Voluntary Report - Public distribution

**Date:** 9/3/2008

**GAIN Report Number:** CH8075

CH8075

**China, Peoples Republic of**

**FAIRS Subject Report**

**Registration of Overseas Cotton Exporters**

**2008**

**Approved by:**

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

AgBeijing

**Prepared by:**

Jorge Sanchez and Wu Xinping

**Report Highlights:**

On August 5, 2008, China\'s General Administration of Quality
Supervision, Inspection and Quarantine (AQSIQ) published Announcement
(2008) No.87 on the Administrative Measures for Registration of Overseas
Cotton Exporters. This report contains an UNOFFICIAL TRANSLATION of the
Announcement.

Includes PSD Changes: No

Includes Trade Matrix: No

Trade Report

Beijing \[CH1\]

\[CH\]

**Executive Summary**

On August 5, 2008, the General Administration of Quality Supervision,
Inspection and Quarantine of People's Republic of China (AQSIQ)
published (2008) Announcement No.87 on Administration Measures for the
Registration of Overseas Cotton Exporters. The Announcement requested
all overseas cotton exporters supplying cotton to mainland China file an
application for registration beginning September 15, 2008. The
application should be accompanied with relevant information about the
exporters. According to AQSIQ, the registration is aimed at
strengthening management and supervision of the inspection and
quarantine of imported cotton, and to prevent fraudulent trade
practices. The Announcement was notified to the World Trade Organization
on February 20, 2008 (G/TBT/N/CHN/336).

Industry sources indicated that AQSIQ faced new challenges along with an
increasing number of overseas cotton exporters to China in recent years.
Some larger overseas cotton exporters expressed confidence in meeting
the AQSIQ registration requirements. At this point, it is unclear how
the registration system will impact cotton trade. AQSIQ hinted that more
detailed implementation measures will be formulated in the near future.
This report contains an UNOFFICIAL TRANSLATION of the announcement.

**BEGIN TRANSLATION**

General Administration of Quality Supervision, Inspection and Quarantine
of People's Republic of China

Announcement on the Administration Measures for the Registration of
Overseas Cotton Exporters

2008 No. 87

In order to strengthen the supervision and administration of the
inspection and quarantine of imported cotton, prevent fraudulent trade
practices such as the use of sub-standard imported cotton, adulteration,
and ensure the quality of imported cotton, the General Administration of
Quality Supervision, Inspection and Quarantine of P.R.C. (hereinafter
referred to as AQSIQ) has decided to implement administrative measures
for the registration of overseas exporters supplying cotton into
mainland China (hereinafter referred to overseas exporter) according to
the provisions of the Law of the People's Republic of China on Import
and Export Commodity Inspection and the regulations on its
implementation. The relevant requirements are hereby notified as
follows:

I. AQSIQ will begin accepting registration applications from overseas
exporters as of September 15, 2008.

1\. The registration application of overseas exporters must meet the
following conditions:

\(1\) The overseas exporter must be a legal business enterprise in its
country (region) of origin.

\(2\) It has a fixed place of business and reaches a certain business
scale.

\(3\) It has relatively stable sources of supply and appropriate quality
control measures for the goods it supplies.

\(4\) It is familiar with AQSIQ regulations and relevant requirements on
the inspection and quarantine of imported cotton.

\(5\) In the previous year, the exporter's cotton trade activities had
not undergone serious quality problems such as contamination by harmful
substances or other records of problems that have resulted in serious
consequences.

2\. When submitting the registration application to AQSIQ, the overseas
exporter should provide written materials in Chinese or in Chinese and
English according to the relevant provisions (if an agent is
commissioned, the power of attorney of the overseas exporter should also
be provided):

\(1\) The registration application of the overseas exporter.

\(2\) Valid documentation of the legal commercial registration or copy.

\(3\) A description of the basic production/operation materials and
quality control plan.

\(4\) Other relevant materials required by AQSIQ.

3\. If all of the materials submitted meet the requirements after
examination, AQSIQ will then accept the registration application and
notify the overseas exporter.

If the applicant is required to provide additional materials, the
applicant will be given a one-time notice to provide all additional
materials within 5 working days. If the applicant fails to provide all
additional materials within 20 workdays, the application is forfeited.

4\. AQSIQ will organize an audit team to appraise the accepted
application materials of the overseas exporters within a two-month
period, and will organize the audit personnel to carry out a site
inspection of the overseas exporter applying for registration when
necessary. The site inspection includes processing capability, quality
control and management, monitoring capability, packaging, and storage
management, etc.

5\. If all of the stipulated conditions are met after AQSIQ's
examination process, registration will be permitted, a registration
certificate will be granted and a public notice will be published
regularly. If the conditions are not met after the examination,
registration will not be permitted and a new application may be filed
after a two-month period.

6\. The registration certificate is valid for three years. The applicant
shall submit an application for renewal of certificate and
re-examination three months prior to the expiration date. If the
registration materials of the overseas exporter changes within the date
of validity, an additional application indicating the change should also
be submitted.

7\. If proven that the information contained in the application is not
valid (true), registration will not be permitted. If registration has
already been approved, then the registration will be immediately
revoked.

II\. Commencing March 15, 2009, the consignee should provide the
registration certificate (copy) of the overseas exporter to the
inspection and quarantine agency of the port of entry. The inspection of
goods may be conducted at the destination point upon arrival.

When cotton from an unregistered overseas exporter is imported, the
consignee should include a pre-shipping inspection clause in the
contract. A pre-shipping inspection and quarantine will be conducted by
AQSIQ or its designated inspection agency. At the time of arrival, the
basic information of the overseas exporter and the declaration of the
quality of goods should be provided. When the goods arrive at port, the
inspection and quarantine agency will conduct site inspection by opening
bales at the first port of arrival.

III\. AQSIQ will implement a quality credit appraisal of overseas
exporters. A quality credit appraisal of overseas exporters will be
implemented based on the quality of arrived cotton and the contract
performance records. A credit appraisal and supervision administration
will be carried out according to the relevant provisions.

IV\. The registration administration of cotton supply enterprises in
Hong Kong, Macau, and the Taiwans will be carried out according to this
Announcement.

August 5, 2008

**Appendix:**

Overseas Cotton Exporter

Registration Application Form

Form of Application □First Application □Change of Certificate and
Reexamination

□Change of Registration □Reapplication

Application No.

Name of the Enterprise

Country/Region of the Enterprise

Contact

Tel

Authorized Agent

Tel

Application Date (year) (month) (day)

Made by the General Administration of Quality Supervision, Inspection
and Quarantine of P.R.C.

<table>
<colgroup>
<col style="width: 23%" />
<col style="width: 0%" />
<col style="width: 0%" />
<col style="width: 9%" />
<col style="width: 2%" />
<col style="width: 10%" />
<col style="width: 2%" />
<col style="width: 2%" />
<col style="width: 8%" />
<col style="width: 4%" />
<col style="width: 9%" />
<col style="width: 3%" />
<col style="width: 5%" />
<col style="width: 9%" />
<col style="width: 9%" />
</colgroup>
<tbody>
<tr class="odd">
<td>Name of the Enterprise</td>
<td colspan="14"></td>
</tr>
<tr class="even">
<td>Address of the Enterprise</td>
<td colspan="7"></td>
<td colspan="5">Post Code</td>
<td colspan="2"></td>
</tr>
<tr class="odd">
<td>Legal Representative</td>
<td colspan="7"></td>
<td colspan="5">Tel/Fax</td>
<td colspan="2"></td>
</tr>
<tr class="even">
<td>No. of the Previous Registration Certificate</td>
<td colspan="7"></td>
<td colspan="5">Expiration Date of the Previous Registration
Certificate</td>
<td colspan="2"></td>
</tr>
<tr class="odd">
<td rowspan="4">Certificate of Legality of the Enterprise</td>
<td colspan="7">Issuing Organ</td>
<td colspan="7"></td>
</tr>
<tr class="even">
<td colspan="7">Registration No.</td>
<td colspan="7"></td>
</tr>
<tr class="odd">
<td colspan="7">Effective Date</td>
<td colspan="7"></td>
</tr>
<tr class="even">
<td colspan="7">Business Scope</td>
<td colspan="7"></td>
</tr>
<tr class="odd">
<td colspan="15">Basic Information of the Overseas Supply
Enterprise</td>
</tr>
<tr class="even">
<td colspan="2" rowspan="2">Scale of the Enterprise</td>
<td colspan="8">Annual Volume of Cotton Business (ton)</td>
<td colspan="5"></td>
</tr>
<tr class="odd">
<td colspan="8">Annual Volume of Cotton Export to China (ton)</td>
<td colspan="5"></td>
</tr>
<tr class="even">
<td colspan="2">Information of the Quality Control System</td>
<td colspan="13"></td>
</tr>
<tr class="odd">
<td colspan="2" rowspan="5">List of Chinese Cotton Laws and Regulations
Learned</td>
<td colspan="13"></td>
</tr>
<tr class="even">
<td colspan="13"></td>
</tr>
<tr class="odd">
<td colspan="13"></td>
</tr>
<tr class="even">
<td colspan="13"></td>
</tr>
<tr class="odd">
<td colspan="13"></td>
</tr>
<tr class="even">
<td colspan="2" rowspan="6">Information of the Main Departments of the
Supply Enterprise</td>
<td colspan="3">Name of the Department</td>
<td colspan="5">Responsibilities of the Department</td>
<td colspan="5">Number of Employees</td>
</tr>
<tr class="odd">
<td colspan="3"></td>
<td colspan="5"></td>
<td colspan="5"></td>
</tr>
<tr class="even">
<td colspan="3"></td>
<td colspan="5"></td>
<td colspan="5"></td>
</tr>
<tr class="odd">
<td colspan="3"></td>
<td colspan="5"></td>
<td colspan="5"></td>
</tr>
<tr class="even">
<td colspan="3"></td>
<td colspan="5"></td>
<td colspan="5"></td>
</tr>
<tr class="odd">
<td colspan="3"></td>
<td colspan="5"></td>
<td colspan="5"></td>
</tr>
<tr class="even">
<td colspan="2" rowspan="6">Information of the Supply Enterprise’s
Quality Control of Sources of Goods</td>
<td colspan="3">Names of the Main Processing Enterprise</td>
<td>Place of Origin</td>
<td colspan="4"><p>Amount</p>
<p>(ton)</p></td>
<td colspan="5"><p>Quality Control Mode</p>
<p>(Provide Relevant Certificates)</p></td>
</tr>
<tr class="odd">
<td colspan="3"></td>
<td></td>
<td colspan="4"></td>
<td colspan="5"></td>
</tr>
<tr class="even">
<td colspan="3"></td>
<td></td>
<td colspan="4"></td>
<td colspan="5"></td>
</tr>
<tr class="odd">
<td colspan="3"></td>
<td></td>
<td colspan="4"></td>
<td colspan="5"></td>
</tr>
<tr class="even">
<td colspan="3"></td>
<td></td>
<td colspan="4"></td>
<td colspan="5"></td>
</tr>
<tr class="odd">
<td colspan="3"></td>
<td></td>
<td colspan="4"></td>
<td colspan="5"></td>
</tr>
<tr class="even">
<td colspan="2">Additional information that should be Explained</td>
<td colspan="13"></td>
</tr>
<tr class="odd">
<td colspan="15">Information of the Supply Enterprise’s Cotton Export to
China</td>
</tr>
<tr class="even">
<td colspan="3">Number of Years of Engagement in Cotton Export
Business</td>
<td colspan="4"></td>
<td colspan="5">Date of First Cotton Export to China</td>
<td colspan="3"></td>
</tr>
<tr class="odd">
<td colspan="3">Main Source of Cotton Supply</td>
<td colspan="4"></td>
<td colspan="5">Main Cotton Shipping Port</td>
<td colspan="3"></td>
</tr>
<tr class="even">
<td colspan="3" rowspan="10">Information of Cotton Export to China for
the Past Two Years</td>
<td>Year</td>
<td colspan="3">Variety and Specifications</td>
<td colspan="2">Volume of Export(ton)</td>
<td colspan="2">Value of Goods ($10,000)</td>
<td colspan="3">Inspection and Quarantine Pass Rate (%)</td>
<td>Other</td>
</tr>
<tr class="odd">
<td rowspan="5"></td>
<td colspan="3"></td>
<td colspan="2"></td>
<td colspan="2"></td>
<td colspan="3"></td>
<td></td>
</tr>
<tr class="even">
<td colspan="3"></td>
<td colspan="2"></td>
<td colspan="2"></td>
<td colspan="3"></td>
<td></td>
</tr>
<tr class="odd">
<td colspan="3"></td>
<td colspan="2"></td>
<td colspan="2"></td>
<td colspan="3"></td>
<td></td>
</tr>
<tr class="even">
<td colspan="3"></td>
<td colspan="2"></td>
<td colspan="2"></td>
<td colspan="3"></td>
<td></td>
</tr>
<tr class="odd">
<td colspan="3"></td>
<td colspan="2"></td>
<td colspan="2"></td>
<td colspan="3"></td>
<td></td>
</tr>
<tr class="even">
<td rowspan="4"></td>
<td colspan="3"></td>
<td colspan="2"></td>
<td colspan="2"></td>
<td colspan="3"></td>
<td></td>
</tr>
<tr class="odd">
<td colspan="3"></td>
<td colspan="2"></td>
<td colspan="2"></td>
<td colspan="3"></td>
<td></td>
</tr>
<tr class="even">
<td colspan="3"></td>
<td colspan="2"></td>
<td colspan="2"></td>
<td colspan="3"></td>
<td></td>
</tr>
<tr class="odd">
<td colspan="3"></td>
<td colspan="2"></td>
<td colspan="2"></td>
<td colspan="3"></td>
<td></td>
</tr>
<tr class="even">
<td colspan="3">Declaration of the Applicant</td>
<td colspan="12"><p>This enterprise applies for the registration of
cotton-importing overseas supply enterprise and guarantees to abide by
the provisions of the laws and regulations of the People’s Republic of
China on exit-entry inspection and quarantine as well as technical
regulations. The application materials provided are true and correct.
This enterprise will cooperate with the General Administration of
Quality Supervision, Inspection and Quarantine of P.R.C. and its
authorized agencies in the appraisal, verification, examination,
supervision administration, etc. of this enterprise.</p>
<p>Materials attached hereto include: ,</p>
<p>,</p>
<p>,</p>
<p>,</p>
<p>Signature of the Legal Representative:</p>
<p>(Seal of the Enterprise)</p>
<p>(year) (month) (day)</p></td>
</tr>
</tbody>
</table>

Contact and address:

All documents for registration (original) should be submitted to the
following address with a mark" For Cotton Registration" on the envelope:
Division of Textile and Light Industry, Department of Inspection
Supervision, AQSIQ; No.9 Madian east road, Haidian Dist, Beijing,
100088, China

Tel: 86-10-82261922;

Fax:86-10-82260170;

Email: cotton@aqsiq.gov.cn

END OF TRANSLATION

Note: "Enterprise" and "overseas Cotton Exporters" for the purpose of
this application are interchangeable terms.