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CIRCULAR OF THE GENERAL OFFICE OF THE STATE COUNCIL ON THE TRAN-SMISSION OF THE RECOMMENDATIONS SUBMITTED BY THE STATE ECONOMIC COM-MISSION, THE MINISTRY OF FOREIGN ECONOMIC RELATIONS AND TRADE, AND THESTATE BUREAU OF IMPORT AND EXPORT COMMODITIES INSPECTION CONCERNING THE STRENGTHENING OF QUALITY CONTROL OF EXPORT COMMODITIES

CIRCULAR OF THE GENERAL OFFICE OF THE STATE COUNCIL ON THE TRAN-SMISSION OF THE RECOMMENDATIONS SUBMITTED BY THE STATE ECONOMIC COM-MISSION, THE MINISTRY OF FOREIGN ECONOMIC RELATIONS AND TRADE, AND THESTATE BUREAU OF IMPORT AND EXPORT COMMODITIES INSPECTION CONCERNING THE STRENGTHENING OF QUALITY CONTROL OF EXPORT COMMODITIES This English document is coming from the "LAWS AND REGULATIONS OF THE PEOPLE'S REPUBLIC OF CHINA GOVERNING FOREIGN-RELATED MATTERS" (1991.7) which is compiled by the Brueau of Legislative Affairs of the State Council of the People's Republic of China, and is published by the China Legal System Publishing House.

In case of discrepancy, the original version in Chinese shall prevail.

Whole Document CIRCULAR OF THE GENERAL OFFICE OF THE STATE COUNCIL ON THE TRAN- SMISSION OF THE RECOMMENDATIONS SUBMITTED BY THE STATE ECONOMIC COM- MISSION, THE MINISTRY OF FOREIGN ECONOMIC RELATIONS AND TRADE, AND THE STATE BUREAU OF IMPORT AND EXPORT COMMODITIES INSPECTION CONCERNING THE STRENGTHENING OF QUALITY CONTROL OF EXPORT COMMODITIES (April 29, 1987) The State Council has accepted The Recommendations Concerning the Strengthening of Quality Control of Export Commodities, submitted by the State Economic Commission, the Ministry of Foreign Economic Relations and Trade, and the State Bureau of Import and Export Commodities Inspection.

The Recommendations are hereby transmitted to you, and you are requested to implement them conscientiously in light of the actual conditions in your spheres of activities.

The strengthening of quality control of export commodities is the key to increasing economic returns as well as foreign exchange earnings. In recent years, the quality of some of our country's export commodities has shown a decline, which has not only caused economic losses and affected foreign exchange earnings by exports, but also marred the reputation of our country. All the localities and departments concerned shall give the amplest attention to this state of affairs, take effective measures to remedy it quickly so as to upgrade the quality of our export commodities.

RECOMMENDATIONS SUBMITTED BY THE STATE ECONOMIC COMMISSION, THE MINISTRY OF FOREIGN ECONOMIC RELATIONS AND TRADE, AND THE STATE BUREAU OF IMPORT AND EXPORT COMMODITIES INSPECTION CONCERNING THE STRENGTHENING OF QUALITY CONTROL OF EXPORT COMMODITIES (Extracts) In recent years, the quality of some of our country's export commodities has shown a decline, which has not only caused economic losses and had an unfavourable impact on the foreign exchange earnings by exports, but also marred the reputation of our country. In order to rapidly remedy this situation and to strengthen quality control of our export commodities, we hereby submit, on the basis of the investigations and studies of the aforesaid situation and the opinions solicited from all localities and departments concerned, the following recommendations: I. Checking up and Rectifying Factories to be Designated as Export Commodities Manufacturers All the localities and departments concerned must carry out an all-round checking-up on, and rectification of, all the enterprises that are manufacturing export commodities and then designate from among them the most outstanding ones as manufacturers of commodities for export. Those enterprises found to be lacking the conditions for guaranteeing the quality of their products shall not be permitted to manufacture commodities for export. The State Economic Commission, the Ministry of Foreign Economic Relations and Trade, and the State Bureau of Import and Export Commodities Inspection shall jointly be responsible for the checking-up and rectification in conjunction with other competent organs concerned. The checking-up and rectification shall be focused on those industries whose quality control over export commodities is comparatively poor, whose number of factories designated for producing and processing export commodities is too large, and whose quality problems are numerous.

II. Strengthening the Quality Control and Inspection Work in Enterprises Producing Export Commodities (1) In production enterprises, the factory director (the manager) shall take overall responsibility for quality of export commodities.

(2) In factories specially engaged in the production of export commodities, the production bases of export commodities, and the enterprises producing import and export commodities, the post of chief quality controller may be set up. The chief quality controller shall assist the factory director in taking the overall responsibility for inspecting and controlling the quality of products, for implementing the Regulations on the Responsibility for Quality Control of Industrial Products, for organizing the formulation and implementation of the rules for reward and penalty relating to the quality of products, and for making the decision, on behalf of the factory director, to stop the production and delivery out of the factory of sub-standard export commodities.

(3) In enterprises producing important export commodities, the system of having a resident quality supervisor stationed in the enterprise and sent by the State commodities inspection department (referred to, for short, as "the resident supervisor system") shall be implemented on a trial basis.

The resident supervisor shall, in the name of the State, exercise supervision over the quality and inspection of the production enterprise's export commodities, and have the right to inspect, to spot check, or to re-inspect the finished products, or the raw and processed materials, or spare parts and components, used in manufacturing export commodities. In case where the resident supervisor discovers that the export commodities are not up to the standard, he/she has the right to stop the delivery out of the factory of the export commodities, and may ask the foreign trade corporations not to purchase the said export commodities. The production enterprise shall provide the resident supervisor with working conditions, the data of quality, and relevant technical documents for carrying out quality inspection; and it shall also inspect, spot check, or re-inspect its products, as required by the resident supervisor. The resident supervisors shall be personnel of the State commodities inspection departments, and their salaries, bonuses and welfare benefits shall all be borne by the sending department so that no direct economic connections shall exist between the resident supervisors and the production enterprise.

(4) All the production enterprises manufacturing export commodities shall implement an all-round quality control, strengthen and perfect the quality responsibility system, strengthen inspection work, and work out strict technological processes and labour discipline. The factory director shall appoint a person who has technical know-how, experience and strong sense of responsibility, as head of the inspection department, and this appointment shall be reported to the authorities in charge of the enterprise for the record. No department or individual within the enterprise shall be permitted to interfere with the work conducted by the inspection department, and its independence in performing its functions shall be guaranteed. It is imperative to establish and perfect, as soon as possible, the quality guarantee system in enterprises producing export commodities.

III. Strengthening the Supervision and Inspection of the Quality of Export Commodities All export commodities must undergo the process of inspection. Commodities that are not up to the standard (including those whose packaging is not up to the standard) shall not be permitted to leave the factory; the foreign trade corporations shall not be permitted to purchase such commodities; and the commodities inspection department shall not issue export licence and grant clearance.

The working contingent of the commodities inspection department shall be reinforced gradually, and the means of inspection of export commodities be perfected. The commodities inspection department shall, in conjunction with the competent authorities concerned, speed up the work for issuing quality licenses for important export commodities. With respect to those commodities to which the system of quality licence for export commodities applies, the competent authorities for foreign economic relations and trade shall not issue for them export licences before they have obtained quality licenses for export commodities.

The competent authorities for foreign economic relations and trade shall strengthen their supervision over and inspection of foreign trade corporations, and urge them to strengthen the work of quality control, to improve examination-and-acceptance system, and reinforce the working personnel for the system, to strive to do a good job in selecting outstanding factories to manufacture commodities for export, to purchase commodities from the factories that produce quality products, and to adhere to the principle of "placing quality first, and winning over the customers by offering them quality products". The competent authorities for foreign economic relations and trade shall have the right to disqualify those units which do not have the qualifications for doing foreign trade business, and ask the administrative department for industry and commerce to revoke their business licences. The exportation of commodities through irregular channels or by using crooked means by violation of the State provisions shall be strictly prohibited.

IV. Taking the Improvement of the Quality of Export Commodities as the Focus of the Work of Technical Advancement All the localities and departments shall, in accordance with the requirements of the strategy of export and foreign trade, make adjustment in the structure and the orientation of investment for technical advancement, and link up the various measures adopted for technical transformation, the tackling of difficult problems (in science and technology), the importation of technology, testing and inspection, the expansion of production, and the reduction in consumption of raw materials and energy, at the key production enterprises, specialized factories, and production bases for the manufacture of export commodities by taking the improvement of the quality of products and the increases in foreign exchange earnings as the focal point. Strenuous efforts shall be devoted to the improvement of the warehousing and storage conditions for export commodities, so as to reduce or eliminate the contamination of or damages to export commodities.

V. Clearly Defining the Responsibility for the Quality of Export Commodities In order to guarantee the quality of export commodities, all units and departments concerned must have both a clear-out definition of the job responsibility and rules. If the poor quality of some export commodities has resulted in economic losses or made a negative reflection on China's reputation, it is imperative to check up on the responsibilities to be borne by the production and processing enterprises, the foreign trade corporations, the warehousing and storage units, the department for commodities inspection, or other departments concerned. Cases of quality problem caused by dereliction or neglect of one's duty shall be looked into, and the person in charge as well as the leading personnel involved shall be held responsible and be dealt with in all seriousness.

VI. Further Improving the Packing of Export Commodities The China National Packing Import and Export Company shall, in cooperation with the China National Packing Corporation, conduct further studies on, and work out programs and measures for the improvement of the packing of export commodities. Each year, efforts must be made to improve the packing of certain categories of export commodities. At present, it is imperative to improve the packing of foodstuffs, beverages, tobacco leaves, canned foods, hardware, machinery, ceramics, textiles, garments, cotton, and dangerous articles. The two companies shall coordinate the supply-and- demand relationship between packing factories and packing material suppliers, perfect the packing standards, and strengthen the work of quality control, inspection and supervision.

VII. Strengthening the Standardization of Export Commodities, and Improving the Conditions for Conducting Measurement at Ports (1) The authorities of standardization of commodities inspection, and of foreign economic relations and trade shall, in cooperation with various competent organs, speed up the formulation and revision of the standards for export commodities and inspection criteria.

(2) The competent authorities of transportation shall, in cooperation with the authorities of commodities inspection and metrological authorities, submit a plan to improve metrological conditions at ports and incorporate it into the program for technological transformation of the competent authorities of transportation and the interested localities so as to improve basically the metrological conditions at ports within 3 years.

VIII. Strengthening the Administration of Trademarks of Export Commodities and Patented Products With respect to the use of trademarks for export commodities of famous brands, the authorities of foreign economic relations and trade and the administrative departments for industry and commerce shall jointly conduct a checking-up and rectification campaign to strengthen the administration and protect export commodities of famous brands. Without the approval of the competent authorities at a higher level or without the consent of the patentee, no production enterprises and foreign trade corporations may produce patented products for export and engage in export of such products. Cases occurring either at home or abroad of infringements or illegal acts such as counterfeiting the trademarks of our export commodities, imitating the patented commodities we export or forging our export commodities inspection certificates shall be resolutely investigated and dealt with, and the offenders shall even be prosecuted in time so as to safeguard the lawful rights and interests of the enterprises as well as of the State.

If no inappropriateness is found in the recommendations submitted above, we request that they be approved and transmitted to all the localities and departments for implementation.


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