
UK and U.S. economic prosperity deal takes effect – Key takeaways
China recently announced two revised decrees that, once implemented, would impose substantial new requirements for food and beverage companies that export to China.
These regulations are as follows:
In particular, with some limited exceptions, Decree 248 will require that all overseas food manufacturers, processors, and storage facilities be registered with the General Administration of Customs of China (GACC) to export product to China. Decree 249 will provide new enforcement tools for GACC to suspend or prohibit food importation into China when violation with applicable Chinese laws and regulations are identified.
Both decrees are slated to enter into force on 1 January 2022. Below, we highlight some of the key provisions from these decrees.
Once implemented, Decree 248 would expand the scope of overseas facilities subject to a registration requirement to include all food manufacturers, processors, and storage facilities. The product scope includes all food products except for food additives and “food-related products,” which is defined by the Food Safety Law of China to include food packaging materials, detergents, disinfectants, and tools and equipment used in food manufacturing.
The new facility registration requirements differ based on the specific types of food products manufactured:
Facilities that manufacture products covered by Group #1 need to first obtain recommendation by the competent authority (defined as the government agency in charge of food safety) of the local jurisdiction for facility registration. There are also detailed requirements for the registration dossier including, when requested, food safety documents, facility design, and manufacturing process flow chart. Facilities that manufacture products covered by Group #2 can directly apply for facility registration with less stringent document requirements.
Once implemented, Decree 249 would equip GACC with more administrative enforcement tools regarding food importation. In the following circumstances, GACC may take control measures including suspending or prohibiting imports:
Hogan Lovells will continue to closely follow the implementation of these two decrees. Please do not hesitate to reach out to us if you have questions regarding this or other matters.
1 An unofficial translation of Decree 248 is available at: China: Overseas Facilities Registration Regulation - Decree 248 | USDA Foreign Agricultural Service.
2 An unofficial translation of Decree 249 is available at: China: Administrative Measures on Import and Export Food Safety | USDA Foreign Agricultural Service.
Authored by Martin Hahn and Xin Tao.