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China outlines details of ‘Green Fence’

Keywords: Tags  Operation Green Fence, Green Fence, Chinese government, raw material imports, scrap imports, Nathan Laliberte

NEW YORK — A document detailing various initiatives set forth in "Operation Green Fence" has been released by the Chinese government, offering the first official explanation of the nation’s increased enforcement and supervision on imports of raw materials.

The document, obtained by AMM, highlights changes to procedural rules for select examinations and field inspections, and states that initiatives associated with "Green Fence" will no longer be enacted after Nov. 30, 2013.

In recent months, exporters have expressed confusion over why certain companies have experienced increased supervision and inspection of material, and several sources told AMM they believe customs officials are carrying out inspections randomly.

"It’s the strangest thing," one exporter said. "One container will get rejected, while the other container—holding the same type of material—will get accepted."

According to the document, titled "The Action of Green Fence," certain companies will experience stepped-up supervisions and random field inspections if the government believes the company previously made false or deceptive declarations, provided false or misleading information about the contents or weight of shipments, or had attempted to smuggle prohibited goods into the country.

It also stipulates that "production-oriented enterprises" who pose a "high degree of risk" or are "newly established" will experience field inspections on 100 percent of shipments received into port. Selective examination for Class AA enterprises will be inspected no less than 10 percent of the time, while Class A enterprises with "good reputations" will be inspected no less than 20 percent of the time, the document states.

Increased inspections will be carried out on material shipped from Europe, Japan, South Korea, Taiwan, Hong Kong and the United States, according to the document.

Several exporters previously told AMM that shipping material through Hong Kong and Vietnam was the best way to avoid stepped-up inspections in Chinese ports (, April 24). According to the government, customs officials are aware of the loophole and are attempting to cast a wider net on inspections.

"It is necessary to pay close attention to the risks of using the transit shipment in Hong Kong or Vietnam," the document states, adding that special attention must be paid to material shipped through the Pearl River Delta, Yangtze River Delta and Bohai Rim region, as well as Guangdong province and the Guangxi region.

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