NOTICE ABOUT IMPLEMENTING REGISTRATION MANAGEMENT FOR OVERSEAS COTTON IMPORTING COMPANY

NO. 87, 2008

Law of the People's Republic of China on Import and Export Commodity Inspection：
In order to strengthen the inspection and quarantine supervision of imported cotton, prevent from misdeeds in trade, such as defect or adulteration, and guarantee the quality of imported cotton, in accordance with Law of People's Republic of China on Import and Export Commodity Inspection and Regulations on Implementation Law of the People's Republic of China on Import and Export Commodity Inspection, General Administration of Quality Supervision, Inspection and Quarantine of People's Republic of China (AQSIQ) decides to implement registration management upon the overseas cotton supplier enterprises who are going to export to China mainland (overseas supplier enterprises).

The requirements of NOTICE are as follows:

©AQSIQ begins to accept the registration application of overseas suppliers from 15th September, 2008.

1. Suppliers applying for registration should be subject to the following conditions

(1)The company is legal in the country (region) where it locates.

(2)The company has a stable sites and a certain scale of operation

(3)The company has a stable supplying source and has measurements of quality control towards to the goods which are supplied.

(4)Be familiar with China inspection and quarantine regulations and relevant requirements of importing cotton

(5)The statements of no serious quality problems, no harmful substances, no record of serious consequences in the trading activities last year.

2. Overseas suppliers should submit the writing documents to AQSIQ in Chinese or both Chinese and English when they apply for registration (please provide consignment agency agreement if the application is done by agent)

(1)The overseas suppliers of importing cotton apply for registration.

(2)The commercial registration documents which are effective and legal (photocopy).

(3)The basic materials of supplier production, operation and quality control.

(4)The other relevant documents required by AQSIQ.

3. Once the submitted documents meet the requirements, AQSIQ will accept the registration application and inform overseas suppliers about it.

Supplements should be submitted in the first 5 workdays. If the applicants can submit the supplements in 20 workdays, the application will be abandoned.

4. Judicial team organized by AQSIQ will carry out assessment of the overseas supplier’s application in two months. If necessary, they will evaluate the applicants on the scene. On-site assessment includes processing ability, quality control and management, inspection, packaging, storage management and so on.

5. The applicants will be registered after assessment if they meet all the conditions required by AQSIQ. AQSIQ will issue registration certificate and notify external regularly. If not qualified, the applicants will not be registered and apply for it again after two months.

6. Registration Certificate is valid for 3 years.

Application for review of replacement because of expiration, applicants should apply for review of replacement in 3 month before its deadline. If the registered information of supplier is changed in the validity, please submit application for registration variation.

7. If documents of application are found untruthfully after investigation, the applicants will not be registered and the qualification of registration will be canceled for the registered applicants.

©When the registered overseas suppliers import cotton, 2009, the consignee should provide registration certificate of overseas supplier (photocopy) to inspection and quarantine agencies of entry port since 15th March. When arriving, goods can be tested in destination

If the overseas suppliers of cotton are not registered, the consignee should agreed on inspection items in contract before shipment that inspection agency appointed by inspection and quarantine organization or AQSIQ carry out inspection before shipment, and basic information of overseas suppliers and statements of qualified goods are required during entry inspection. When goods arrive, inspection and quarantine agency should carry out inspection at the first port.

©AQSIQ carries out assessment management of quality and credit to overseas suppliers. According to the actual quality of arrival and the situation of meeting the engagement, AQSIQ carry out list management of quality and credit rating to overseas suppliers. Credit assessment and inspection management refer to the relevant regulations.

©The registration management of Hong Kong, Macao, and Taiwan cotton suppliers is in accidence with this NOTICE.

5/8/2008