On October 24, 2017, the General Administration of Quality Supervision, Inspection and Quarantine ("AQSIQ") issued the Announcement on Streamlining Inspection and Quarantine Formalities to Enhance Customs Clearance Efficiency (the "Announcement"), effective from November 1, 2017.

The Announcement states that an inspection applicant, while handling formalities for applying for customs inspection and quarantine, is required to provide the assurance of conformity issued by the consigner of outbound goods or the consignee of inbound goods. The assurance of conformity should cover the commitment of observing laws, guarantee for conformity, responsibilities for quality safety, and voluntary measures to recall products in question when problems in connection with products arise.

Additionally, the Announcement clearly specifies that goods imported into China for the first time and imported goods required to have inspection and quarantine certificates should undergo tests for the inspection and quarantine purposes on the spot and/or in the laboratories in accordance with applicable provisions. Work to examine documents includes, but is not limited to, the review of the registration, certification, approval, evaluation, verification, and assurance of conformity, and other processes to ascertain the conformity. Furthermore, the Announcement stipulates that, where goods fail to pass inspections and quarantine tests or there is evidence that these goods are associated with higher level of risks, or the consignee, consigner or inspection applicant is rated as Level C or below in terms of its exitentry inspection and quarantine credit, the sampling percentage could be heightened up to 100% against such party, after the risk assessment.