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Dalian Area of Liaoning Pilot Free Trade Zone First in China Launches 4 Step Inspection of Falsification and Concealment of hazardous goods and Cancels Verification of "2 Permits of Packaging"

        On October 29, Dalian Area of Liaoning Pilot Free TradeZone held a press conference, announcing the launch of a 4-step inspection  of falsification and concealment of hazardousgoods and the canceling of verification of "2 permits of packaging".The two initiatives marked a positive exploration of Dalian Area in optimizingport business environment, promoting and facilitating cross-border trade,deepening the reform of simplifying procedures, decentralizing powers,combining decentralization with appropriate control, and optimizing services”and intensifying interim and ex-post oversight, which was of great significancefor ensuring safe production at ports, lowering institutional transaction cost,improving the sense of gain of enterprises, and perfecting the port businessenvironment of Dalian Area.

        Through theseyears, the central government and the State Council has attached greatimportance to port business environment and made several important provisions.The State Council issued the Work Plan for Optimizing Port Business Environmentto Enhance Cross-border Trade Facilitation (No. 37 [2018], State Council).Premier Li Keqiang at the Standing Committee of the State Council made workdeployment of promoting customs clearance facilitation and optimizing portbusiness environment.

        To implement thedecisions and provisions of the central government and the State Council, basedon the work requirement of the municipal government on developing internationalbusiness environment, the Administration Committee of Dalian Area joined handswith the customs, maritime security and border inspection departments, bench-markinginternational best practices, to deepen the reform of simplificationof administrative procedures, devolution of powers, combination of devolutionand regulation, and optimization of services andlaunched a series of facilitation initiatives for high-level cross-bordertrade, which were fully recognized and well received by market players.

        To furtheroptimize port business environment, the Administration Committee and DalianMaritime Safety Administration launched two initiatives focusing on theoversight of port hazardous goods based on the mindset of interim and ex-postoversight: one is the 4-step inspection of falsification and concealment ofhazardous goods, which is the first of its kind in China, and another is cancelingof verification of "2 permits of packaging" for hazardous goods.

        The 4-stepinspection of falsification and concealment of hazardous goods is a 4-stepinspection carried by the authorities via smart information collection and thelaw enforcement system of administrative inspection chain towards porthazardous goods, namely "smart collection, information verification,unpacking check, and research and handling". Step 1, smart collection.Maritime safety departments connect and communicate with the customs and otherport departments via smart inspection of ship and vessel manifests, to collectinformation on falsification and concealment of hazardous goods throughcounterpart reports and screen and verify packaged information. Step 2,information verification. Inspectors verify suspicious hazardous goods anddetermine if there is falsification or concealment. Step 3, unpacking check.Based on the result of the previous step, inspectors unpack and check thegoods, sample uncertain goods and make identifications. Step 4, handling. Basedon the result of the previous step, the customs carry on investigations intoillegal matters and other security departments follow to close the case.

        The 4-stepinspection is a major breakthrough and innovation compared with the originalinspection system. With the new methodology, port departments has tremendouslyimproved the accuracy of hazardous goods inspection with smart analysis andconfirmation, which effectively ensures the operational safety andtransportation security of ports and has lowered the check rate of normal goodsby 90%.

        The "2permits of packaging" of hazardous goods are the Check Result of thePackaging of Inbound and Outbound Goods and the Authentication Result of theUse of Transportation Package of Inbound and Outbound Hazardous Goods. Cancelingthe two permits, the maritime safety departments do not either cancel afterverifying the use of the two permits by batch or collect the original result ofthe packaging result. Instead, companies carry out the canceling andverification by themselves and the authorities take ex-post spot checks, endingthe 23-year-long canceling and verification system datedback to 1996.

        A representativeof the Administration Committee of Dalian Area told the journalist that DalianArea would continue to facilitate investment trade and optimize port businessenvironment with institutional innovation at the core of work, accelerate thebuilding of International Shipping Center of Northeast Asia, and develop a newfrontier for cooperation and opening up in northeast Asia.