Opinions of the General Administration of Quality Supervision, Inspection and Quarantine on Supporting the Construction of the China (Shanghai) Pilot Free Trade Zone
The English version is for reference only. If there is any inconsistency or conflict between the English and Chinese version, the Chinese version shall prevail.
Guo Zhi Jian Tong  No. 503
Shanghai Entry-Exit Inspection and Quarantine Bureau, Shanghai Municipal Bureau of Quality and Technical Supervision:
To carry out the overall deployment of the CPC Central Committee and the State Council on improving the level of open economy and promoting the development of regional economy, the General Administration of Quality Supervision, Inspection and Quarantine has given the following opinions on supporting the building up of the China (Shanghai) Pilot Free Trade Zone (hereinafter referred to as the “FTZ”):
Actively innovating the quality inspection system
We will carry out the overall deployment of the State Council for the FTZ and, considering new situations in the State's reform and opening up and new requirements for transforming governmental functions, and under the principle of "import quarantine, moderately lift restrictions on import/export inspection; facilitate entry/exit, closely guard against quality safety risks", probe into possibilities and make innovations so as to build up a new system of inspection, quarantine and supervision that can improve quality, ensure security and promote development. We will make innovations of our supervision and inspection systems, draw on international customs and prevailing practices so as to build up a quality guarantee system, a technical-based support system and an efficient quality and technical supervision and service system that are in line with international practices. We will accumulate reform experience in the FTZ that can be copied and promoted, and give better play to the role of quality inspection in the State's economic and social construction.
Probing into a new mode of inspection and quarantine regulation
We will actively draw on advanced experience in international free trade zones and make innovation in the regulatory mode of inspection and quarantine. Under the principle of facilitating entry/exit and closely guarding against quality safety risks, the "front-line" shall give maximum facilitation with focus on entry/exit quarantine and inspection of key and sensitive goods; the "back-line", based on improving measures for facilitating inspection and quarantine, shall do a good job in the regulation of inspection and quarantine of imported/exported goods. We will probe into and apply a classified regulatory mode based on risk and credit management, establish and maintain a system of risk evaluation, early warning and response, and shift the focus of inspection work to security, hygiene, health, environment and anti-fraud, so as to form a scientific and efficient regulatory system. We will probe into innovative measures for pre-registration for record filing, verification management and follow-up supervision over imported/exported goods. We will probe into the system of tracking products' origins and boost protection for product quality. We shall set up a system admitting in and managing third-party inspection and appraisal institutions, improve facilities for centralized examination and supervision in the FTZ, so as to boost administrative efficiency.
Supporting the innovative establishment of quality and technical supervision and law enforcement systems in the FTZ
We support the innovations of the regulatory mode for special equipment by using distance monitoring, full-course supervision and informationization, and setting up an emergency response institution and strengthening safety supervision over special equipment in the FTZ including boilers, elevators, pressure vessels, pressure pipelines and special motor vehicles for field (factory) use. We support the establishment of a regulatory mode of product quality focusing on self-declaration of quality by enterprises, sample check in circulation, risk monitoring, quality complaint and handling as well as response to safety incidents in the FTZ.
Supporting the reform of administrative licensing systems on quality supervision in the FTZ
We will delegate some of the authority of administrative licensing, including permission for manufacturing of special equipment and for importing measurement instruments of non-legal measurement units, to the Shanghai quality and technical supervision department. We support efforts in reforming the licensing system for manufacture of industrial products, and we will cancel the batch by batch registration system subject to review and approval, cut down the scope of catalogues subject to approval, change the approval method, and gradually grant approval based on an applicant's commitment. We support the Shanghai Municipal Bureau of Quality and Technical Supervision in working together with relevant authorities to streamline review and approval items on qualification of appraisal institutions in the FTZ, improve review and approval efficiency and strengthen interim and ex post supervision of labs. We support the unified exercise of subsequent supervision over inspection and appraisal institutions and the establishment of a system admitting opinions of such institutions and an information sharing platform.
Helping boost trade facilitation in the FTZ
We will strengthen coordination with the local government and port departments, push forward information sharing, joint enforcement and supervision so as to facilitate entry/exit of goods and personnel in the FTZ. We will cooperate in establishing a regulatory system that meets the needs of new business forms in the FTZ, including international allocation, financial leasing, third-party repair and intermediary trade, and push forward integrated building up of the FTZ and harbor. We encourage the study of measures for facilitating protection of import/export geographical marks and information collection, and delegate on a trial basis relevant items of administrative licensing and approval to bureaus directly under the Administration and loosen review and approval requirements, and simplify on a trial basis procedures of import filing and pre-examination before shipping. We will push forward pilot cooperation with Customs on “one-stop” services and help improve port efficiency.
We support the FTZ in its efforts to formulate and release a set of regional local standards that are in line with international standards and internationally accepted rules. We support enterprises in the FTZ in their efforts to take part in international standardization activities and adopt international standards; we will guide and encourage enterprises in the FTZ in adopting unified standards on a trial basis. We support the publicity of WTO/TBT standards, technical regulations and conformity assessment procedures to enterprises in the FTZ, and will provide consultation and service for the removal and reduction of technical trade barriers.
Setting up an early warning and control system of inspection and quarantine in the FTZ
We will establish and maintain an early warning and prevention/control system for public health incidents, animal or plant epidemics and quality incidents of imported/exported goods; we will improve monitoring of medical organisms, nuclear, biological and chemical harmful substances, alien organisms and food safety risks; we will boost efficiency in emergency responses, coordinate with the local government and relevant departments to jointly provide protection for the building up of the FTZ.
Supporting the building up of public information platforms in the FTZ
We support the FTZ in its efforts to build up a public information platform based on a local electronic portal, so as to share information on application, logistics and regulations between enterprises in the FTZ, relevant entities and inspection and quarantine institutions. We will make innovations in technology and methods, and make the logistics monitoring system of inspection and quarantine more compatible with the running of new business modes in the FTZ. We will, using such technologies as the Internet of Things and wireless communications, carry out mobile enforcement in inspection and quarantine in the FTZ on a trial basis, and provide enterprises with electronic information services including goods declaration at any branch of the inspection bureau, on-line booking and on-line handling.
Helping build and improve the credit system in the FTZ
We support the FTZ in its efforts to formulate a list of credible enterprises under the principle of enterprise application, joint credit, public announcement, enjoyment of various preferential policies simultaneously and elimination of previosu policies, so as to carry out supportive measures. We support the establishment of a unified credit platform and credit management system so as to share information on enterprise credit. We will gradually adopt credit reports issued by a third-party in respect of classification-based enterprise administration, credit management and appraisal of AA class enterprises, and promote the development of a credit service industry. We support the establishment of enterprise quality credit records based on organization codes, and probe into the establishment of a market exit mechanism based on such records. We support the establishment of a credit information platform on product quality using goods codes to track their origins.
Supporting the FTZ in developing cross-border e-business
We will formulate administrative measures on the inspection, quarantine and supervision of cross-border e-business, set up an origin tracking and regulation system for cross-border e-business products, set up a pilot system of information support connected with cross-border e-business service enterprises, raise regulatory efficiency on such products and promote the sound development of enterprises of cross-border e-business and relevant service enterprises in the FTZ.
Service industrial agglomeration in the FTZ
We support the development of such industries as bio-medicine, repair of old mechanical and electrical equipment, re-utilization and re-manufacture of imported goods. We will, considering industry characteristics and enterprise needs, formulate regulatory measures on review and approval, declaration, examination, inspection and quarantine, boost administrative efficiency and encourage relevant enterprises to settle in the FTZ, so as to give full play to the FTZ's agglomeration effect for key industries.
We support the settlement of a State quality inspection centre in the FTZ to provide an examination service to the financial service industry, professional service industry as well as software and information service industry. We support institutions designated for compulsory product certification in providing convenience in serving the FTZ. We support reform to involve private sectors in special equipment examination and inspection. We will push forward mutual recognition of appraisal results and standards between institutions in the FTZ and their foreign counterparts. We will gradually allow foreign-invested certification and appraisal institutions to open branches in the FTZ and conduct business.
The General Administration of Quality Supervision, Inspection and Quarantine requires all inspection institutions to help develop the local economy by strengthening supervision over quality and safety so as to contribute to socio-economic development.
General Administration of Quality Supervision, Inspection & Quarantine of the People's Republic of China
September 27, 2013
Provided by Lawyers Working Committee of Pudong New Area