Circular of the National Development and Reform Commission and the Ministry of Finance on Issuing the Administrative Measures for Asset Appraisal Fees

FGJG [2009] No. 2914

To the development and reform commissions, price bureaus, and finance departments (bureaus) of provinces, autonomous regions, and regions directly under the Central Government:

In order to regulate the collection of asset appraisal fees, safeguard the social public interests and the legitimate rights and interests of the parties, and promote the healthy development of the asset appraisal industry, we have formulated the Measures for the Administration of Asset Appraisal Fees, which are hereby printed and distributed to you for implementation.

All localities shall, in accordance with the Measures for the Administration of Asset Appraisal Fees, sort out and regulate the asset appraisal fees within their respective administrative regions, announce the newly formulated asset appraisal fee methods and standards to the public before the end of December, and report the implementation to the National Development and Reform Commission (Price Department) and the Ministry of Finance (Enterprise Department).

National Development and Reform Commission

treasury department

November 17, 2009

Measures for the Administration of Asset Appraisal Fees

Article 1 These Measures are formulated in accordance with the Price Law of the People's Republic of China, the Measures for the Administration of State owned Assets Appraisal and other relevant laws and regulations in order to regulate the collection of fees for asset appraisal, safeguard the social and public interests and the legitimate rights and interests of the parties, and promote the healthy development of the asset appraisal industry.

Article 2 Any asset appraisal institution approved by the competent financial department at or above the provincial level to provide asset appraisal services in accordance with the relevant laws and regulations and the relevant provisions of the State shall charge appraisal fees in accordance with these Measures.

Article 3 The asset appraisal fees shall follow the principles of openness, fairness, impartiality, voluntariness and compensation, honesty and credibility, and payment by the client.

Article 4 The asset appraisal fees shall be subject to the government guidance price and the market adjusted price.

The asset appraisal institution shall provide the asset appraisal services required by laws and regulations and relevant national regulations (hereinafter referred to as "statutory asset appraisal services"), and implement the government guidance price; The market adjusted price is applied to the provision of voluntary entrusted asset appraisal and related services (hereinafter referred to as "non statutory asset appraisal services").

Article 5 The legal asset appraisal service may be charged by piece, by hour, or by a combination of piece and by hour.

Article 6 For statutory asset evaluation services that charge by piece, the original book value of the assets to be evaluated may be used as the basis for accounting, and the method of progressive calculation of the difference rate shall be adopted to collect the evaluation fees. That is to say, the fees are classified according to the size of the original book value of the assets to be appraised, and the amount of fees is calculated by grades, and the total amount of fees is the sum of all grades.

Article 7 For the statutory asset appraisal services that are charged by time, the appraisal fees may be charged according to the number of working man days required to complete the asset appraisal business and the charging standard for each working man day. The number of working man days is determined according to the nature, risk and complexity of the assessment project; The charging standard for each working day is determined according to the professional skill level of the appraisers and the service quality of the assessment work.

Article 8 The benchmark price of the government guidance price and its fluctuation range shall be put forward by the financial departments of provinces, autonomous regions and municipalities directly under the Central Government and formulated by the competent price departments at the same level.

Article 9 The charging standards for statutory assets appraisal services shall be determined on the basis of the average social cost, statutory taxes and reasonable profits of the assets appraisal services, and taking into account the local economic development level, social affordability, the impact on the capital market and the public, etc.

Article 10 For the non statutory asset appraisal services with market adjusted prices, the asset appraisal institution shall propose the scope of charging standards, and the specific standards shall be determined through consultation between the asset appraisal institution and the client. The following main factors shall be considered when determining the charging standard:

（1） Working time and practice cost consumed;

（2） Evaluate the difficulty of the business;

（3） The client's affordability;

（4） Possible risks and responsibilities of the certified public valuer;

（5） The social reputation and working level of the certified public valuer.

Article 11 Where an asset appraisal institution establishes a branch in another place, it shall implement the provisions on the charges for asset appraisal services in the place where the branch is located.

Where an asset appraisal institution provides asset appraisal services in a different place, it may implement the charging regulations of the place where the asset appraisal institution is located or where the asset appraisal services are provided, and the details shall be determined through consultation between the asset appraisal institution and the client.

Article 12 When accepting the entrustment, an asset appraisal institution shall sign a charging contract (agreement) for the asset appraisal service business with the client or specify the charging terms in the business agreement.

The charging contract (agreement) or terms shall include: charging items, charging standards, charging methods, charging amounts, payment and settlement methods, dispute resolution methods, etc.

Article 13 After the asset appraisal institution signs a contract (agreement) with the client, if the entrustment relationship is terminated due to the fault of one party or without justifiable reasons, the relevant expenses shall be refunded and compensated in accordance with the Contract Law and other relevant provisions.

Article 14 When the statutory asset evaluation service business is obtained by means of bid invitation (bidding), the asset evaluation institution shall reasonably determine the bid price within the specified benchmark price and floating range.

Article 15 An asset appraisal institution that provides asset appraisal services to the client shall strictly abide by the relevant laws, regulations and asset appraisal standards, abide by the principles of independence, objectivity and impartiality, and perform the necessary appraisal procedures.

Article 16 When an asset appraisal institution collects appraisal fees from the client, it shall issue legal instruments.

Article 17 An asset appraisal institution shall publicize the appraisal items, charging standards and other information at a prominent place in its business premises, and accept social supervision.

Article 18 An asset appraisal institution shall strictly implement the charging methods and standards for asset appraisal formulated by the competent pricing department of the government, establish and improve the internal charging management system, ensure the quality of the appraisal, and consciously accept the supervision and inspection of the competent pricing department.

Article 19 Under any of the following circumstances, the competent price department of the government shall impose administrative penalties in accordance with the Price Law and the Provisions on Administrative Penalties for Price Violations:

（1） Failing to publicize service items and charging standards as required;

（2） Setting a price beyond the floating range of the government guidance price;

（3） Setting the fees for evaluation services within the scope of government guidance prices without authorization;

（4） Arbitrarily charging by means of decomposing charging items, repeatedly charging, expanding charging scope, etc;

（5） Charging fees for failing to provide asset appraisal services in accordance with regulations;

（6） Other price violations.

Article 20 Citizens, legal persons and other organizations may report and complain to the local competent price department of the asset appraisal institution if the asset appraisal institution or the certified asset appraiser fails to implement the government guidance price or has other illegal price behaviors.

Article 21 In case of any charge dispute between the asset appraisal institution and the client, the asset appraisal institution shall negotiate with the client for settlement, or apply for arbitration or bring a lawsuit to the people's court.

Article 22 The expenses incurred by the entrusted party of an asset appraisal institution for carrying out asset appraisal services abroad or in Hong Kong, Macao and Taiwan shall be determined through consultation by signing a contract with the entrusted party.

Article 23 These Measures shall be interpreted by the National Development and Reform Commission and the Ministry of Finance.

Article 24 The Measures shall be implemented as of January 1, 2010, and the Interim Measures for the Administration of Asset Appraisal Fees (JFZ [1992] No. 625) issued by the former State Price Bureau and the State owned Assets Administration shall be repealed at the same time.