The person in charge of the National Development and Reform Commission answered questions about implementing interim price interventions

With the approval of the State Council, on January 15, the National Development and Reform Commission promulgated the "Measures for the Implementation of Provisional Price Intervention Measures for Certain Important Commodities and Services" (hereinafter referred to as the "Measures"), which specified in detail the scope of the range of products subject to temporary price interventions. , intervention forms and specific filing methods. The reporter interviewed the relevant person in charge of the National Development and Reform Commission.

Q: Why do we need to adopt temporary price intervention?

A: Since May last year, the overall level of China's consumer price has risen considerably. Since August, the year-on-year increase in consumer prices has exceeded 6% for five consecutive months. The State Council approved the initiation of interim price interventions. The necessity is: First, prices of some important commodities have risen significantly. In early January of this year, the retail prices of soybean oil, pork, beef, and mutton in 36 large and medium-sized cities rose by 58%, 43%, 46%, and 51% respectively year-on-year. The rise in prices has had a greater impact on the lives of the general population, especially the low-income groups. Second, some companies took the opportunity to raise prices. Some collude with each other, manipulate market prices, infringe on consumer interests; some hoarders, ride prices; some increase in prices beyond the unreasonable price increase; some advance news prices, create price hikes, drive up prices; Some have fabricated information to spread prices, creating tensions and pushing up market prices to rise unreasonably. Third, unreasonable price increases have affected the stability of society. As the masses are strongly reflecting the increase in prices, individual tabloids and small magazines are keen to speculate on the subject of price increases, rendering the atmosphere of price increases and seriously affecting social and psychological expectations. To curb unreasonable price increases, the State Council approved the initiation of interim price interventions.

Q: How do you recognize the start of temporary price intervention? Does the initiation of interim price intervention mean that companies cannot raise prices?

A: Temporary price interventions are temporary administrative measures to control the unreasonable price increase in accordance with the law under special circumstances. They must be correctly understood and reasonable. The first is legality. Article 30 of the "Price Law" of China stipulates that "When the price of important goods and services rises significantly or may rise significantly, the State Council and the people's governments of provinces, autonomous regions, and municipalities directly under the Central Government may adopt a limited margin rate or profit margins, stipulated price limits on some prices. , implement the price increase declaration system and the price adjustment filing system and other interventions." In the event that prices have risen sharply and seriously affect people’s lives and social stability, it is common practice for countries to conduct necessary administrative interventions on prices. The second is rationality. Included in the scope of interim price intervention are very few important commodities whose price rises are more closely related to the basic production and livelihood of residents. The implementation of temporary price intervention does not change the nature of the firm’s own pricing, does not freeze the price, and does not affect the normal operation of the company. For commodities that are included in temporary interventions, the price increase of production and business enterprises must be reported to the government for record, explaining the reasons. The government is interfering with the unreasonable price increase of the company; the government will not interfere with reasonable price increases. The third is temporary. Price interventions are measures taken in the case of significant price increases. Article 32 of the "Price Law" clearly stipulates that in the event of a significant increase in prices, they must be promptly lifted. The fourth is auxiliary. The fundamental way to stabilize prices is to develop production and increase market supply. The price of administrative intervention is only an auxiliary measure. The purpose of the interim price intervention is to regulate the order, restrain the unreasonable rise of prices, and stabilize social psychology expectations.

Q: What are the types of products included in the interim measures? What kind of company needs to report and record?

A: The range of varieties for which price increase declarations and/or price adjustments are filed are mainly finished grain and grain products, edible vegetable oils, pork and beef and mutton products, milk and milk powder, eggs, liquefied petroleum gas, and other important commodities. The "Measures" stipulates that a certain amount of production enterprises should apply for raising prices, and that wholesale and retail enterprises that have reached a certain scale should be subject to price adjustment. The application for price increase is mainly concentrated in the national and provincial-level price authorities; the definition of an enterprise that reaches a certain scale must be determined by the competent department of price that accepts the application and submit it to the people's government at the same level according to the circumstances. The price adjustment filings are mainly at the municipal and prefectural levels of price control departments, and the people's governments at the municipal (prefecture) level shall be reported to the competent price departments of the provinces, autonomous regions and municipalities directly under the central government for examination and approval. The stipulation of “reaching a certain scale” is mainly to consider the types of interventions involved, all of which are products with relatively complete market competition. It is impossible and unnecessary to require all enterprises to apply to the competent pricing department for filing and filing. Listed in the scope of government price intervention should be a company that occupies a large share of the local market, and the price changes will have a greater impact on the local market.

Taking into account the high market concentration of instant noodles, edible vegetable oils, and dairy product production industries, a small number of large enterprises have a large share of the national market. Therefore, companies with larger market shares in these industries are required to report directly to the National Development and Reform Commission. .

Q: What is the difference between price increase filing and price adjustment filing?

Answer: The "Implementation Measures" mainly stipulates the operation methods for the two kinds of interventions for price increase declaration and price adjustment filing. The difference between the two: First, the object is different. The operators who need to raise their prices for declarations are mainly production enterprises, while those for price adjustment and filing are mainly wholesale and retail enterprises. The second is different from the receiving agency. Operators listed in the price increase application scope must apply to the provincial or above government price administrative department; operators included in the scope of price adjustment and filing shall register with the price authority of the municipal or county government for record, and some retailers and wholesalers with large scale of operation It can be filed with the provincial government’s price authority as required. The third is different time. The price increase declaration is a request for the price adjustment application to the government price authority within 10 working days before the company raises the price. The price adjustment filing is the reporting of the price adjustment result to the government price authority within 24 hours after the company adjusts the price, and the government reserves the right to intervene. The fourth is the difference in magnitude. The price increase declaration is required regardless of the price increase rate; for the price adjustment record, it is necessary to record the price increase level beyond the prescribed range.

The implementation of the price increase declaration is only a review of the justification of the price increase reasons; the implementation of price adjustment filings only reserves the power to intervene in the rationality of the price adjustment reasons and amplitude. The Measures stipulate that if there is no justification, the competent pricing agencies at all levels must not require the company to operate at a loss. The purpose of making this provision is to protect the legitimate rights and interests of enterprises.

Q: Is the price of goods included in the price increase declaration equivalent to government pricing?

A: The inclusion of a price increase declaration does not mean that government pricing is imposed. The first is different pricing entities. The government that stipulates the pricing of the goods by the government is the government; the main body of the products listed in the price increase declaration has not been changed and is still formulated by the company. The second is different procedures. Government pricing can be proposed by the company for price adjustment, or the government can directly formulate a price adjustment plan. The price increase application is submitted by the company for a price adjustment application. The government will only make necessary interventions if it believes that the reason for the price adjustment is not sufficient and the price adjustment rate is unreasonable; if the government does not respond within the specified time, it shall be deemed as agreeing to the price adjustment proposed by the company. Application. The third is different time. The type of price increase declaration is the government's temporary price adjustment review. The price of goods included in government pricing is controlled by the government.

Q: Under what circumstances do companies listed in the price increase declaration and price adjustment filing list need to perform the reporting or filing procedures?

A: The companies listed on the price increase declaration list need to submit the written application to the designated price authority 10 days in advance when raising the price of the designated product. Companies listed on the list of price adjustment filings need to perform the price adjustment filing procedures when the price of designated products is adjusted to exceed a certain extent. The specific stipulations are as follows: For commodities listed on the record, once the price is raised by more than 4%, the cumulative price adjustment within 10 days exceeds 6%, and the cumulative price adjustment within 30 days exceeds 10%, the company needs to adjust the price within 24 hours after the price adjustment. The written report is sent to the designated price authority for filing.

Q: How does the government handle the company's price increase filing and price adjustment filing?

A: In accordance with the "Measures" stipulates that if the pricing authority receives an application from the company, if it believes that the reason for the price adjustment is not sufficient or the price adjustment is unreasonable, it shall notify the application company of the relevant opinions within 7 working days after receiving the adjustment application report; If it is not announced within the time limit, it shall be deemed as having agreed to the application of the company.

According to the “Measures”, after the price authority has received the filing report, if he holds an objection to the adjustment of the price of the enterprise, he needs to inform the relevant company of the opinion within 3 working days. If the reason for the price adjustment is not sufficient, the competent department of price may order the relevant operator to restore the original price or reduce the price adjustment; if it is not notified within the time limit, it shall be deemed that there is no objection to the price adjustment. Operators who hold different opinions on the decision of the price authority may request reconsideration at the same time as the decision of the executing price authority.

Q: If the company does not implement the corresponding interim price intervention, what kind of legal liability will it bear?

Answer: During the implementation of the interim price intervention measures, the relevant enterprises should fulfill the obligation of submitting price increase declaration and price adjustment filing in accordance with regulations. The "Price Law," "Provisions on Administrative Penalties for Price Violations," and "Implementation Measures for Implementing Provisional Price Intervention Measures for Certain Important Commodities and Services" all provide legal liability for violations of relevant regulations, including: (1) Failure to comply (2) Failing to declare or file a case within the stipulated time; (3) Earlier price increase after reporting by the operator; (4) No price increase or reduction by the non-executive price authority. Such as price increases or standards, etc.; (5) Failing to specify reasons or fictional reasons and providing false information in accordance with the regulations; (6) Not implementing limited margin or profit margins; (7) Other acts in violation of price intervention measures. For these actions, the competent pricing department will order the operators to make corrections and impose administrative penalties in accordance with the law.

Q: Previously there were reports that the National Development and Reform Commission issued an announcement to implement a filing system for the price increase of some important goods and services from January 1, 2008. How does this relate to the current interim price intervention?

A: We must specifically state here that the last report was false. We have not issued relevant announcements before. The relevant measures are subject to the provisions of the "Measures" issued this time.