Technical regulations and standards, as well as conformity assessment procedures, are indispensable to international trade. However, when the number of varied standards becomes too great, they will constitute difficulties for producers and exporters alike; those arbitrarily developed standards are even abused by protectionists as instruments to obstruct international trade. The Agreement on Technical Barriers to Trade (TBT Agreement) has provided for the requirements those WTO members must meet in case they intend to develop, adopt and implement technical regulations and standards and conformity assessment procedures so as to ensure that those measures will not turn into barriers to trade.
Since its accession to the WTO, China has not only fulfilled its obligations under the TBT Agreement, but also taken an active part in the institution of international rules and negotiations of the Doha Round, the review of trade policies of various countries, and the examination of TBT or SPS measures of other WTO members. As one of the major arenas of international trade and a modernized cosmopolitan city, Shanghai has constantly endeavored to promote trade liberalization and facilitation while dismantling any barriers to trade that transgress WTO Agreements. Meanwhile, the governing authorities in Shanghai have strengthened their cooperation with local exporters by means of relevant policies and measures to help the latter to acquire information regarding latest technical standards and enhance their competitiveness in the international market.
I. China¡¯s Implementation of Trade-related Technical Measures
Both before and after its WTO accession, China altered or enacted a series of laws, rules and regulations so as to meet its commitment to keep its trade-related technical measures in conformity with the requirements under TBT and SPS Agreements. In order to implement the TBT Agreement, for example, China brought into effect on October 1, 2002, its amended Law of the People¡¯s Republic of China Governing the Inspection of Imports and Exports. Article 4 of the said law provides that ¡°the inspection of imports and exports shall be conducted, according to the principles of protecting human health or safety, protecting animal or plant life or health, protecting environment, preventing deceptive practices, and maintaining national security, by governmental commodity inspection bodies in compliance with the catalogs of imports and exports subject to compulsory inspection that are compiled, revised and promulgated by the said bodies.¡± Thus, the principles determining the categories of imports and exports subject to compulsory inspection have been made to conform to the five legitimate purposes of the application of TBT Agreement. Shortly before to China¡¯s WTO accession, the General Administration of Quality Supervision, Inspection and Quarantine and China Certification Regulatory Commission declared the implementation of the new compulsory certification, the so-called CCC System, which supersedes the then existing CCIB System which regulated the safety assurance of imports and the ¡°Great Wall¡± Certification System which imposed compulsory regulation on the safety assurance of domestic products. The CCC System came into effect on August 1, 2003, thereby granting imports full national treatment in terms of commodity certification. The Regulation of the People¡¯s Republic of China on Certification and Accreditation effective on November 1, 2003, provides that the aims of the CCC System must conform to the five purposes of the TBT Agreement.
With a view to complying with the requirements of SPS Agreement, the General Administration of Quality Supervision, Inspection and Quarantine issued its Bulletin No. 111 in August 2004 declaring that as a result of its risk assessment it was to lift from September 1, 2004 on its regulations that the importation of animal products such as cleansed eiderdown and plant products such as processed grains including rice, flour, rice flour and starch, be subject to approval on a quarantine basis. In addition, Bulletins No. 286 and 301 respectively issued in July and September 2003 jointly by the General Administration of Quality Supervision, Inspection and Quarantine and the Ministry of Agriculture after preceding risk analysis announced that China is to conditionally lift its ban on mouth and foot disease in the U.K. and completely lift its ban on mouth and foot disease in the Republic of Korea. Bulletin No. 383 issued in June 2004 partially lifted China¡¯s ban on swine pest in France.
The market liberalization of inspection services can be witnessed by the Regulation on Imports and Exports Conformity Assessment Agencies jointly issued in September 2003 by the General Administration of Quality Supervision, Inspection and Quarantine, the Ministry of Commerce and the State Administration for Industry and Commerce. In consistence of the requirements for technical testing and analysis services specified in the Concession Schedule for Trade in Services annexed to The Protocol on China¡¯s Accession to the WTO, the said Regulation provides for the conditions for the establishment of foreign-funded conformity assessment bodies.
Box 9.1: The Main Principles of the TBT Agreement
1. The principle of legitimate purposes: Technical regulations of WTO members shell be confined to the purposes of maintaining national security, preventing deceptive practices, protecting human health and safety, animal or plant life or health, and environment. 2. The principle of adopting international standards: According to TBT Agreement, technical regulations, standards and conformity assessment procedures shall be based on the international standards presently available or to be available. 3. The principle of mutual recognition: TBT Agreement encourages WTO members to enter into negotiations for the conclusion of agreements for the mutual recognition of results of each other¡¯s conformity assessment procedures. 4. The principal of Non-discrimination: The WTO requires that its members apply the same technical standards to imports and their domestic products. In case a member has accorded to another member favorable treatment, it is required to accord the same treatment to all other members. 5. The principle of predictability or the principle of transparency: Each member shall make known regularly the information regarding its regulations, standards and economic development that affect their trade. In addition, each member shall set up inquiry point to answer all reasonable questions that may be raised by other members in respect of the measures it have taken. 6. The principle of encouraging development and economic reform: special and preferential treatment shall be accorded to developing and least-developed members.
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II. The Implementation of Trade-related Technical Measures in Shanghai
1. Application of the Code of Good Conduct
According to Annex 3 to the BTB Agreement, Code of Good Practice for the Preparation, Adoption and Application of Standards, the Shanghai authorities have issued respectively on December 28, 2001, and May 19, 2003, the Regulation on Standardization of Shanghai Municipality and the Regulation on Local Standards of Shanghai Municipality. These two documents have specified respective responsibilities related to standardization of government bodies at different levels, enterprises and intermediate agencies and the coverage of local standards. As it is required that any information regarding proposals for preparation and, approval and promulgation of local standards be announced, the transparency and public participation of the preparation of technical standards has been effectively enhanced. Moreover, in light of the principle of the Code, local standards have been screened and, as a result, 194 local standards are now effective in Shanghai.
2. Formulation and Revision of Testing Procedures
In accordance with the TBT Agreement, related authorities in Shanghai have formulated three testing procedures that are respectively directed at the examination of flow meters, LPG Filling Machines, and vertical woltmann-type water meters, and revised the Technical Regulation on Quality Determination of Bulk Plant Oils and LPG Filling Machines. The testing procedures that are now under formulation or revision include the Testing Procedures for Timing and Pricing Devices for Telephone, Procedures for On-line Testing of Household Water Meters, and Procedures for On-line Testing of Household Gas Meters. 28 local testing procedures have been screened and now 20 of them have been invalidated and 8 remain valid.
3. Regulation of Product Certification
According to the Regulation of the People¡¯s Republic of China on Certification and Accreditation, the aim of the implementation of the compulsory certification system fully conform to the legitimate purposes of the TBT Agreement. As a result of the enhancement of the implementation, up to December 2004, more than 8,000 enterprises in Shanghai have passed ISO9000 accreditation, over 500 have acquired certification for environment protection, 4,112 have obtained 14,418 certificates for compulsory certification of products (60% of which are low-voltage electric apparatuses, wires and cables, household electric appliances, lighting fittings, and IT equipment), 50 agricultural products have been certified as pest-free and 35 foodstuffs as health-friendly, and 284 food-processors have been granted QS Production Licenses for their 324 products. Meanwhile, Shanghai Entry and Exit Inspection and Quarantine Bureau have furthered the HACCP certification system in the food-processing sector, and now 73 food-exporters have passed official examination. In addition, certificate examination has been conducted on imports. The adoption of this measure has been proved to be necessary for ensuring that those imports that are listed in our certification catalogs meet the requirements under China¡¯s compulsory certification system, protecting health and safety of all inhabitants in China, and protecting environment and safeguarding markets in China. During the period between August 1, 2003, when the CCC system of compulsory certification went into effect, and the end of July 2004, 30,000 batches of imports valued at US$ 3 billion were granted CCC certificates after certificate examination. In the meantime, the Municipal Bureau of Quality and Technical Supervision and the Municipal Entry and Exit Inspection and Quarantine conducted investigation on 32 cases that transgressed the relevant laws and regulations governing compulsory certification.
4. Fulfillment of the Concession Schedule for Trade in Services
According to The Protocol on China¡¯s Accession to the WTO, China promises to permit the establishment of technical testing and analysis or commodity inspection companies of foreign major ownership within two years of China¡¯s WTO accession. Presently, there are dozens of Sino-foreign jointly funded testing and inspection agencies in Shanghai and 15 qualified foreign certification agencies (including branch offices). Within four years of the Accession, foreign service providers are to be permitted to establish in China their wholly-owned subsidiary companies.
1. Sectoral Coordination Strengthened and Response Mechanism Founded
The Shanghai Leading Group for Response to Technical Barriers of Trade was founded on May 17, 2002. Group members include the Municipal Commission for Development and Reform, Municipal Economic Commission, Municipal Commission for Science and Technology, Municipal Commission for Foreign Trade and Economic Relations, Municipal Commission for Agriculture, Municipal Entry and Exit Inspection and Quarantine, Municipal Quality and Technical Supervision Bureau, and Shanghai WTO Affairs Consultation Center, while the Group office is located in the Municipal Quality and Technical Supervision Bureau, in charge of day-to-day TBT affairs.
Box 9.2: Causes of Emerging TBT During Recent Years
The causes that contribute to the daily rising TBT are varied: 1. Sluggish development of world economy has given rise to neo-protectionism. The average growth rate of world economy is 4.7% for 2000, 2.3% for 2001 and 3.0% for 2003, while China¡¯s growth rate during the three years averaged more than 9%. International trade in goods fell by 1.0% in 2001 and grew by 2.5% in 2002, while the average growth rate of imports and exports during 1990s was 6.7%. 2. The weakening of customs barriers and non-customs barriers such as quotas and licenses has provide room for the rise of TBT. Today, developed countries have cut their customs tariffs to 3-5% and developing countries, to 12%. Under the circumstances, those who try to protect the interest of their own industries will automatically make use of technical barriers to fend off imports. 3. The public awareness of environmental protection, safety assurance and health care has become unprecedentedly strong. Barriers to trade in goods lie not only in technical regulations and standards and conformity assessment procedures but also, to a larger extent, in consumers¡¯ psychology. Consumers in developed countries are known to have shaped a scientific and health-conscious habit of consumption. What they require are not merely high quality products but, instead, they will also take into consideration many other factors such as environment, health-friendliness, animal welfare, etc. The eco-labeling of European Union is a typical example. According to an EU survey made in 2002, 75% of EU consumers prefer ¡°labeled products¡± in spite of the fact that their prices are higher than ordinary products. For example, the ¡°labeled textiles¡± in EU markets are priced higher by 20-30% than ordinary fabrics, but they are still preferred by most EU consumers. 4. The rapid development of high-accuracy testing technologies has provided proofs for developed countries to restrict imports. For example, EU¡¯s zero (lower than 1ppb) testing standard for chloramphenicol is obviously based on its high-accuracy testing technology. It is also thanks to the advance of testing technology that Japan increased the number of testing items against residual content of pesticide on the rice exported by China from 47 in 1993 to 123 in 2002. China¡¯s testing technologies, however, still lag behind those of advanced countries. Some testing items are presently beyond our ability and some are even unknown to us. This is also one of the causes that obstruct our exportation. |
2. Basic Work Enhanced and Systematic Research Launched
1. With the launching of a research on the Development of the Shanghai Pre-Warning Mechanism Under the WTO/TBT-SPS Framework, Shanghai¡¯s Pre-warning System against TBT has been basically established and put into full operation.
2. A database has been set up to store all the relevant information on the major exports of Shanghai and the principal importing countries and regions such as the EU, North America, Japan, Republic of Korea, etc.
3. The leading importers and exporters, major industries, and high-tech sectors in Shanghai have combined to form joint research offices engaged in special programs on relevant trade issues related respectively to ¡°clothing, food, housing, travel, and environment¡±.
4. In order to improve the competitiveness of Shanghai¡¯s exports, the leading exporting sectors and major industries work as the main force to conduct a special research project geared at developing responsive trade-related technical measures. For example, a project entitled Evaluative and Analytical Survey on the Influence of Two New EU Directives on Shanghai¡¯s Exportation undertaken by Shanghai Electromechanical Technological Information Institute has passed experts¡¯ examination.
3. Service Ability Improved and Publicity and Training Carried out
1. Since 2002, the Municipal Government has increased funding in the purchase of materials about various technical standards. By the end of 2001 the Shanghai Standardization Research Institute had only a collection of 43 kinds of international standards or latest foreign national standards and 61 kinds of domestic standards, but today its storage has jumped to 122 kinds of international standards, latest foreign national standards or technical regulations, and 52 kinds of domestic standards that can be classified into 85 categories, all of which put together number more than 550,000 individual sets.
2. Entitled respectively TBT Gazette and WTO/TBT-SPS Information, the two on-line newsletters that contain translated or edited contributions have been regularly published, numbering 128 and 30 issues by the end of 2004, for the review of relevant government bodies and enterprises.
3. The relevant training programs staged in Shanghai throughout 2004 include: a basic training program organized by the Municipal Commission for Foreign Trade and Economic Relations and conducted by Shanghai Quality and Technical Supervision Bureau preparing trainees from local exporting enterprises to handle TBT-related matters; 12 terms of the program run by Shanghai Standardization Research Institute geared at the accreditation of the certified standardization personnel, with trainees totaling 512; and 11 terms of programs sponsored by Shanghai Standardization Association for the purposes of either popularization or publicity of standardization, with 501 on-the-job trainees. In addition, the Shanghai WTO Affairs Consultation Center has incorporated TBT/SPS-related knowledge into their program entitled Training Course for 50/100 Senior Professionals for WTO Affairs.
4. Manufacturing Sectors and Research Departments Allied to Undertake Trial Projects
A Guide of Shanghai 2004 to the Application for Research Projects of Technical Standards jointly issued by the Municipal Commission for Science and Technology and Shanghai Quality and Technical Supervision Bureau specifies that the research and preparation of technical standards to be prevailing in the local major industries, research of sophisticated testing technologies and of technical standards featuring the advantages that Shanghai enjoys, and the formulation of three categories of projects enjoy priority in obtaining support from the relevant governing bodies. It is hoped that this measure will promote the research and development and the application of technical standards in Shanghai. 160 applications for the projects described above have been file throughout 2004. After experts¡¯ appraisal, 69 projects have been approved, with the funds totaling RMB 45.3 million, of which RMB 12.7 million is local financial support. Meanwhile, five enterprises of superior technological caliber in Shanghai have been encouraged to apply for Nationwide Key Trial Enterprises for Technical Standards Preparation or Application with a view to forming several pace-making enterprises in Shanghai in terms of preparation or application of technical standards and to enabling enterprises to keep pace with the advance of international technical standards.
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Box 9.3 Special Research Project Against EC¡¯s New Environmental Measures
The EC Directive on Waste Electrical and Electronic Equipment (WEEE) and the EC Directive on the Restriction of the Use of Certain Hazardous Substances in Electrical and Electronic Equipment (RoHS) require that from August 13, 2005 manufacturers of electrical and electronic products be responsible for the costs involved in reclamation, disposal and recycling of wasted products and that from July 1, 2006 six hazardous substances are not allowed in the electrical and electronic products to come on to the EU market. In 2003 there were 596 companies that exported their electrical and electronic products to the EU with a total export value (of 2003) at $US 3,187.88 million. Obviously, the enactment of these two directives will considerably affect Shanghai¡¯s export of electrical and electronic products to the EU. In order to further study these two environmental EC directives, the Shanghai Leading Group for Response to Technical Barriers of Trade has launched a special research project to estimate the possible influence of the two directives on Shanghai¡¯s exports and to contribute to the measures to be possibly taken. The project has been entrusted to Shanghai Electromechanical Technological Information Institute.
Based on detailed facts and figures, the task force has made a deep analytical study on the possible influence of the two EC directives on Shanghai¡¯s exports. In addition, they have thoroughly analyzed the problems that lie in Shanghai¡¯s electromechanical exporters¡¯ response to EC¡¯s new environmental measures and put forward accordingly pertinent proposals. This project has turned out the first fruitful result in the study of overseas TBT measures and hence is of great realistic social significance.
In order to popularize the result of the project and to effectively respond to the challenges brought by the two EC¡¯s environmental directives, Shanghai Quality and Technical Supervision Bureau and the Shanghai Leading Group for Response to Technical Barriers of Trade held a seminar in September 2004 attended mainly by the representatives from some of the major electromechanical exporting enterprises in Shanghai. At the meeting a systematic introduction and an analysis have been made of the two EC directives. Among the participants were relative executives from more than 60 companies including Siemens Mobiles, Shanghai SEB Electric Appliances Co. Ltd. And Shuangling Air-conditioners Manufacturing Co., Ltd. The seminar has helped enhance the Shanghai companies¡¯ better understanding of the EC¡¯s new directives. On the other hand, some representatives have put forward conducive proposals on the intensification of the exchange of TBT information and the establishment of the pre-warning system. |
5. Implementation of the Supervision on Compulsory Technical Standards Consolidated and the Quality of Shanghai Products Raised
In a campaign to rectify and regulate the quality control in Shanghai, Shanghai Quality and Technical Supervision Bureau has given priority to the examination of compulsory technical standards that are closely related to the health and safety of consumers and sanitary and environmental protection in 2004. They have planned to conduct selective examination on 107 categories of products. By the end of October 2004, they had examined 87 categories totaling 4,362 items, of which 3,345 items have been rated qualified, accounting for 76.7% of the items examined. Meanwhile, they have examined the implementation of the labeling of the compulsory standards on Shanghai-produced food, garments, coatings, etc. This examination covered 620 manufacturers and 4,429 items, of which 3,813 were rated qualified, making up 86%.
6. Barriers to Trade in Agricultural Products Crossed and Exportation of Related Products Promoted
While the EU, Japan, etc are tightening their inspection and quarantine systems, and their restrictive measures against the importation of China¡¯s poultry-based products are not completely lifted, the Municipal Commission for Agriculture keep themselves timely informed of the development of Shanghai¡¯s agricultural imports as well as the related restrictions. They have dispatched teams to investigate the related matters, and adopted various measures, such as to help innovate horticultural methods, expand the application of IT technology to safe production of agricultural produce, promote the development of standardized plantations, increase investment in agriculture, intensify agricultural management, and set up testing and inspection networks. Consequently, from January to September, the growth rate of Shanghai¡¯s output of vegetables witnessed a remarkable jump.
In order to cross the trade barriers created against the avian flu that broke out in certain areas in China early 2004, Shanghai Entry and Exit Inspection and Quarantine Bureau have successively invited foreign official inspection groups to visit manufacturing facilities of aquatic and meat exports in Shanghai. Among the visitors are inspection group from Japanese Ministry of Agriculture, Forestry and Aquaculture, investigation team from the US Department of Agriculture, inspectors from the US Food and Drug Administration, Singaporean Bureau of Agriculture, Food and Veterinary Medicine, the Ministry of Marine and Aquatic Industries of South Korea. Thanks to their inspection, poultry-based meat products of the Shanghai processors have been able to return to the markets in these countries, while the sanitary controls in those exporting enterprises have left good impressions on the officials from those countries.
7. Adoption of Standards Encouraged and Participation of International Standardization Motivated
1. Relevant authorities in Shanghai have been encouraging enterprises to adopt related standards so as to bring up the level of standards throughout a trade. For example, 582 enterprises engaged in building and decoration in the building materials sector in Shanghai have been encouraged to bring 10 compulsory national standards into practice. This move has thus brought forward the development of the whole sector. As 25 IEC international standards have been applied to 230 products of 44 large and medium-sized mainstay enterprises in the sector of industrial meters and electrical and electronic appliances, the competitiveness of this sector has been effectively improved.
2. Leading companies have been motivated to take an active part in international standardization. For example, Shanghai Baosteel participated in the discussion of the draft of international standards for ironstones and, as their proposal were accepted as international standards, their corporate costs can be considerably economized.
Box 5.2 Shanghai Enterprises Motivated to Participate in International Standardization
Leading companies in Shanghai have been encouraged to take an active part in the activities held by the International Standardization Organization so as to have the floor and the right to vote in the preparation of international standards. Some enterprises or institutions such as Shanghai Double Happiness Crown City Sporting Goods Co. Ltd and Shanghai Iron and Steel Technology Research Institute have thus acquired appreciable financial benefits thanks to their good awareness of the standards in the target markets.
During the discussions of the draft international standardization for ironstones, Shanghai Baosteel proposed that ironstones bigger than 8mm be classified as lump ores. (according to the original classification, those smaller than 6mm are classified as comminuted ores while those bigger than 6mm as lump ores) Their proposal was finally adopted as international standard. As the price difference between lump and comminuted ores is several US dollars each tons, the adoption of their proposal alone will save Baosteel dozens of millions of US dollars each year because they need annual import of 1,800,000 tons. |
IV. Full Implementation of TBT and SPS Agreements in Entry and Exit Inspection and Quarantine
1. Supervision of Entry Inspection and Quarantine
(1) General Import Inspection
During the period from January to November 2004, imports coming through Shanghai customs territory that underwent mandatory inspection conducted by Shanghai Inspection and Quarantine totaled 315,000 batches amounting to US$ 26.76 billion, of which 3,313 batches failed with a total amount of US$ 924 million.
(2) Entry Examination on Compulsory Certification
The Regulation of the People¡¯s Republic of China on Certification and Accreditation requires that all commodities listed in the certification catalog be imported after they have been subjected to relevant certification and labeled accordingly. The entry examination conducted by inspection and quarantine agencies therefore has been put into operation. From January to November 2004, 112,000 batches of commodities valued at US$ 6.22 billion received the said examination at Shanghai Customs. The local inspection and quarantine agencies made selective technical inspection on 124 batches amounting to US$ 15,24 that enjoy customs passage against certificates and found that 35 batches for US$ 2.25 million no up to standards, mainly owing to the defects such as absence of labeling in Chinese, non-conformity to China¡¯s standards of cables or plugs, defective manufacturing or faulty assembly, and even failure to pass safety testing in the case of certain power tools. All those defective imports were either made salable after proper repair according to relevant provisions or rejected at all. In order to smooth the processing trade in Shanghai and promote trade facilitation, the spare parts and components subject to CCC certification, to be imported into Shanghai for processing and then all the finished products thus processed to be re-exported may enjoy certificate-free application for inspection against presentation of the ¡°Processing Trade Handbook¡± (a booklet, granted by the governing agencies to those assembling and processing plants, in which importation of materials and exportation of finished goods are recorded) and the declaration made by the related processors or assemblers. This favorable treatment was granted to 30,000 batches of spare parts and components of such a nature valued at US$ 1.15 billion during the period between January and November 2004.
(3) Import Supervision Under Environmental Requirements
To prevent importation of the used electromechanical imports that do not conform to China¡¯s requirements for safety, sanitation and environment, the so-called ¡°Dossiers Management¡± is now in operation. From January to November 2004, Shanghai used this system to handle 1,828 batches comprising 48,124 units/sets valued at US$ 640 million, while another 27 batches worth US$ 23.42 million were rejected for their failure to meet the compulsory technical regulations of China. This measure is also applied to coatings imports and, under this arrangement, designated laboratories are authorized to conduct relevant inspection and testing according to China¡¯s Limitations on Hazardous Substances Contained in Indoor Decoration and Building Materials and Coatings (B18582-2001). During the period from January to December 2004, the ¡°Dossiers Management¡± was administered on more than 250 types of indoor coatings, of which 16 were shipped under supervision out of the country because of excessive content of free formaldehyde, volatile organic compound, or methylbenzene and dimethylbenzene. In order to prevent the importation of batteries and cells that contain excessive hydrargyrum, China also applies this system to the said imports, and 889 dossiers were processed in Shanghai in from January to November 2004.
The restrained importation of recyclable wastes is an effective way to solve the domestic shortage in supplies of staple raw materials, and to save expenses in foreign exchange as well. However, the importation and re-use of such wastes must be put under strict control; otherwise, it will inevitably bring about possible environmental pollutions, thereby causing extensive damage in the long run. China¡¯s government has applied technical measures that meet the environmental requirements set out in TBT Agreement to the importation of recyclables. The measures include procedures such as import approval, pre-shipment inspection and re-inspection at the border. The various imported recyclable wastes subjected to inspection and quarantine in Shanghai during January-November 2004 numbered 26,000 batches, with an aggregate weight of 3.09 million tons, valued at US$920 million totally. Among the major exporters are the U.S., R.O.K., Japan, E.U., South America and some other countries and regions, and the wastes include plastics, paper and metal. According to inspection reports made by the local environmental authorities, the waste imports that failed China¡¯s Environmental Standards on Import Control of Recyclable Wastes amounted to 199 with an aggregate weight of 13,000 tons, valued at US$3.59 million, mainly because these shipments were found to carry unwashed plastics, waste dynamos that were forbidden to be imported, or even house refuse. For example, a parcel of waste plastics were totally smeary; another 49.58 tons of ¡°waste plastics¡± turned out to be waste telephone sets and broken circuit boards; and still another parcel of waste metal fittings were mixed with a large amount of waste rubber, plastic, soil, etc., the percentage of which was visually estimated to be over 40%. All those shipments were ordered by local customs to be sent back. In addition, 28 batches weighing 147,000 tons worth US$31.76 were rejected because of contents of undesired objects. 220 batches weighing 27,000 tons valued at US$8.26 failed quarantine inspection mainly because those parcels were found to be mixed with soil, packed in wooden materials that were not in conformity with what was stated in the import declaration, or invaded by sectors such as ants, spiders, cockroaches, and swaps; and live rats, or even gigantic cockroaches were detected in wasted shipping containers to be imported from Dominica. All of those parcels were either subjected to sector eradicating fume treatment or destruction of wood packing. These measures have not only protected environment and the benefit of consignees but also prevented the smuggling of hazardous sectors or pests.
(4) Supervision Measures Applied to Food and Cosmetic Imports
It is a practice for Shanghai to conduct risk analysis on food imports by evaluating the relative risk level of the food to be imported by means of laboratory testing data, and carry out selected sanitary inspection on the said imports accordingly. The relevant risk management will then be administered and pre-warning effected. During January-November 2004, 151 batches of food imports were rated unqualified mainly owing to failure in labeling requirements, excessive micro-organic content or inconformity with physical or chemical standards. As far as the inspection on cosmetic imports is concerned, throughout 2004 three batches were rated unqualified, of which two batches exceeded the total number of bacteria and another batch worth US$12,600 of French-made face cream was found to contain pathogenic bacillus pyocyaneus and was destroyed under supervision.
Labeling is a means used to mark the actual contents of commodities. Labeling requirements on food and cosmetic imports and exports are universally-adopted effective technical measures that are in consistence with both TBT and SPS Agreements and serve as the key safeguard in the protection network that countries have framed to ensure the safety and sanitation of foodstuffs. The developed WTO members such as the U.S., E.U. and Japan all maintain rigid labeling requirements. Likewise, China enforces labeling regulation over food imports and, in the case of certain special food, specially processed food or cosmetics such as genetically modified food, irradiated food or cosmetics containing animal protein additives, it is required that related labels clearly indicate the contents of GMO, irradiation level or ingredients free from bovine stuffs from epidemic areas. During January-November 2004, Shanghai Entry and Exit Inspection and Quarantine Bureau processed 5,475 and 1,300 applications respectively for food and cosmetic labeling examination.
Insect pests are generally brought in by personnel or conveyance, or together with cargoes. With the increase in personal movement and development of foreign trade, the risk of pest intrusion is on the rise. In order to prevent such possible intrusion, protect human health and ensure production safety in agriculture and animal husbandry in Shanghai and throughout the country, inspection and quarantine agencies in China have been conducting strict inspection on animals, plants and related products. Certificate examinations, testing and cargo inspections are conducted at every Chinese port. The goods in which pests were detected either through on-spot inspection or lab examination will be rejected or destroyed, or subjected to fuming- or heat-treatment or sterilization. At the airports, X-ray machines and quarantine dogs are used to help inspectors find out any contraband animals or plants that passengers might possibly smuggle in.
During January-November 2004, Shanghai conducted quarantine inspection on 35,000 batches of plant imports worth US$2.33 billion, 21,000 batches of animal imports worth US$1.21 billion, and 202,000 batches of wood packing. As a result, among 2,624 black-and-white milk cows from Australia, 23 heads were found contracting 5 animal infectious diseases including tuberculosis and paratuberculosis; and 10 out of 704 breeding swines from the U.S. contracting swine-infectious pleuropneumonia positive and Porcine respiratory disease syndrome, the diseased animals were all slaughtered. Listeria bacteria was detected from three batches of meat imports weighing 27 tons, and the goods were innocuously disposed of. 30 batches of meat products weighing 557 tons were destroyed because of absence of quarantine certificates or excessive heavy metal content, while two batches weighing 126 tons were rejected owing to such causes as contagion of samonella. Besides, bibio parahemolyticus and furazolidone metabolites were detected respectively from 20 and 5 batches of imported edible aquatic animals and excessive heavy metal content was found out from 2 batches of imported aquatic products. Samonella pollution and excessive mercury content were also discovered from imported meat bones and fish meal. As a result of quarantine inspection conducted on plants or plant products, hazardous life-forms were intercepted from 5511 batches of imports: hazardous life-forms of category 1 from 31 batches, category 2 from 226 batches, and category 3 from 67 batches; hazardous life-forms subject to quarantine requirement under bilateral agreements 103 batches and to other quarantine requirement 1,914 batches; ordinary hazardous life-forms from 3,170 batches. Among those parcels, one batch was found to contain radopholus similes (banana incurvariid); two batches, bean weevils; 12 batches, tilletia indica mitra, 2 batches each for sporangium and sporangiothore of tobacco blue mold. When excessive content of sulfur dioxide was discovered in successive five batches of longans imported from Thailand, the goods of the first batch were recalled while intensified testing and inspection procedures were effected. Consequently, the situation was brought into control and food safety was adequately ensured.
As a result of medical and sanitary inspection conducted at international airports and seaports on passengers, cargoes, containers and various conveyances, 214 batches of 40,700 pests were found out, among which there are gigantic cockroaches, ornithoctonus huwena£¬blatta orientalis, black flies that are never reported in domestic publications. 699 batches weighing 49 tons of meat products from major areas badly suffering from avian influenza, mouth-and-foot disease, mad cow disease, and swine fever were put in quarantine custody. More than 13,400 batches of animal and plant products were intercepted as a result of incoming passenger inspection, of which 781 batches of meat and egg products and fruits or vegetables from epidemic areas that are forbidden to bring from epidemic areas were destroyed. In the field of postal quarantine inspection, 74 batches of animal products and 1,266 batches of fruits and rice that are forbidden to mail from epidemic areas were either rejected or destroyed.
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Box 9.5 Technical Standards Strictly in Conformity With WTO Rules Are Not Trade Barriers
Decree No. 18 of the General Administration of Quality Supervision, Inspection and Quarantine entitled Regulation on the Inspection and Supervision of Coatings Imports provides that in order to protect the living conditions and human health, it is necessary to adopt a system of registration and testing on coatings imports. This technical measure came into effect as from July 1, 2002 and is to be conducted by designated laboratories based on China¡¯s national standards including Limitation on the Content of Hazardous Substances in Solvent Coatings Applied to Wooden Objects for Indoor Building and Decoration Materials (GB18581-2001), Limitation on the Content of Hazardous Substances in Indoor Wall Coatings (GB18582-2001) and Regulation on the Control of Indoor Environmental Pollution of Household Building Engineering (GB50325-2001) and other related rules and regulations.
Until November 2004, more than 600 batches of coatings imports for indoor use have been registered, among which 42 types of 24 brands from nine countries and regions including the U.S and Japan were rejected because of excessive content of hazardous substances such as free formaldehyde, VOC, methylbenzene and dimethylbenzene; and 4 already imported batches were shipped back under supervision because of excessive content of free formaldehyde. Besides, more than 3,000 types of non-indoor coatings were applied for special testing, half of which have been forbidden to be specified for other uses because of excessive content of hazardous substances. For example, an American product had come into China¡¯s market before July 2002, but was found to contain excessive formaldehyde. The producers concerned admit its inconformity to China¡¯s national standards and voluntarily called back the unqualified product. After the change of their formula, the improved coatings passed the special testing and returned to our domestic market. Obviously, the implementation of the system is a safeguard of the consumers in China. |
2. Inspection and Quarantine Supervision on Exports
(1) General Inspection and Quarantine Supervision on Exports
According to the Law of the People¡¯s Republic of China on Imports and Exports Inspection, China conducts mandatory inspection on part of its exports. This technical measure is in consistence with the statement made in the preamble of TBT ¡°no country should be prevented from taking measures necessary to ensure the quality of its exports, or for the protection of human, animal or plant life or health, of the environment, or for the prevention of deceptive practices, at the levels it considers appropriate, ¡¡±
During January-November 2004, 419.000 batches of exports valued at US$ 13.34 billion were subjected to the mandatory export inspection conducted by Shanghai Inspection and Quarantine Bureau. As a result of supervision on production procedures and ex-works pre-inspection, 353 batches of unqualified products worth US$ 9.81 were detected. In addition, 31,000 batches of plant exports worth US$ 650 million and 7,000 batches of animal exports worth US$ 190 million were subjected to quarantine inspection.
Throughout 2003, Shanghai Inspection and Quarantine Bureau conducted a survey on 1,861 batches of rejected Shanghai-made exports valued at US$ 53.18 million, mainly including electronic, light industrial, mechanic and textile products, with the target markets mainly in Japan (463 batches, US$ 10.39 million), the E. U. (331 batches, US$ 8.89 million) and the U. S. (323 batches, US$ 19.24 million). The main reasons for rejection include failure to pass the technical measures adopted by importing countries (3.8%), unqualified quality and other efficiency problems of the exports themselves (7.4%) and various other related problems (17.8%).
(2) Inspection and Quarantine Supervision on Food Exports
By the end of November 2004, 320 food processing enterprises were approved by the inspection and quarantine authorities to product, process and stock food products, and 74 passed the official certification examination conducted by local inspection and quarantine agencies based on the HACCP standards of the Codix Alimentation Commission (CAC), of which 46 manufacturing facilities under 25 companies completed registration procedures in nine foreign countries and regions including the E.U., the U.S., Japan, and Singapore.
Throughout 2004, aquatic and meat products manufacturing enterprises, official supervision network, and official laboratories in Shanghai received inspection by 8 foreign official teams including experts from Japanese Ministry of Agriculture, Forestry and Aquaculture, US Food and Drug Administration, the US Department of Agriculture, EU FVO inspection team, Singaporean Bureau of Agriculture, Food and Veterinary Medicine, and the Ministry of Marine and Aquatic Industries of South Korea. After passing the inspection of Japanese Ministry of Agriculture, Forestry and Aquaculture, Dajiang Meat Products Factory II is able to cross the trade barriers placed because of the occurrence of avian influenza in some areas in China and has become one of the 35 Japanese-approved Chinese exporters of poultry and meat products. Its exports to Japan has now recorded over 4,800 tons worth US$ 11.13 million.
Through the co-ordination of efforts of various parties, the European Commission lifted on July 16, 2004 its ban on some animal products including shrimps and prawns, breeded fishes, bee honey, royal jelly, meat rabbits, etc. This is the first liberalization since the E.U. sanctioned its overall ban on the importation of China¡¯s animal-based products on January 1, 2002.