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Regulations for the Implementation of the Law of the People's Re-public of China on Import and Export Commodity Inspection

Regulations for the Implementation of the Law of the People's Re-public of China on Import and Export Commodity Inspection (Approved by the State Council on October 7, 1992 Promulgated bythe State Administration of Import and Export Commodity Inspection onOctober 23, 1992) Whole Doc.

Chapter 1 General Provisions Article 1 These Regulations are formulated in the light of the Law of the People's Republic of China on Import and Export Commodity Inspection (hereinafter referred to as the Law of Commodity Inspection).

Article 2 The State Administration of Import and Export Commodity Inspection of the People's Republic of China (hereinafter referred to as the State Administration of Commodity Inspection) shall be in charge of the inspection work of import and export commodities across the country.

Article 3 The import and export commodity inspection bureaus and their branches (hereinafter referred to as the commodity inspection authorities) set up by the State Administration of Commodity Inspection in the provinces, autonomous regions and municipalities directly under the Central Government, as well as at ports and concentrating and distribution centers of import and export commodities in the regions under their jurisdiction.

The commodity inspection authorities are held responsible for inspection and surveying of the import and export commodities, administration and supervision over the quality and inspection work of import and export commodities.

Article 4 In the light of the need in the development of foreign trade, the State Administration of Commodity Inspection shall work out, adjust and publish a "List of Import and Export Commodities Subject to Compulsory Inspection Enforced by the Commodity Inspection Authorities" (hereinafter referred to as the List of Commodities) for those commodities which involve public interest.

Article 5 The compulsory inspection on imports and exports by the commodity inspection authorities or inspections agencies designated by the State Administration of Commodity Inspection or commodity inspection authorities covers: (1) inspection of import and export commodities included in the List of Commodities; (2) sanitary inspection on the foods for export; (3) testing and inspection on the performance and employment of the packages a nd containers for the outbound dangerous goods; (4) suitability inspection on the vessels' holds, containers and other means of transportation for carrying the outbound perishable foods and frozen goods; (5) inspection of imports and exports to be conducted by the commodity inspection authorities according to relevant international treaties; and (6) inspection of imports and exports to be carried out by the commodity inspection authorities as stipulated in other laws and administrative rules and regulations.

Article 6 Sanitary inspection of imported and exported medicine, calibration of weighing and measuring instruments, supervision and inspection on the safety of imported and exported boilers and pressure vessels, survey of the ships (including offshore platform, main equipment and materials for the ships) and containers in the light of relevant rules and regulations, inspection on flight safety and fitness of the aeroplanes (including the plane's engine and equipment) and safety inspection on nuclear equipment are to be undertaken by other inspection organizations according to the provisions of relevant laws and administrative rules and regulations.

Article 7 The commodity inspection authorities may conduct random inspection of and exercise supervision and control over the import and export commodities other than those subject to compulsory inspection. With regard to the import and export commodities other than those subject to compulsory inspection for which the commodity inspection authorities shall issue inspection certificates as provided for in the foreign trade contract or as applied for by the receivers and consignors of the commodities, the commodity inspection authorities shall undertake inspection accordingly.

Article 8 Samples of imports and exports, gifts, non- trade exhibits and other non-trade goods may be exempted from inspection, unless otherwise stipulated by the State or specified in the foreign trade contract.

Those import and export commodity inspection authorities, or having been certified with regard to their quality by relevant foreign agencies accredited by the State Administration of Commodity Inspection may be exempted from inspection upon application by the receivers, consignors or manufacturers of the goods and subject to the approval of the State Administration of Commodity Inspection.

The specific provision for the exemption of import and export commodities from inspection shall be worked out by the State Administration of Commodity Inspection.

Article 9 The inspection on import and export commodities by the commodity inspection authorities covers quality, specifications, quantity, weigh, packages, as well as safety and sanitation requirement.

Article 10 The commodity inspection authorities shall conduct inspection on the import and export commodities according to the following standards or practices: (1) the compulsory standards as specified by laws or administrative rules and regulations or other inspection standards which must be complied with; (2) in the absence of the compulsory standards or other inspection standards which must be complied with as stated in the preceding paragraph, the import and export commodities shall be inspected according to the standards stipulated in the foreign trade contracts. If the trade is conducted according to the sample, the inspection shall be performed according to the sample provided in addition to other provisions of the contract; (3) in case the requirements of the compulsory standards or other inspection standards that must be complied with as stated in Paragraph 1 are lower than those of the standards stipulated in the foreign trade contract, the inspection shall be conducted according to the latter. If the trade is conducted according to the sample, the inspection shall be performed according to the sample provided in addition to other provisions of the contract; and (4) in the absence of compulsory standards or other inspection standards that must be complied with as stated in Paragraph 1, and in case inspection standards are either absent or not clearly stipulated in the contract, the inspection shall be conducted according to the standards of the producing country, or relevant international standards of the standards designated by the State Administration of Commodity Inspection.

Article 11 Based on the need of foreign trade and inspection work, the State Administration of Commodity Inspection may formulate its specialized standards for the inspection of import and export commodities.

Article 12 The inspection personnel of the commodity inspection authorities should obtain official credentials based on the qualification test before they are allowed to undertake inspection assignments.

While performing their duties according to law, the inspection personnel shall not be interfered with or obstructed without justification.

Chapter 2 Inspection of Import Commodities Article 13 For import commodities subject to compulsory inspection, the receivers must make registration for the import commodities with the commodity inspection authorities located at the port of discharge or the station of arrival. The commodities shall be checked and released by the customs authorities upon presentation of the seals of the commodity inspection authorities affixed on the customs declaration.

Article 14 For the import commodities of which the inspection sites are prescribed in the foreign trade contracts or shipping documents, the inspection shall be conducted at the said sites; In the absence of such prescription, the inspection shall be conducted at the port of discharge or the station of arrival or at the sites designated by the commodity inspection authorities.

For large-sized commodities in bulk, and perishable goods and the commodities found damaged or deficient in quantity weight during discharge, the inspection shall be performed at the port of discharge or station of arrival.

For the complete sets of equipment, machinery, electrical equipment and meters and instruments of which inspection must go along with their installations and trial performance and for the commodities whose repacking is impractical after opening up for inspection, the inspection may be conducted at the sites of the receivers.

Article 15 For the import commodities subject to compulsory inspection, the receivers, having made the registration, must apply to the commodity inspection authorities for inspection by presenting the contract, invoice, packing list, bill of lading and other necessary documents at the inspection site within the time limit specified and the commodity inspection authorities shall conduct inspection or organize the departments concerned to carry out inspection. Those that have not undergone inspection are not permitted to be marketed or otherwise put to use.

For the import commodities other than those subject to compulsory inspection which, however, shall be inspected by the commodity inspection authorities as provided for in the foreign trade contract, the procedures of application for inspection shall be followed as stipulated in the preceding paragraph.

Article 16 For the import commodities which already have been applied for inspection, the commodity inspection authorities shall complete the inspection within the valid time limit of claim. For those found up to standard, reports shall be issued about the results of inspection; for those found substandard or for those subject to certification in order to settle the account according to the foreign trade contract, the inspection certificates should be issued respectively.

Article 17 The import commodities that are found not in compliance with the compulsory standards stipulated by laws and administrative rules or other standards that must be complied with through inspection by the commodity inspection authorities shall undergo technical treatment under the supervision of the commodity inspection authorities; only those proved up to standard through reinspection are permitted to be marked or otherwise put to use. As for those which cannot undergo technical treatment or those found still not up to standard through re-inspection even after technical treatment, the commodity inspection authorities shall instruct the receivers to return or destroy the commodities.

Article 18 For complete sets of equipment and their parts found substandard through inspection, the commodity inspection authorities shall issue notices to prohibit their installation and operation. Permission of their installation and operation is to be granted only to those found up to standard through re-inspection by the commodity inspection authorities after technical treatment.

Article 19 Upon the arrival of import mobile vehicles, the receivers should procure the license-plates from the traffic control office on the strength of the inspection- certificate for the import vehicles issued by the commodity inspection authorities, and provide the commodity inspection authorities with the vehicle's condition report 30 days prior to the expiration of the validity date of quality warranty.

Article 20 As to the import commodities other than those subject to compulsory inspection by the commodity inspection authorities, the receivers shall receive the commodity through their own inspection as stipulated in the contract. The commodity inspection authorities are entitled to conduct random and check-up inspection and to supervise the inspection-receiving procedures of the receivers. In case the commodities are found substandard through inspection, for which a claim is to be lodged on the strength of the inspection certificate, the receivers shall apply in time to the commodity inspection authorities at the locality for inspection and certification.

Article 21 For the import commodities found substandard through inspection or random/check-up inspection by the commodity inspection authorities and with a claim already lodged for compensation, a sufficient quantity of the goods or samples should be retained by the receivers provided that the commodities are not to be replaced by or returned to the foreign party; and the commodities intended for replacement by or return to the foreign party must be kept intact until the settlement of the case.

Article 22 If the import commodities are found damaged or short in quantity/weight during discharge at the port for which a claim for compensation is to be lodged, the receivers should apply in time to the commodity inspection authorities at the port for inspection and certification. The unloading unit should discharge and store damaged goods separately.

Article 23 For those important import commodities and large-sized complete sets of equipment involving the vital interest of the State and the people, or of fairly high value and technical sophistication, the receivers shall stipulate in the foreign trade contracts that the initial inspection be conducted and the manufacturing or loading in the exporting countries be supervised before shipment; and in addition, the right of final inspection after the arrival of goods and the right for lodging a claim should also be reserved and provided for in the clauses of the contract. Thus the receivers shall carry out the initial inspection and supervision over the manufacturing and loading as agreed upon stipulated in the contracts.

The competent authorities of the receivers shall strengthen supervision over the initial inspection and supervision of manufacturing and loading of imported commodities before shipment. The commodity inspection authorities, when deemed necessary, may dispatch inspection personnel or make arrangement to take part in the initial inspection and supervision over manufacturing and loading.

Chapter 3 Inspection of Export Commodities Article 24 For export commodities subject to compulsory inspection according to laws and administrative rules and regulations, the consignors shall apply to the commodity inspection authorities for inspection by presenting the contract and other relevant documents at the site and within the time limit specified by the commodity inspection authorities. The commodity inspection authorities shall conduct inspection or organize the departments concerned to carry out inspection.

For export commodities that are not subject to compulsory inspection, but subject to inspection by the commodity inspection authorities as stipulated in the foreign trade contract, the procedures of application and inspection shall be followed accordingly as stipulated in the preceding paragraph.

Article 25 For the export commodities already applied for inspection, the commodity inspection authorities shall complete the inspection within the time limit of not delaying the shipment. For those found up to standard through inspection, inspection certificates or releasing notices shall be issued as specified or seals for releasing shall be affixed on the customs declaration.

With regard to the export commodities to be inspected at the production site for which however, certification at the outbound port is required, the commodity inspection authorities at the production site shall issue vouchers for shifting the site of certification as specified.

The consignors shall apply to the commodity inspection authorities at the port for check-up inspection within the time limit specified. For those checked to be up to standard through inspection, the commodity inspection authorities at the port shall issue inspection certificates or releasing notices or affix releasing seals on the customs declaration.

Article 26 For export commodities other than those subject to compulsory inspection, the commodity inspection authorities may carry out random inspection at regular or irregular intervals on the basis of the inspection of manufacturers and trade departments.

Article 27 For the export commodities judged up to standard by the commodity inspection authorities, the consignors shall apply for export within 60 days from the date of issuance of the inspection certificates or releasing notices; for the fresh and live export goods, the consignors shall apply for export within the time limit for export, otherwise, the consignors must apply to the commodity inspection authorities for re-inspection.

Article 28 Enterprises manufacturing packages or containers for dangerous goods for export must apply to the commodity inspection authorities for performance testing of the packages and containers. Only those packages and containers meeting the requirements through testing by the commodity inspection authorities with consequent testing certificates procured shall be permitted for carrying the dangerous goods.

Enterprises producing dangerous goods for export must apply to the commodity inspection authorities for the testing of the employment of the packages and containers. Only those packages and containers for dangerous goods meeting the requirements through testing by the commodity inspection authorities with consequent testing certificates procured shall be permitted to be employed for carrying and shipping the dangerous goods.

Article 29 For the vessels' holds, containers and other shipping facilities for carrying perishable foods for export and frozen goods, the carriers and stuffing units or their agents must, before shipment, apply to the commodity inspection authorities for inspector on fitness for carrying the goods in respect to conditions like cleanliness, sanitation, freezing efficiency, and sealing and tightness, etc.. Only those found up to the requirements with certificates procured shall be allowed for shipment.

Article 30 Export commodities subject to compulsory inspection according to laws and administrative rules and regulations shall be released by the customs upon presentation of the certificates, notices or the releasing seals affixed on the customs declarations as prescribed in Articles 25, 28 and 19.

Article 31 No commodities for export that are found substandard through inspection, check-up inspection or random inspection by the commodity inspection authorities shall be permitted for export.

Chapter 4 Survey of Import and Export Commodities Article 32 The commodity inspection authorities, and the inspection agencies designated by the State Administration of Commodity Inspection and the commodity inspection authorities and other inspection agencies approved by the State Administration of Commodity Inspection may accept the entrustment of the foreign trade parties, relevant parties at home and abroad or foreign inspection agencies for surveying services of import and export commodities within the specified scope and they may issue certificates of survey.

Article 33 The surveying services of import and export commodities include: (1) quality inspection, quantity and weight survey, packaging survey and evalu ation of Dwight tonnage of import and export commodities; (2) supervision over loading/unloading of import or export commodities; (3) stowage survey, damage and cargo damage survey of import or export commodi ties and inspection of cargo in respect to general/particular average; (4) inspection on the fitness of vessels, wagons, vehicles, aeroplanes and containers etc. for the shipping of export commodities; (5) sealing of the vessels' holds/tanks, hatch survey and ullage measurement for the shipping of import and export commodities; (6) survey of containers and containerized goods; (7) estimation and determination of the value, classification, quality, quantity and loss of the assets invested by the foreign business bodies relevant to import and export commodities; (8) drawing and sealing of various kinds of samples; (9) issuance of certificates of value and other surveying and inspection certi ficates; and (10) other surveying services for import and export commodities.

Article 34 Upon the application of foreign trade parties, the commodity inspection authorities may undertake issuance of certificates of origin in connection with the General System of Preference (G. S. P.) and general certificates or origin according to relevant laws and administrative rules and regulations.

Article 35 When foreign trade parties intend to apply to the commodity inspection authorities for survey services, they should provided the contract, letter of credit and other necessary documents.

Chapter 5 Supervision and Administration Article 36 The State Administration of Commodity Inspection and commodity inspection authorities shall exercise supervision and control over the inspection work for the import and export commodities of the receivers, consignors, manufacturers, storage and transport departments and the inspection agencies and personnel designated or accredited by the State Administration of Commodity Inspection and commodity inspection authorities.

Article 37 The State Administration of Commodity Inspection may, when deemed necessary, conclude quality certification agreements on import and export commodities with relevant foreign bodies. The commodity inspection authorities may conduct quality certification for import and export commodities according to the relevant agreement or upon entrustment by relevant foreign bodies. For those import and export commodities and their manufacturers found qualified through certification procedures, certification vouchers shall be issued, and the commodities shall be allowed to attach the corresponding quality certification marks. The specific provisions shall be formulated by the State Administration of Commodity Inspection.

Article 38 As required by the State, for important import and export commodities involving safety and sanitation etc. and their manufacturers, an import safety license and export quality license system shall be implemented. The specific provisions shall be made by the State Administration of Commodity Inspection in conjunction with relevant competent departments under the State Council.

No import commodities subject to the import safety license system shall be allowed for import unless they have been granted an import safety license by the State Administration of Commodity Inspection.

No export commodities subject to the export quality license system shall be allowed for export unless they have been granted an export quality license by the State Administration of Commodity Inspection or the State Administration of Commodity Inspection in conjunction with relevant competent departments under the State Council.

Article 39 The State shall implement a sanitary registration/list-entry system for the foods for export and their manufacturers (including slaughter-houses, processing plants, storehouses and cold storage, inclusive hereinafter). The specific provisions shall be formulated by the State Administration of Commodity Inspection along with relevant competent departments under the State Council.

Manufacturers of foods for export which are subject to the above-said system shall apply to the commodity inspection authorities for sanitary registration list-entry; they shall not be allowed to produce, process or store foods for export unless they have obtained the approval from the State Administration of Commodity Inspection.

Manufacturers of foods for export which need overseas registration shall apply to the State Administration of Commodity Inspection for unified handling of the matter after they have gone through registration/list-entry as stipulated in the preceding paragraph.

Article 40 Upon the application of manufacturers of goods for export or at the request of foreign parties, the commodity inspection authorities shall assess their quality assurance system. The specific provisions shall be formulated by the State Administration of Commodity Inspection.

Article 41 In case the manufacturers of import and export commodities which have been approved to use certification marks or granted the import safety license, export quality license or certificates of sanitary registration/list-entry are found not up to the requirements set upon re-examination, the commodity inspection authorities shall instruct them to make improvements within the specified time limit. If they still fail to meet the requirements beyond the time limit, their qualification for using the certification marks shall be canceled or their quality license or certificates of sanitary registration/list-entry shall be rescinded subject to the approval of the State Administration of Commodity Inspection.

Article 42 Based on the need of inspection work, the commodity inspection authorities may dispatch inspectors to the manufacturers of export commodities subject to compulsory inspection to undertake supervision over the quality inspection of the export commodities before their release from the factories, including examination and supervision over the production and testing conditions and quality assurance system of the manufacturers, and to conduct random inspection on raw materials, parts and finished products, packaging, marking etc. of the export commodities.

Article 43 The commodity inspection authorities may, if necessary, affix commodity inspection marks on the import and export commodities judged up to standard through inspection; and carry out the sealing for the import and export commodities judged up to standard or for those that should be sealed. A system for the commodity inspection marks and seals shall be worked out by the State Administration of Commodity Inspection.

Article 44 The commodity inspection authorities or the inspection agencies designated or accredited by the State Administration of Commodity Inspection or commodity inspection authorities shall carry out sampling of import and export commodities according to relevant stipulations. The relevant departments shall regain the remainder of the samples after inspection within the specified time limit. In case they themselves fail to regain with the time limit, the afore-said inspection authorities or agencies have the right to dispose of the samples.

Article 45 When the inspection personnel of the commodity inspection authorities are conducting inspection, survey, supervision and control according to law at the manufacturers, construction sites, harbours, airports, railway stations and storehouses or on vehicles of transport, the departments concerned should provide necessary conditions for their work, including manpower and appliances.

Article 46 The State Administration of Commodity Inspection and commodity inspection authorities may, out of the need for inspection work, accredit the qualified domestic and foreign inspection agencies to undertake the entrusted inspection on import and export commodities or testing on the designated commodities for quality licensing and certification and to undertake examination and assessment of the manufacturers.

In case the accredited inspection agencies are found not up to the stipulated requirements upon re-examination, the State Administration of Commodity Inspection and commodity inspection authorities shall cancel their qualification for accredited status.

Article 47 The commodity inspection authorities, when deemed necessary, may accredit the inspection personnel of relevant departments to undertake designated tasks of inspection and assessment.

Article 48 Foreign parties that intend to set up agencies for the inspection and survey of import and export commodities within China should obtain approval from the State Administration of Commodity Inspection. They are allowed to undertake entrusted inspection and surveying businesses for import and export commodities within the designated scope only after they fulfil the procedures for approval and registration according to relevant laws and administrative rules and regulations; in addition, they should be subject to the supervision and control of the State Administration of Commodity Inspection and commodity inspection authorities.

Article 49 In case an applicant for inspection of import and export commodities disagrees with the inspection results of the commodity inspection authorities, the applicant may apply to the original commodity inspection authorities or to the higher commodity inspection authorities for re-inspection within 15 days from the date when the inspection results are received, and the original or higher commodity inspection authorities shall undertake the re-inspection, the conclusion of which should be made within 45 days from the date of application for re- inspection. In case the applicant for re-inspection still disagrees with the conclusion of re-inspection the applicant may apply to the State Administration of Commodity Inspection for re-inspection within 15 days from the date when the said conclusion is received. The conclusion of re- inspection should be made within 60 days by the State Administration of Commodity Inspection and shall be regarded as final.

Chapter 6 Legal Responsibility Article 50 Those who violate the Law of Commodity Inspection or these Regulations by committing any one of the following acts, depending on the seriousness of the case, shall be subject to the penalty of criticism by circular, warning and suspension of application for inspection, or shall be imposed a find of 1% up to 5% of the total commodity value: (1) marketing or using import commodities which are subject to compulsory inspection according to laws or administrative rules and regulations without applying for inspection; or purposely exporting the commodities which are subject to compulsory inspection without applying for inspection; (2) importing, marketing or using commodities subject to the import safety license system or exporting commodities subject to the export quality license system or sanitary registration/list-entry system without obtaining the required license or relevant certificates; (3) using the vessel's holds or containers already found not up to the requirements through inspection or not in possession of any certificate to prove their qualified conditions for carrying the perishable foods or frozen goods; (4) providing or using the packages and containers for shipment of export dangerous goods without undergoing survey by the commodity inspection authorities; and (5) any other acts of evading the compulsory inspection of the commodity inspection authorities.

Article 51 Those who violate the Law of Commodity Inspection or these Regulations by committing any one of the following acts, depending on the seriousness of the case, shall be subject to the penalty of criticism by circular, and suspension of application for inspection, or shall be imposed a fine of 5% up to 20% of the total commodity value; or both the penalty and fine shall be imposed by the commodity inspection authorities: (1) marketing or using the import commodities judged by the commodity inspection authorities through inspection not up to the compulsory standards or other standards that must be followed; (2) exporting the commodities judged not up to standard through inspection or random inspection by the commodity inspection authorities; (3) purposely changing the samples drawn by the commodity inspection authorities or altering the quality, specifications, quantity, weight and packaging of the export commodities already inspected and judged up to standard by the commodity inspection authorities; (4) purposely changing or impairing the commodity inspection marks, seals and certification marks affixed by the commodity inspection authorities on the commodities and/or their packages; (5) providing or using the packages and containers already judged by the commodity inspection authorities as substandard for shipment of outbound dangerous goods; and (6) applying to the commodity inspection authorities for inspection not according to the real condition, getting the relevant certification/documents from the commodity inspection authorities by dishonest means, or by any other acts of deception and falsification.

Article 52 For the export commodities already applied for inspection but found to be counterfeits of poor quality, the commodity inspection authorities or in conjunction with relevant competent departments shall order the manufacturers and trade agencies to cease producing and exporting the goods; a find less than the corresponding value of the export commodity may be imposed; alternatively, the counterfeit goods of inferior quality shall be destroyed under supervision or with the afore-said find to be imposed in addition.

Article 53 With regard to the acts of violations listed in Articles 50, 51 or 52, if the circumstances are serious with ensuring heavy economic losses, the personnel directly responsible shall be prosecuted according to the Criminal Law.

Article 54 Those who falsify, re-make or make illegal use of commodity inspection certificates/documents, seals/stamps, marks sealings and quality certification marks, and those who trade or erase/alter commodity inspection certificates/documents and marks shall be imposed a fine between 5000-30000 yuan by the commodity inspection authorities if the certificates have not been used for imports and exports, otherwise, they shall be imposed a fine less than the total value of the commodities; if any of the acts of violating constitutes a crime, the personnel directly responsible shall be prosecuted according to the Criminal Law.

Article 55 For any party that conducts unjustified inspection and surveying of relevant import and export commodities without the approval of the State Administration of Commodity Inspection or its authorized commodity inspection authorities, the commodity inspection authorities shall order it to stop the said operations. In addition, the said party may be imposed a fine less than 3 times the illegal revenue.

Article 56 The parties that are imposed a find-should make the payment to the designated bank within 10 days after receiving the notice for payment of the fine form the commodity inspection authorities.

All the fines shall be turned over to the State treasury.

Article 57 In case a party does not agree with the penalty imposed by the commodity inspection authorities, it may, within 30 days after it receives the notice of penalty, apply to the commodity inspection authorities which have made the punishment decision or appeal to the higher commodity inspection authorities for re-consideration. If the party still disagrees with the decision of re- consideration, it may bring a suit before the people's court within 30 days after the date it receives the notice of re- consideration decision.

If the party neither applies for re-consideration nor brings a suit, and fails to comply with the penalty decision with the specified period, the commodity inspection authorities which have made the penalty decision shall appeal to the people's court for compulsory enforcement.

Article 58 As to the functionaries of the State Administration of Commodity Inspection and the commodity inspection authorities who abuse their power, practice graft or embezzlement, falsify inspection results or neglect their duties and delay the timely certification, disciplinary sanctions shall be imposed on them by their respective or higher organizations; the serious cases which involve criminal acts shall be turned over to the judicial department for investigation of criminal responsibilities.

In case of violation of law on the part of the inspection personnel of the inspection agencies designated or accredited by the State Administration of Commodity Inspection or commodity inspection authorities or their accredited inspection personnel, they shall be penalized as stipulated in the preceding paragraph.

Chapter 7 Supplementary Provisions Article 59 According to the relevant provisions of the State Council, the commodity inspection authorities shall act as the organs for the quarantine inspection of animal products for export and shall carry out quarantine inspection of animal products in the light of the Law on the Entry and Exit Animal and Plant Quarantine.

Article 60 The right to interpret these Regulations resides in the State Administration of Commodity Inspection.

Article 61 These Regulations shall go into effect as of the date of promulgation.

Note: In case of divergence, the Chinese text shall be regarded as authentic.

nistration of Commodity Inspection in conjunction with relevant competent departments under the State Council.

Article 39 The State shall implement a sanitary registration/list-entry system for the foods for export and their manufacturers (including slaughter-houses, processing plants, storehouses and cold storage, inclusive hereinafter). The specific provisions shall be formulated by the State Administration of Commodity Inspection along with relevant competent departments under the State Council.

Manufacturers of foods for export which are subject to the above-said system shall apply to the commodity inspection authorities for sanitary registration list-entry; they shall not be allowed to produce, process or store foods for export unless they have obtained the approval from the State Administration of Commodity Inspection.

Manufacturers of foods for export which need overseas registration shall apply to the State Administration of Commodity Inspection for unified handling of the matter after they have gone through registration/list-entry as stipulated in the preceding paragraph.

Article 40 Upon the application of manufacturers of goods for export or at the request of foreign parties, the commodity inspection authorities shall assess their quality assurance system. The specific provisions shall be formulated by the State Administration of Commodity Inspection.

Article 41 In case the manufacturers of import and export commodities which have been approved to use certification marks or granted the import safety license, export quality license or certificates of sanitary registration/list-entry are found not up to the requirements set upon re-examination, the commodity inspection authorities shall instruct them to make improvements within the specified time limit. If they still fail to meet the requirements beyond the time limit, their qualification for using the certification marks shall be canceled or their quality license or certificates of sanitary registration/list-entry shall be rescinded subject to the approval of the State Administration of Commodity Inspection.

Article 42 Based on the need of inspection work, the commodity inspection authorities may dispatch inspectors to the manufacturers of export commodities subject to compulsory inspection to undertake supervision over the quality inspection of the export commodities before their release from the factories, including examination and supervision over the production and testing conditions and quality assurance system of the manufacturers, and to conduct random inspection on raw materials, parts and finished products, packaging, marking etc. of the export commodities.

Article 43 The commodity inspection authorities may, if necessary, affix commodity inspection marks on the import and export commodities judged up to standard through inspection; and carry out the sealing for the import and export commodities judged up to standard or for those that should be sealed. A system for the commodity inspection marks and seals shall be worked out by the State Administration of Commodity Inspection.

Article 44 The commodity inspection authorities or the inspection agencies designated or accredited by the State Administration of Commodity Inspection or commodity inspection authorities shall carry out sampling of import and export commodities according to relevant stipulations. The relevant departments shall regain the remainder of the samples after inspection within the specified time limit. In case they themselves fail to regain with the time limit, the afore-said inspection authorities or agencies have the right to dispose of the samples.

Article 45 When the inspection personnel of the commodity inspection authorities are conducting inspection, survey, supervision and control according to law at the manufacturers, construction sites, harbours, airports, railway stations and storehouses or on vehicles of transport, the departments concerned should provide necessary conditions for their work, including manpower and appliances.

Article 46 The State Administration of Commodity Inspection and commodity inspection authorities may, out of the need for inspection work, accredit the qualified domestic and foreign inspection agencies to undertake the entrusted inspection on import and export commodities or testing on the designated commodities for quality licensing and certification and to undertake examination and assessment of the manufacturers.

In case the accredited inspection agencies are found not up to the stipulated requirements upon re-examination, the State Administration of Commodity Inspection and commodity inspection authorities shall cancel their qualification for accredited status.

Article 47 The commodity inspection authorities, when deemed necessary, may accredit the inspection personnel of relevant departments to undertake designated tasks of inspection and assessment.

Article 48 Foreign parties that intend to set up agencies for the inspection and survey of import and export commodities within China should obtain approval from the State Administration of Commodity Inspection. They are allowed to undertake entrusted inspection and surveying businesses for import and export commodities within the designated scope only after they fulfil the procedures for approval and registration according to relevant laws and administrative rules and regulations; in addition, they should be subject to the supervision and control of the State Administration of Commodity Inspection and commodity inspection authorities.

Article 49 In case an applicant for inspection of import and export commodities disagrees with the inspection results of the commodity inspection authorities, the applicant may apply to the original commodity inspection authorities or to the higher commodity inspection authorities for re-inspection within 15 days from the date when the inspection results are received, and the original or higher commodity inspection authorities shall undertake the re-inspection, the conclusion of which should be made within 45 days from the date of application for re- inspection. In case the applicant for re-inspection still disagrees with the conclusion of re-inspection the applicant may apply to the State Administration of Commodity Inspection for re-inspection within 15 days from the date when the said conclusion is received. The conclusion of re- inspection should be made within 60 days by the State Administration of Commodity Inspection and shall be regarded as final.

Chapter 6 Legal Responsibility Article 50 Those who violate the Law of Commodity Inspection or these Regulations by committing any one of the following acts, depending on the seriousness of the case, shall be subject to the penalty of criticism by circular, warning and suspension of application for inspection, or shall be imposed a find of 1% up to 5% of the total commodity value: (1) marketing or using import commodities which are subject to compulsory inspection according to laws or administrative rules and regulations without applying for inspection; or purposely exporting the commodities which are subject to compulsory inspection without applying for inspection; (2) importing, marketing or using commodities subject to the import safety license system or exporting commodities subject to the export quality license system or sanitary registration/list-entry system without obtaining the required license or relevant certificates; (3) using the vessel's holds or containers already found not up to the requirements through inspection or not in possession of any certificate to prove their qualified conditions for carrying the perishable foods or frozen goods; (4) providing or using the packages and containers for shipment of export dangerous goods without undergoing survey by the commodity inspection authorities; and (5) any other acts of evading the compulsory inspection of the commodity inspection authorities.

Article 51 Those who violate the Law of Commodity Inspection or these Regulations by committing any one of the following acts, depending on the seriousness of the case, shall be subject to the penalty of criticism by circular, and suspension of application for inspection, or shall be imposed a fine of 5% up to 20% of the total commodity value; or both the penalty and fine shall be imposed by the commodity inspection authorities: (1) marketing or using the import commodities judged by the commodity inspection authorities through inspection not up to the compulsory standards or other standards that must be followed; (2) exporting the commodities judged not up to standard through inspection or random inspection by the commodity inspection authorities; (3) purposely changing the samples drawn by the commodity inspection authorities or altering the quality, specifications, quantity, weight and packaging of the export commodities already inspected and judged up to standard by the commodity inspection authorities; (4) purposely changing or impairing the commodity inspection marks, seals and certification marks affixed by the commodity inspection authorities on the commodities and/or their packages; (5) providing or using the packages and containers already judged by the commodity inspection authorities as substandard for shipment of outbound dangerous goods; and (6) applying to the commodity inspection authorities for inspection not according to the real condition, getting the relevant certification/documents from the commodity inspection authorities by dishonest means, or by any other acts of deception and falsification.

Article 52 For the export commodities already applied for inspection but found to be counterfeits of poor quality, the commodity inspection authorities or in conjunction with relevant competent departments shall order the manufacturers and trade agencies to cease producing and exporting the goods; a find less than the corresponding value of the export commodity may be imposed; alternatively, the counterfeit goods of inferior quality shall be destroyed under supervision or with the afore-said find to be imposed in addition.

Article 53 With regard to the acts of violations listed in Articles 50, 51 or 52, if the circumstances are serious with ensuring heavy economic losses, the personnel directly responsible shall be prosecuted according to the Criminal Law.

Article 54 Those who falsify, re-make or make illegal use of commodity inspection certificates/documents, seals/stamps, marks sealings and quality certification marks, and those who trade or erase/alter commodity inspection certificates/documents and marks shall be imposed a fine between 5000-30000 yuan by the commodity inspection authorities if the certificates have not been used for imports and exports, otherwise, they shall be imposed a fine less than the total value of the commodities; if any of the acts of violating constitutes a crime, the personnel directly responsible shall be prosecuted according to the Criminal Law.

Article 55 For any party that conducts unjustified inspection and surveying of relevant import and export commodities without the approval of the State Administration of Commodity Inspection or its authorized commodity inspection authorities, the commodity inspection authorities shall order it to stop the said operations. In addition, the said party may be imposed a fine less than 3 times the illegal revenue.

Article 56 The parties that are imposed a find-should make the payment to the designated bank within 10 days after receiving the notice for payment of the fine form the commodity inspection authorities.

All the fines shall be turned over to the State treasury.

Article 57 In case a party does not agree with the penalty imposed by the commodity inspection authorities, it may, within 30 days after it receives the notice of penalty, apply to the commodity inspection authorities which have made the punishment decision or appeal to the higher commodity inspection authorities for re-consideration. If the party still disagrees with the decision of re- consideration, it may bring a suit before the people's court within 30 days after the date it receives the notice of re- consideration decision.

If the party neither applies for re-consideration nor brings a suit, and fails to comply with the penalty decision with the specified period, the commodity inspection authorities which have made the penalty decision shall appeal to the people's court for compulsory enforcement.

Article 58 As to the functionaries of the State Administration of Commodity Inspection and the commodity inspection authorities who abuse their power, practice graft or embezzlement, falsify inspection results or neglect their duties and delay the timely certification, disciplinary sanctions shall be imposed on them by their respective or higher organizations; the serious cases which involve criminal acts shall be turned over to the judicial department for investigation of criminal responsibilities.

In case of violation of law on the part of the inspection personnel of the inspection agencies designated or accredited by the State Administration of Commodity Inspection or commodity inspection authorities or their accredited inspection personnel, they shall be penalized as stipulated in the preceding paragraph.

Chapter 7 Supplementary Provisions Article 59 According to the relevant provisions of the State Council, the commodity inspection authorities shall act as the organs for the quarantine inspection of animal products for export and shall carry out quarantine inspection of animal products in the light of the Law on the Entry and Exit Animal and Plant Quarantine.

Article 60 The right to interpret these Regulations resides in the State Administration of Commodity Inspection.

Article 61 These Regulations shall go into effect as of the date of promulgation.

Note: In case of divergence, the Chinese text shall be regarded as authentic.


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