In response to the State Council’s call to boost e-commerce in China, China’s AQSIQ (the main authority responsible for controlling food importation) issued on 15 May 2015 “Opinions on Propelling the Development of Cross-border ecommerce by Further performing its Inspection and Quarantine Functions”, aiming to create a positive supervisory environment for the new economic model. The document articulates AQSIQ’s key regulatory responsibilities including:
Creation of a new regulatory system to deal with the unique challenges posed by e-commerce (pilot cities of cross border e-commerce like Hangzhou will be the pioneer to explore innovative measures);
Establishment of a negative list as a deterrent to importation and distribution of prohibited goods through cross border e-commerce platforms (related companies shall submit the list of consumer products to the local CIQ for screening and approval prior to putting them online, for example, meat from America has long been banned to be imported so they are not allowed to be sold through cross-border platforms as well);
Development of risk monitoring and traceability systems for imported consumer goods (taking traceability requirements for example, consumer products such as infant formula sold through e-commerce websites will be required to be attached with a traceability and anti-counterfeiting code to assure authorities, distributors and consumers of product authenticity and flow).
Development of new supervisory procedures to deal with cross-border e-commerce;
Implementation of a filing system for operators of cross-border e-commerce platforms and for the commodities available on these websites;
Development of information infrastructure to allow information sharing among e-commerce platforms, logistics companies, related governments, etc. as well as a credit system to rate these platforms.
Cross-border ecommerce is a new but prevalent trade model in China. Growth in this sector is driven by a strong demand for quality overseas products, especially food, cosmetics, baby products and health foods. In stark contrast to goods imported and distributed through traditional bulk wholesale distribution models which are routinely inspected by CIQ, goods sold on the cross-border ecommerce websites do not fall under the regulatory scope of CIQ’s inspection and quarantine. Although CIQ doesn’t currently inspect these goods, the above measures indicate China AQSIQ and its local CIQs will continue to play an important role in supervising imported products sold on cross-border e-commerce platforms to further ensure their safety, authenticity and traceability.
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