China Issues New Provisions on Overseas Food Manufacturer Registration

Remote video inspection and 3rd party verification during overseas manufacturer registration could be utilized to help expedite approval of manufacturing facilities. Management of registered manufacturers will be stratified based on a compliance rating system that will be adjusted dynamically. Overseas manufacturers of high-risk foods could be subject to annual verification and report.

On November 26, 2019, China General Administration of Customs (GAC) released a consultation draft^[1]on the Administrative Provisions on Registration of Overseas Manufacturers of Imported Foods (进口食品境外生产企业注册管理规定).^[2] Any comments shall be submitted before December 25 via one of the following approaches:

Customs official website: http://www.customs.gov.cn
Email: [email protected]
Mail: GAC Import and Export Food Safety Agency, No. 6 Jianguomen Inner Avenue, Beijing, China.

The Provisions were initially published in March 2012 by former AQSIQ to control food safety risks of animal- and plant-origin products imported from other countries.^[3] Overseas enterprises manufacturing food imported in China shall obtain registration certificates.

Since President Xi Jinping urged authorities at all levels to adhere to “four strictest measures” (penalty, supervision, standard, accountability) to ensure food safety,^[4] China customs further strengthened the registration of overseas food manufacturers in the draft; major changes are:

1. The applicable scope might extend to all food categories

2012 version article 4: Directory of Imported Food Subject to Overseas Manufacturer Registration is drafted, adjusted, and published by GAC.
Consultation draft article 4: Overseas manufacturers of foods exported to China shall register at GAC and obtain approval.

Currently, the provisions are applicable to aquatic products, dairy products, meat, and birds nest. The proposed deletion of the directory suggests potential inclusion of all food categories into the regime of this document, which would impose higher inward trade barriers on overseas food exporters.

2. Remote video inspection might be introduced to accelerate facility registration

2012 version article 8: GAC shall organize agencies to review application documentation and conduct the onsite investigation accordingly…
Consultation draft article 9: GAC shall arrange designated agencies to review application documentation and conduct the onsite inspection, long-distance video inspection, etc.

In the draft, long-distance video inspection serves as a new form of inspection, making facility registration easier for overseas factories if put in place.

3. Management based on compliance rating

Consultation draft article 13: GAC will classify and supervise overseas manufacturers and countries/regions according to risk analysis and compliance rating.
Consultation draft article 17: GAC will decide inspection key points, approaches and frequency according to risk levels of manufacturers of different types.

This mechanism is newly added for the purpose of efficient management over exporting countries and enterprises.

4. Annual verification and report mechanism

Consultation draft article 18: For products of relatively high safety risk and imported foods intended for special groups, annual verification and reports on registered manufacturers are required.

Besides hierarchical management over entities, GAC might also formulate and publish a list of foods subject to the mechanism mentioned in article 18. Authorities of relevant exporting countries shall submit certain documents prior to December 31 every year.

5. Responsibility of overseas authorities and importers clarified

Consultation draft article 21: if food safety problems are the results of a foreign authorities' failure to perform duties, GAC could suspend the approval of their food manufacturers accordingly.
Consultation draft article 23: Domestic importers need to make sure imported foods are produced by registered overseas enterprises and to make sure food packages are labeled with the official manufacturer name, address, and registration number, or they can entrust a third-party to perform the duty.

The consultation draft highlights obligations as well as the penalties imposable on overseas authorities and importers.

6. Term of validity expanded by one year

The manufacturer registration validity term is changed to “5 years” as opposed to “4 years” in current provisions.

For a detailed consultation draft, please refer to the original text. If you need a translation service, please send an email to [email protected].