Laws of the People's Republic of China

The State Administration for Import and Export Commodity Inspection

Trial Measures for Control of the Inspection of Import and Export Commodities of Enterprises with Foreign Investment and Trade Ventures Involving Processing and Assembly with Supplied Materials and Parts or Compensation Trade

the State Administration for Import and Export Commodity Inspection

September 2, 1988

Article 1

These Measures are formulated to help implement State regulations on control of the inspection of import and export commodities, to safeguard the legal rights and interests of the various parties involved in foreign trade and to promote the development of enterprises with foreign investment and trade ventures involving processing and assembly with supplied materials and parts or compensation trade.

Article 2

These Measures shall apply to the import and export commodities of enterprises invested in and established in China by foreign companies, enterprises, other economic entities or individuals (namely, foreign-capital enterprises, Chinese-foreign equity joint ventures and Chinese-foreign contractual joint ventures) and trade ventures involving processing and assembly with supplied materials and parts and compensation trade (namely, commission processing, processing with supplied designs and samples, assembly with supplied parts and compensation trade).

Article 3

Goods imported by a wholly foreign-owned enterprise for its own use shall be inspected by the enterprises itself and notarial verification may be undertaken by a commodity inspection organ on application by the enterprise.

Article 4

Imports of a Chinese-foreign equity joint venture or Chinese-foreign contractual joint venture which are included in the Current List of Import-Export Commodities Subject to Inspection (hereinafter referred to as the List of Commodities) or the Local List of Commodities, goods to be inspected by a commodity inspection organ pursuant to the stipulations of the foreign trade contract and goods involving the areas of safety and public hygiene must be reported to a commodity inspection organ and the said organ shall inspect the goods or undertake supervisory and control measures. Other imports shall be inspected by the enterprise itself or notarial verification may be undertaken by a commodity inspection organ on application by the enterprise.

Article 5

Goods imported or produced by an enterprise with foreign investment which are to be sold in China shall be classified as being the same as normal imports which must be declared or reported to a commodity inspection organ for inspection. The inspection organ shall inspect the goods or undertake supervisory and control measures.

Article 6

Unless a foreign trade contract stipulates the need for an inspection by a commodity inspection organ, raw and auxiliary materials and parts imported for commission processing or assembly shall be inspected by the enterprise itself or notarial verification may be undertaken by a commodity inspection organ on application by the enterprise.

Goods imported as part of a compensation trade transaction shall be classified as being same as normal imports which must be declared or reported to a commodity inspection organ for inspection. The inspection organ shall inspect the goods or undertake supervisory and control measures.

Article 7

Exports of an enterprise with foreign investment or a commission processing or assembly venture which are included in the List of Commodities or Local List of Commodities must be reported to a commodity inspection organ for inspection if a Chinese trade mark or labeling made in China is used or the goods involve the areas of safety or public hygiene or an inspection by a commodity inspection organ is stipulated in the provisions of the foreign trade contract. If neither a Chinese trade mark nor labeling made in China is used on the goods, inspection by a commodity inspection organ need not be undertaken batch by batch. Other exports shall be inspected by an enterprise itself or notarial verification may be undertaken by a commodity inspection organ on application by the enterprise.

Exports from a processing venture using supplied designs and samples on a compensation trade transaction shall be classified as being the same as normal exports and thus subject to inspection or supervisory and control measures by a commodity inspection organ in accordance with relevant regulations.

Article 8

If, when an enterprise with foreign investment is exporting goods included in the List of Commodities or the Local List of Commodities, the buyer sends a representative to China to inspect the goods prior to acceptance in accordance with international practice, the commodity inspection organ may issue a clearance certificate based on the results of the quality inspection conducted by the buyer's representative or the signed inspection report. If the foreign party revises the relevant provisions on quality in the contract or letter of credit or acknowledges the actual quality of the goods, clearance of the goods may be issued after an inspection of the contract or letter of credit revised by the foreign party or the cable of acknowledgement.

Article 9

Export food processing factories and warehouses of enterprises with foreign investment and commission processing enterprises shall be administered in accordance with State regulations on hygiene registration procedures for export commodities.

Article 10

Export commodities of an enterprise with foreign investment, commission processing enterprise or supplied part assembly enterprise which use a Chinese trade mark or labeling made in China shall be classified as goods subject to the export quality licensing system and thus shall require handling in accordance with relevant State regulations on export commodity quality licensing.

Article 11

If the exports of an enterprise with foreign investment or a venture involving processing or assembly with supplied materials or parts or compensation trade meet the requirements for issuance of the generalised system of preferences (GSP) certificate or certificate of origin, the said certificates shall be issued uniformly by commodity inspection organs.

Article 12

An enterprise with foreign investment or a venture involving processing or assembly with supplied materials or parts or compensation trade that imports or exports goods may, in accordance with its requirements for delivery and acceptance of goods, settlement of accounts, fee calculations, financial settlements, customs clearance, tax calculations and damage claims and claim settlements, apply to a commodity inspection organ or the China National Import and Export Commodity Inspection Corporation, authorised by the State Administration of Import and Export Commodity Inspection, or its local branch offices for inspection and authentication of goods and the issue of relevant inspection verification certificates.

Article 13

When importing or exporting goods, if an enterprise with foreign investment or a venture involving processing or assembly with supplied materials or parts or compensation trade, applies to a commodity inspection organ for an inspection or notarial verification of goods or to undertake procedures for hygiene registration or the issue of a quality licence, the commodity inspection organ shall, without exception, offer priority handling of such matters.

Article 14

The Special Economic Zone may formulate separate control measures in accordance with relevant policies, to be submitted to the State Administration of Import and Export Commodity Inspection for examination and approval.

Article 15

These Measures shall enter into force as of the date of promulgation. The State Administration for Import and Export Commodity Inspection shall retain the right of interpretation.