14 Aug Latest development in relation to re-exporting unsold China inventories
When re-exporting unsold China inventories overseas, one of the biggest challenges encountered by the retail sector is the export inspection/ supervision requirements (i.e. Certificate B – Export Clearance Form) imposed by the China Commodity Inspection and Quarantine Bureau (“CIQ”). In many cases, the CIQ might refuse to issue the Certificate B for goods which are not made in China.
On August 1, 2013, the General Administration of Quality Supervision, Inspection and Quarantine and the General Administration of Customs jointly issued the Notice No. 109/ 2013 (“the Notice”) announcing certain amendments to the “Catalogue of Entry-Exit Commodities Subject to Inspection and Quarantine” (“the Catalogue”). Specifically, 1,507 HS codes of “Generally Manufactured Goods” will be exempted from CIQ export inspection, where 1,420 HS codes therein will be removed from the “List of exported goods which are subject to compulsory inspection and testing” under the Catalogue.
With effect from August 15, 2013, CIQ’s export inspection or supervisory requirements should no longer pose export inspection/ supervision barrier for fashion apparel and footwear retailers to return their China inventories overseas as most of apparel and footwear products have been removed from the Catalogue.