China

China compulsory certificate

China has introduced a new compulsory quality certificate. Initialy coming into operation in May 2003 (later postponed to August 2003), the China compulsory certificate is required for nineteen groups of products prior to sale in China. This product selection is based on whether the product is related to human life and health, animals, plants, environmental protection etc.

The system has been created by the Certification & Accreditation Administration for Quality Supervision and Inspection and Quarantine (AQSIQ). As of 1st August 2003, any product falling within the above groups not bearing the new certificate for Compulsory Product Certification (CCPC) aswell as the China Compulsory Certificate Mark (CCCM) that arrives in China will be denied access and subject to penalties.

The background to the CCC stems from China's entry into the WTO. Whereas in the past China operated via two compulsory inspection systems one for imports and exports and the other for quality control, this has now been combined. As of 1st August 2003, the CCIB mark introduced in 1989 and required for 47 product groups and the CCEE mark required for electrical commodities will no longer be seen. They will be replaced by CCC which actually came into effect on 1st May 2002 with a one year provisional application period. Therefore the period of grace is over and the Chinese authorities will be tough on products which do not meet the new requirements.

Although we have not experienced these new regulations having delayed vessel's discharge or delivery, we suggest that the owners should include a clause in the charterparty and bills of lading which provides for all delays attributable to import and customs regulations not being complied with, to be compensated as damages for detention, and any other loss and expense of whatsoever nature arising therefrom to be fully borne by the charterers and cargo interest. Further the clause should also allow the ship to sail to any port which the owners consider most suitable to discharge and deliver the cargo should damages for detention exceed 7 days, with all such time loss and expense being borne by charterers / cargo interests.