Administrative Measures Issued Applicable to Foreign Investors in the Inspection and Authentication Business for Imported and Exported Commodities In China

On 26 January 2016, the General Administration of Quality Supervision, Inspection and Quarantine (“AQSIQ”) issued the Administrative Measures for Imported and Exported Commodities Inspection and Authentication Institutions (“Measures”), for implementation as of 1 May 2016.

According to the Measures, foreign investors (both legal entities and natural persons) are allowed to enter the inspection and authentication business for imported and exported commodities in China in the form of a WFOE, JV and CJV (“Company”). The Company needs to apply to the local AQSIQ for an Inspection and Authentication Certificate (“Certificate”) before providing such services in China. The Certificate is valid for six years.

To acquire the Certificate, the investors needs to satisfy the following conditions:
– At least one of the investors has three years  of experience in the inspection and authentication business;
– The Company has a registered address/office in China; and
– The Company has the skills and technique to provide inspection and authentication services.

According to the Measures, the operation of the Company is supervised by the local AQSIQ. The AQSIQ is entitled to retrieve the Company’s information and has the right to conduct random inspections on commodities that are inspected by the Company. If the Company provides inspection and authentication services without possessing the Certificate or beyond it’s business scope, the local AQSIQ may confiscate illegal gains, impose a penalty, or suspend the Company’s business license.

For more information, see
www.aqsiq.gov.cn/xxgk_13386/jlgg_12538/zjl/2016/201603/t20160324_463345.htm .