Henan 280 million yuan hub renovation case: circular economy enterprises? Fake and inferior dens?

category:Finance
 Henan 280 million yuan hub renovation case: circular economy enterprises? Fake and inferior dens?


Since then, 16 other people of Xingyu company have been arrested, including a first-class severely disabled person. Luyi police said that Xingyu company involved 280 million yuan, causing social concern.

In April 2019, the peoples Procuratorate of Luyi County initiated a public prosecution of the case. However, the charges of 17 defendants were changed from counterfeiting registered trademark to producing and selling fake and inferior products. The amount involved in the case has also been changed twice, from 280 million yuan to more than 30000 yuan, and the amount involved in the final prosecution is 13.05 million yuan.

Prosecutors allege that since January 2016, Shang Dongdong and others have begun to renovate and sell second-hand wheel hubs, recycled the second-hand wheel hubs of 43 high-end automobile brands such as Benz and BMW from Shandong, Tianjin and other places, and sold them all over the country after being processed and renovated as genuine original wheel hubs.

The 17 defendants, including Shang Dongdong, as well as their defense lawyers, have pleaded not guilty. At present, there is no uniform standard for hub repair in China. The defenders believe that this case is expected to attract the attention of the state to the industry, so as to grant relevant enterprises business qualifications, and develop national standards to improve the supervision of hub renovation industry.

Enterprises attracting investment in the county

Two years later, he stepped into Xingyu companys factory again. The wild grass growing at the gate has exceeded one meter. Shang Dongdong said, my heart is broken..

On June 11, 2020, after 700 days in custody, nine defendants, including Shang Dongdong, were released on bail. Previously, eight other defendants in the case, including a severely disabled person, had been released on bail before the Spring Festival this year.

The wild grass shaking with the wind reminds Shangdong of seeing this land for the first time. At that time, the relevant personnel in charge of investment promotion drove him to the outskirts of the city. With a wave of his hand, he pointed to a golden wheat field outside the window and said, you can choose this land, whichever you like.

Shangdongdong sees a wheat field with a pond not far from the office building of the Management Committee of Luyi Industrial Park.

In 2012, Shangdong, who was still operating hub renovation plant in Wenzhou, met with a major leader of Luyi County who led a team to Wenzhou to attract investment. In order to fully impress these talents in foreign countries emotionally, the relevant personnel of investment invitation invited some village officials to go together several times. When the village head and the village secretary come, we are sorry to refuse. Shang Dongdong told the interface news.

At that time, Shangdong and several other friends who set up shoe factories in Wenzhou partnered to buy 60 mu of industrial land in Luyi and set up yierdao shoe factory.

Shang Dongdong said that the pond at the gate of the factory was filled by himself with people. At that time, although it was a wasteland, there was hope in my heart.

Its only two years from hope to heartbreak.

In 2016, Shangdong began to consider that if the hub factory is moved back to Luyi, workers can save more money and buy houses. In that kind of city, the children of the workers can only read the schools for the children of the migrant workers, without a sense of belonging.

Shang Dongdong takes three workers back to Luyi. At the beginning, Xingyu company was small in scale. In order to save cost, Shangdong purchased some intact second-hand equipment. A few years later, the second-hand equipment became one of the evidence in his case. The public prosecution believes that the hub renovated from these second-hand equipment has potential safety hazards.

Xingyu company is the first enterprise in Henan Province which is engaged in hub renovation and registered with industrial and commercial business license. At the end of 2017, it took one and a half years for Xingyu company to obtain the business license. At this time, Xingyu company has developed into a scale of more than 50 workers, ranging from hundreds to more than 1000 hub renovations per month. The company has successively set up warehouses in Zhengzhou, Hangzhou and Wuhan.

Shangdongdong said that the company pays great attention to quality. The purchased hub has processes of sorting, cleaning, correction and repair, electric welding, grinding, puttying, painting, wire drawing, inspection (including water inspection, steam inspection, dynamic balance, fatigue strength resistance), and each process is in the charge of a specially assigned person. Each process has a scrap area, and the hub scrapped in the previous process is absolutely not allowed to be revived in the next process.

Xingyu company has two relatively fixed recycling hub channels, Hebeis auto parts shop and Shandongs aluminum trading market. They also publish the information of recycling old hub on the Internet. The price of old hub varies from 200 to 1500 yuan according to the size and brand.

The paint color of the renovated hub is obviously different from that of the original one. Although the screw has been painted, it has obvious thread. Many people who have been engaged in automobile repair for many years told the interface news that it is difficult to renovate the hub as a new hub sales. The renovated hub farad disc will have traces of painting, and the new hub will present the state of all aluminum.

RMB 280 million case

On July 12, 2018, Shangdongs daughters 3rd birthday, he was taken away by the police. Since then, 16 other people of Xingyu company have been arrested. 13 of them are immediate family members.

According to the interface news, Luyi County Public Security Bureau in July 2018, through work, it was found that there was a processing and sales hub in yierdao shoes factory of Luyi County vortex North Industrial Park, which purchased a large number of used automobile hubs for processing and renovation, and then sold outside through e-commerce platform, offline logistics and other processing and sales centers..

Zhang Weian, chairman of the brand protection committee of CFIUS, announced the news to the public on the day of 17 parties arrival. At the Forum on criminal protection of intellectual property in China, Zhang Weian said, I have good news to announce to you. I just learned that under the organization and coordination of the Economic Investigation Bureau of the Ministry of public security, the Public Security Department of Henan Province has just cracked a super big case of manufacturing and selling fake car hubs. Involving many automobile hub brands, some (fake) hubs even have cracks from the photos. If this case is not solved, it is likely to lead to the safety of consumers lives and property.

This puzzled one of the defence lawyers. Zhang Weian, the suspect arrested in the morning, announced the news in the afternoon. How did Zhang Weian get the news?

In August 2018, Luyi police detained 17 people including the person in charge, sales and technicians of the company on suspicion of counterfeiting registered trademarks. Shortly afterwards, Luyi police announced that the amount involved in the case was 280 million yuan, causing social concern. CCTV carried out a video report for more than 5 minutes under the title of 280 million cases involved, original wheel hub black screen . Among them, the cracked image of the scrapped hub in the scrapped area appeared many times in the report.

Later, the case brought many honors to Luyi public security. According to public reports, in 2018, shangmou case of counterfeiting registered trademark won the top ten cases of social governance influence in the field of public security law enforcement in new media of national government affairs; the Economic Investigation Bureau of the Ministry of public security, the provincial public security department and the Municipal Public Security Bureau sent congratulatory messages to Luyi public security respectively; Luyi public security was praised by the provincial department as outstanding collective for special action to promote the main mode of cloud attack and honored the third class of collective merit once.

But the big case, which attracted attention, became more complicated after entering the stage of public prosecution. In April 2019, the peoples Procuratorate of Luyi County initiated a public prosecution on the case, and the suspected charge changed from counterfeit registered trademark to production and sale of fake and inferior products; the amount involved in the case was changed twice, from 280 million yuan to more than 30000 yuan, and the final amount involved in the prosecution was 13.05 million yuan.

The list of Luyi police detaining Xingyu companys Hangzhou warehouse obtained from the interface news shows that the number of renovated wheels in Hangzhou warehouse seized by Luyi police is 4288, but the indictment shows that the number of renovated wheels in Hangzhou warehouse is 3511. According to Shang, 777 hubs are missing from the warehouse in Hangzhou alone.

By comparing the data of Wuhan, Zhengzhou and Luyi factories, shangdongdong found that the number of wheel hubs in each place was different. There are 722 fewer in Wuhan, 1000 fewer in Luyi and 766 fewer in Zhengzhou. Shangdongdong told the interface news that most of the hubs lost after the police seized were brand-new products with a value of about 4 million yuan. During the trial on June 16, 2020, Shang Dongdong reported the matter in court, and hoped that relevant departments would investigate it thoroughly.

Crime and non crime of renovating wheel hub

According to the prosecutor, Shang Dongdong and others purchased the used, defective and deformed wheel hubs at the price of waste products. The old wheel hubs purchased mainly include 43 famous brands such as Mercedes Benz, BMW and Rolls Royce. Prosecutors say some of the recovered wheels were collected after the Tianjin bombings.

Shangdongdong said that the purchased hub is not defective. According to the purchase list, the purchase price of hub varies from 200 to 1500 yuan. The defense argued that the source of the hub was not linked to the quality of the refurbished factory. The defect is only in the state before acquisition, which does not mean that the hub of Xingyu company is the defect when it leaves the factory. Defenders said that the scrapping of vehicles in the Tianjin explosion did not mean that the hub could not be used. And in this kind of big explosion, the wheel hub which is still intact should be called wheel strong.

The prosecutor compared the process and equipment of manufacturing hub of Nissan company with that of Xingyu company, which proved that Xingyu company had potential safety hazards.

In the defenses opinion, it is not mandatory for all manufacturers to follow Nissans production process. Other products can only be produced in a legal and compliant environment, and the products are qualified. And Xingyu company does not produce wheel hub, but renovates wheel hub, so it cant require repair factory to build according to the standard of automobile manufacturer.

According to the defense, the core of the crime of producing and selling fake and inferior products is to identify the quality of products. The notice of the Supreme Peoples Court on the identification issues related to the trial of criminal cases concerning the production and sale of fake and shoddy goods clearly requires that the public prosecution organ shall entrust the law and administrative law to determine whether the products involved in the criminal cases of production and sale of fake and shoddy products are inferior to good or substandard products are qualified products The product quality inspection organization specified in the regulations shall conduct identification.

However, the prosecutor believes that the hub involved in the case comes from the dismantled waste parts, and Xingyu companys equipment is not advanced, so it can be identified as fake and inferior products without identification.

According to the situation description presented by the economic investigation team of Luyi County Public Security Bureau, the case handling police of the economic investigation team of Luyi County Public Security Bureau contacted the relevant departments of county, city, province and state Market Supervision Bureau for many times and the staff of Shanghai Xinxiang product quality appraisal center conducted on-the-spot inspection. The above departments all said that the state has no clear quality and industry standards for the good and bad quality of the refurbished hub. Therefore, in the case of Shangdong and other 17 people suspected of producing and selling fake and shoddy products, whether the renovated used and used automobile wheel hub is a shoddy product or not can not be identified by relevant departments.

The prosecutor believes that Shang Dongdong and others sell the hub of shoddy in Taobao, tmall, friend circle and other network channels, and publicize the word original factory in the Taobao display page, so as to deceive consumers.

Shang Dongdong said that most of Xingyus retreaded wheels are purchased by auto parts dealers and repair centers. They have the ability to identify new and retreaded wheels, not to mention mistaking them as original products. Although there are a small number of individual purchasers, they need to go to a professional repair point to install the hub. If these purchasers buy the original hub of the refurbished hub, they will definitely be informed by the repair point.

The public prosecution organ put forward a record that the Taobao online store where the defendant sold the hub was punished due to the customers complaint of fake goods, which can prove the defendants behavior of selling fake and inferior products.

According to the defender, the Alibaba platforms record submitted by the public prosecution that the Taobao online store where the defendant sold the hub was punished for customers complaints about buying fake goods belongs to the management record of the platform for Taobao merchants. The evaluation of product quality by the platform and customers is a subjective evaluation, which can not replace the appraisal opinions made by the product quality inspection institutions as stipulated by laws and administrative regulations. And the number of complaints and penalties is very limited, which belongs to the reasonable return proportion in the normal operation of the merchant, so it can not be used to prove that the products renovated and sold by the defendant are fake and inferior products.

Shang Dongdong said that the punishment was due to a picture of Taobaos car home, suspected of infringement.

On June 16, 2020, the case reopened in the first instance of the peoples Court of Luyi County, Henan Province. At 2 oclock on June 17, after 17 hours of trial, the collegial panel announced that it would choose a day for sentencing.

Improve industry supervision

How to judge the quality of the refurbished hub? Many insiders said there is no unified national standard at present. This is a new industry, relevant regulations and policies are not in place, enterprises can only control product quality according to the industrys parameter standards, as long as they meet the industrys parameter standards, they can be said to be qualified products. One industry source said.

In the auto forum, many auto friends call for the standard of hub renovation.

In legal form, the hub renovation industry is supported. Article 40 of the circular economy promotion law stipulates that the State supports enterprises to carry out remanufacturing and retreading of motor vehicle parts, construction machinery, machine tools and other products. The quality of the remanufactured products and refurbished products sold must conform to the standards prescribed by the state, and the remanufactured products or refurbished products shall be marked at a prominent position.

Although the country strongly supports the automobile parts remanufacturing industry, the automobile remanufacturing market is still immature, the market access system is not strict, and the market supervision is not in place. Liu Huan, remanufacturing branch of China Automobile Industry Association, said it is imperative to strengthen the management of parts remanufacturing. Due to the lack of clear management and standard of remanufacturing enterprises, the development of automobile parts remanufacturing industry is uneven.

Relevant personnel of the national tire and rim Standardization Technical Committee said that at present, the wheel committee only has standards for the size of wheel hub, and the quality standards should be formulated by other departments. But there are only new hub quality standards in the industry.

Jia Xinguang, an auto industry expert, has long called for relevant departments to supervise the remanufacturing of auto parts. He said that in the developed countries of automobile technology in Europe and America, the recycling and remanufacturing mode of automobile parts has been running smoothly for decades, thanks to the strict approval of the regulatory authorities for automobile recycling and production enterprises. In foreign countries, automobile manufacturers are responsible for the recycling of their brand end-of-life vehicles and parts, and there are smooth recycling channels.

The association is promoting industry certification for remanufacturing enterprises. At present, there is no specific quality standard for hub remanufacturing, but enterprise standards can also be used as executive standards, Xie said. There are too many kinds of auto parts. Now there are only a dozen kinds of reference standards, which cant keep up with the development speed of enterprises. Xie Jianjun mentioned that even if there is a reference standard for remanufacturing quality, it is not mandatory. The quality is controlled by the enterprise itself, which can refer to the new parts standard. If there are quality problems, they will be handled by the consumer rights protection association or the market supervision bureau. In sales, industry practice requires remanufacturing enterprises to sell under their own brand, which can be applied to certain models. Remanufacturing enterprises are involved in a large number of mechanical and electrical products, such as air conditioning, construction machinery, and so on. Xie Jianjun said that at present, problems of some domestic remanufacturing enterprises have also occurred in the early development process of foreign countries. Our government is paying more and more attention to the remanufacturing industry of spare parts, and relevant laws and regulations are gradually improving, he said Source: interface news Author: Cao Linhua editor in charge: Wang Xiaowu_ NF

The association is promoting industry certification for remanufacturing enterprises. At present, there is no specific quality standard for hub remanufacturing, but enterprise standards can also be used as executive standards, Xie said. There are too many kinds of auto parts. Now there are only a dozen kinds of reference standards, which cant keep up with the development speed of enterprises.

Xie Jianjun mentioned that even if there is a reference standard for remanufacturing quality, it is not mandatory. The quality is controlled by the enterprise itself, which can refer to the new parts standard. If there are quality problems, they will be handled by the consumer rights protection association or the market supervision bureau. In sales, industry practice requires remanufacturing enterprises to sell under their own brand, which can be applied to certain models.