service Platform)

This Municipality establishes a public information service platform of renewable resource recovery with the following functions:

publishing the list of recorded Operators, the guiding catalogue of renewable resources recovery and the recovery site network information of this Municipality;

summing up supervision and management information of the renewable resource recovery industry, realizing information sharing among administrative departments, and making public relevant information according to law;

releasing information on the recovery price of renewable resources, industry development, and related supporting and encouraging policies; and

soliciting opinions and suggestions of the general public on promoting renewable resource recovery.

The public information service platform of renewable resource recovery shall be organized and constructed by the municipal commerce department, which shall entrust the daily operation and maintenance of the platform to the industry organization.

Article 22 (Arrangement of Financial Support)

This Municipality arranges relevant expenses from the special funds for the development of recycling economy and the comprehensive utilization of resources to support and encourage renewable resource recovery.

Relevant municipal departments shall, according to the provisions, commend or reward the units and individuals who have made outstanding contributions in renewable resource recovery.

Article 23 (Report of Recovery Information and Industry Statistics)

The operators shall regularly report to the commerce department such information as the type, quantity and disposal of recovered renewable resources. The specific procedures shall be separately formulated by the municipal commerce department jointly with the municipal departments of statistics, and public security.

The municipal and district commerce departments shall conduct statistics of and monitoring over the renewable resource recovery industry, and analyze relevant statistics information. The renewable resource recovery data shall be filed for record at the statistics organ of the people’s government at the same level before release.

Article 24 (Publicity and Education)

The municipal commerce department shall, jointly with the municipal departments of development & reform, education, ecology and environment, landscaping and city appearance, housing and urban-rural development administration, and housing administration, and the consumer protection organizations, strengthen the publicity and education on renewable resource recovery, and support communities, primary schools and middle schools to conduct relevant knowledge popularization and social practice.

Chapter V  Legal Liability

Article 25 (Legal Liability of Unlicensed Operations)

For those who arbitrarily engage in operating renewable resource recovery without obtaining the business license, the market regulation department and the urban management and law enforcement department shall, according to their division of duties, handle the case in accordance with relevant provisions.

For those who know or should know that unlicensed operations of renewable resource recovery are illegal but still provide the production or operation sites, or transport, safekeeping or storage facilities, the market regulation department shall handle the case according to relevant provisions.

Article 26 (Legal Liability of Violating the Provisions on Record)

Where an Operator violates the provisions of Paragraph 2 or 3 Article 12 of these Procedures, fails to go through record formalities or alteration record formalities, the public security department shall order the wrongdoer to make corrections within a prescribed time limit; where the wrongdoer fails to make corrections within the prescribed time limit, a fine of not less than 2,000 yuan but not more than 5,000 yuan shall be imposed thereon.

Article 27 (Legal Liability of Violating the Provisions on Recovery of Production Scrap Metals)

Where the Recovery Enterprise violates the provisions of Paragraph 1 of Article 15 of these Procedures, fails to set up and keep the account, the public security department shall order the wrongdoer to make corrections within a prescribed time limit, and impose a fine of not less than 1,000 yuan but not more than 5,000 yuan thereon.

Article 28 (Legal Liability of Violating the Provisions on Recovery of Scrap Metals from Municipal Utilities)

For those who arbitrarily engage in operating activities of recovering the scrap metals from municipal utilities, the public security department shall punish the wrongdoer according to laws and rules of the State on public security administration.

For those who violate the provisions of Paragraph 2 of Article 15 of these Procedures, transport old and scrap metals from municipal utilities but fail to provide related certificates, the public security department shall impose a fine of not less than 1,000 yuan but not more than 5,000 yuan thereon.

For the development units, maintenance units, and management units of municipal works who illegally dispose of the scrap metals from municipal utilities, the superior competent administrative department shall impose penalty on such units’ person-in-charge and the person directly responsible; where the act constitutes a crime, the wrongdoer shall be prosecuted for criminal liability according to law.

Article 29 (Legal Liability of Violating the Provisions on Recovery of Prohibited Materials)

Where an Operator violates the provisions of Paragraph 1 of Article 18 of these Procedures, recovers the articles prohibited to be recovered, the public security department shall punish the wrongdoer according to laws and rules of the State on public security administration.

Article 30 (Legal Liability of Violating the Provisions on Reporting Information)

Where an Operator violates the provisions of Paragraph 1 of Article 23 of these Procedures, fails to report to the commerce department the relevant recovery information, the commerce department shall order the wrongdoer to make corrections within a prescribed time limit; where the wrongdoer fails to make the corrections within the prescribed time limit, a fine of not less than 1,000 yuan but not more than 5,000 yuan shall be imposed thereon by the market regulation department.

Chapter VI  Supplementary Provisions

Article 31 (Definition of Relevant Items)

1. The production scrap metals as mentioned in these Provisions mean metal materials or products used in buildings, railway, communication, electric power, water conservancy, oil field, public facilities, or other production fields, and have lost all or part of the value in use.

2. The scrap metals from municipal utilities as mentioned in these Provisions mean public facilities, equipment, instruments, sculptures and other materials used in municipal works that contain metals and are damaged due to natural or human factors. The municipal housing and urban-rural development administrative department shall, jointly with the municipal departments of commerce and public security and the industry organization, formulate and make public the specific catalogue.

Article 32 (Effective Date)

These Procedures shall be effective as of December 1, 2012. The Provisions of Shanghai Municipality on the Administration of the Purchase of Old and Scrap Metals promulgated by Decree No. 52 of Shanghai Municipal People’s Government on October 17, 2005 shall be repealed at the same time.