Researcher Yang Lijian from the Shandong Institute for the Control of Agrochemicals recently wrote on issues regarding whether business licence is a must for pesticide foreign trades.
1. Business licence required for all pesticide trades in China
According to the Regulations on Pesticide Administration, enterprises engaged in pesticide export and import should apply for business licence as other pesticide business operators do. Moreover, the ones involved in the sales of restricted-use products also have to apply for additional licencing to provincial agricultural authorities. Imported pesticides are only allowed to be sold to retailers licensed for restricted-use products.
2. No export and import clearance for unlicensed enterprises
Release permits for pesticides to be exported or imported are only issued to products included into the Directory of Pesticides Registered for Import and Export of the People's Republic of China, according to the Ministry of Agriculture of the People's Republic of China and other licencing authorities. For this inclusion, pesticide exporters and importers must be licensed, otherwise their products could neither be released nor traded.
3. Licensing dispensable for on-site sales
Domestic pesticide manufacturers can be spared the business licence when selling their products within their production site, according to the Regulations on Pesticide Business Licensing. In other words, for overseas trades within production bases, enterprises are allowed not to be licensed. Yet, this provision is not applicable for their independent subsidiaries specially set up for export and import business, as the business entity is no longer the pesticide manufacturers.
Notably, pesticide enterprises applying for business licence should be equipped with:
Professionals on agronomy and crop protection;
Equipment to read two-dimensional barcodes;
A warehouse of at least 50 m2.
Particularly, the last requirement is hard to meet for most foreign traders. In this regard, the traders are suggested to cooperate with pesticide producers on at least 5-year warehouse renting.
NOTES TO EDITORS
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