Production in China has now normalized to pre-crisis production levels. Widespread flight passenger cancellations continue to constrain air freight capacity on all major tradelanes, even though additional freighters have entered the market. Domestic trucking has stabilized. Port operations are normal, but some ports are facing severe congestion and waiting times. Ocean freight capacity is constrained across all major tradelanes, and carriers have announced additional blank sailings for the second quarter. Cross-border road is operating normally, with some slight delays to/from Hong Kong and more moderate delays to/from Vietnam due to extra checks.
The Chinese government has implemented several new customs regulations to strengthen the export quality of medical materials and personal protective equipment. The General Administration of Customs have now imposed revised inspection rules for medical materials under the Commodity Category “6307900010” and other Customs Commodity Categories. If goods meet the regulation thresholds, they are issued an Inspection Verification Certificate required for export of goods. Medical products for exports that fail the inspection will not be permitted for export.
As of April 26, these new regulations also impact the export of non-medical masks, which must meet the quality standards of China or foreign countries.