Voluntary Report - public distribution

**Date:** 10/27/2005

**GAIN Report Number:** CH5071

CH5071

**China, Peoples Republic of**

**Trade Policy Monitoring**

**Food and Agricultural Import Regulations and Standards**

**Regulations on the Enforcement of the Law of the People's Republic of
China on the Inspection of Import and Export Commodities**

**2005**

**Approved by:**

![](media/image1.wmf)Maurice House

U.S. Embassy Beijing

**Prepared by:**

Anthony Cino, Kevin Latner

**Report Highlights:**

This is an unofficial translation of the "Regulations on the Enforcement
of the Law of the People's Republic of China on the Inspection of Import
and Export Commodities," which appears to reform import and export
procedures for traded goods without changing the underlying standards.
The Regulations will enter into force on December 1, 2005.

Includes PSD Changes: No

Includes Trade Matrix: No

Unscheduled Report

Beijing \[CH1\]

\[CH\]

Table of Contents

[**Executive Summary 3**](#executive-summary)

[Regulations on the Enforcement of the Law of the People's Republic of
China on the Inspection of Import and Export Commodities
3](#regulations-on-the-enforcement-of-the-law-of-the-peoples-republic-of-china-on-the-inspection-of-import-and-export-commodities)

[Chapter I General Provisions 3](#chapter-i-general-provisions)

[Chapter II Inspection of Import Commodities
6](#chapter-ii-inspection-of-import-commodities)

[Chapter III Inspection of Export Commodities
8](#chapter-iii-inspection-of-export-commodities)

[Chapter IV Supervision and Administration
9](#chapter-iv-supervision-and-administration)

[Chapter V Legal Liabilities 12](#chapter-v-legal-liabilities)

[Chapter VI Supplementary Provisions
15](#chapter-vi-supplementary-provisions)

# Executive Summary

This is an unofficial translation of the "Regulations on the Enforcement
of the Law of the People's Republic of China on the Inspection of Import
and Export Commodities" and will enter into force on December 1, 2005.
This regulation has not been notified to the WTO Secretariat.

The regulation changes the inspection procedures for import and export.
The regulation does not contain specific standards and appears to
reference existing standards as part of the new procedures. One example
a requirement for the government to publish a catalogue of goods subject
to inspection; this catalogue is currently published annually.

The regulation implements the "Law on Import and Export Commodity
Inspection" (CH2029). According to Article 63, the regulations
supercedes the previous "Regulations on the Enforcement of the Law of
the People's Republic of China on the Inspection of Import and Export
Commodities" approved by the State Council on October 7, 1992 and
promulgated by the former State Administration of Import and Export
Commodity Inspection on October 23, 1992.

BEGIN TRANSLATION

# Regulations on the Enforcement of the Law of the People's Republic of China on the Inspection of Import and Export Commodities

## 

# Chapter I General Provisions

Article 1 These Regulations are formulated in accordance with the
provisions of the Law of the People's Republic of China on the
Inspection of Import and Export Commodities (hereafter "Commodity
Inspection Law").

Article 2 The State Administration of Quality Supervision and Quarantine
of the People's Republic of China (hereafter "State Quality and
Quarantine Administration") is in charge of the inspection of import and
export commodities nationwide.

The exit and entry inspection and quarantine bureaus and their
subordinate institutions established by the State Quality and Quarantine
Administration in provinces, autonomous regions and municipalities
directly under the central government and at the ports and distribution
centers of import and export commodities (hereafter "exit and entry
inspection and quarantine institutions") are in charge of the inspection
of import and export commodities in the regions under their
jurisdictions.

Article 3 The State Quality and Quarantine Administration should, in
accordance with the provisions of Article 4 of the Commodity Inspection
Law, formulate and adjust the catalogue of import and export commodities
that must be inspected (hereafter "catalogue") and publicize it for
enforcement.

The catalogue should be published at least 30 days before the date it
enters force; under emergency circumstances, it should be published no
later than the date it enters force.

When the State Quality and Quarantine Administration formulates and
adjusts the catalogue, it should solicit opinions from the department in
charge of foreign trade, the General Administration of Customs and other
related departments of the State Council.

Article 4 The exit and entry inspection and quarantine institutions
enforce inspections of import and export commodities included in the
catalogue and other import and export commodities that must be inspected
by the exit and entry inspection and quarantine institutions under the
provisions of the laws and administrative regulations (hereafter
"mandatory inspection").

The exit and entry inspection and quarantine institutions enforce spot
checks on import and export commodities other than those subject to
mandatory inspection in accordance with the relevant state stipulations.

Article 5 The inspection of the quality of import and export medicines,
the ascertainment of the accuracy of measuring instruments, the
inspection of the safety of boiler pressure containers and the
inspection of the standards of ocean ships (including offshore platforms
and important ship-related equipment and materials) and containers, the
navigability of airplanes (including airplane engines and airborne
equipment) and the safety of nuclear pressure equipment shall be
enforced by the institutions specified in the relevant laws and
administrative regulations.

Article 6 Samples and gifts that enter and exit China, goods that are
temporarily allowed to enter and exit China and other non-trade articles
are exempted from inspection, unless provided otherwise by law or
administrative regulation.

The import and export commodities included in the catalogue that meet
the state criteria for inspection exemption shall be exempted from
inspection by the exit and entry inspection and quarantine institutions
if the applications for inspection exemption from the related
consignees, consigners or producing enterprises are examined and
approved by the State Quality and Quarantine Administration.

The specific rules for inspection exemption shall be formulated by the
State Quality and Quarantine Administration in consultation with the
relevant departments.

Article 7 The inspection of the import and export commodities that are
subject to mandatory inspection shall be enforced by the exit and entry
inspection and quarantine institutions in accordance with the provisions
of Article 7 of the Commodity Inspection Law.

The State Quality and Quarantine Administration may, in light of the
practical requirements of the import and export commodity inspection and
in accordance with international standards, formulate the technical
specifications and standards for the method of import and export
commodity inspection.

The technical specifications and standards in accordance with which or
in reference to which import and export commodities are inspected and
the technical specifications and standards for the inspection method
should be published at least six months before the date when they enter
into force; under emergency circumstances, they should be published no
later than the date when they enter into force.

Article 8 The exit and entry inspection and quarantine institutions
shall, out of the need to facilitate foreign trade, administer the
classification of import and export enterprises, and shall enforce
inspection of import and export commodities in accordance with the
inspection and regulatory methods specified in the internationally
accepted qualification evaluation procedures.

Article 9 The contents of the import and export commodity inspection
enforced by the exit and entry inspection and quarantine institutions
include whether they conform to the requirements of safety, hygiene,
health, environmental protection and fraud prevention, and to the
relevant items of quality, quantity and weight.

Article 10 The exit and entry inspection and quarantine institutions
shall, in accordance with the provisions of the Commodity Inspection
Law, exercise document verification administration over the import and
export commodities that are under the control of the licensing system
and that must be certified as required by the state stipulations, and
verify the documents to see whether the documents and goods tally with
each other.

The catalogue of the import and export commodities that are subject to
document verification administration shall be formulated, adjusted and
published by the State Quality and Quarantine Administration in
consultation with the relevant departments.

Article 11 The consignees or consigners of import and export commodities
may handle the inspection application formalities by themselves or by
entrusting the formalities to agencies specializing in inspection
application; if the commodities are imported and exported through
express delivery, the consignees or consigners should entrust the
inspection application formalities to the enterprises operating exit and
entry express delivery.

Article 12 If the consignees or consigners of import and export
commodities handle the inspection application formalities, they should
register with the exit and entry inspection and quarantine institutions
according to law.

If enterprises specializing in inspection application agency and
enterprises operating exit and entry express delivery engage in
inspection application service, they should register with the exit and
entry inspection and quarantine institutions according to law.
Enterprises failing to register with the exit and entry inspection and
quarantine institutions according to law are not allowed to offer
inspection application services.

The personnel who handle inspection application services should have
employment registration for inspection application according to law and
should produce certificates when handling inspection application
services. Those without employment registration for inspection
application according to law are not allowed to engage in inspection
application service.

Enterprises specializing in inspection application agency and
enterprises operating exit and entry express delivery and personnel
handling inspection application service are not allowed to illegally
apply for inspection for other people or engage in inspection
applications beyond their scope of business.

Article 13 If enterprises specializing in inspection application agency
accept the entrustment of the consignees or consigners of import and
export commodities and handle the inspection application formalities in
their name, they should present the certificate of authority to the exit
and entry inspection and quarantine institutions and comply with all the
provisions regarding entrustment in the Regulations; if they handle the
inspection application formalities in their own name, they should assume
legal liabilities identical to those of the consignees or consigners.

If enterprises operating exit and entry express delivery accept the
entrustment of the consignees or consigners of import and export
commodities, they should handle the inspection application formalities
in their own name and assume legal liabilities identical to those of the
consignees or consigners.

If the applicants entrust the enterprises specializing in inspection
application and the enterprises operating exit and entry express
delivery to handle inspection application formalities, they should
provide these enterprises with true information about the matters for
inspection application; if the enterprises specializing in inspection
application and the enterprises operating exit and entry express
delivery accept the entrustment of an applicant to handle the inspection
application formalities, they should conduct a reasonable examination of
the truthfulness of the information provided by the applicant.

Article 14 The State Quality and Quarantine Administration shall
establish a risk warning mechanism for import and export commodities,
and shall carry out risk evaluation, determine the types of risks, and
adopted corresponding risk warnings and rapid response measures by
collecting information about the inspection of import and export
commodities.

The State Quality and Quarantine Administration and the exit and entry
inspection and quarantine institutions should provide the relevant
parties with the information about import and export commodity
inspection.

Article 15 The staff of the exit and entry inspection and quarantine
institutions should perform their duties according to law, and the
relevant units and individuals should cooperate with them. No unit or
individual is allowed to illegally interfere in or obstruct their work.

# Chapter II Inspection of Import Commodities

Article 16 The consignees of the import commodities subject to mandatory
inspection should present their inspection applications to the exit and
entry inspection and quarantine institutions at the places for customs
declarations along with the contracts, invoices, packing lists, bills of
lading and other necessary papers and the relevant approval documents.
The consignees should, within 20 days after the release by the
customhouses, apply to the exit and entry inspection and quarantine
institutions for inspection in accordance with the provisions of Article
18 of the Regulations. The import commodities subject to mandatory
inspection are prohibited from being sold or used if they have not been
inspected.

With regard to the commodities for which importation is subject to
document verification administration, the consignees should apply to the
exit and entry inspection and quarantine institutions in the places for
customs declaration for inspection. The exit and entry inspection and
quarantine institutions should conduct document verification in
accordance with the stipulations of the State Quality and Quarantine
Administration.

Article 17 With regard to the commodities for which exportation is
subject to mandatory inspection and the import commodities subject to
document verification administration, the customhouses handle the
customs clearance formalities on the basis of the goods customs
clearance bills issued by the exit and entry inspection and quarantine
institutions.

Article 18 Import commodities subject to mandatory inspection should be
inspected at the locations where the consignees apply for inspection.

Bulk commodities, perishable commodities, solid waste that can be used
as raw materials and commodities that are damaged or short should be
inspected port of unloading.

With regard to the import commodities specified in the preceding two
paragraphs, the State Quality and Quarantine Administration may
designate other places for inspection in light of the requirements of
facilitating foreign trade and import and export commodity inspection
work.

Article 19 Unless provided otherwise by laws and administrative
regulations, the exit and entry inspection and quarantine institutions
shall order the parties concerned to destroy the import commodities
subject to mandatory inspection that are found via inspection to have
failed to meet the standards for personal life and property safety,
health and environmental protection. They may also issue a return notice
and notify custom in writing. With the return notice, customs shall
handle the formalities of shipping the goods back. Goods failing to meet
other standards may be technically treated under the supervision of the
exit and entry inspection and quarantine institutions and may be sold or
used only after they are found to have met these standards through
re-inspection. If the parties concerned apply to the exit and entry
inspection and quarantine institutions for certification, these
institutions should issue certificates in a timely manner.

If the exit and entry inspection and quarantine institutions find that
complete sets of imported equipment and related materials fail to pass
inspection, they shall issue a notice to forbid their installation and
use. Only goods that have been technically treated and have passed
re-inspection by the exit and entry inspection and quarantine
institutions may be installed and used.

Article 20 If import commodities not subject to mandatory inspection
fail to pass spot checks by the exit and entry inspection and quarantine
institutions, they shall be handled in accordance with the provisions of
Article 19 of the Regulations.

If the import commodities subject to document verification
administration fail to pass the document verification by the exit and
entry inspection and quarantine institutions, they shall be handled with
reference to the provisions of Article 19 of the Regulations or handed
over to the relevant departments for handling.

If the consignees of import commodities not subject to mandatory
inspection find import commodities that fail to meet the quality
standards or are damaged or short, and apply for certification, the exit
and entry inspection and quarantine institutions or other inspection
institutions should issue certificates in a timely manner after
inspection.

Article 21 The consignees reserve the right to conduct final
post-delivery inspection and to claim compensation for import
commodities and large complete sets of equipment that are subject to
mandatory inspection, concern the national economy and people's
livelihood, have high values and complex technologies, are important in
other aspects, should be manufactured under supervision, inspected
before shipping or loaded under supervision in accordance with the terms
of foreign trade contracts.

The exit and entry inspection and quarantine institutions may, where
necessary, dispatch inspection personnel to participate in or organize
the implementation of manufacturing supervision, pre-shipping inspection
or loading supervision.

Article 22 The state exercises a registration system for foreign
suppliers and domestic consignees of imported solid wastes that can be
used as raw materials. The foreign suppliers and domestic consignees
should, before signing foreign trade contracts, register with the State
Quality and Quarantine Administration or the exit and entry inspection
and quarantine institutions. The state exercises a pre-shipping
inspection system for the import of solid wastes that can be used as raw
materials. When importing these materials, the consignees should provide
the pre-shipping inspection certificate issued by the exit and entry
inspection and quarantine institutions or the inspection institutions
designated by the State Quality and Quarantine Administration.

The consignees of used machinery and electric products for which
importation is allowed by the state should, before signing foreign trade
contracts, handle record-filing formalities with the State Quality and
Quarantine Administration or the exit and entry inspection and
quarantine institutions. With regard to high-risk imported used
machinery and electric products that have relatively high values and
concern personal life and property safety, health and environmental
protection, pre-shipping inspection should be conducted in accordance
with the relevant state stipulations. When importing, consignees should
provide pre-shipping inspection certificates issued by the exit and
entry inspection and quarantine institutions or the inspection
institutions designated by the State Quality and Quarantine
Administration.

After the arrival of imported solid wastes that can be used as raw
materials and used machinery and electric products for which importation
is allowed by the state, the exit and entry inspection and quarantine
institutions should conduct inspection according to law.

Article 23 After the arrival of imported motor vehicles, the consignees
should apply to the department in charge of vehicle administration for
vehicle licenses with the imported motor vehicle inspection certificate
issued by the exit and entry inspection and quarantine institutions and
other documents issued by the relevant departments. If these vehicles
are found in the course of use to have quality defects that affect
personal life and property safety, the exit and entry inspection and
quarantine institutions deal with them appropriately and in a timely
manner.

# Chapter III Inspection of Export Commodities

Article 24 The consigners of export commodities subject to mandatory
inspection should, in the places and within the time limits specified by
the State Quality and Quarantine Administration and in a unified way,
apply to the exit and entry inspection and quarantine institutions for
inspection, with the contracts and other necessary papers and related
approval documents. Export commodities subject to mandatory inspection
that are not inspected or fail to pass inspection are prohibited from
being exported.

The inspection of export commodities should be done at their places of
production. The State Quality and Quarantine Administration may
designate other places for inspection in accordance with the need of
facilitating foreign trade and inspecting export commodities.

The consigners exporting the commodities subject to document
verification administration should apply to the exit and entry
inspection and quarantine institutions for document verification, and
the exit and entry inspection and quarantine institutions should conduct
document verification in accordance with the stipulations of the State
Quality and Quarantine Administration.

Article 25 If the export commodities that are inspected at the places of
production need to change documents for export at the ports, the exit
and entry inspection and quarantine institutions in the places of
production should issue the documents for inspection document changes
according to the relevant requirements. The consigners should, within
the specified time limit, apply to the port-based exit and entry
inspection and quarantine institutions for inspection with the documents
for inspection document changes and other necessary documents. If the
commodities pass the inspection, the port-based exit and entry
inspection and quarantine institutions should issue the customs
clearance documents.

Article 26 With regard to the export commodities subject to mandatory
inspection and the export commodities subject to document verification
administration, the customhouses shall handle the customs clearance
formalities on the basis of the goods customs clearance documents issued
by the exit and entry inspection and quarantine institutions.

Article 27 If the export commodities subject to mandatory inspection
fail to pass inspection by the exit and entry inspection and quarantine
institutions or the port-based exit and entry inspection and quarantine
institutions, technical treatment may be carried under the supervision
of the exit and entry inspection and quarantine institutions. Only the
export commodities that pass re-inspection shall be allowed to be
exported; if the export commodities cannot be treated technically or
fail to pass re-inspection after treatment, they shall not be allowed to
be exported.

Article 28 If the export commodities not subject to mandatory inspection
fail to pass inspection by the exit and entry inspection and quarantine
institutions, they shall be handled in accordance with the provisions of
Article 27 of the Regulations.

If the export commodities subject to document verification
administration fail to pass the document verification by the exit and
entry inspection and quarantine institutions, they shall be handled in
accordance with the provisions of Article 27 of the Regulations or be
handed over to the relevant departments for handling.

Article 29 Producing enterprises that export packing containers for
dangerous goods should apply to the exit and entry inspection and
quarantine institutions for a performance assessment of the packing
containers. Only packing containers that pass the performance assessment
by the exit and entry inspection and quarantine institutions and are
given the performance assessment certificate can be used for the packing
of dangerous goods.

Producing enterprises that export dangerous goods should apply to the
exit and entry inspection and quarantine institutions for assessment of
the use of the packing containers for the dangerous goods. The dangerous
goods using the packing containers that are not assessed or fail to pass
the performance assessment shall not be allowed to be exported.

Article 30 With regard to the containers, ships, airplanes, vehicles and
other transport equipment that carry perishable food and frozen products
for export, the carriers, packing units or their agents should, before
transport, apply to the exit and entry inspection and quarantine
institutions for transportability inspection on hygiene, health,
refrigeration and airtightness. Those that are not inspected or fail to
pass inspection shall not be allowed to be exported.

# Chapter IV Supervision and Administration

Chapter 31 The exit and entry inspection and quarantine institutions
may, in consideration of the need to facilitate foreign trade, conduct
in-factory quality supervision, administration and inspection over
export commodities included in the catalogue, and enforce export
commodity registration administration over important export commodities
that concern personal life and property safety and health. Export
commodities subject to export commodity registration administration can
only be exported after being registered.

The contents of in-factory quality supervision, administration and
inspection by the exit and entry inspection and quarantine institutions
include supervision and inspection over the quality control measures of
the producing enterprises as well as in-factory inspection of the export
commodities.

Article 32 The state exercises health registration administration over
enterprises producing import and export food items. Only enterprises
producing export food items that have acquired health registration are
allowed to produce, process and store food items for export. Only the
food items produced by the enterprises producing import and export food
items that have acquired health registration can be imported or
exported.

Enterprises producing import food items subject to health registration
administration should apply to the State Quality and Quarantine
Administration for health registration as required.

Enterprises producing export food items subject to health registration
administration should apply to the exit and entry inspection and
quarantine institutions for health registration as required.

If enterprises producing export food items require foreign registration,
they should first acquire health registration as specified in Paragraph
3 of this article and then their foreign health registration shall be
handled in a unified way by the State Quality and Quarantine
Administration.

Article 33 The state exercises health registration administration over
enterprises producing cosmetics for import and export. The specific
rules shall be formulated by the State Quality and Quarantine
Administration in consultation with the health department of the State
Council.

Article 34 Before the import and export of food items and cosmetics,
their operators or agents should accept inspection by the exit and entry
inspection and quarantine institutions regarding whether the labeled
contents of the import and export food items and cosmetics comply with
the requirements specified in the laws and administrative regulations
and regarding the truthfulness and accuracy of the quality-related
contents, and should acquire the certificate of label inspection for the
import and export of food items and cosmetics issued by the State
Quality and Quarantine Administration or the exit and entry inspection
and quarantine institutions authorized by it.

Article 35 The exit and entry inspection and quarantine institutions
shall, where necessary, add the commodity inspection mark to import and
export commodities that pass inspection and add the sealing mark to
import and export commodities that pass inspection or other commodities
that require the addition of the sealing mark. The specific methods
shall be formulated by the State Quality and Quarantine Administration.

Article 36 The exit and entry inspection and quarantine institutions
should take samples of import and export commodities for inspection
according to the relevant stipulations. The exit and entry inspection
and quarantine institutions should notify the relevant units to take
back any surplus post-inspection samples within the prescribed time
limit; those failing to be taken back within the time limit shall be
disposed of by the exit and entry inspection and quarantine
institutions.

Article 37 If persons applying for import and export commodity
inspection have objection to the inspection results of the exit and
entry inspection and quarantine institutions, they may, within 15 days
of the date when their inspection result is received, apply for
re-inspection to the exit and entry inspection and quarantine
institution which made the inspection result or exit and entry
inspection and quarantine institutions at higher levels and even the
State Quality and Quarantine Administration. The exit and entry
inspection and quarantine institutions or the State Quality and
Quarantine Administration accepting re-inspection applications should,
within 60 days of the date when the re-inspection applications are
received, make their conclusions regarding re-inspection. If these
conclusions cannot be made within the prescribed time limit due to
technology complexity, the time limit may be extended in an appropriate
manner subject to the approval of the leaders of said institution. But
this extension should not be more than 30 days.

Article 38 The State Quality and Quarantine Administration or the exit
and entry inspection and quarantine institutions may, in light of the
requirements of import and export commodity inspection, designate
Chinese or foreign inspection and test institutions that meet the
specified qualifications to undertake import and export commodity
inspection and testing as entrusted by the exit and entry inspection and
quarantine institutions. If the designated inspection and testing
institutions are found to fail to meet the specified qualifications, the
State Quality and Quarantine Administration or the exit and entry
inspection and quarantine institutions may cancel their designations.

Article 39 Inspection institutions that are established in the People's
Republic of China to engage in the inspection and assessment of import
and export commodities should meet the criteria for registered capital,
technological capacity, personnel qualifications and other conditions as
specified in relevant laws and administrative regulations and rules.
These institutions may accept entrustment to handle the inspection and
assessment of import and export commodities only after they have been
examined and approved by the State Quality and Quarantine
Administration, acquired licenses, and completed business registration
as required by law.

Article 40 Those with objections to the inspection and assessment
activities of the inspection institutions may complain to the State
Quality and Quarantine Administration or the exit and entry inspection
and quarantine institutions.

Article 41 When the State Quality and Quarantine Administration and the
exit and entry inspection and quarantine institutions exercise
supervision and administration over or conduct investigations into
suspected violations of the laws and administrative regulations
regarding the inspection of import and export commodities, they have the
right to read and copy the relevant contracts, invoices, account books
and other materials of relevant parties. The exit and entry inspection
and quarantine institutions may, on the approval of the leaders of these
institutions, seal off or detain those import and export commodities
that these institutions have the ground to believe fail to meet
requirements for personal life and property safety, health and
environmental protection. This does not apply to goods under the control
of customs.

Article 42 The State Quality and Quarantine Administration and the exit
and entry inspection and quarantine institutions should, in light of the
need to facilitate foreign trade, take effective measures and simplify
procedures to facilitate importing and exporting.

Those handling the formalities for the inspection application,
inspection and assessment of import and export commodities may use
electronic data files where conditions permit.

Article 43 The exit and entry inspection and quarantine institutions
issue place of origin certificates under the generalized system of
preferences, place of origin certificates under regional preferences and
special place of origin certificates for import and export commodities.
Those applying for place of origin certificates should register with the
exit and entry inspection and quarantine institutions as required by
law.

The issuing of the general place of origin certificates for export goods
should observe the provisions of the relevant laws and administrative
regulations.

Article 44 With regard to the inspection and administration by the exit
and entry inspection and quarantine institutions over goods that enter
or leave bonded areas, export processing areas and other areas under
special customs control and over the import and export commodities in
small cross-border trade, the State Quality and Quarantine
Administration shall formulate separate regulations in consultation with
the General Administration of Customs.

# Chapter V Legal Liabilities

Article 45 With regard to those selling and using without permission
import commodities subject to mandatory inspection for which no
inspection application or no inspection has been made or those selling
and using without permission import commodities for which import
inspection has not been applied for as it should, the exit and entry
inspection and quarantine institutions shall confiscate their illegal
earnings and impose a fine equivalent to more than 5 percent and less
than 20 percent of the value of the commodities; if their acts
constitute crimes, they shall be held criminally liable according to
law.

Article 46 With regard to those exporting without permission export
commodities subject to mandatory inspection for which no inspection
application or no inspection has been made or those exporting without
permission export commodities for which export inspection has not be
applied for as it should, the exit and entry inspection and quarantine
institutions shall confiscate their illegal earnings and impose a fine
equivalent to more than 5 percent and less than 20 percent of the value
of the commodities; if their acts constitute crimes, they shall be held
criminally liable according to law.

Article 47 With regard to those selling and using import commodities
that have failed to pass mandatory inspection, spot checks or document
verification or those exporting commodities that have failed to pass
mandatory inspection, spot checks or document verification, the exit and
entry inspection and quarantine institutions shall order them to stop
selling, using or exporting, confiscate their illegal earnings and the
commodities for illegal sale, use or export, and impose a fine that is
more than one time and less than three times the value of the illegally
sold, used or exported commodities; if their acts constitute crimes,
they shall be held criminally liable according to law.

Article 48 If the consignees, consigners, enterprises specializing in
inspection application agency or operating exit and entry express
delivery, and inspection application personnel of import and export
commodities fail to provide true information about the import and export
commodities and acquire the relevant documents from the exit and entry
inspection and quarantine institutions or fail to apply for inspection
for the import and export commodities subject to mandatory inspection
and evade from import and export commodity inspection, the exit and
entry inspection and quarantine institutions shall confiscate their
illegal earnings and impose a fine equivalent to more than 5 percent and
less than 20 percent of the value of the commodities; if their cases are
of a serious nature, their inspection application registration and their
employment registration for inspection application shall be revoked.

If the consignees or consigners of import and export commodities
entrusting the enterprises specializing in inspection application agency
or operating exit and entry express delivery to handle the inspection
application formalities fail to provide these enterprises with the true
information about the matters for which inspection application is
entrusted and acquire the relevant documents from the exit and entry
inspection and quarantine institutions, the trusters shall be punished
according to the provisions specified in the preceding paragraph.

If enterprises specializing in inspection application or operating exit
and entry express delivery and inspection application personnel fail to
conduct reasonable examinations of the truthfulness of the information
provided by the trusters or their negligence results in the fraudulent
acquisition of documents from the exit and entry inspection and
quarantine institutions, the exit and entry inspection and quarantine
institutions shall impose a fine of more than 20,000 yuan and less than
200,000 yuan on the enterprises specializing in inspection application
or operating exit and entry express delivery; if their cases are of a
serious nature, their inspection application registration and their
employment registration for inspection application shall be revoked.

Article 49 Those who falsify, alter, trade or steal inspection
documents, stamps, marks, sealing marks and customs goods clearance
documents or use falsified or altered inspection documents, stamps,
marks, sealing marks and customs goods clearance documents and whose
acts constitute crimes shall be held criminally liable; with regard to
those whose acts do not deserve criminal punishment, the exit and entry
inspection and quarantine institutions shall order them to rectify,
confiscate their illegal earnings and impose a fine that is less than
the value of the commodities.

Article 50 With regard to those who change the samples taken by the exit
and entry inspection and quarantine institutions or the import and
export commodities that have passed the inspection of the exit and entry
inspection and quarantine institutions, the exit and entry inspection
and quarantine institutions shall order them to rectify and give a
warning; if their cases are of a serious nature, these institutions
shall additionally impose a fine equivalent to more than 10 percent and
less than 50 percent of the value of the commodities.

Article 51 With regard to those who export commodities over which the
state exercises export commodity registration administration and for
which no registration has been acquired, the exit and entry inspection
and quarantine institutions shall order them to stop exporting,
confiscate their illegal earnings and impose a fine equivalent to more
than 10 percent and less than 50 percent of the value of the
commodities.

Article 52 With regard to those who import or export food items and
cosmetics produced by the producing enterprises over which the state
exercises health registration administration and for which no health
registration has been acquired, the exit and entry inspection and
quarantine institutions shall order them to stop importing or exporting,
confiscate their illegal earnings and impose a fine equivalent to more
than 10 percent and less than 50 percent of the value of the
commodities.

If the enterprises producing import and export food items and cosmetics
for which health registration has been acquired are found to have failed
to meet the prescribed requirements, the State Quality and Quarantine
Administration or the exit and entry inspection and quarantine
institutions shall order them to rectify within a time limit; if they
still fail to meet the prescribed requirements after rectification or
have committed other illegal acts and their cases are of a serious
nature, their health registration certificates shall be revoked.

Article 53 If the foreign suppliers and domestic consignees of the
imported solid wastes that can be used as raw materials fail to acquire
registration or fail to conduct pre-shipping inspection, they shall be
ordered to return the goods according to the relevant state
stipulations; if their cases are of a serious nature, the exit and entry
inspection and quarantine institutions shall additionally impose a fine
of more than 100,000 yuan and less than 1 million yuan.

If foreign suppliers and domestic consignees of the solid waste that can
be used as raw materials, for which registration has been acquired,
violate the relevant state stipulations and their cases are of a serious
nature, the exit and entry inspection and quarantine institutions shall
revoke their registration.

With regard to those who import used machinery and electric products
allowed by the state but fail to handle record filing or fail to conduct
pre-shipping inspections as required, they shall be ordered to return
the goods according to the relevant state stipulations; if their cases
are of a serious nature, the exit and entry inspection and quarantine
institutions shall also impose a fine of 1 million yuan.

Article 54 The exit and entry inspection and quarantine institutions
shall impose a fine of less than 100,000 yuan on those who provide or
use packing containers for dangerous goods export that have not been
assessed by the exit and entry inspection and quarantine institutions.

The exit and entry inspection and quarantine institutions shall impose a
fine of less than 200,000 yuan on those who provide or use the packing
containers that have failed to pass the assessment of the exit and entry
inspection and quarantine institutions for transporting dangerous goods
for export.

Article 55 The exit and entry inspection and quarantine institutions
shall impose a fine of less than 100,000 yuan on those who provide or
use containers, ships, airplanes, vehicles and other transport equipment
for the transport of perishable food items and frozen projects which
have not been inspected by the exit and entry inspection and quarantine
institutions.

The exit and entry inspection and quarantine institutions shall impose a
fine of less than 200,000 yuan on those who provide or use the
containers, ships, airplanes, vehicles and other transport equipment,
which have failed to pass the inspection of the exit and entry
inspection and quarantine institutions, for transporting perishable food
items and frozen products.

Article 56 The exit and entry inspection and quarantine institutions
shall impose a fine of less than 50,000 yuan on those who change or
destroy the commodity inspection mark and seal added by the exit and
entry inspection and quarantine institutions.

Article 57 If the inspection institutions engaging in the inspection and
assessment of import and export commodities overstep their scope of
business, violate the relevant state stipulations and disturb the order
of inspection and assessment, the exit and entry inspection and
quarantine institutions shall order them to rectify, confiscate their
illegal earnings and impose a fine of less than 100,000 yuan. The State
Quality and Quarantine Administration or the exit and entry inspection
and quarantine institutions may suspend their inspection and assessment
service for up to six months; if their cases are of a serious nature,
the State Quality and Quarantine Administration shall revoke their
inspection and assessment qualification certificates.

Article 58 With regard to those engaging in inspection application
service without registration, the exit and entry inspection and
quarantine institutions shall order them to stop their illegal business
activities, confiscate their illegal earning and impose a fine that is
more than one time and less than three times their illegal earnings.

If enterprises specializing in inspection application and enterprises
operating exit and entry express delivery violate the relevant state
stipulations and disturb the order of inspection application, the exit
and entry inspection and quarantine institutions shall order them to
rectify, confiscate their illegal earnings and impose a fine of less
than 100,000 yuan and the State Quality and Quarantine Administration or
the exit and entry inspection and quarantine institutions may suspend
their inspection application agency service for up to six months; if
their cases are of a serious nature, their inspection application
registration shall be revoked.

If inspection application personnel violate the relevant state
stipulations and disturb the order of inspection application, the State
Quality and Quarantine Administration or the exit and entry inspection
and quarantine institutions may suspend their employment for up to six
months; if their cases are of a serious nature, their employment
registration for inspection application shall be revoked.

Article 59 If the staff of the exit and entry inspection and quarantine
institutions abuse their powers and deliberately make things difficult
for the parties concerned, if they practice favoritism and falsify
inspection results, or if they commit dereliction of duty and delay
inspections and certificate issuing, they shall be subject to
administrative punishment by law; if they issue the place of origin
certificates for export goods in violation of the provisions of the
relevant laws and administrative regulations, their illegal earnings
shall be confiscated; if their acts constitute crimes, they shall be
held criminally liable.

Article 60 The exit and entry inspection and quarantine institutions
must hand over to the national treasury all the earnings arising from
the legitimate disposal of the confiscated commodities and all the
confiscated illegal earnings and collected fines.

# Chapter VI Supplementary Provisions

Article 61 If the parties concerned do not accept the re-inspection
conclusions made by the exit and entry inspection and quarantine
institutions and the State Quality and Quarantine Administration or the
punishments meted out by the State Quality and Quarantine Administration
and the exit and entry inspection and quarantine institutions, they may
apply for administrative reconsideration or file legal proceedings with
the people's court according to law.

If the parties concerned fail to comply with the punitive decisions
within the time limit and fail to apply for administrative
reconsideration or file legal proceedings with the people's court, the
institutions that have made the punitive decisions may apply to the
people's court for enforcement.

Article 62 The exit and entry inspection and quarantine institutions and
the authorized inspection institutions may collect service charges for
conducting mandatory inspection and for handling inspection and
assessment according to state provisions.

Article 63 The Regulations shall enter into force on December 1, 2005.
The Regulations on the Enforcement of the Law of the People's Republic
of China on the Inspection of Import and Export Commodities approved by
the State Council on October 7, 1992 and promulgated by the former State
Administration of Import and Export Commodity Inspection on October 23,
1992 shall cease to be effective on the same date. (End)

END TRANSLATION