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Business Alert - China
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Since this year, amendments have been made to the Import and Export Commodity Inspection Law leading to major changes in China's entry-exit inspection and quarantine system. Based on the revised Law, the Shenzhen Bureau of Entry-Exit Inspection and Quarantine will introduce a series of new measures many of which are related to customs clearance. Hong Kong companies should take note of the new procedures. According to bureau director Zhang Boling, the revised Law to be implemented on 1 October 2002 is built on the basis of the existing Law. The bureau will introduce inspection of the first batch of 62 HS-coded import items listed in the Catalogue of Import Commodities Subject to Inspection by Entry-Exit Inspection and Quarantine Authorities. The items concerned can only be imported into Shenzhen if they are accompanied by an import commodity safety and quality licence or the "Great Wall" mark or "CCC" mark certification. Among these, the safety and quality licence and the "Great Wall" mark certification will be valid until 30 April 2003. Starting from 1 May 2003, import goods must carry the "CCC" mark and appropriate labels for safety and quality. For items listed in the catalogue, Customs will only release them upon presentation of the Imported Goods Customs Clearance Certificate. In addition, foods and cosmetics have to carry certain labels for customs clearance starting October. This rule was originally scheduled for implementation on 1 July 2002. According to the bureau, for products which are in the process of applying for the labels, entry-exit inspection and quarantine authorities would handle inspection procedures upon presentation of documentary proof to that effect up until 1 October. After that date, the Label Approval Certificate is mandatory for the inspection procedures. This new rule not only applies to foods and cosmetics imports going through customs in Shenzhen but also the rest of Guangdong. The revised Law carries new provisions regarding the reporting party, location of inspection, deadline for inspection and validity of inspection. For instance, import agents may now act as the reporting party. To facilitate the practice of "inspection first, customs clearance later", the location of inspection has been changed from "inspection department at port of unloading or port of destination" to "inspection department at customs declaration checkpoint". The deadline for inspection has also been revised to "within the period as stipulated by the state inspection authorities". Moreover, the new Law states that inspection authorities may carry out quality supervision and inspection of products before leaving factory in order to better facilitate foreign trade. Guangdong's New Rules on Imported Foods and Cosmetics Starting from 1 October 2002, foods and cosmetics imported into or exported from Guangdong must be accompanied by a Label Approval Certificate or documentary proof that such approval is in progress, according to sources from the Guangdong Bureau of Entry-Exit Inspection and Quarantine. The move is aimed at stamping out long-standing problems associated with the import and export of foods and cosmetics in China, such as the labels do not state the production date, expiry date, factory name and address, and ingredients; or the labels carry exaggerated and false claims, undermining the interests of consumers and law-abiding business operators. The bureau's vice director Deng Xuqi pointed out that implementation of the label approval system represents China's adoption of market access and approval procedures commonly practised in the international marketplace. In order to cope with the new trading environment following its WTO entry, China is strengthening the role of its inspection and quarantine authorities in enforcing the required technical standards. By bringing forward the label approval process in the workflow, the pressure at customs checkpoints will be reduced thereby further enhancing the efficiency of customs clearance. To facilitate label applications, inspection and quarantine offices at 11 cities including Guangzhou, Shantou and Zhanjiang have been authorised to process applications for imported foods while the Guangzhou bureau is the only authority designated to handle applications for cosmetics. Cosmetics applications will first be screened by the health department of the Guangdong bureau and then submitted to the State General Administration for Quality Supervision and Inspection and Quarantine for final approval. | ||||||||||||||||||||||||||||||||||||||