On 1 October 2002, the P.R.C. Customs and Inspection Authorities will begin their regular service under an amended regulation that was recently adopted to fulfill China's commitments to the WTO. This new legislation was designed to enhance the system of transparency and administrative supervision.

The new amendment stipulates that only the goods described in the State Catalogue of Compulsory Inspection should undergo automatic inspection and allows for qualified overseas inspection organizations to conduct domestic operations (with permission from the State Administration of Commodity Inspection). Also, there will be a nationwide authentication system and a fixed time limit for inspection procedures and penalty determination measures. This is important because both were previously ambiguous, and will now be clarified by the National Congress in accordance with the amendment.

The legislation also emphasizes a confidentiality guaranty for inspection organizations and the existence of administrative reconsideration and other administrative procedures designed to handle disagreements among parties during an inspection.

──Linus Zhu