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3.1.5 Quality Certification for Import and Export Commodities

(a) China Compulsory Certification

China implemented its new system of compulsory product certification since 1 May 2002. Under the new system, a unified catalogue, standard, mark and fee schedule are in place and the CCC (China Compulsory Certification) mark has replaced the Great Wall CCEE and CCIB marks used in the old system. The old product safety certification system and import safety and quality licensing system were annulled on 1 May 2003.

The CCC mark is the certification mark for products which are allowed to be imported, sold or used in China.

According to the Regulations for the Administration of Compulsory Product Certification, the new system came into effect on 1 May 2002. In order to ensure a smooth transition to the new system and protect the legitimate rights of all parties concerned, the old system was phased out on 1 May 2003.

(b) Products Requiring CCC Mark

The first batch of products subject to the CCC mark covers 19 categories and 132 types:

(c) Procedures for Application for CCC Mark

1. Acceptance of application;
2. Type testing;
3. Factory inspection;
4. Sample testing;
5. Evaluation of certification results and approval of certification;
6. Follow-up supervision.

3.1.6 Appraisal of Inspection and Quarantine

With the exception of objects requiring inspection and quarantine by inspection and quarantine authorities under the provisions of existing laws and administrative rules, foreign trade parties, foreign organisations as well as law enforcement, judicial and arbitration departments may entrust or designate AQSIQ to conduct inspection, quarantine or appraisal of goods, animals and plants and their packaging, transport vehicles and shipping technical conditions, and to issue the relevant certificates as valid documents for the handover of import and export goods, calculation of charges, customs clearance, computation and payment of duties, claims for compensation, and arbitration.

3.1.7 Administration for Certificate of Origin and GSP Certificate of Origin

CIQ is the official organ for the issuance of general certificates of origin. It is also the only organ authorised by the Chinese government to issue GSP (Generalised System of Preference) certificates of origin. Export enterprises may apply to local entry-exit inspection and quarantine authorities for general and GSP certificates of origin.

3.1.8 Entry-Exit Inspection and Quarantine and Processing Trade

(a) Inspection of Import and Export Commodities Related to Processing with Supplied Materials, Assembly with Supplied Parts, and Production with Supplied Drawings and Samples

Import and export commodities related to processing with supplied materials and assembly with supplied parts and components are inspected by their owner or the processing enterprise. In case of dispute, application for appraisal may be made to commodity inspection organs. For production with supplied samples and drawings, if the raw materials, parts and components are supplied by the foreign party, the same procedures for processing with supplied materials will apply. If the foreign party only supplies the samples and drawings, and the raw materials, parts and components are the responsibility of the Chinese party, the requirements of commodity inspection organs for the inspection of general import and export commodities will apply. In other words, commodities included in the catalogue must be reported to commodity inspection organs for inspection and will be inspected and issued inspection certificates by the inspection authorities. Commodities not included in the catalogue may be exported after passing inspection by the enterprises themselves. In case of disputes between the supplier of samples and drawings and the production and processing party, application for appraisal may be made to commodity inspection organs.

(b) Procedures for Inspection of Commodities Produced or Processed with Supplied Materials or Assembled with Supplied Parts and Components by Foreign-Invested Enterprises for Domestic Sale

Commodity inspection organs will regard as imports goods produced or processed with supplied materials or assembled with supplied parts and components by foreign-invested enterprises (including wholly foreign-owned enterprises, Sino-foreign equity joint ventures and Sino-foreign contractual joint ventures) for sale within the Chinese territory (except Hong Kong, Macau and Taiwan). Such goods have to be registered at commodity inspection organs before their sale. Re-registration is necessary if there are changes in their specifications, raw materials used, product quality and constituents after registration.

Domestic sale products included in the catalogue that involve safety or hygiene must be reported to commodity inspection organs or relevant departments for inspection and can only be sold after passing the examination and being issued a certificate.

If necessary, commodity inspection organs may conduct spot checks of these commodities at the plants or in the market at any time. Products that are inferior in quality, inadequate in weight and quantity, poorly packaged or not meeting inspection requirements will be issued the "Prohibition from Sale Notice" and banned from sale in China.