How Customs Regulates Imported Cotton

Regulatory Provisions:

(1) The current practice of customs conducting batch-by-batch sampling and testing of imported cotton will be adjusted. Testing will now be conducted based on enterprise application; when necessary, customs may conduct supervisory inspections.

(2) If the consignee or agent of imported cotton requires customs to issue a quality certificate, they must apply to customs. After the on-site inspection and quarantine of the imported cotton is passed by customs, on-site sampling, laboratory testing, and issuance of a quality certificate will be carried out.

(3) If the consignee or agent of imported cotton does not require a quality certificate from customs, the cotton will be released directly after passing the on-site inspection and quarantine by customs.

Supervision Model for Imported Cotton Requiring Inspection Certificates

If the consignee or their agent of imported cotton requires customs to issue a cotton quality certificate, they must, during customs declaration, select the single-step complete declaration mode and apply to customs by checking the "Require Quality Certificate" option. After the on-site inspection and quarantine of the imported cotton is passed by customs, on-site sampling, laboratory testing, and issuance of a quality certificate will be conducted based on the enterprise application. For imported cotton requiring quality inspection certificates, customs will continue to use the established supervision model of "Pre-Registration + In-Process Inspection + Post-Facto Evaluation".

Pre-Registration

Overseas suppliers can apply to the General Administration of Customs for registration on a voluntary basis. Upon passing the review, the General Administration of Customs will grant registration, issue an "Registration Certificate for Overseas Supplier of Imported Cotton", and publish the list. The certificate is valid for 3 years. Registered overseas suppliers should apply to the General Administration of Customs for re-examination and certificate renewal 3 months before the certificate expires.

In-Process Inspection

Customs conducts on-site inspection and quality inspection of imported cotton and issues inspection certificates.

• On-site Inspection:
  Main inspection contents include: verifying whether the batch number, specifications, marks, etc., match the documents; whether the packaging meets requirements and is damaged; whether the goods are damaged, defective, adulterated, or misrepresented; for containerized cargo, check whether the container seal is intact, etc.

• Sampling:
  Customs implements different sampling plans for imported cotton based on the quality credit tier of the overseas supplier:

• For cotton from Grade A overseas suppliers, the destination customs implements sampling inspection according to industry inspection and quarantine standards.

• For cotton from Grade B overseas suppliers, the destination customs implements stricter inspection with double the sample size.

• For cotton from Grade C overseas suppliers, customs implements stricter inspection with double the sample size at the port of entry.

• Laboratory Testing:
  The quality of imported cotton is tested according to "Conformity Assessment Method for Quality of Import and Export Textiles - Textile Materials - Part 1: Cotton" (SN/T 3981.1-2014), mainly testing items such as grade, length, and micronaire value.

Post-Facto Evaluation

Customs establishes a quality credit assessment mechanism for overseas suppliers of imported cotton. Based on the actual delivered quality of the imported cotton and the fulfillment performance of the overseas supplier, customs conducts credit assessment and dynamic management of the overseas supplier's quality credit tier. Overseas suppliers not registered with the General Administration of Customs are managed as Grade C.

Points for Attention for Cotton Importing Enterprises

• Pay Attention to Quality Clauses When Signing Contracts:
  If the consignee of imported cotton does not apply to customs for quality inspection, they cannot obtain a quality certificate issued by customs and must bear the corresponding risks of potential quality non-conformity and trade dispute risks. Consignees of imported cotton should pay attention to including corresponding clauses in contracts to prevent quality non-conformity risks and protect the interests of all trading parties.

• Pay Attention to Declaration Mode and Certificate Content Selection During Declaration:
  For those requiring a cotton quality certificate from customs, the "two-step declaration" mode is temporarily not applicable. "Single-step complete declaration" is required, and the "Quality Certificate" option must be checked to apply. For those not requiring a quality certificate from customs, the consignee can choose either "single-step complete declaration" or "two-step declaration" and should not check the "Require Quality Certificate" option.

• Pay Attention to Quality Inspection Upon Receipt of Goods:
  Consignees of imported cotton with self-inspection capabilities can choose to conduct self-inspection. Those without self-inspection capabilities can choose a third-party inspection agency to assist with inspection. Customs does not designate any specific third-party inspection agencies. Enterprises can independently choose inspection agencies licensed by the General Administration of Customs for import and export commodity inspection.

• Conscientiously Fulfill Corporate Primary Responsibility:
  Consignees of imported cotton should declare truthfully to customs and maintain quality records of the actual received goods after receipt. If customs discovers during spot checks that the consignee or agent has not declared truthfully, customs will handle the matter according to relevant laws and regulations.