G/VAL/W/369  
9 December  2020 
(20-8863) Page: 1/3 
Committee on Customs Valuation  Original: English  
 
  
PRESHIPMENT INSPECTION  
NOTIFICATIONS UNDER ARTICLE 5 OF THE  
AGREEMENT ON PRESHIPMENT INSPECTION  
CHINA 
Replies from China  to the Questions from the United States  
contained in document G/VAL/W/ 353 
The following submission, dated 19 October 2020, is being circulated at the request of the delegation 
of China . 
 
_______________  
 
 
Question 1  
Will China please submit to the Secretariat all laws and regulations relating to 
preshipment inspection under Article 5 of the Agreement on Preshipment Inspection 
immediately? Article 5 requires Members to notify these measures "immediately after 
their publication." In particular, will China please submit all laws, regulations, and other 
measures that  implement Ar ticle 2 of the Agreement relating to Non -discrimination, 
Government Requirements, Site of Inspection, Standards, Transparency, Protection of 
Confidential Business Information, Conflicts of Interest, Delays, Price Verification, 
Appeals Procedures, and Derog ations with respect to preshipment inspection activities.  
Answer:  
According to Article 5 of the Agreement on Preshipment Inspection, China already notified the 
Secretariat laws and regulations relating to preshipment inspection in 2019, including the Amen ded 
Law of the People's Republic of China on import and export commodity inspection, Regulations of 
the People's Republic of China on the implementation of the law on import and export commodity 
inspection (revised in 2019), Measures for the Inspection, Su pervision and Administration of 
Imported Old Mechanical and Electrical Products, and Measures for the supervision and 
administration of inspection and quarantine of imported solid waste which can be used as raw 
materials. All laws and regulations relating to preshipment inspection are published on the website 
of the General Administration of Customs of China. By implementing those laws and regulations, 
China has fulfilled its multilateral obligations under the Agreement on Preshipment Inspection. 
Whenever w e have new laws and regulations relating to preshipment inspection pursuant to Article 
5 of the Agreement on Preshipment Inspection, we will submit them to the Secretariat.  
Question 2  
We understand General Administration of Customs Announcement No. 48 of 2018 refers 
to "Preshipping Inspection Procedures of the PRC." Will China please submit all of its 
preshipment inspection procedures and any General Administration of Customs 
Announcements pertaining to preshipment inspection to the Secretariat?  G/VAL/W/369  
 
- 2 - 
 
  Answer:  
General Administration of Customs Announcement No. 48 of 2018 is for guiding the preshipment 
inspection institutions in the filing management and related supervision and  does not involve 
substantive preshipment inspection procedures to be followed by impor ters. The announcement was 
published on the website of the General Administration of Customs of China.  
Question 3  
Article 22 of the second measure, Regulations of the People's Republic of China on the 
implementation of the law on import and export commodit y inspection (revised in 2019), 
provides that in order to import "solid waste that can be used as raw materials" and "old 
mechanical and electrical products" importers must submit a preshipment inspection 
certificate and make the import available for inspe ction by the entry -exit inspection and 
quarantine agency. Why are both procedures necessary? What does the preshipment 
inspection fail to identify that the agency inspection can uncover?  
Answer:  
Preshipment inspection measures are designed to reduce envir onmental safety risks at source. 
These  measures have effectively reduced the cross -border movement and transport of the 
above -mentioned unqualified solid wastes and products, providing front -line protection while 
assisting the private sector to avoid unnecessary costs. Customs  inspection is a normal port control 
function of the Customs to exercise  the sovereignty of the state , and is the last line of defence  to 
prevent overseas hazardous wastes, wastes that do not conform to China's environmental protection 
control standards and products that do not conform to China's technical requirements from entering 
China. Preshipment inspect ion and arrival inspection and quarantine are mandatory, and they cannot 
replace each other. In case of any discrepancy between the results of arrival inspection and the 
preshipment inspection, the arrival inspection and quarantine result at the port shall  prevail.  
Question 4  
Article 36 of the second measure provides for the designation of foreign inspection 
agencies that meet the prescribed qualifications. What is the process for designating such 
foreign inspection agencies? Is it the same process for pres hipment inspection companies 
as it is for other conformity assessment bodies? Where is the list of designated foreign 
preshipment inspection companies published?  
Answer:  
Article 36 of the Second Measure only applies to the designated inspection instituti ons which are 
entrusted by the import -export inspection and quarantine authorities to undertake the inspection of 
import and export commodities. This article has no relationship with the preshipment inspection 
institutions.  
Regarding the solid waste that c an be used as raw materials, the list of registered preshipment 
inspection institutions has been published on the website of the General Administration of Customs 
of China. Regarding the Old Mechanical and Electrical Products, According to the Paragraph 2 of 
Article 7 of "Measures for the Inspection, Supervision and Administration of Imported Old Mechanical 
and Electrical Products" notified to Secretariat by China, the General Administration of Customs of 
China will not designate inspection institutions to conduct preshipment Inspection of old mechanical 
and electrical products.  
- Measures notified by China related to the import of scrap materials  
1. The United States would also like to reiterate its continuing concern with the 
measures China notified relat ed to the import of scrap materials. As repeatedly 
expressed in other WTO meetings, the United  States has significant concerns about 
China's measures that ban or severely limit the import of scrap materials. 
Since  2017, China has issued successive measures  that outright ban or effectively 
ban the import of a number of scrap materials with little or no prior notice or G/VAL/W/369  
 
- 3 - 
 
  comment period. Furthermore, the 2019 revisions of its draft Law of the People's 
Republic of China on the Prevention and Control of Environmen tal Pollution by Solid 
Wastes, continue to define "solid waste" to include all scrap materials, and expressly 
ban these imports despite concerns raised by the United States and other 
stakeholders. To be clear, scrap materials (1) have been separated from t he waste 
stream for recycling as a raw material and (2) are saleable items traded within a 
distinct global marketplace (i.e., they have an underlying economic value). These  
qualities make the inclusion of scrap materials as "waste" inaccurate.   
2. We are c oncerned both with the overly broad scope of China's import control 
measures related to scrap materials and with what appear to be different 
requirements for foreign and domestic commodities. We reiterate our request that 
China immediately halt implementat ion of its ban and revise the relevant measures 
in a manner consistent with existing international standards for trade in scrap 
materials, which provide a global framework for transparent and environmentally 
sound trade in recycled commodities.   
Answer:  
China is vigorously promoting ecological progress, actively implementing the concept of sustainable 
development and green development, to meet people's growing demand for a beautiful ecological 
environment and  strive to resolve prominent environmental problem. Advancing the reform of the 
solid waste import management system is one of the important measures taken by the Chinese 
government to thoroughly implement the new development concept, safeguard the country 's 
ecological environment safety and protect people's health.  
In the process of adjusting relevant policies, China has taken full account of the demands of the 
domestic and international communities, adjusted the catalogue gradually, reserved sufficient 
transitional periods for relevant industries, and fulfilled the obligations of transparency in accordance 
with WTO rules. In July 2017, China notified the WTO TBT Committee that it would ban the import 
of 24 types of solid waste, including plastics waste, un sorted paper waste, raw textile materials 
waste and vanadium slag etc. by the end of 2017, with a transitional period of up to six months 
reserved for relevant industries and enterprises. In January 2019, China submitted to the Committee 
on Market Access t wo notices of quantitative restrictions, 2016 -2018 and 2018 -2020, which included 
measures to prohibit and restrict the import of solid waste, including relative information of tariff 
line, legal basis and implementation date etc.  
Listening to the statemen ts by delegates in various WTO meetings, it is fair to say that the danger 
of solid waste has been noticed and acknowledged by most members. According to the Basel 
Convention and other internationally accepted principles, every country has the obligations to 
properly handle and dispose of its domestically produced  solid wastes. China, as a developing 
member with the largest population, has suffered the pollution of solid wastes imported from other 
members for decades. We do hope the exporting members could actively shoulder their international 
responsibilities to handle and dispose of their own solid waste, rather than reaping commercial 
benefit at the cost of other members ’ environment and human health.  
The definition of solid waste varies from member to me mber and there is no unified international 
understanding and standard. The newly revised and implemented Law of the People's Republic of 
China on the Prevention and Control of Environmental Pollution by Solid Waste has a clear definition 
on solid waste, wh ich is basically consistence with that of the Basel Convention. At the same time, 
the law stipulates that raw material will not be classified as solid waste if it has undergone harmless 
treatment , meets the national mandatory quality standards and does not  endanger public health or 
ecological safety. This means that raw material products meeting the aforementioned criteria will be 
treated as general goods, and the relevant rules apply to both domestic and international trade.  
All members shall follow the basic principle of properly handling and disposing of their domestically 
produced  solid wastes. Only based on this principle can members reach consensus and find solutions 
to the global challenge of solid waste pollution. In th e meantime, adhering to this principle is 
conducive to promoting global green, low -carbon and circular development and promoting the 
building of a clean and better world.  
__________