According to a recent PwC survey almost two-thirds of New Zealand exporters have appointed a third party distributor to act as the Importer-of-Record in China. Others have appointed a third-party Import/Export Agent or use their Wholly Foreign Owned Enterprise (WFOE). In the same PwC survey almost half of all respondents reported that obtaining certainty in Customs clearance was their main supply-chain priority.

Original Pilot and New Measures

The State Administration for Sanitation, Inspection and Quarantine (AQSIQ) issued Tong Han [2009] No.118: Measures and Operation Instruction for the Administration of Credit of Entry-Exit Inspection and Quarantine Enterprises, that was applicable from 2009 through 2012. This pilot program represented the creation of a new Credit Management System for importers/exporters, agents, and other related parties.

AQSIQ then published on 16 July 2013 Announcement [2013] No.93: Issuing the Measures for the Administration of Credit of Entry-exit Inspection and Quarantine Enterprises, which was effective as of 1 January 2014 and transforms the pilot program into a new risk-based ranking system for ensuring compliance with non-tariff measures at the Customs border.

Supervision and Affected Parties

The General Administration of Quality Inspection, Supervision and Quarantine (AQSIQ) is responsible for nationwide credit management and regional CIQ (provincial and municipal level) through the Clearance Department will be in charge of implementation and administration.

The new Credit Management System impacts the following:

1. Exporters/Importers
2. Agents for inspection declaration, entry-exit inspection operators and quarantine processing entities
3. Port food production and operation entities, storage entities, inspection and identification institutions;
4. Other inspection and quarantine supervision and administration objects for which credit management is necessary.

Enterprises across most industry sectors are subject to significant non-tariff measures in respect of product testing, quality, marking and labeling. This includes dairy, food and beverage, and related consumer products that are being exported from New Zealand to China. Most of these measures are based on WTO principles and are associated with consumer health and safety and protection of other national security interests.

Compliance with non-tariff measures is fundamental to ensuring market access and a smooth supply-chain at the Customs border. Paling suggests that attaining good standing with CIQ under the new Credit Management System will aid in reducing intervention by CIQ in the supply-chain. 

More information on the CIQ is available here: http://www.nzcta.co.nz/advice/1632/attention-exporters-new-ciq-credit-management-system/ 

Source: NZCTA