 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.
Beijing
Rongshi Law Office
Add: No.11 Huayuan East Road, Haidian District, Beijing 100083,
China
Tel: +86-10-62354688 62352016
Fax: +86-10-62354700
Website: www.expresslawyer.com |
|
