China Regulatory Brief: New Food Safeguards & Anti-Dumping Duties

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Food and Drug Supervision Strengthened From June 1

Released by the China Food and Drug Administration (CFDA) on April 28, the “Provisions on Food and Drug Administrative Penalty Procedure (CFDA Order No.3)” aims to regulate food and drug supervision, and safeguard the interests of citizens, legal persons and other organizations. The provisions clarify the administrative penalty procedures (jurisdiction, filing, investigation, obtaining of evidence, punishment, delivery, execution and closure) for food, drugs, cosmetics and medical devices. Furthermore, eight categories of food, namely infant formula, infant food, dairy products, meat products, Chinese liquor, beverages and edible vegetable oil, fall under food production and processing supervision. The provisions shall take effect on June 1, 2014.

China Levies Anti-Dumping and Anti-Subsidy Duties on EU Solar-Grade Polysilicon

On April 30, the Ministry of Commerce (MOFCOM) released the “Announcement on the Final Ruling on Anti-Dumping and Anti-Subsidy Probe into Imports of Solar-Grade Polysilicon Originated from the EU (MOFCOM [2014] No.16)”.

The MOFCOM claimed that solar-grade polysilicon from the EU was dumped onto the Chinese market, causing substantial damage to the domestic industry, according to the anti-dumping probe launched on November 1, 2012. According to the Announcement, importers of solar-grade polysilicon originating from EU are subject to anti-dumping and anti-subsidy duties levied by China for two years starting from May 1, 2014.

China Levies Anti-Dumping Duties on High Temperature and Pressure-Bearing Seamless Alloy Steel Pipes from the EU and the U.S.

On May 9, the Ministry of Commerce (MOFCOM) released the “Announcement on the Final Anti-Dumping Decision on Imported High Temperature and Pressure-Bearing Seamless Alloy Steel Pipes Originating from the EU, Japan and the U.S. (MOFCOM [2014], No.34)”. The Announcement states that importers of these steel pipes originating from the EU and the U.S. are subject to anti-dumping duties levied by China for five years starting from May 10, 2014. The anti-dumping tax rates can be found below:

  • Vallourec Deutschland GmbH: 13 percent
  • IBF S.P.A.: 13.2 percent
  • All Others from the EU: 13.2 percent
  • Wyman-Gordon Forgings, Inc. and others from the U.S.: 14.1 percent

China to Implement Risk Inspection for the Financial Leasing Industry

The Ministry of Commerce (MOFCOM) recently released the “Circular on the Implementation of Risk Inspection for the Financial Leasing Industry (‘Circular’)” in order to prevent risks induced by illegal fund raising and private financing. All foreign-invested financial leasing enterprises, as well as domestic financial leasing enterprises approved before March 31, 2014 under a pilot program, are included in the risk inspection. Enterprises’ business activities, internal control and risk status will be inspected through the National Management Information System for Financial Leasing Enterprises or on-site inspection. The risk inspection shall be carried out before May 30, 2014.

Bonded Zones to be Integrated in China

Due to a lack of policy support for production services, China’s bonded zones have remained mostly manufacturing-based and limited in development. To change the situation, the General Administration of Customs (GAC) recently announced that an integration scheme will be launched later this year. According to the scheme, special customs supervision zones, including bonded zones, export processing zones, bonded logistic parks, cross-border industrial zones, bonded port zones and comprehensive bonded zones will be integrated under the title of ‘comprehensive bonded zones’. The GAC clarifies that enterprises such as non-bonded enterprises and manufacturing enterprises processing high energy consumption products will not be allowed to operate in these ‘comprehensive bonded zones.’

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