Voluntary Report - Public distribution

**Date:** 1/30/2008

**GAIN Report Number:** CH8007

CH8000

**China, Peoples Republic of**

**FAIRS Subject Report**

**Draft Measures on Inspection And Quarantine**

**2008**

**Approved by:**

![](media/image1.wmf)William Westman

AgBeijing

**Prepared by:**

Mark Petry

**Report Highlights:** On January 10, 2008, China's import and export
inspection administration, the General Administration of Quality
Supervision, Inspection and Quarantine (AQSIQ), notified the WTO of new
draft legislation "Measures for the Administration of Inspection,
Quarantine, and Supervision of Imported and Exported Food"
(G/SPS/N/CHN/104). This measure will likely have a significant impact on
food and agricultural trade with China. This report contains and
UNOFFICIAL TRANSLATION that should be used as reference only.

Includes PSD Changes: No

Includes Trade Matrix: No

Annual Report

Beijing \[CH1\]

\[CH\]

**Executive Summary**: On January 10, 2008, China's import and export
inspection administration, the General Administration of Quality
Supervision, Inspection and Quarantine (AQSIQ), notified the WTO of new
draft legislation "Measures for the Administration of Inspection,
Quarantine, and Supervision of Imported and Exported Food"
(G/SPS/N/CHN/104). WTO members have 60 days to supply comments regarding
this measure.

This measure is the result of significant restructuring within the
Chinese government following several recent food safety incidents
involving imported and exported food and agricultural products. The
measure is an attempt to clarify AQSIQ's jurisdiction and overall
mission focus. Due to AQSIQ's importance in inspecting imported
products, it

will likely have a significant impact on the food product trade with
China. Most import is Chapter II that deals with inspection of imported
food products by AQSIQ and other inspection agencies. Interested parties
are recommended to supply comments to the WTO. This report contains and
UNOFFICIAL TRANSLATION that should be used as reference only.

Special thanks go the Embassy of Canada in the Peoples' Republic of
China for their assistance in translating this document.

BEGIN TRANSLATION

**Measures for the Administration of Inspection,**

**Quarantine, and Supervision of Import and Export Food**

**(Draft)**

(The "pursuant to Article 34 of the present Measures" in Article 38
should be "pursuant to Article 35". The ""inspection agencies",
"inspection", and "inspection certificates" in Article 52, 53, and 54
should be "inspection and quarantine agencies", "inspection and
quarantine", and "inspection and quarantine certificates". "Goods that
are partially fake, fake or inferior" in Article 53 should be "food that
is partially fake, fake or inferior. The auxiliary word "*suo*" in line
1, Article 57 should be dropped. The "export food" in paragraph 3,
Article 58 should be "import food". The word "*fen*" in line 2, Article
59 should be dropped. The semicolon in paragraph 2, Article 61 should be
dropped. Paragraph 1, Article 69 is a prescribing clause and should be
placed in Chapter III.)

I.  **General Provisions**

Article 1 (Legislative Basis) For the purposes of ensuring the quality
safety and hygiene of import and export food, protecting the health of
humans, animals and plants, the present Measures are formulated in
accordance with the Food Hygiene Law of the People\'s Republic of China,
the Law of the People\'s Republic of China on Import and Export
Commodity Inspection and the Regulation for the Implementation thereof,
and the Special Rules of the State Council on Strengthening the
Supervision and Management of the Safety of Food and Other Products.

Article 2 (Administration) The General Administration of Quality
Supervision, Inspection and Quarantine (hereinafter referred to as the
AQSIQ) shall administer the inspection, quarantine, and supervision of
imported and exported foods throughout China.\
The entry/exit inspection and quarantine agencies (hereinafter referred
to as the inspection and quarantine agencies) established by AQSIQ at
each locality shall be responsible for the inspection, quarantine, and
supervision of imported and exported food within their respective
jurisdictions.

Article 3 (Applicability) The inspection and quarantine agencies and the
enterprises producing or operating imported and exported food shall obey
the present Measures.

Article 4 (Persons)　The persons for inspection, quarantine, and
supervision of imported and exported food in the inspection and
quarantine agencies shall be trained and tested for qualification before
conducting the work.

Article 5 (Enterprises) The enterprises producing or operating the
import and export food sector should be honest in their production or
operation and be responsible for the quality safety and hygiene of the
imported and exported food that they produce or oversee.

AQSIQ and the inspection and quarantine agencies implement a system of
"List of Creditable Enterprises" and "List of Disobedient Enterprises"
on the enterprises producing or overseeing imported and exported food.

Article 6 The inspection and quarantine agencies have the follow power
in lawfully conducting their work on import and export food regulation:\
　 (1) access to the places of production and operation for on-site
inspection;\
　 (2) review, duplication, seal-up, and seizure of relevant contracts,
notes, account books and other related documentation;\
　　 (3) seal-up and seizure of products that do not meet legal
requirements, illegally used raw materials, minor ingredients,
additives, and agricultural inputs, and illegally produced tools and
equipment;

\(4\) Closedown of places of production and operation harmful to human
health and safety.

II. **Inspection, Quarantine, and Supervision of Imported Food**

Article 7 (Inspection and quarantine standards) Imported food should
comply with the mandatory requirements of China's national technical
regulations, and also the inspection and quarantine requirements in the
agreements and protocols that China has signed with exporting countries
or regions.

Imported food for which China has not developed mandatory requirements
in national technical regulations should comply with the standards
designated by the AQSIQ.

Article 8 (Risk assessment) AQSIQ performs risk assessment on the food
imported for the first time with risks of animal/plant diseases or
poisonous/hazardous substances, and performs assessment on the food
quality safety and hygiene regulation systems of the exporting countries
or regions. For imported food with acceptable risks, an inspection and
quarantine protocol could be signed with the competent authorities of
the exporting countries or regions to specify the inspection and
quarantine requirements.

Article 9 (Registration of foreign enterprise) China National Regulatory
Commission for Certification and Accreditation, in accordance with
Provisions on the Administration of the Registration of Foreign
Enterprises Producing Imported Food, performs the review and
registration of the foreign enterprises producing, processing, or
storing exported food to China. Only food from the foreign enterprises
with the hygiene registration is permitted for import.

Article 10 (Quarantine approval) The enterprises importing food in List
of Inward Animals/Plants for Quarantine and Approval shall apply for
quarantine and approval pursuant to relevant regulations to acquire the
Permit of the People's Republic of China on Inward Animal and Plant
Quarantine.

Article 11 (Entry through designated ports) The import food with risks
of animal/plant diseases shall enter China through designated ports. The
list of designated ports is developed and announced by the AQSIQ.

Article 12 (Chinese labels) The Chinese labels of import prepackaged
food should conform to China's laws, regulations, and rules on food
labeling and the mandatory requirements in other national technical
regulations. The inspection and quarantine agencies inspect the labels
of prepackaged food.

Article 13 (Report for inspection) The receivers of import food or their
agents should, in accordance with the regulations of the AQSIQ, report
for inspection to the inspection and quarantine agencies of the entry
ports, providing relevant approvals and documents such as contracts.

Article 14 (Inspection and quarantine) The inspection and quarantine
agencies, after receiving reports for inspection, should perform
inspection and quarantine on the relevant import food in accordance with
relevant practices, regulations, and classifications within the time
limit stipulated by AQSIQ.

In case that laboratory test is needed, the inspection and quarantine
agencies should, in accordance with relevant regulations, make sampling
and send the sample to qualified testing institutions and specify the
testing items and requirements. The testing institutions should,
following the requirements, perform the testing and issue a testing
report within the time limit stipulated.

Article 15 (Designated places for storage) The import food should be
stored at the custody　places designated by the inspection and
quarantine agencies before acquiring certification of qualification
after inspection and quarantine. The food shall not be moved, sold, or
used by any institutions or individuals without the permission of the
inspection and quarantine agencies.

Article 16 (Qualification and treatment of unqualified products) If
inspection and quarantine show that the import food is qualified, the
inspection and quarantine agencies shall issue certification of
qualification. The import food could only be sold or used after the
certification of qualification is issued by the inspection and
quarantine agencies.

The inspection and quarantine agencies may, if needed, in accordance
with relevant regulations of the AQSIQ, mark with inspection and
quarantine signs the import food which inspection and quarantine show is
qualified.

If inspection and quarantine show that the imported food is unqualified,
the inspection and quarantine agencies shall issue certification of
unqualification. If it is unqualified with respect to safety, health,
and environmental items, the inspection and quarantine agencies shall
order the relevant party to destroy it, or issue a notice of return and
inform in writing the customs. The customs carries out the return in
accordance with the notice of return. If the import food is unqualified
with respect to other terms, technical treatment could be performed on
it under the instruction of the inspection and quarantine agencies. It
could only be sold or used if a second inspection and quarantine show it
is qualified.

Article 17 (Archiving of receivers) The inspection and quarantine
agencies archive the receivers of imported food. The receivers should
honestly report the flow direction and the record shall be kept for no
less than 2 years.

Article 18 (Management by classification) The inspection and quarantine
agencies make management by classification of imported food and
enterprises producing imported food, in accordance with their credit,
level of quality safety management, and the results of risk assessment
of imported food. The specific method of management will be developed by
AQSIQ elsewhere.

Article 19 (Safety monitoring) AQSIQ performs a system of safety
monitoring on import food. A highlight monitoring plan will be developed
based on risk assessment and the circumstance of inspection and
quarantine, identifying the types and items of imported food for more
intensive monitoring. The monitoring will be done by the inspection and
quarantine agencies. The AQSIQ adopts measures for the administration of
inspection, quarantine, and supervision on import food based on the
monitoring results.

Article 20 (Imported food on sale in the market) The AQSIQ could, based
on the situation of domestic and international food safety, organize
sampled examinations of imported food on sale at market.

Article 21 (Nontrade goods) The food imported as samples, gifts,
presents, and exhibits, or for tax-free business, or for use by
embassies and consulates shall be treated in accordance with relevant
national laws and regulations.

Article 22 (List of disobedient enterprise) When discovering imported
food does not meet the legal requirements, the inspection and quarantine
agencies could include in the list of foul records the importing
enterprises, enterprises that report for inspection, and agents of
import food, and include in the list of disobedient enterprises the
enterprise with disobedience and take measures accordingly.

III. **Inspection, Quarantine, and Supervision of Export Food**

Article 23 (Inspection and quarantine standards) Export food should
comply with the standards of the importing countries or regions and the
requirements of contracts.

Article 24 (Pattern of management) Enterprises producing or processing
exported food should establish a strict quality management system to
ensure that their export products comply with the standards of the
importing countries or regions and the requirements of contracts.

The raw materials used by the enterprises producing or processing
exported food should be from the farming bases in compliance with
relevant regulations. The farming bases should carry out farming in
accordance with agricultural standardization requirements.

Article 25 (Archiving of Bases) The inspection and quarantine agencies
archive the farming bases providing the raw materials used for producing
animal/plant-derived export food. The list for archiving is developed,
adjusted, and announced by the AQSIQ. The raw materials from the farming
bases which should be archived but are not archived cannot be used for
producing export food.

For the archiving of bases, the enterprise producing exported food
should make applications to the inspection and quarantine agencies of
where the bases are. The inspection and quarantine agencies should
assess the bases applying for archiving, and archive them if they are
qualified and notify the inspection and quarantine agencies of where the
enterprises are.

Article 26 (Everyday supervision on archived bases) The inspection and
quarantine agencies of where the archived bases are shall be responsible
for the everyday supervision on the archived bases, issue raw material
supply certification to the raw material provided by the bases to the
enterprises producing export food, and notify the inspection and
quarantine agencies of where the enterprises are of the supervision.

The inspection and quarantine agencies of where the enterprises are
shall notify the inspection and quarantine agencies of where the
archived bases are of the requirements of importing countries or regions
and of the food safety and hygiene information of the raw materials
provided by the bases.

Article 27 (Disease monitoring of archived bases) The inspection and
quarantine agencies of where the archived bases are shall make disease
monitoring on the archived bases, and instruct the archived bases to
adopt relevant disease-preventing measures based on monitoring results
to prevent the occurrence of diseases.

Article 28 (Pesticide/ veterinary medicine residue monitoring plan)
AQSIQ will develop and announce an annual pesticide/ veterinary medicine
residue monitoring plan for animal/plant-derived exported food and
determine the monitoring items based on food types and risks.

The inspection and quarantine agencies shall monitor exported food
within their jurisdictions in accordance with the monitoring plan, adopt
relevant measures of inspection, quarantine, and supervision on export
food based on the residue monitoring results, and notify the local
governments of the residue monitoring results.

Article 29 (Registration of enterprises producing export food) China
National Regulatory Commission for Certification and Accreditation, in
accordance with Provisions on the Administration of the Hygiene
Registration of Enterprises Producing Export Food, performs the review
and registration of the enterprises producing, processing, or storing
export food. Only food from the enterprises with the hygiene
registration is permitted for export.

Article 30 (Self-control system) Enterprises producing export food
should establish sound qualify safety and hygiene control systems and
export food quality safety retroactive systems and improve their
self-inspection and self-control abilities.

Article 31 (Archiving of additives) The enterprises producing export
food shall honestly report the raw materials, minor ingredients,
additives, and agricultural inputs to the inspection and quarantine
agencies of where the enterprises are.

Article 32 (Sending out inspection and quarantine persons) Based on
needs, the inspection and quarantine agencies could send out inspection
and quarantine persons to enterprises producing export food with high
risks to supervise the origin of raw materials, production, processing,
packing and export of enterprises producing export food.

Article 33 (Report for inspection)　The consigners of exported food or
their agents should, in accordance with the regulations of the AQSIQ,
report for inspection to the inspection and quarantine agencies of where
the enterprises producing exported food are, providing relevant
approvals and documents such as contracts.

Article 34 (Inspection and quarantine) The inspection and quarantine
agencies, after receiving reports for inspection, should perform
inspection and quarantine on the relevant export food in accordance with
relevant practices, regulations, and classifications within the time
limit stipulated by AQSIQ.

In case that laboratory test is needed, the inspection and quarantine
agencies should, in accordance with relevant regulations, make sampling
and send the sample to qualified testing institutions and specify the
testing items and requirements. The testing institutions should,
following the requirements, perform the testing and issue a testing
report within the time limit stipulated.

Article 35 (Qualification and treatment of unqualification) If
inspection and quarantine show that the export food is qualified, the
inspection and quarantine agencies shall issue permits of customs entry.
In case that the exporting countries or regions require inspection and
quarantine certificates, the inspection and quarantine agencies shall
also issue inspection and quarantine certificates.

If inspection and quarantine show that the export food is unqualified,
the inspection and quarantine agencies shall issue certification of
unqualification. If technical treatment is possible, technical treatment
should be performed under the instruction of the inspection and
quarantine agencies. It could only be allowed for export if a second
inspection and quarantine show it is qualified. If technical treatment
is impossible or if a second inspection and quarantine show it is still
qualified, it shall not be allowed for export.

Article 36 (Mark with inspection and quarantine signs) The enterprises
producing export food should mark the package with the name of
enterprises, number of registration, name of products, and number of
products. The inspection and quarantine agencies should include the
above mentioned information in the certificates issued, to ensure the
consistency between goods and certificate.

The inspection and quarantine agencies may, if needed, in accordance
with relevant regulations of the AQSIQ, mark with inspection and
quarantine signs the exported food which inspection and quarantine show
is qualified.

For exported food which inspection and quarantine show is qualified and
is in transport from places of production to ports, the inspection and
quarantine agencies could perform supervision in the form of visual
monitoring, lead sealing, electronic locking, and global positioning
system.

Article 37 (Collaboration between ports and places of production) AQSIQ
administers the exported food by combining inspection and quarantine at
places of production and examination at ports. For the food which
inspection and quarantine by the inspection and quarantine agencies at
the places of production shows is qualified, the inspection and
quarantine agencies at ports shall make sampled examination at a
percentage of 20%. If the examination at ports discovers discrepancy
between products and certificates or unqualification of products, the
relevant food cannot be allowed for export, and the responsible
inspection and quarantine agencies shall notify the AQSIQ within 24
hours. The AQSIQ will announce risk precaution to increase the
percentage of examination from 20% to 50% for all the exported food of
the enterprises producing the food, the enterprises that report for
inspection, or their agents. If discrepancy between products and
certificates or unqualification of products is discovered again, the
percentage of examination shall be increased to 100%. The percentage of
examination could be only be restored to normal value when full
qualification is shown in examination for consecutive 90 days or 50
batches of products.

The AQSIQ could, based on needs, increase or decrease the percentage of
examination at ports.

Article 38 (Treatment of unqualification discovered in examination at
ports) Exported food which examination at ports shows is unqualified
shall be treated pursuant to Article 35 of the present Measures.

Article 39 (Examination of appropriateness for transport) For the
transport vehicles like containers, ships, planes, and automobiles for
transporting perishable or frozen food for export, the transporting and
loading institutions or their agents shall apply to the inspection and
quarantine agencies for examination of appropriateness for transport
before loading, with respect to cleanness, hygiene, cold storage, and
solidness. The vehicle unexamined or unqualified shall not be allowed
for loading.

Article 40 (Nontrade goods) The food exported as samples, gifts,
presents, and exhibits, or for tax-free business, or for use by
embassies and consulates or the project teams abroad of Chinese
enterprises, if in compliance with conditions for export, shall be
treated in accordance with relevant laws and regulations.

Article 41 (Management by classification) The inspection and quarantine
agencies make management by classification on export food and
enterprises producing export food, in accordance with their level of
quality safety management and hygiene management. Based on risk
analysis, different ways of inspection, quarantine, and supervision will
be performed on export food, such as inspection for all batches of
products, sampled inspection, and no inspection. The specific method of
management will be developed by the AQSIQ.

Article 42 (List of Creditable Enterprises) In the inspection,
quarantine, and supervision on export food, the inspection and
quarantine agencies could include in list of creditable enterprises the
enterprises with sound quality and hygiene self-control systems, good
reputation, and long-time steady quality, and give them some favorable
treatment.

Article 43 (List of disobedient enterprise) When discovering
disobedience by enterprises producing export food, exporting enterprises
or their agents, the inspection and quarantine agencies could include
them in the list of disobedient enterprises and take measures
accordingly.

IV. **Risk Precaution and Rapid Response**

Article 44 (Mechanism of risk precaution and rapid response) The AQSIQ
establishes a mechanism of precaution and rapid response for imported
and exported food. In case of quality safety and hygiene problems on
import and export food, or quality safety and hygiene problems occurring
in China or abroad that may affect import and export food safety, the
AQSIQ and the inspection and quarantine agencies should promptly start
the risk precaution mechanism and adopt rapid response measures.

Article 45 (Information collection) The AQSIQ and the inspection and
quarantine agencies should establish an information collection network
to collect and arrange food safety information, mainly including the
unqualification information discovered in the inspection, quarantine,
and supervision of imported and exported food by the inspection and
quarantine agencies, the unqualification information, risk precaution
information and other food safety information issued by international
organizations, national and international governmental agencies and
societies or provided by consumers.

Article 46 (Information arrangement and report) The inspection and
quarantine agencies should verify, arrange, summarize, and analyze the
collected information, and report to the AQSIQ pursuant to relevant
requirements and procedure.

Article 47 (Risk assessment) AQSIQ verifies and analyses the reported
food safety information, and organize risk assessment on food safety
information to determine the type and degree of risks.

Article 48 (Rapid response measures) Based on the type and degree of
risks, the AQSIQ could determine and announce to adopt the following
rapid response measures:

\(1\) conditionally restrict import and export, including close
monitoring, tightened inspection, and order of recalling;

\(2\) ban imports or exports, destroy on-site, or return the products;

\(3\) start an import and export food safety emergency plan.

The inspection and quarantine agencies are responsible for the
implementation of rapid response measures.

Article 49 (Temporary or emergent rapid response measures) For uncertain
risks, AQSIQ could, with reference to international practices, directly
take temporary or emergent rapid response measures without prior risk
assessment. Meanwhile, the risk assessment should also be done by
collecting and adding relevant information and materials.

Article 50 (Canceling of precaution) The AQSIQ could announce to cancel
the precaution when the import and export food safety risks have
disappeared or lowered to an acceptable degree.

Article 51 (Recalling) In the case that the import food in China's
domestic market has hidden safety problems or have caused harm to human
health and life, the importing enterprises should recall the food.

The food importing enterprises should immediately report the detailed
information to the inspection and quarantine agencies of where they are.
The inspection and quarantine agencies shall, after receiving the
report, immediately organize verification and issue precaution
information based on the scope of products influenced. Meanwhile,
importing enterprises should announce relevant information to society,
inform the wholesalers and retailers to stop their trade, notify the
consumers to stop using it, recall the import food, and record the
recalled food. The wholesalers and retailers should immediately stop
their actions and support the recalling of import food. The inspection
and quarantine agencies should supervise the recalling.

In case of discovering that the export food has hidden safety problems
or have caused harm to human health and life, the exporting enterprises
should recall the export food and report to the inspection and
quarantine agencies of where they are. The inspection and quarantine
agencies should supervise the recall.

If the importing or exporting enterprises do not recall the export food,
the inspection and quarantine agencies could issue a notice of recalling
and report to the AQSIQ. The AQSIQ should announce to stop importing or
exporting the relevant food and remind the consumers to stop using the
food or take other measures to prevent harm from happening.

V.  **Legal Responsibilities**

Article 52 (Law Article 33) If an enterprise does not report for
inspection but sells or uses the import food which must be inspected by
the inspection agencies or does not report for inspection but exports
food which must have inspection by inspection agencies, the inspection
agencies shall confiscate its illegal earnings and impose a fine above
5% and below 20% of the goods value. If a crime is committed, it shall
bear the criminal responsibilities.

 　 Article 53 (Law Article 35) If an enterprise imports or exports
goods that is partially fake, fake or inferior, or imports or exports
unqualified food in disguise of qualified food, the inspection agencies
shall order it to stop the import or export, confiscate its illegal
earnings and impose a fine above 50% and below 3 times of the goods
value. If a crime is committed, it shall bear the criminal
responsibilities.

 　 Article 54 (Law Article 36) If an enterprise forges, modifies, buys
or sells, or steals inspection certificates, stamps, signs, seals,
quality certification signs, it shall bear the criminal
responsibilities. If it does not reach a criminal punishment, the
inspection agencies shall order it to correct its behavior, confiscate
its illegal earnings, and impose a fine 100% of the goods value.

Article 55 If an enterprise sells or uses the import food which
inspection and quarantine shows does not meet legal requirements, the
inspection and quarantine agencies shall order it to stop its sale or
use, confiscate its illegal earnings and import food, and impose a fine
of RMB 50,000 if the goods value is below RMB 5,000, a fine of RMB
100,000 if the goods value is above RMB 5,000 and below RMB 10,000, or a
fine above 10 times and below 20 times of the goods value if the goods
value is above RMB 10,000. If it commits a crime of illegal operation or
a crime of producing or selling fake goods, it shall bear the criminal
responsibilities.

Article 56 If an enterprise produces or exports food which under
inspection and quarantine show does not meet legal requirements, the
inspection and quarantine agencies shall confiscate its illegal
earnings, export food, and the tools, equipment and raw materials used
for illegal production, and impose a fine of RMB 50,000 if the goods
value is below RMB 5,000, a fine of RMB 100,000 if the goods value is
above RMB 5,000 and below RMB 10,000, or a fine above 10 times and below
20 times of the goods value if the goods value is above RMB 10,000. If
it commits a crime of illegal operation or a crime of producing or
selling fake goods, it shall bear the criminal responsibilities.

Article 57 If an enterprise produces export food using raw materials,
minor ingredients, additives, and agricultural inputs which do not
conform to laws, regulation and national mandatory standards, the
inspection and quarantine agencies shall confiscate its illegal
earnings, and impose a fine of RMB 20,000 if the goods value is below
RMB 5,000, a fine of RMB 50,000 if the goods value is above RMB 5,000
and below RMB 10,000, or a fine above 5 times and below 10 times of the
goods value if the goods value is above RMB 10,000. If there is severe
consequence, the agency that issued its license shall revoke its
license. If it commits a crime of producing or selling fake goods, it
shall bear the criminal responsibilities.

Article 58 If an enterprise does not report import and export food for
inspection or avoids inspection and quarantine, the inspection and
quarantine agencies shall confiscate its illegal earnings, and impose a
fine above 5% and below 20% of the goods value. If it commits a crime,
it shall bear the criminal responsibilities.

If an enterprise producing or operating export food does not honestly
provide real information on exported food but manages to acquire
relevant certificates issued by the inspection and quarantine agencies,
the inspection and quarantine agencies shall confiscate its illegal
earnings and food, and impose a fine 3 times of the goods value. If it
commits a crime, it shall bear the criminal responsibilities.

If an enterprise importing or selling import food does not honestly
provide real information on export food but managed to acquire relevant
certificates issued by the inspection and quarantine agencies, the
inspection and quarantine agencies shall confiscate its illegal earnings
and food, and impose a fine 3 times of the goods value. If it commits a
crime, it shall bear the criminal responsibilities. If an enterprise
that reports import food for inspection does not honestly provide real
information on export food but managed to acquire relevant certificates
issued by the inspection and quarantine agencies, the inspection and
quarantine agencies shall revoke its qualification to report for
inspection, and impose a fine 100% of the goods value.

> Article 59 If an enterprise forges or modifies inspection
> certificates, stamps, signs, seals, or customs entry certificates, the
> inspection and quarantine agencies shall confiscate its illegal
> earnings, and impose a fine 3 times of the goods value. If it commits
> a crime, it shall bear the criminal responsibilities.

Article 60 If an enterprise changes the sample drawn by the inspection
and quarantine agencies or changes the import and export food which the
inspection and quarantine by the inspection and quarantine agencies show
is qualified, the inspection and quarantine agencies shall confiscate
its illegal earnings and the products, and impose a fine 3 times of the
goods value.

Article 61 If an enterprise from an importing or export country with a
hygiene registration system does not acquire hygiene registration but
produces food, the inspection and quarantine agency shall order it to
stop the import or export, confiscate its illegal earnings, and impose a
fine above 10% and below 50% of the goods value.

For an enterprise producing imported or exported food that has acquired
hygiene registration, if an examination shows that it does not meet
relevant requirements, the AQSIQ or the inspection and quarantine
agencies shall order a correction by it, confiscate its illegal earnings
and goods, an impose a fine of RMB 50,000 if the goods value is below
RMB 5,000, a fine of RMB 100,000 if the goods value is above RMB 5,000
and below RMB 10,000, or a fine above 10 times and below 20 times of the
goods value if the goods value is above RMB 10,000.; If it does not meet
relevant requirements after correction or has other illegal behaviors,
if the fact is severe, the inspection and quarantine agencies shall
revoke its hygiene registration certificate. If there is severe
consequence, the agency that issued its license shall revoke its
license. If it commits a crime of illegal operation or a crime of
producing or selling fake goods, it shall bear the criminal
responsibilities.

If a producing or operating enterprise does not meet legal requirements
any more but continues it production or operation, the agency that
issued its license shall revoke its license and publish on local major
media the list of producing or operating enterprises whose licenses have
been revoked. If it commits a crime of illegal operation or a crime of
producing or selling fake goods, it shall bear the criminal
responsibilities.

Article 62 If an enterprise provides or uses transport vehicles without
examination of appropriateness for transport by the inspection and
quarantine agencies, like containers, ships, planes, and automobiles,
for transporting perishable or frozen food for export, the inspection
and quarantine agencies shall impose a fine below RMB 100,000.

If an enterprise provides or uses transport vehicles which examination
of appropriateness for transport by the inspection and quarantine
agencies show are unqualified, like containers, ships, planes, and
automobiles, for transporting perishable or frozen food for export, the
inspection and quarantine agencies shall impose a fine below RMB
200,000.

Article 63 If an enterprise changes or damages the signs or seals marked
by the inspection and quarantine agencies, the inspection and quarantine
agencies shall impose a fine below RMB 50,000.

Article 64　If a staffer of the inspection and quarantine agencies
abuses his power, intentionally makes trouble with relevant parties,
seeks personal interests by trick, forges inspection and quarantine
results, or purposely delays issuing certificates, he shall be subject
to administrative punishment.

Article 65 If an enterprise does not apply for quarantine and approval
pursuant to relevant regulations or does not implement the relevant
quarantine and approval, the inspection and quarantine agencies shall
impose on its responsible person a fine below RMB 5,000, and revoke its
quarantine certificate if it has acquired one.

Article 66 If an enterprise moves import food from the designated places
of custody without the permission of the inspection and quarantine
agencies, the inspection and quarantine agencies shall impose a fine
above RMB 3,000 and below RMB 30,000.

Article 67 If an enterprise imports prepackaged food whose label does
not conform to China's mandatory requirements on food labeling, the
inspection and quarantine agencies shall order a correction by it, and
impose a fine above RMB 500 and below RMB 10,000.

Article 68 If an enterprise does not report the food safety incidents
that caused by the export food in the importing countries or regions,
and leads to severe consequence, the inspection and quarantine agencies
shall impose a fine below RMB 30,000.

Article 69　The raw materials, minor ingredients, additives, and
agricultural inputs used by enterprises producing export food should
comply with the relevant laws, regulations and national mandatory
standards.

If an enterprise does not use raw materials from the achieved bases in
producing export food in accordance with the regulations of the AQSIQ,
or does not use pesticides or veterinary medicines in farming of the raw
materials for export food in accordance with relevant regulations, or an
enterprise producing export food does not honestly report use of
additives or illegally add other chemical substances, the inspection and
quarantine agencies shall confiscate its illegal earnings and goods, an
impose a fine of RMB 20,000 if the goods value is below RMB 5,000, a
fine of RMB 50,000 if the goods value is above RMB 5,000 and below RMB
10,000, or a fine above 5 times and below 10 times of the goods value if
the goods value is above RMB 10,000. If there is severe consequence, the
agency that issued its license shall revoke its license. If it commits a
crime of producing or selling fake goods, it shall bear the criminal
responsibilities.

Article 70　If enterprises producing import and export food, inspection
and quarantine agencies and their staff have other illegal behaviors,
they shall be treated in accordance with relevant laws and regulations.

VI. **Supplementary Provisions**

Article 71 (Bonded areas, export processing areas) The inspection,
quarantine, and supervision on food in special areas under customs
custody, such as import and export bonded areas and export processing
area, and food in small-volume frontier import and export shall be
treated with relevant regulations of the AQSIQ.

Article 72　(Express mail) The import and export transported as express
mail should be treated with relevant regulations of the AQSIQ on express
mails.

Article 73 The food in the present Measure does not include agricultural
products such as soybean, wheat, barley, corn, rapeseed, potato, and
fruit.

Article 74 The power to interpret the present Provisions shall remain
with the AQSIQ.

Article 75 The present Measure shall come into force as of \*\*\*\*\*\*,
and shall supersede previously issued regulations on the inspection and
supervision on import and export food in case of inconsistency with the
present Measures.