Challenges
and Difficulties for International Companies
By
Klaus Koehler, Managing Director, Klako Group
As
part of China's commitments for the entry into the World Trade Organization,
the China Compulsory Certification (CCC) was implemented last year
and the two former marks, the CCIB for Product Safety and the CCEE
product approval mark which certified products for import and export
were retired.
Since
the implementation of the CCC became effective from the 1 August
2003, a total of 149,655 certifications have been issued by the
end of August 2004. The certificates have been issued to 137,671
domestically made products but only to 11,684 imported products.
Out of 15,818 factory inspections only 628 took place abroad. The
statistics alone show that the new CCC of China has not found a
broad acceptance in its first year with international companies.
The
Product Groups
The
CCC mark applies to all catalogue covered products which can be
marketed, imported or used in China. Failure or delay in getting
certification for the catalogue covered products will result in
hefty fines.
The
current catalogue of 132 product categories is divided into 19 product
groups.
"
Electrical wires and cables
" Switches for circuits and installation protective and connection
devices
" Low voltage electrical apparatus
" Small power motors
" Electrical tools
" Welding machines
" Household and similar electrical appliances
" Audio and video apparatus
" Information technology equipment
" Lighting apparatus
" Telecommunication terminal equipment
" Motor vehicle and safety parts
" Motor vehicles tyres
" Safety glasses
" Agricultural machinery
" Latex products
" Medical devices
" Fire fighting equipment and detectors
" Detectors for intruder alarm system
The
Director of the Department for Certification under the China National
Certification and Accreditation Administration (CNCA) announced
in September that more product groups will be added next year.
From
1 August 2005, solvent coatings for wood ware, porcelain tiles and
concrete admixtures will be added to the catalogue list, and intrusion
detectors, burglar alarm control units, vehicle security alarm systems
and burglar-resistant safes from 1 October, 2005.
The
Application
Since
the implementation of the CCC, small and medium sized international
enterprises with no representation in China experienced difficulties
in the application procedures. Many international companies had
to fight their way through the rules and regulations, especially
as the authorities initially published these in the Chinese language.
Most information is now available in English on the websites dedicated
to the CCC and the website of the China Quality Certification Centre
(CQC).
The
Certification begins with an application submitted to the CQC, which
is based in Beijing. The CQC was assigned as one of the nine institutes
for the certification by the CNCA and it is in charge of 16 of the
19 product groups. If unsure which institute has to be contacted
for a specific product group, the application can be handed in to
the CQC and will then be forwarded to the designated institute.
The
certification institute assigns a testing laboratory in China where
the sample of the product will have to be sent to by the applicant.
No test conducted by foreign testing laboratories is currently accepted,
with very few exceptions. The CNCA only accepts foreign certification
laboratories if the product can not be transported or if the assigned
laboratory does not have the required testing equipment.
The
standards for the sample testing, called Guo Bao (GB) standards,
are mainly based on the IEC standards. Some of the standards however
have no corresponding international standard. The international
manufacturer therefore has to translate and study the GB standards
to ensure his product is manufactured to CCC standards.
Once
the sample test has been conducted, a factory inspection is scheduled
for Chinese auditors. Even though the GB standards for the factory
audit are again almost identically to the ISO 9001 requirements,
already existing international certifications are not accepted.
Challenges
and Difficulties for International Companies
For
international Companies importing their products to China, the CCC
procedure is too time consuming. The factory inspections are burdensome
and a major source of delay. The application can take up to 6-8
month.
In
the first seven month of this year, the trade volume between China
and the EU has reached 96 billion US Dollars, making the EU and
its 25 member countries China's biggest trade partner. On September
20, the EU and China held a joint working conference in Beijing
to exchange their views and discuss simplifying the procedures.
Wang
Feng Quing, Director of the CNCA said that it is in both sides interest
to further cooperation in certification and conformity assessment,
especially the CCC. "China also hopes to learn from the EU's
advanced experience in such aspects" she said.
Jean Paul Mingasson, Director General of the European Commission's
Enterprise Directorate - General urged China in the seminar that
further improvements in the certification terms and procedures will
facilitate bilateral trade.
Enrico
Malcovati, secretary general of Italian Mechanical Engineering Associations
outlined that not only is the application procedure too time consuming,
but also pointed out that the information about the CCC could be
improved. Factory inspections, for example could be done by accredited
International bodies. Also no inspections should be necessary where
companies have already been certified according to international
standards.
Liu
Wijun responded that the administration will perfect its website
to improve transparency and obtaining information, as well as adding
more agencies and open online certification.
The
flowchart of CQC Product Certification shown above and further information
to the product catalogue and application procedure can be found
on www.ccc-cn.org and www.cqc.com.cn.
If you require assistance with the above subject, please contact
us at info@klako.com with your detailed questions.
All information in this report is verified to the best of our ability
and is assumed to be correct at time of release; however, Klako
Group does not accept responsibility for any losses arising from
reliance on the information provided within.
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