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Interim Measures for the Management of China’s First New Logistics Mode Issued
2019-09-10

On Sep. 9, we learned from the Ministry of Transport that Ministry of Transport and the State Administration of Taxation have jointly promulgated Interim Measures for the Operation and Management of Road Freight Transport on Internet Platforms, the first of its kind in China, which will go into effect on January 1, 2020 and remain in effect for two years.

 

Yu Xingyuan, head of the Freight and Logistics Management Department of the Transport Services Division of the Ministry of Communications and Transport, said at a forum on the development of online freight transport that the platform has integrated 1.83 million trucks, accounting for 13 percent of the total number of trucks in the market. The development of network freight transportation has promoted the transformation and upgrading of the industry, and promoted the reduction of cost and efficiency of logistics, but the current laws and regulations for the development of new forms of logistics are not perfect, which restrict the healthy development of the industry.

 

Yu Xingyuan said that with the goal of fostering and strengthening new forms of logistics and new kinetic energy, and the principles of encouraging development, containing prudence, problem-oriented, and innovative supervision, an institutional system for the supervision and management of online freight transport operations are established .

 

Yu Xingyuan said that the measure is based on a systematic summary of the pilot work of NVOCC. From 2020, pilot enterprises may apply for road transport operation permits with the business scope of “network freight transport” in accordance with the requirements specified in the measures. The institutions at the county level that have the responsibility of road transport supervision and administration shall, in accordance with the measures, issue new road transport operation licenses to the pilot enterprises that meet the requirements of relevant conditions. Operators who are not included in the experimental scope of the Ministry of Communications and Transport’s NVOCC may, in accordance with the measures, apply for business licenses and engage in network freight business according to law and regulations.