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IMPLEMENTING
MEASURES OF SHANGHAI MUNICIPALITY FOR
THE INSPECTION OF IMPORT AND EXPORT COMMODITIES
(Promulgated
February 5, 1986 by the Shanghai
Municipal People's Government)
SUBJECT: COMMODITY INSPECTION
ISSUING-DEPT: SHANGHAI MUNICIPALITY
ISSUE-DATE: 02/05/1986
IMPLEMENT-DATE: 03/01/1986
LENGTH: 3113 words
TEXT:
[Article 1] These Measures are formulated in accordance with the provisions of the regulations of the People's Republic of China on the Inspection of Import and Export Commodities (hereinafter referred to as the Commodity Inspection Regulations) and their Detailed Implementing Rules, and take into account the actual circumstances in Shanghai Municipality.
[Article 2] The Shanghai Import and Export Commodity Inspection Bureau (hereinafter referred to as the Shanghai Commodity Inspection Bureau) shall be the organ in charge of uniformly supervising and administering the inspection of import and export commodities at Shanghai ports. Any enterprise manufacturing or processing export commodities or engaging in foreign trade through the handling of import or export commodities, or an orderer, consignee, end-user or forwarding agent of import commodities, or any import or export commodity storage or transport department or other relevant department, which is operating within Shanghai Municipality, shall accept supervision and control from the Shanghai Commodity Inspection Bureau in areas of commodity inspection and quality control,except for those commodities specified in the provisions of Article 6 of the Commodity Inspection Regulations.
[Article 3] An orderer, consignee, end-user or forwarding agent of import commodities shall promptly apply to the Shanghai Commodity Inspection Bureau for inspection or declaration of such commodities, prior to declaration to Customs.
[Article 4] In order to facilitate prompt Customs clearance, avoid port congestion and allow sufficient time for any claim to be lodged, an import commodity specified in the State prescribed List of Commodities Subject to Inspection by Commodity Inspection authorities (hereinafter referred to as the List of Commodities) shall be declared by a forwarding agent to the Shanghai Commodity Inspection Bureau by presenting the Notice of Arrival of Import commodities as a formal application for inspection, and subsequent declaration to and clearance by Customs shall be handled by presenting an Import Goods Declaration Form bearing the Inspection Clearance seal of the Shanghai Commodity Inspection Bureau.
After taking delivery of goods, an orderer, consignee or end-user, with the exception of one with the special approval of the Shanghai Commodity Inspection Bureau, shall promptly make a formal application to the Bureau for inspection of the goods and shall submit all documents necessary for inspection and certification, including the sales contract, invoice from abroad, bill of lading or rail or air way bill, packing list, specifications, and certification from abroad of inspection appraisal and tallying. The inspection shall be conducted by the Shanghai Commodity Inspection Bureau or an inspection organ authorised by the Bureau, and an inspection report or, when necessary, a claims document against the foreign party concerned shall be issued.
[Article 5] An import commodity not specified in the List of Commodities shall, in the same integrated manner, be declared by a forwarding agent by presenting to the Shanghai Commodity Inspection Bureau the Notice of Arrival of Import Commodities. The Shanghai Commodity Inspection Bureau shall affix a Declaration Acknowledged seal to the Notice, and send it,together with the Notice of Inspection and the Inspection Outcome Report, to the relevant import unit.
The orderer, consignee or end-user of this category of import commodity shall, within the valid claims period, undertake by itself an inspection of the goods received, in strict accordance with the provisions of the contract or the relevant standards, and the results of the inspection shall be entered on the Inspection Outcome Report which shall be submitted to the Shanghai Commodity Inspection Bureau for verification and filing. If an inspection finds goods to be sub-standard, an application for re-inspection, with the relevant certificates and information attached, shall be lodged with the Shanghai Commodity Inspection Bureau prior to the last third of the valid claims period. If re-inspection still shows the goods to be sub-standard, the Shanghai Commodity Inspection Bureau shall issue a claims document against the foreign party. If there are difficulties handling a self-conducted inspection, assistance may be sought from a higher level department in charge or an application may be made for the inspection to be undertaken by the Shanghai Commodity Inspection Bureau.
If an import commodity, other than those specified in the List of Commodities, is required by the sales contract to have an inspection certificate from the Shanghai Commodity Inspection Bureau for account settlement purposes,the orderer, consignee, or end-user shall promptly submit an application, with the relevant certificates and information attached, to the Shanghai Commodity Inspection Bureau, and the Bureau or its authorised inspection organ shall conduct an inspection and issue an inspection certificate.
[Article 6] If the import commodity is a complete set of key equipment, the Shanghai Commodity Inspection Bureau shall station an inspector at the factory to conduct supervision and inspection. If equipment has yet to be inspected or inspection has found it to be sub-standard, a Notice of a Ban on Installation and Operation may be issued, depending on the actual circumstances. Equipment may only be installed and put into operation on the retraction of the Notice.
[Article 7] A unit which imports a motor vehicle shall promptly register with the Shanghai commodity Inspection Bureau for its inspection, and shall present the inspection certificate issued by the Commodity Inspection Bureau when applying to the Traffic Control Department of the Public Security Bureau for licence plates. The said unit shall also provide the Shanghai Commodity Inspection Bureau with an inspection report one month prior to the expiry of the quality guarantee period. Failure to submit this report within the stipulated period may result in the Traffic control Department of the Public Security Bureau cancelling the licence plates, thereby prohibiting the driving of the vehicle.
[Article 8] If import commodities are found to be damaged when unloaded at a Shanghai port, the consignee, end-user or forwarding agent shall promptly apply to the Shanghai Commodity Inspection Bureau for inspection, and the Commdotiy Inspection Bureau shall send an inspector to survey the situation on board the ship or to conduct an on-the-spot inspection. A certificate of damage shall be issued after the cause of damage is ascertained and the degree of damage reasonably evaluated.
[Article 9] When signing an import contract with a foreign party, an import department shall ensure that detailed provisions on quality, weight, quantity, packaging, inspection and claims are clearly stipulated, in order to facilitate inspection and checking of goods on delivery. On receipt of a claims document issued by the Shanghai Commodity Inspection Bureau, the relevant department shall promptly lodge a claim and submit the results to the Shanghai Commodity Inspection Bureau for verification and closure of the case.
[Article 10] Technological equipment and materials imported with foreign investment shall be handled in accordance with the provisions of the Implementing Measures for the Inspection of Import and Export Commodities involving Foreign Capital in Shanghai Municipality (Trial Implementation).
[Article 11] All enterprises manufacturing or processing export prodcuts shall register with the Shanghai Commodity Inspection Bureau by completing a registration form issued by the Commodity Inspection Bureau in which the circumstances of the particular export product manufacturing enterprise shall be detailed. Following the approval of an enterprise's registration, different measures shall then be adopted by the Shanghai Commodity Inspection Bureau for its supervision and control.
[Article 12] A factory engaged in the processing of export foodstuffs or a warehouse for the storage of export foodstuffs shall, in accordance with the provisions of the Measures on Health Control for Export Foodstuffs (Trial Implementation), apply to the Shanghai Commodity Inspection Bureau for registration by stages and batches. The processing and storage of export foodstuffs shall only be undertaken after examination and approval by the Shanghai Commodity Inspection Bureau and issue of a registration certificate and an approved code number.
[Article 13] All export commodities shall be subject to inspection. Export shall not be permitted if a commodity has not undergone inspection or does not pass inspection standards.
Export commodities which are included in the Current List of Import-Export Commodities subject to Inspection or which, in accordance to be the provisions of the foreign trade contract or letter of credit, are required to be issued with an inspection certificate by the Shanghai Commodity Inspection Bureau, shall be inspected by the Shanghai Commodity Inspection Bureau or its authorised inspection body. An inspection certificate or a clearance certificate shall be issued if the goods pass the inspection and a disqualification notice shall be issued if the goods fail inspection. Inspection and clearance of export commodities which are included in the List of Commodities shall be conducted on the basis of the inspection certificate issued by the Shanghai Commodity Inspection Bureau or of a clearance seal affixed by the Commodity Inspection Bureau on the Export Goods Declaration Form.
Before the export of any foodstuff, the exporting unit shall apply to the Shanghai Commodity Inspection Bureau for inspection of such goods by presenting the factory inspection clearance certificate of the manufacturing or processing factory. Following examination and certification, the Shanghai Commodity Inspection Bureau shall issue a clearance certificate or affix a clearance seal to the Export Goods Declaration Form, whereupon an export declaration shall be submitted to Customs.
In the case of export commodities not specified in the List of Commodities the manufacturing or processing enterprise shall conduct an inspection by itself in accordance with the standards stipulated in the export contract or the agreement between the manufacturer and the trader or in accordance with product standards prescribed by the relevant leading authority in charge, and only commodities which qualify shall be exported.
[Article 14] Where the quantity of commodities for export is large and the quality fluctuates, the Shanghai commodity Inspection Bureau shall establish such goods as being local legally inspected commodities by undertaking their inspection, supervision and control in accordance with the List of Export Commodities Subject to Inspection in Shanghai Municipality.
[Article 15] An export quality licence system shall be gradually introduced for key export commodities (namely those generating annual earnings of over US$ 5 million or with expanding prospects). The Shanghai Commodity Inspection Bureau, in conjunction with the department in charge of industy,shall, in stages and batches, conduct inspection and appraisal of the quality control, production facilities, production skills and quality supervise and inspection conditions of enterprises manufacturing or processing export commodities. Only an enterprise which meets the quality requirements for manufacturing export commodities shall be issued with an export quality licenc by the Shanghai Commodity Inspection Bureau and given approval to manufacture the particular item for export.
If, during the inspection, supervision and control process, the Shanghai Commodity Inspection Bureau discovers on the part of a manufacturing or processing enterprise, unsatisfactory quality control, careless inspection by the quality inspection department, or a fail in product quality which no longe meets the prescribed quality requirements, the Commodity Inspection Bureau may instruct the enterprise to rectify the situation within a stipulated period. If, on the expiry of the period, product quality still falls short of the prescribed export standards, the export quality licence shall be revoked.
A unit handling export commodities shall request to see a manufacturing or processing enterprise's export quality licence when arranging for the manufacture and purchase of export commodities. No arrangement for the manufacture and purchase of export commodities shall be made with an enterprise which has had its export quality licence revoked by the Shanghai Commodity Inspection Bureau.
[Article 16] A factory or enterprise which manufactures or processes export commodities shall itself establish a corresponding inspection body, with inspection staff and inspection facilities. A complete system shall be set up for the inspection of raw and other materials, supplementary materials, spare parts, semi-finished and finished products, in order that only qualified products leave the factory or enterprise, Sub-standard products shall not be issued with a quality certificate by the factory, nor approved for export.
A factory or enterprise which manufactures or processes export commodities shall conduct its manufacturing or production operations in strict accordance with the provisions of the foreign trade contract or manufacturer-trader agreement and other relevant standards. Clear quality standards shall be set for products received from co-operative or jointly-operated enterprises and the manufacturing or processing factory or enterprise shall strictly implement a system of inspection prior to acceptance of goods. Products found to be sub-standard shall not be accepted and installed Arrangements to undertake manufacturing and processing work made with a unit with a serious product quality problem shall be suspended if no improvements are made over a prolonged period.
[Article 17] When signing a foreign trade contract, a department handling export commodities shall establish close contact with related manufacturing or processing enterprises. If a trade agreement is based on a sample agreed upon by both parties to the deal, the sample shall be supplied to the manufacturing or processing enterprise. If certification by the Shanghai Commodity Inspection Bureau is required, a sample shall be verified and sealed by the Shanghai Commodity Inspection Bureau or a sample sealed by the buying and selling parties shall be submitted to the Shanghai Commodity Inspection Bureau for examination and verification, as a basis for inspection and certification.
A department handling export commodities shall provide a corresponding number of staff to inspect the quality of purchased goods prior to their acceptance and shall set up a complete inspection system to ensure that sub-standard commodities are not accepted, admitted to its warehouses or exported. No arrangement for the manufacture or processing of export commodities shall be made with and no commodities shall be purchased from a factory or enterprise which is disqualified from manufacturing export commodities by decision of the Commodity Inspection Bureau or the department in charge of the respective factory or enterprise.
[Article 18] Storage, loading and unloading and transportation departments shall load, unload, and store commodities in accordance with the requirements for packaging, marking and batch numbering for export commodities. Careful handling shall be required so as to guarantee the quality and sound packaging of export commodities and in order to avoid packaging contamination or damage to the goods.
[Article 19] Where a ship's hold or container is used for carrying cereals, oils, foodstuffs, frozen foods and other perishables for export, the carrier or its agent shall apply for an inspection by the Shanghai Commodity Inspection Bureau before loading of such goods. Loading and shipment may only take place after an inspection is passed and a certificate of inspection is issued.
[Article 20] An application for inspection of packaging materials for dangerous goods for export shipment (not including pressurised gases and radioactive substances) shall be made to the Shanghai Commodity Inspection Bureau, and loading and shipment may only take place after a performance and use appraisal is passed and a certificate of inspection issued.
[Article 21] If deemed necessary, the Shanghai Commodity Inspection Bureau may delegate, with remuneration, part of its import and export commodity inspection work to professional inspection authorities, universities, colleges, research institutes, factories or enterprises which have an inspection capacity.
[Article 22] In view of the importance of ensuring the quality of export commodities, the Shanghai Commodity Inspection Bureau may organise industrial and exporting departments to establish supervisory and control groups for export commodities. Such groups would be responsible for conducting a quality inspection of relevant export commodities, organising the exchange of experiences in the area of quality control and conducting comparison and appraisal of products through random examination, in order to improve the quality of export commodities.
[Article 23] A unit or individual, which in violating the Commodity Inspection Regulations, its Detailed Implementing Rules or these Regulations causes, to the detriment of State economic construction, a quality mishap or a serious claim on an export commodity, or loss of the right of claim on an import commodity, may, depending on the seriousness of the case, be publicly criticised or fined by the Shanghai Commodity Inspection Bureau. The imposition of fines shall be conducted in accordance with the provisions of Articles 39, 40 and 41 of Chapter VI of the Detailed Implementing Rules, and fines shall be collected by the Bank of China, Shanghai Branch as local revenue.
[Article 24] The Shanghai Commodity Inspection Bureau may, in accordance with relevant regulations and depending on the actual circumstances, charge appropriate inspection or service fees for inspection of import and export commodities and related supervisory and control work.
[Article 25] The Shanghai Commodity Inspection Bureau shall be responsible for the interpretation of these Measures.
[Article 26] These Measures shall take effect from 1 March, 1986.
