Meaning
Administrative compliance metrics define the maximum allowance of nonconforming product units within a defined sample size before a complete manufacturing lot undergoes mandatory quarantine. A rejection number dictates the threshold where production managers must cease shipment to foreign buyers because the deviation exceeds the agreed quality standards of the supply contract. Regulators under the General Administration of Customs of the People Republic of China enforce these limits during border inspections to prevent substandard imports or exports.
Inspection Procedure
Statistical sampling plans establish these numerical limits based on the total quantity of a production batch and the acceptable quality level requested by the commercial party. Auditors calculate the sum of defective parts found during a random test of the units pulled from the warehouse inventory. Should the count reach or cross the assigned value, the legal status of the batch shifts from compliant to noncompliant under local trade regulations.
Inspectors apply these tables strictly to ensure that factory outputs match the certified specifications filed during the initial export registration.
Enforcement Authority
Local branches of the quality supervision bureau hold the statutory power to halt the movement of any goods failing the test. Officials demand corrective action from the production facility whenever the count breaches the limit before the factory can receive a new shipping permit. Law requires that firms maintain detailed logs of these findings to provide evidence during an official site audit.
Manufacturers who ignore the mandatory hold face substantial fines or the permanent revocation of their export license.
Remedy Provision
Legal contracts between suppliers and foreign entities specify whether the buyer retains the right to demand a full replacement of the lot or a prorated refund when the counts fail. Courts interpret this clause as a condition precedent for the transfer of ownership of the goods. Parties often settle these disputes through the submission of independent third party lab reports that verify the exact failure rate.
This numerical cap serves as the final arbiter for determining whether the underlying supply agreement remains in force.