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China's
Entry and Exit Commodity Inspection and Quarantine System
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In its development, the system of international trade is
further improved and perfected so as to facilitate the flow of commodities
and meet the demands of free trade. For this purpose, relevant terms have
been included in various international conventions, bilateral treaties,
and cooperative agreements between regions to eliminate trade barriers as
much as possible. Particularly, worldwide remarkable achievements have
been made in the reform of the international trade system, which is
characterized by tariff reduction and the simplification of passage
formalities at customhouses. However, it is interesting to note that all
countries still attach importance to the necessary inspection and
quarantine of import and export commodities. To declare inspection and
quarantine seems to be nothing new for a businessman who is engaged in
import and export business. Foreigners intending to do business with their
Chinese counterparts should make certain they understand the commodity
inspection and quarantine system in China.
I. Inspection and Quarantine
Authorities
In China, the department in charge of the inspection and quarantine of commodities is the State Administration for Entry-Exit Inspection and Quarantine of the People's Republic of China (SAIQ), which was established on March 29, 1998. It was created by a merger of three government departments, namely, the State Administration of Import and Export Commodity Inspection, the State Animal and Plant Quarantine Administration under the Ministry of Agriculture, and the National Health and Quarantine Administration under the Ministry of Health. SAIQ is the administrative institution enforcing the
law in the field of entry/exit commodity health inspection and quarantine,
animal and plant quarantine and the inspection, survey, and supervision of
commodities. Its main functions are to check the import licenses of
civil-use imports subject to the import license system, take
responsibility for entry/exit animal and plant quarantine and the
inspection of the sanitation and quality of foodstuff being exported or
imported, to implement statutory inspection of imports and exports, and to
control GSP Form A and certificate of origin.
Apart from SAIQ, another quarantine office is China
National Import & Export Commodities Inspection Corporation (CCIC). It
is a comprehensive inspection and survey agency duly authorized by the
Chinese Government. Founded in 1980, it is the first national
non-governmental organization of its kind in China, focussing its
principal activities on the field of import and export commodity
inspection and certificate inspection. Both the SAIQ and CCIC are
government authorized organizations for import/export commodity inspection
and quarantine, with their headquarters in Beijing. They have branches in
cities and ports across the country. Inspection and quarantine subject to
CCIC shall be carried out under the direct supervision of the SAIQ.
As to those commodities, that are excluded from the
list of commodities for statutory inspection and quarantine, may, if
necessary, be declared for inspection and quarantine by the owner. And he
or she can engage by agreement either a Chinese or a foreign inspection
and quarantine office to conduct the work. Generally, Chinese inspection
and quarantine offices have been equipped with comparatively advanced
techniques and facilities for carrying out the task. Moreover, they
usually charge a lower fee than some other internationally famous
quarantine institutions. As a result, Chinese businessmen, as well as
increasing numbers of foreign businessmen, prefer a Chinese quarantine
office. Of course, some foreign businessmen still favor a more creditable
foreign office. So far, a few leading foreign famous commodity inspection
and quarantine institutions have set up branches in China, thereby
providing more choices for businessmen.
II. Main Inspection and
Quarantine Operation
A. Import and Export Commodity Inspection: Import and export commodity inspection covers the
inspection of a commodity's quality, quantity, weight, safety and
sanitation. All commodities listed in the Catalogue of Import and Export
Commodities subject to Statutory Inspection, or commodities subject to
statutory inspection otherwise specified by laws and regulations, must be
subject to inspection by the Chinese entry/exit inspection and quarantine
authorities or other designated institutions. The consignee of the imports
subject to statutory inspection must register with the inspection and
quarantine authorities at the port of discharge; and the consignor of the
imports and exports subject to statutory inspection shall declare
commodity inspection within the period and at the place specified by the
inspection and quarantine authorities. Commodities subject to statutory
inspection may not be marketed or used before being inspected, and export
commodities may not be exported if found inferior in quality through
inspection.
B. Preshipment Inspection on the Wastes to Be Imported as Raw Material: China is a party to the Basel Convention on Control on
the Transboundary Movement of Hazardous Wastes and Their Disposal of 1989.
Preshipment inspection must applied to wastes when they are imported to
China as raw material, in a bid to prevent hazardous wastes from entering
China. The contract for the wastes business signed between a consignee and
consignor must specify that the inspection shall be executed by the China
entry/exit inspection and quarantine authorities or SAIQ-accredited
inspection entities. The wastes shall not be loaded on ship before they
have passed the inspection.
C. Sanitation Supervision and Inspection on Food for Export, Animal and Plant Quarantine, and Health Quarantine and Treatment: All food for export or import must be inspected and up
to the required standards. Otherwise, they may not be imported or
exported.
All animals, plants, and their products for import, export and in transit, as well as materials used for carrying animals and plants, shall be subject to quarantine and inspection. Any person entering or leaving the country shall be placed in quarantine by the inspection and quarantine authorities to discover any possible communicable diseases, and the necessary prophylaxis and control measures shall be adopted by the authorities. They shall also inspect the sanitary conditions at border ports and on the means of transport inbound and outbound at ports. D. Foreign Investment and Assets Appraisal: China's inspection and quarantine authorities in
various parts of the country may appraise foreign investment and assets
either upon the application of the assets-related parties or their
deputies or parties relating to economic interests, or upon the
designation or entrustment of the judicial or arbitration or
assets-appraisal bodies. This includes assets valuation and damage
appraisal, and appraisal on the variety, quality, and quantity of
assets.
Besides the above operation, SAIQ is also responsible
for administering and implementing nationwide accreditation and quality
certification in the field of import and export.
III. Functions of the Inspection
and Quarantine Statement and Certificate
The inspection and quarantine statement on commodities to be imported and exported is to certify the quality of the commodities, and the certificate of qualification can be useful at least for three purposes, as follows: a. For statutory inspected
commodities, the quarantine certificate of qualification is one of the
necessary documents for their entry or exit of a country. Customhouses
will give clearance for them upon receiving the certificate.
b. For those commodities to be
inspected and quarantined as specified in a business agreement signed
between two parties, the qualified certificate of commodities is used to
certify the quality of commodities up to the standard specified in the
agreement. Both parties to the agreement usually at the same time agree on
their appointed institution, place and time for inspection and quarantine
in the terms. Both the parties can claim for any loss and launch a suit,
if necessary, only under the condition that they have already strictly
executed the terms on inspection and quarantine as specified in the
agreement and acquired a qualified certificate of quarantine.
c. Even if the terms on quarantine are
not included in an agreement, they may have their commodities quarantined
voluntarily. For the consignor or exporter, a qualified certificate of
commodities inspected before loading on board ship can certify the quality
of commodities up to the standard specified in the agreement when they are
discharged. In case of a problem of quality arising when they have reached
the port of termination, the consignor or exporter can use the said
qualified certificate to reject the recourse of the consignee for losses.
The quality problem may be caused in transit by the carrier's negligence
or by improper stowage; for the consignee or importer, inspecting
commodities immediately after they reach the port of termination can
ensure the quality condition of the commodities. If a quality problem
arises, timely inspection before they are transferred and treated will
provide a convincing evidence for the consignee to claim for losses.
Therefore, inspection and quarantine are equally beneficial to both sides
in a trade. |