Unscrupulous Agents Threaten Chinese Mask Makers' Export Plans
Lin Zhiyin | Lv Jinyu | He Leshu
DATE:  Mar 30 2020
/ SOURCE:  yicai
Unscrupulous Agents Threaten Chinese Mask Makers' Export Plans Unscrupulous Agents Threaten Chinese Mask Makers' Export Plans

(Yicai Global) March 30 -- Chinese mask makers hoping to supply overseas markets as the Covid-19 epidemic spreads globally have been confounded by the growing phenomenon of unscrupulous agents in China issuing false papers.

"We've noticed that some unlicensed third-party institutions without the required qualifications are profiteering from the epidemic and have issued many invalid licenses," a man who works for an agency handling the accreditation of masks for export told Yicai Global.

Chinese mask producers face a series of obstacles in securing export qualification and overseas certification for medical protective materials, including masks and protective clothing. To enter the European and American markets, they must have the Conformite Europeenne license and US Food and Drug Administration permit.

Those daunted by the process will turn to a third-party agent for help. However, fraudsters are exploiting their unfamiliarity with overseas laws and their desire to save costs, and as a result are posing great risks to these firms and their clients, an industry insider told Yicai Global.

The cost of the certification process can vary from hundreds of Chinese yuan to more than hundreds of thousands. Companies needs to be wary of agencies who offer prices below CNY10,000 (USD1,400) for the entire procedure, the insider said. Before the epidemic started, the price was between CNY100,000 and CNY200,000.

"We've received about 300 consultations about the export of medical protection gear in the past two weeks, the most ever," said Sheng Fuxiu, medical instrument expert at the Chinese branch of German independent certification body TUV Rheinland.

"Most of them are related to the EU's CE certification and the US' Food and Drug Administration certification regarding masks. This is followed by enquiries concerning protective clothing and disinfecting alcohol," he added.

Despite the global spread of Covid-19, the export market is not as promising as had been expected, mask producers in Zhejiang and Guangdong province said. Foreign clients and brokers have been demanding very low prices, sometimes so low that it would be hard for the companies to turn a profit.

There is also the danger that some intermediary nations through which the masks pass on their way to their destinations may intercept and confiscate the masks. This means that manufacturers face the risk of both losing their products and of not being paid.

The temporary control measures that several European countries have in place at their borders, to the point where some have even closed access, pose additional logistical headaches.

Editors: Xu Wei, Kim Taylor

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Keywords:   mask makers,Covid-19