Opinion of General Administration of Quality Supervision, Inspection & Quarantine on Supporting the Building up of China (Shanghai) Pilot Free Trade Zone

GZJT [2013] No. 503

To: 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 & Quarantine has given the following opinions on supporting the building up of China (Shanghai) Pilot Free Trade Zone (hereinafter referred to as the Pilot Zone):
    I. Actively make innovation of the quality inspection system
    Conscientiously carry out the overall deployment of the State Council for the Pilot Zone 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", make intensive study and dare to innovate so as to explore the establishment of a new system of inspection, quarantine and supervision that can improve quality, ensure security and promote development. Actively innovate in the supervision and inspection system, draw on international custom and prevailing practices so as to build up a quality guarantee system, a technical-based support system and an efficient, convenient quality and technical supervision and service system that are in line with international practices.  Accumulate experience of reform in the Pilot Zone that can be copied and promoted, and give better play to the role of quality inspection in the state's economic and social construction.
    II. Probe into new mode of inspection and quarantine regulation in the Pilot Zone
    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 the measures for facilitating inspection and quarantine, shall do a good job in the regulation of inspection and quarantine of imported/exported goods. Probe into and apply a classified regulatory mode based on risk and credit management, establish and perfect a system of risk evaluation, early warning and disposition, and shift the focus of inspection work to security, hygiene, health, environmental protection and anti-fraud, so as to form a scientific and efficient regulatory system. Actively study innovative measures for pre-registration for record filing, verification management and follow-up supervision over imported/exported goods. Explore the system of tracking products' origins and boost the level of product quality safety guarantee. Set up a system admitting in and managing third-party inspection and appraisal institutions, improve facilities for centralized examination and supervision in the Pilot Zone, so as to boost efficiency of duty performance.
    III. Support the innovative establishment of quality and technical supervision and law enforcement system in the Pilot Zone
    We support the innovations of the regulatory mode for special equipment by using distance monitoring, full-course supervision and informatization, and setting up an emergency response institution and strengthen safety supervision over special equipment in the Pilot Zone 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 link, risk monitoring and quality complaint handling as well as response to quality safety emergency in the Pilot Zone.
    IV. Support the reform of administrative licensing system on quality supervision in the Pilot Zone 
    We will delegate some of the authority of administrative licensing, including permission for manufacturing special equipment and for importing measurement instruments of non-legal measurement units, to Shanghai quality and technical supervision department. We support the efforts in reforming the licensing system for manufacture of industrial products, and we will cancel a batch of items subject to approval, cut down the scope of catalogue subject to approval, change the approval method, and gradually grant approval based on an applicant's informed commitment. We support 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 Pilot Zone, improve review and approval efficiency and strengthen intermediary and subsequent supervision of labs. We support the unified exercise of subsequent supervision over inspection and appraisal institutions and the establishment of a system admitting in opinions of such institutions and an information sharing platform.
    V. Help boost trade facilitation in the Pilot Zone
    We will strengthen coordination with the local government and port departments, push forward information sharing, joint law enforcement and supervision so as to facilitate entry/exit of goods and personnel in the Pilot Zone. We will cooperate in establishing a regulatory system that meets the development needs of new business forms in the Pilot Zone, including international allocation, financial leasing, third-party repair and intermediary trade, and push forward the integrated building up of the Zone 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 the pilot cooperation with customs on "one-stop" service and help improve port efficiency.
    We support the Pilot Zone in its efforts to formulate and release a batch of regional local standards that are in line with international standards and internationally accepted rules. We support enterprises in the Pilot Zone in their efforts to take part in international standardization activities and adopt international standards; we will guide and encourage enterprises in the Pilot Zone in adopting alliance standards on a trial basis. We support the publicity of WTO/TBT standards, technical regulations and conformity assessment procedures to enterprises in the Pilot Zone, and will provide consultation and service for the removal and reduction of technical trade barriers.
    VI. Set up an early warning and control system of inspection and quarantine in the Pilot Zone
    Establish and maintain an early warning and prevention/control system for public health incident, animal or plant epidemic and quality incident of imported/exported goods; improve the monitoring system of medical organisms, nuclear, biological and chemical harmful substances, alien organisms and food safety risks; boost the efficiency in emergency response and disposition, and do a real good job in coordinating with the local government and relevant departments to jointly provide protection guarantee for the building up and development of the Pilot Zone.
    VII. Support the building up of public information platform in the Pilot Zone
    We support the Pilot Zone in its efforts to build up a public information platform based on the local electronic port, so as to share information on application, logistics and regulation between enterprises, relevant entities and inspection and quarantine institutions in the Pilot Zone.  Make innovations in technology and method, and make the logistics monitoring system of inspection and quarantine more compatible with the running of new business modes in the Pilot Zone. Use such technologies as the Internet of Things and wireless communication, carry out mobile law enforcement in inspection and quarantine in the Pilot Zone on a trial basis, and provide enterprises with paperless information services including goods declaration at any branch of the inspection bureau, on-line booking and on-line handling.
    VIII. Help build and improve the credit system in the Pilot Zone
    We support the Pilot Zone in taking the lead to formulate a list of credible enterprises under the principle of enterprise application, joint credit information, public announcement, policy superposition and rolling elimination, so as to carry out incentive and 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 credit service industry. We support the establishment of enterprise quality credit records based on the organization code real name system, 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 code to track their origins.
    IX. Support the Pilot Zone in developing cross-border e-business
    Study to 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 Pilot Zone.
    X. Service to industrial agglomeration in the Pilot Zone
    We support the development of such industries as bio-medicine, repair of old mechanical and electric equipment, re-utilization and re-manufacture of imported goods. Formulate regulatory measures, according to industry characteristics and enterprise needs, on review and approval, declaration, examination, inspection and quarantine, boost administrative efficiency and encourage relevant enterprises to settle down in the Pilot Zone, so as to give full play to the Pilot Zone's agglomeration effect for key industries.
    We support the settlement of the state quality inspection centre in the Pilot Zone to provide detection 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 Pilot Zone. We support the reform to involve private sectors in special equipment test and inspection. We will push forward mutual recognition of appraisal results and standards between institutions in the Pilot Zone and their foreign counterparts. We will gradually allow foreign-funded certification and appraisal institutions to open branches in the Pilot Zone and conduct business.
    The General Administration of Quality Supervision, Inspection & Quarantine requires all inspection institutions to further enhance their initiative to help develop local economy, fully implement the policy of grasping quality, ensuring safety, promoting development and strengthening quality supervision, so as to contribute to socio-economic development.

General Administration of Quality Supervision, Inspection & Quarantine of 
the People's Republic of China
27 September 2013