Laws of the People's Republic of China

The General Administration of Quality Supervision, Inspection and Quarantine

Decree of the General Administration of Quality Supervision, Inspection and Quarantine of the People's Republic of China

No. 34

Provisions on the Administration of Entry-Exit Inspection and Quarantine Report by Proxy adopted by the meeting of the General Administration of Quality Supervision, Inspection and Quarantine are hereby promulgated and shall be come into force as of the day of January I, 2003.

The General Administration of Quality Supervision, Inspection and Quarantine

November 6, 2002

Provisions on the Administration of Entry-Exit Inspection and Quarantine Report by Proxy

Chapter I General Provisions

Article 1

The present provisions are formulated in accordance with the Law of the People's Republic of China on Import and Export Commodity Inspection and the regulations for its implementation, the Law of the People's Republic of China on Entry-Exit Animal and Plant Quarantine and the regulations for its implementation, the Frontier Health Quarantine Law of the People's Republic of China and the detailed rules for its implementation, the Food Hygiene Law of the People's Republic of China and other laws and regulations with a view to strengthening the supervision and administration of, and regulating the act of inspection and quarantine report by proxy.

Article 2

Inspection and quarantine report by proxy mentioned in the present provisions shall mean the act of an enterprise legal person inside the territory of China (hereinafter referred to as the inspection and quarantine report agency) which has been registered by the General Administration of Quality Supervision, Inspection and Quarantine of the People's Republic of China (hereinafter referred to as the AQSIQ) to, upon the entrustment of the consignee of imported goods and the consigner of exported goods, handle the formalities of inspection and quarantine report in accordance with the law.

Article 3

The AQSIQ shall uniformly administer the work of inspection and quarantine report by proxy all over the country, and shall be responsible for the registration of the inspection and quarantine report agencies; each entry-exit inspection and quarantine bureau directly under the AQSIQ (hereinafter referred to as inspection and quarantine bureau directly under the AQSIQ) shall be responsible for the preliminary verification and annual appraisal of the inspection and quarantine report agencies within its jurisdiction; the entry-exit inspection and quarantine institution at all places (hereinafter referred to as inspection and quarantine institutions) shall be responsible for the daily supervision and administration of the inspection and quarantine report agencies.

Article 4

An inspection and quarantine report agency shall be registered by the AQSIQ, otherwise it shall not engage in the business of inspection and quarantine report by proxy.

Article 5

An inspection and quarantine report agency shall, when accepting the entrustment to handle the inspection and quarantine report and other relevant matters, abide by the relevant laws and regulations on entry-exit inspection and quarantine, and shall be responsible for the genuineness and legitimacy of all the contents under the inspection and quarantine report by proxy, and bear the corresponding legal liabilities as well.

Chapter II Registration of Inspection and Quarantine Report Agencies

Article 6

An entity applying for the registration of inspection and quarantine report by proxy (hereinafter referred to as the applying entity) shall meet the following conditions:

(1)

Having obtained the "Business License of Enterprise Legal Person" issued by the department for industry and commerce;

(2)

Having at least 1.5 million Yuan of registered capital;

(3)

Having a fixed business site and the facilities for handling the business of inspection and quarantine report;

(4)

Having a good management system;

(5)

Having at least 10 persons who have obtained the "Certificate for the Qualifications as An Inspection and Quarantine Reporter";(f) other conditions stipulated by the AQSIQ.

Article 7

An applying entity shall file an application to the inspection and quarantine bureau directly under the AQSIQ at its locality and submit the following documents:

(1)

The "Application Letter for the Registration of Entry-Exit Inspection and Quarantine Report by Proxy";

(2)

A duplicate of the "Business License of Enterprise Legal Person" (the original shall be submitted for verification at the same time);

(3)

A duplicate of the "Certificate for the Qualifications as An Inspection and Quarantine Reporter" of the inspection and quarantine reporter to be appointed (the original shall be submitted for verification at the same time);

(4)

A sample seal mould of the enterprise of inspection and quarantine report by proxy;

(5)

Other documents stipulated by the AQSIQ to be submitted.

Article 8

The inspection and quarantine bureaus directly under the AQSIQ shall carry out the preliminary verification on the applying entities' applications, and shall submit those which have passed the preliminary verification to the AQSIQ for verification. To the applying entity that passes the verification may be issued a "Registration Certificate for Entry-Exit Inspection and Quarantine Report by Proxy" (hereinafter referred to as "Registration Certificate").

An inspection and quarantine report agency that has obtained the "Registration Certificate" may engage in the business of inspection and quarantine report by proxy within the areas approved by the AQSIQ.

Article 9

In case of any modification with an inspection and quarantine report agency's name, address, legal representative, business scope or other major issues, the agency shall, within 15 days as of the modification, report in written form to the inspection and quarantine bureau directly under the AQSIQ at its locality.

Chapter III The Act of Inspection and Quarantine Report by Proxy

Article 10

A consignee of imported goods may entrust an inspection and quarantine report agency at the place of customs declaration or the place of receipt to make the inspection and quarantine report, while a consigner of exported goods may entrust an inspection and quarantine report agency at the place of origin or the place of customs declaration to make the inspection and quarantine report.

Article 11

An entrusted inspection and quarantine report agency shall complete the following acts of inspection and quarantine report by proxy:

(1)

Going through the formalities of inspection and quarantine report;

(2)

Paying the inspection and quarantine fee;

(3)

Contacting and cooperating with the inspection and quarantine institution to carry out the inspection and quarantine;

(4)

Obtaining the inspection and quarantine certificates and the proof of customs release;

(5)

Other matters related to the work of inspection and quarantine.

Article 12

An inspection and quarantine report agency shall, when accepting the entrustment by a consignee or consigner, abide by the provisions in laws and regulations on the consignee or consigner.

Article 13

An inspection and quarantine report agency shall, when making the inspection and quarantine report, submit a power of attorney on the inspection and quarantine report to the inspection and quarantine institution.

The power of attorney on inspection and quarantine report shall indicate the principal's name, address, the name (signature) of the legal representative, the nature of the principal and its business scope; the inspection and quarantine report agency's name, address, matters under agency, and responsibilities and rights of both parties, period of agency, etc., and shall be affixed with the official seals of both parties.

Article 14

An inspection and quarantine report agency shall, in accordance with the relevant provisions, regulate the inspection and quarantine reporters' act of inspection and quarantine report, and shall bear the legal liabilities for the inspection and quarantine reporters' act.

Article 15

An inspection and quarantine report agency shall, as required by the inspection and quarantine institution, be responsible for guaranteeing the inspection and quarantine place, time and other relevant matters.

Article 16

An inspection and quarantine report agency shall bear the obligation of keeping confidential for the commercial secrets he has known from carrying out the inspection and quarantine report by proxy.

Article 17

An inspection and quarantine report agency shall, in accordance with the relevant provisions, pay the inspection and quarantine fee on behalf of the principal, and shall not charge additional fees from the principal in the name of the inspection and quarantine institution.

An inspection and quarantine report agency shall truthfully inform the principal in written form of the payment of fees to the inspection and quarantine institution, and the inspection and quarantine institution may check or verify this issue at any time.

Article 18

An inspection and quarantine report agency shall charge the principal the intermediation service fee for the inspection and quarantine report by proxy strictly in accordance with the relevant provisions.

Chapter IV Supervision and Administration

Article 19

An inspection and quarantine institution shall apply the system of annual verification to the inspection and quarantine report agencies. Each inspection and quarantine report agency shall, before March 31 of each year, apply to the inspection and quarantine bureau directly under the AQSIQ at its locality for annual verification, and submit the "Annual Verification Report" of the last year.

The main contents of the "Annual Verification Report" include: the information on the business of annual inspection and quarantine report by proxy and the analysis thereof, the financial statement, the errors in inspection and quarantine report and the reasons thereof, the information on abidance by the relevant inspection and quarantine provisions and the self-evaluation, etc..

An inspection and quarantine report agency that has been registered by the AQSIQ for less than 1 year does not have to apply for annual verification in the present year.

An inspection and quarantine bureau directly under the AQSIQ shall report the information on the annual verification of the inspection and quarantine report agencies to the AQSIQ for record.

Article 20

An inspection and quarantine report agency shall cooperate with the inspection and quarantine institution to investigate and deal with the matters under its proxy.

Article 21

No inspection and quarantine report agency shall lend its name in any form to others for them to carry out the business of inspection and quarantine report by proxy.

Article 22

An inspection and quarantine report agency shall set up and improve the files on the business of inspection and quarantine report by proxy, truthfully and completely record the business of inspection and quarantine report by proxy it has undertaken, and consciously accept the daily supervision and annual examination by the inspection and quarantine institution.

Article 23

An inspection and quarantine report agency may make the inspection and quarantine report to the inspection and quarantine institution by electronic means, provided that it shall not use electronic inspection and quarantine report enterprise software to carry out distant electronic pre-record.

Article 24

Where an inspection and quarantine report agency is under any of the following circumstances, the inspection and quarantine bureau directly under the AQSIQ may suspend its qualifications for inspection and quarantine report by proxy for 3 months or 6 months:

(1)

It has committed an act in violation of the provisions on inspection and quarantine report;

(2)

It provides untrue information, and therefore causes the goods under inspection and quarantine report by proxy unable to be inspected or quarantined;

(3)

It does not administer the inspection and quarantine reporters strictly, and more than one reporters have been cancelled the qualifications for inspection and quarantine report;

(4)

It delays the annual verification without the consent of the inspection and quarantine institution;

(5)

It violates Article 16 of the present provisions by disclosing the commercial secret it knows from carrying out the inspection and quarantine report by proxy;

(6)

It violates Article 17 of the present provisions by failing to pay the inspection and quarantine fee on behalf of the principal or failing to inform the principal in written form of the information on the payment to the inspection and quarantine institution according to the provisions, or by charging additional fees from the principal in the name of the inspection and quarantine institution;

(7)

It violates Article 18 of the present provisions by charging the intermediation service fee from the principal for the inspection and quarantine report by proxy not according to the provisions;

(8)

It violates Article 20 of the present provisions by refusing to cooperate in the investigation and punishment by the inspection and quarantine institution on the matters under inspection and quarantine which it reports by proxy;

(9)

It violates Article 21 of the present provisions by lending its name to others to undertake the business of inspection and quarantine report by proxy;

(10)

It violates Article 22 of the present provisions by failing to set up and improve the files on the business of inspection and quarantine report by proxy, and is therefore unable to truthfully and completely record the business of inspection and quarantine report by proxy it undertakes;

(11)

It violates Article 23 of the present provisions by using electronic inspection and quarantine report enterprise software to carry out distant electronic pre-record;

(12)

Its inspection and quarantine report needed to be suspended due to other reasons.

Article 25

Where an inspection and quarantine report agency is under any of the following circumstances, the AQSIQ may cancel its qualifications for inspection and quarantine report by proxy:

(1)

The enterprise of inspection and quarantine report by proxy is changed, and does no longer meet the conditions in Article 6 of the present provisions;

(2)

It fails to attend the annual verification or fails to pass the annual verification;

(3)

It is under anyone of the circumstances enumerated in Article 24 of the present provisions, and the offense is serious;

(4)

It dos not implement its obligations within the scope of authorization, and therefore disturbs the order of inspection and quarantine;

(5)

It does not truthfully make the inspection and quarantine report, and fraudulently obtained the inspection and quarantine documents;

(6)

It forges, alters, buys, sells or steals inspection and quarantine documents, stamps, marks, seal indications, and quality certification marks;

(7)

Its qualifications for inspection and quarantine report by proxy needs to be cancelled due to other reasons.

Article 26

The institutions of inspection and quarantine report by proxy and their inspection and quarantine reporters shall, if violating any law or regulations on inspection and quarantine in their activities of inspection and quarantine report business, be punished in accordance with the law or regulations.

Article 27

No inspection and quarantine institution or its functionary shall set up any inspection and quarantine report agency in any form to carry out the work of inspection and quarantine report by proxy or seek any undue benefits.

Article 28

No inspection and quarantine institution or its functionary shall have any interests relationship with any inspection and quarantine report agency. The functionaries of the inspection and quarantine institutions, the persons who should withdraw according to the relevant provisions of the state and the persons who have left their inspection and quarantine posts for less than 3 years, shall not hold post in the inspection and quarantine report agencies and shall withdraw according to the relevant provisions.

Chapter V Supplementary Provisions

Article 29

The inspection and quarantine report by proxy mentioned in the present provisions does not include the act of a production enterprise to be entrusted by a trading company to make the inspection and quarantine report for the sake of selling its own products to the trading company.

Article 30

The AQSIQ encourages the import and export enterprises to directly make inspection and quarantine report to the inspection and quarantine institution by electronic means.

Article 31

The responsibility to interpret the present provisions shall remain with the AQSIQ.

Article 32

The present provisions shall enter into force on January 1, 2003.