How To Choose A Supplier Under The New Policy of China Customs

In order to purchase medical supplies from China, you have to interpret the new Chinese Customs policy and understand how factories producing medical supplies are classified from Black List, White List, and Unconfirmed List.

As China passed Announcement No. 12 back on April 25 to implement stricter transportation regulations on medical supplies, the world watched on as Chinese Customs Officials ensured the orderly export of medical supplies in an attempt to achieve quality control. Although the overall goal of Announcement 12 further helped Chinese customs officials remove invalid and fraudulent PPE from the export market, it also caused a large backlog of challenges in products and transportation. 

However, according to informed sources in China, the current situation has been greatly alleviated as the supply chain moves steadily forward.

In order to purchase medical supplies from China, you have to interpret the new Chinese Customs policy. Announcement 12 classifies the factories that produce all medical supplies in China into the following categories: 

1. Black List: This part of the factory has a history of exporting undesirable medical supplies. China Customs permanently prohibits this part of the factory from exporting medical supplies. Pay attention to whether the factory is on the Chinese blacklist when purchasing.

2. White List: This part of the factory has obtained corresponding certifications from other countries, such as NIOSH in the United States, CE certification in the EU, TGA certification in Australia, etc. This part of the factory is counted by the Ministry of Commerce of China and verifies the authenticity of the certificate. It can take priority in export declaration to avoid risks such as flight delays caused by inspections.

3. Unconfirmed List: This part of the factory is neither on the Black List nor on the White List. We call it the Unconfirmed List, as it will be subject to the most stringent inspection by the Chinese Customs Officials when exporting customs. The Chinese Customs will even conduct commodity inspections on the products. It will take a few days, resulting in delays and may incur huge costs (such as inspection fees, warehouse rental fees, dead freight). If the final commodity inspection results indicate that it is a bad product, the customs may confiscate the goods. The factory moved to the Blacklist and will be imposed the strictest punishment.

In addition, Chinese Customs requires the factory to provide a document with a common declaration when exporting customs, which means that when exporting non-medical masks, companies can export only according to Chinese standards or destination country standards. As for which standard is selected for export, this is negotiated by the buyer and the seller. It is worth a reminder that only when the factory is on the White List, the destination national standard can be selected for export during export declaration, otherwise the Chinese standard can only be selected for export declaration.

It raises a question, how do companies, hospitals, and healthcare professionals choose suppliers under the new policy of China Customs? 

It’s not only about purchasing medical supplies, but also about ensuring that the goods meet procurement needs and meet the export requirements of the Chinese customs.

Following a few simple steps has proven to be effective for shipping medical supplies from China: 

1. Check whether the factory belongs to the Blacklist, and refuse to cooperate with the Blacklisted factory to avoid the quality problems of the purchased goods and the export of customs declaration.

2. If you need to purchase non-medical masks that meet the national certification of the destination, please select the factory on the Chinese White List. This part of the factory has obtained the relevant certification of the destination country and is counted by the Chinese Ministry of Commerce to avoid the false certification documents and risk.

3. If you only need to purchase non-medical masks that meet Chinese standards, this does not require the factory to be on the White List, but requires that the test report must be valid (must be a testing agency above the provincial level and approved by MA, CNAS and other organizations Issued), all the information in the certificate documents must be consistent to deal with the strict inspection of the Chinese customs, in order to successfully be exported.

4. If you are purchasing medical supplies（new Coronavirus detection reagent, medical mask, medical protective clothing, ventilator, infrared thermometer), be sure to select the factory on the White List to ensure that the goods can be exported normally.

5. Choose professional third-party inspectors, such as a professional forwarder. Keep in touch throughout the process, as they can keep you abreast of China Customs' export requirements for medical supplies. They can also provide professional advice on some details to declare customs in China will not run into trouble.

The above precautions can make it simple for you to purchase medical supplies in China, and helps avoid many risks and losses along the way during the supply chain process.

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