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Logistics for hazardous and chemical products in China

By C.i. Process (Shanghai)
 
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Logistics for hazardous and chemical products in China

Managing the storage and logistics of hazardous, chemical and toxic goods is a major concern in many countries, due to the high risks to public health and the environment.

In China, this sector is particularly critical due to the rapid growth of its chemical industry and transportation infrastructure. This article explores China's management regulations for domestic sales, import/export handling of hazardous products, the challenges the country faces and the practices adopted to ensure safe and efficient handling of these substances.

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China's market and regulations for Hazardous and chemical products Logistics in China
 
Publication updated on January 3, 2025      
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Home > regulations and business news > logistics and management of hazardous or chemical products in China.
 


1. Chinese regulations on hazardous products

 

1.1 Legal and regulatory framework

Currently, there are no unified regulations applicable to all modes of transport in China. Unlike the United States, Europe and other developed countries, China also has no dedicated agencies to coordinate and manage the safety of dangerous goods transport by different modes of transport. Instead, each supervisory ministry manages the issue separately, according to the responsibilities assigned to it by Decree no. 591. To enable operators to sell locally and for export, China has put in place a rigorous regulatory framework for the management of hazardous products. Key laws and regulations include:

  • Safety management regulations and measures: these regulations detail the specific safety measures to be adopted for the handling of hazardous chemicals, including standards for storage and domestic transport. It also takes into account international conventions to which China is a signatory.

  • National standards: several specific Chinese (GB) standards exist. For example, GB 15603-2022, which, since 2023, lays down rules for the storage of hazardous chemicals. These standards establish meticulous guidelines for the safe storage of hazardous substances. Section 2 below presents another standard, for classification.

 

1.2 Regulatory institutions and offices in China

Several ministries and government agencies are involved in the regulation of hazardous products:
  • The Ministry of Transport (MOT): responsible for overall supervision of hazardous product safety. It now includes the National Railway Administration, the Post Office (SPB), the Civil Aviation Bureau (CAAC) and the Bureau of Maritime Affairs. International IMDG codes are used for shipping.

  • The Public Safety Bureau (SPB): responsible for managing the public safety of hazardous chemicals, issuing licenses for the purchase of highly toxic chemicals and issuing road transport permits. It also regulates the safety of transport vehicles.

  • The State Administration of Commerce (SAMR): issues business licenses (certificate of incorporation) for domestic Chinese companies and for foreign companies operating in China. These may be joint ventures (JVs) or, when the regulations allow, a 100% foreign-owned subsidiaries (ex-WFOE).


2. The challenges of managing and classifying hazardous products in China


2.1 Product classification and numbering

Chinese standard GB 6944-2012 defines the classification of hazardous products (危险货物分类和品名编号). This standard differs from the international classification of dangerous goods. Here are a few points of comparison:

 

Similarities

Differences

Classification structure: The 2 systems divide dangerous goods into classes based on hazard types (explosives, gases, flammable liquids, etc).

Adherence to UN standards: China largely follows UN recommendations for the transport of dangerous goods.

UN numbers: UN numbers are used to identify hazardous substances in both systems.

Specific local regulations: specific requirements or local adaptations of international standards.

National standards (GB): the country uses its specific standards for classification, packaging, labeling and transport.

Regulatory authorities: various agencies and ministries in China are responsible for implementing and monitoring regulations.

Documentation and procedures: administrative requirements (including documentation and inspection requirements) may differ from international standards.

 

2.2 Hazardous product classification according to Chinese standard GB 6944-2012

Herebelow, you'll find the main families of hazardous products as classified in China.

 

 

Explosives (Class 1) : includes substances and articles such as demolition explosives, fireworks and ammunition.

Gase (Class 2) : subdivided into flammable gases (2.1), non-flammable and non-toxic gases (2.2) and toxic gases (2.3). They include corrosive, asphyxiating and oxidizing gases.

Flammable Liquids (Class 3) : includes liquids and mixtures of liquids with a flash point (flammability) below 60°C, such as fuels (gasoline, fuel oil, diesel), solvents and alcohols.

Flammable Solids (Classe 4) : Flammable solids (Class 4): subdivided into flammable solids, self-reactive substances and desensitized solid explosives (4.1), substances liable to spontaneous combustion (4.2) and substances emitting flammable gases in contact with water (4.3).

Oxidizers and organic peroxides (Class 5): includes substances that can cause or fuel a fire, such as organic peroxides and oxidizers. Also included are ammonium nitrate, nitrates, nitrites, chlorates and calcium hypochlorite.

Toxic and infectious substances (Class 6): subdivided into solid and liquid toxic substances (6.1) and infectious substances (6.2). Infectious substances include medical and clinical waste, biological products and cultures

Radioactive substances (Class 7): includes substances and devices emitting ionizing radiation, such as uranium, plutonium, and radiological medical equipment, X-ray equipment, depleted uranium products, fire extinguishing systems, smoke detectors, medical isotopes. Know more about medical devices licenses in China.

Corrosive substances (Class 8): includes substances which can cause severe destruction to living tissue or other materials (such as acids and bases).

Miscellaneous dangerous substances and articles (Class 9): includes substances that are not covered by the other classes but nevertheless present risks, such as environmentally hazardous substances and miscellaneous dangerous goods. They are also known as "semi-hazardous". These include micro-organisms, genetically modified organisms, lithium batteries and substances releasing flammable vapors.

 

 

2.3 Compliance and monitoring

Ensuring compliance with regulations is a constant challenge. Small and medium-sized enterprises (SMEs) in particular can find it difficult to meet stringent standards due to limited resources.

Nevertheless, China's latest Company Law has been in force since July 1, 2024. This law covers all companies operating in China, and applies to production and assembly activities, local trading, import-export and warehousing activities.

For local authorities, this also means that monitoring and enforcing regulations requires considerable resources and inter-agency coordination.


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3. Chemical management and logistics practices

 

3.1 Safe storage

Storage practices for hazardous products in China include:

  • Segregation and need for identification: Products must be segregated by type and properly labeled to avoid confusion and respond quickly in case of emergency.

  • Ventilation and temperature control: Storage facilities must be well ventilated and equipped with temperature control systems to prevent undesirable chemical reactions.

  • Containment and safety zones: Specific containment zones are set up to contain leaks or accidental spills, thus reducing the risk of contamination..

 

3.2 Transport safety

The transport of hazardous products in China is subject to strict regulations to minimize risks:
  • Driver training: drivers of vehicles transporting hazardous products must undergo specialized training to manage emergencies and understand safety protocols.

  • The need for specialized vehicles: vehicles used to transport hazardous products must be equipped with specific safety devices, such as containment and real-time monitoring systems.

  • Routes and schedules: transport routes are carefully planned to avoid densely populated areas and rush hours, thus reducing the risk of major accidents.

 

3.3 Chinese customs control

bonded warehouse for chemical products in China
 

Early 2021, new customs regulations on the import and export of dangerous goods in China came into force. The General Administration of Customs (GACC) is now responsible for inspecting these products and their packaging. On January 10, 2021, the GACC publishes the announcement (no. 129) describing these new requirements.

Customs carry out controls via a strict regulatory framework. All importers and exporters must submit a detailed declaration and safety documents, including Material Safety Data Sheets (MSDS). Customs scrutinize compliance.

Physical inspections are carried out to verify packaging, labeling and transport conditions. Samples may be sent to testing centers for analysis. Customs collaborates with accredited agencies and laboratories.

Technology is also integrated into the process, using integrated declarative management systems and advanced scanners. Customs personnel receive specialized training. For example, in July 2021, Guangdong province is launching a pilot project to automatically generate a QR code for hazardous chemicals registered by manufacturers and importers. This QR code provides essential safety information and a few details (including company name and emergency measures). Foreign manufacturers and exporters must help Chinese importers to register and obtain this code by providing the required information. The code is affixed to dangerous goods labels, packaging, containers or vehicles.

It should also be noted that not all Chinese customs offices are competent to carry out customs clearance operations for these sensitive products. Thus, the particular case of a need for sub-customs transport from a port to a customs clearance point (equivalent to T1 in France) must be carefully worked out in advance with the customs office concerned. Most China Free Trade Zones have warehouses or storage sites with the necessary licenses and authorizations.

 

3.4 Waste management

Hazardous waste management is a crucial aspect of hazardous product logistics:

  • Treatment and disposal: waste must be treated and disposed of in accordance with strict environmental regulations, often in specialized facilities.

  • Recycling and reuse: where possible, hazardous products can be recycled or reused, thus reducing the amount of waste requiring a special disposal process.

 

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4. Case: chemical warehouse explosion in Tianjin (2015)

The Tianjin explosion on August 12, 2015, which caused considerable loss of life and property, highlighted the flaws in China's management of hazardous products.

The explosions, which occurred in a chemical warehouse (Binhai district), caused 173 deaths and around 800 injuries. The warehouse contained over 2,400 tonnes of toxic products, including 700 tonnes of sodium cyanide.

The disaster prompted a review of regulations and an increase in safety measures in the sector.

Following the Tianjin accident, the Chinese authorities tightened regulations. These include increasing inspections and requiring companies to improve their safety protocols. Massive investments have been made in safety infrastructures and staff training.

 

Site of the chemical explosion in Tianjin in 2015



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5. Future prospects


China continues to strengthen its regulations on hazardous products to bring its standards into line with international best practice. This includes updating existing laws and introducing new safety measures.

International cooperation plays a crucial role in improving hazardous product management practices. China works with other countries and international organizations to share knowledge, technologies and best practices.

Sustainable development is a key objective for China, and this includes the management of hazardous products. Efforts are underway to integrate sustainable practices into all stages of the supply chain, from production to recycling.

 

conclusion

Managing the production, storage and import/export supply chain for dangerous goods in China is a complex and constantly evolving field.

Strict regulations and technological innovations play a crucial role in minimizing the risks associated with these substances.

However, challenges persist, particularly in terms of compliance and infrastructure. With an ongoing commitment to improving safety, China aims to move towards safer and more efficient management of these products, protecting both public health and the environment.

 

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6. Our services to facilitate hazardous goods management in China

 


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