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Two alkali companies call for the cancellation of industrial salt “pass”

June 26, 2018

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Recently, Zou Jialai, a lawyer of Shanghai Pengzhiping Law Firm, which is known as "the first lawyer in the Chinese salt industry monopoly lawsuit," told reporters: "The decentralization of the permit management function is still a monopolistic operation. It is illegal." Since May 1, Shandong Salt Administration has carried out the pilot decentralization of two alkali Industrial Salt pass management functions in Dongying and Zibo. The management of the two alkali chemical industry passes in the jurisdictions of the two municipalities is fully responsible by the Salt Bureaus of the two cities. The time is tentatively set for six months.



As early as in 1995, the National Planning Commission and the Economic and Trade Commission at the time clearly revoked the industrial salt transport permit and permit in the “Notice on Improvement of Industrial Salt Supply and Marketing and Price Management Measures” (calculated price [1995] No. 1872). The system, which marks that the industrial salt market should have been liberalized long ago. In 1996, the State Council promulgated the “Special Measures on Salt,” further clarifying that the state only implemented franchise on salt. However, for many years, Shandong, Henan, Sichuan, Gansu, and Qinghai provinces not only implemented monopoly management of salt, but also carried out unified management of industrial salt operations, and applied permits or permits for industrial salt.



In order to understand the impact of the implementation of the permit on salt supply and sales for the two alkali enterprises, the reporter interviewed some chemical companies in Shandong and Jiangsu.



"There is no permit to not transport, but also to advance the plan, the certification is the first procedure to buy salt, Salt Bureau to make the permit pass is equal to one more procedure." Shandong Zibo, a chlor-alkali enterprise procurement person in charge told reporters. Luo Peizhong, director of industrial salt procurement at an alkali plant in Lianyungang, told reporters that in the past few years, they had imported Sea Salt through the car and had to find a coordination relationship in order to get a permit. The maximum cost per ton was 5 yuan. A person in charge of the chlor-alkali company in Dongying told reporters that which company's salt is being purchased is the company that will issue the permit. These costs are added to the salt price, and even the pounds must go to the place designated by the Salt Bureau. ”



A person in charge of the Weifang City Salt Industry Association told reporters that at present, the industrial salt service supervision fee is charged at 1 yuan per ton for industrial salt sales. The cost of the permit is also included, and the cost of this yuan is through Shandong. Provincial Audit Office accredited. The person in charge also stressed that the one-dollar industrial salt service supervision fee is not an administrative charge but a service charge.



It is understood that some provinces and cities control industrial salt in order to prevent industrial salt from flowing into the food sector. At present, the industrial salt-to-plant price is more than 400 yuan per ton, and the price of Edible Salt is as high as 2,300 yuan per ton, allowing unscrupulous traders to have room for profiteering. In particular, after the 14,000 tons of pesticide waste residue salt from Jiangsu First entered the salt industry market in 12 provinces and municipalities across the country last year, some places that canceled the industrial salt pass cited the case as a reason to require the strengthening of industrial salt management and the re-implementation of the industrial salt pass.



Does the Salt Administration of Shandong Province devolve the management function of the two alkali industrial salt passes, does this mean that the two alkali industrial salt passes will be phased out? A person in charge of the Salt Management Office of the Salt Bureau of Shandong Province told the reporter that the decentralization of the management function of the two alkali industrial salt passes is to simplify the procedures and optimize the processes. In addition, the devolution of the permit management function is not related to the cancellation of the permit, which means that the two alkali industrial salt permit will continue to be implemented.



“The devolution of the permit to the local salt administration or the monopoly of the industrial salt market is inconsistent with No. 82 of the Supreme People’s Court and is illegal.” Zou Jialai said to reporters.



According to Zou Jialai's introduction, the Supreme People's Court’s “Response to the Request for Industrial Salts for Transportation of Industrial Salts and Other Requests” ([2010] Kakusei No. 82) clarifies related issues in industrial salt management. :



First, industrial salt is no longer a state-restricted item, and the act of industrial salt does not constitute an illegal business crime.



Second, the law and the "Salt Industry Regulations" do not set an administrative license for industrial salt transport permit. Local regulations or local regulations cannot set up an industrial salt transport permit system.



Third, there is no stipulation of administrative penalties for the salt-distribution business of companies other than salt companies, and local government regulations cannot provide for administrative penalties for this act.



According to the reporter, the basis for implementing permits for two alkali industrial salt in some places is the "Regulations on the Administration of Salt Industry" of each province.



"The management regulations that are inconsistent with No. 82 of the Supreme People's Court are invalid and illegal." Zou Jialai told reporters.


"Since it is illegal, why is the (two-alkali industrial salt) pass still in force? Wouldn’t anyone be in charge?" said the deputy general manager of a chlor-alkali enterprise in Dongying, Shandong province, asking reporters questions.




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