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China Customs Releases Guidance for Additional Pre-Shipment Inspection Agencies and AQSIQ Dissolved

China’s General Administration of Customs this week released guidance for third party inspection agencies to apply for a license by the Chinese Government to conduct pre-shipment inspections for scrap prepared for the Chinese market.

Although the announcement follows through on a rule that was instituted on February 1, it is a positive step forward toward providing a choice of inspection agency to exporters.

This also reveals that Customs will now have oversight of all pre-shipment inspections. Furthermore, ISRI learned from contacts in China that the Chinese Government’s restructuring may have led to the dissolution of AQSIQ. An official Government announcement has not been made, but we believe that AQSIQ’s inspection and quarantine functions are now under the purview of Customs. As we learn more about what this means for companies that do business in and with China, such as the export licensing system, we will share that with members.

Although not new news, we believe the timing of the announcement implies that the Chinese government heard our concerns in the wake of CCIC’s U.S. suspension and as advocated by the U.S. government in its negotiations with China on trade. Commerce Secretary Wilbur Ross is expected to visit China June 2-4 to continue discussions.

Please contact Adina Renee Adler with any questions.

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