In a recent development, the Ministry of Civil Affairs released the first batch of suspected illegal social organizations list for 2023, and out of the 11 organizations listed under the government, the "quality certification" industry accounted for 5, making it a heavily affected sector.

The list of suspected illegal social organizations for the first batch of 2023

Since May this year, the national market regulation system has initiated the strengthening of work style construction conference and the three-year special action plan for work style construction. It has put forward more comprehensive and scientific requirements for administrative approval services, daily regulatory mechanisms, work style supervision and restraint mechanisms, as well as regulatory team construction.

This also implies that for companies seeking to reduce costs, increase efficiency, and obtain a better business environment, it is particularly important to enhance their understanding of certification bodies and choose to collaborate with reputable and capable organizations.

■ How to conduct a background check before selecting an organization?

Firstly, certification bodies must be approved by the Certification and Accreditation Administration of China (CNCA) and accredited by the China National Accreditation Service for Conformity Assessment (CNAS) to conduct certification activities in China. When verifying the information of a certification body, companies can visit the National Certification and Accreditation Information Public Service Platform at http://cx.cnca.cn/CertECloud/index/index/page. This platform allows users to check whether a certification body possesses the required certification qualifications and whether the qualifications are valid. Once a certification certificate is obtained, it can also be verified on the platform to confirm its validity.

Interface of the National Certification and Accreditation Information Public Service Platform

Secondly, it is important to evaluate the overall strength and service level of the organization. The size of the certification body, the number of professional technical personnel, their technological innovation capabilities, and whether certification activities are strictly implemented according to the certification process can be considered as indicators of the organization's strength. The service level can be assessed by examining the organization's expertise in the relevant field, the level of digitalization in the certification process, and the efficiency of issuing recognized certificates.

For businesses, choosing a compliant and reputable organization not only provides an authoritative certification but also enhances the level of production management. It serves as an endorsement for products and a platform for the reputation and image of the company.

Another important point is that, due to national regulations, certification bodies are responsible for the certificates they issue throughout the validity period. After assessing the risks associated with certification activities, it is necessary to make adequate arrangements for the liabilities arising from business operations in various activity areas and operating regions (such as insurance or risk funds). Therefore, choosing the right certification body plays a significant role in promoting standardized, professional, efficient operations, and ensuring safe production for enterprises.

■ How companies can reduce certification costs?

Choosing a one-stop certification and testing organization with large-scale laboratories and comprehensive certification qualifications can effectively control the time and cost required for certification throughout the entire process of product certification. It can also effectively eliminate intermediaries profiting from price differences. For example, in the case of green product certification, companies are required to provide ISO management system certifications, type testing, and sampling testing reports as important bases for green product certification. Choosing a third-party organization that integrates certification and testing can effectively save certification costs and reduce the certification timeline.

The national government has introduced various financial support policies for quality certification, and it is an effective way for companies to reduce costs by keeping abreast of local special policy subsidies. (For example, many regions in China, such as Anhui, Henan, Sichuan, Gansu, Zhejiang, Shanghai, Jiangsu, Guangdong, etc., have special subsidy funds for management system certification. Pilot cities such as Beijing, Jiangsu, Zhejiang, Shandong, Sichuan, and Chongqing provide certification subsidies for green certification ranging from 50,000 to 200,000 RMB. Shaanxi Province provides incentive standards for 1-star, 2-star, and 3-star green buildings, with rewards of 10 yuan, 15 yuan, and 20 yuan per square meter, respectively. Yunnan Province provides one-time rewards ranging from 500,000 to 2 million RMB for certified green supply chain, green park, green factory, green product, and industrial product eco (green) design demonstration enterprises. Chengdu City provides 100% support for the verification, certification, and related service fees, up to a maximum of 100,000 RMB per year for companies obtaining carbon footprint verification certificates or reports. For projects that achieve 2-star and above green building demonstration status and award-winning projects, subsidies of up to 1 million RMB are provided.)

■ How companies can avoid pitfalls?

What is meant by "pitfalls": Every year, the State Administration for Market Regulation organizes supervisory inspections, known as "double random, one public" inspections, on certification organizations at various levels of market regulation departments. Additionally, product sampling inspections are conducted annually for manufacturing enterprises. In cases where certification bodies are found to have engaged in irregular certification activities, their certification qualifications may be suspended or revoked. Companies that choose these organizations for certification also face the risk of their certification certificates being suspended or revoked. Furthermore, certification bodies that certify companies with products that fail the sampling inspections may also face penalties.

Diagram

In 2022, market regulation departments at all levels investigated and handled 3,458 cases of illegal activities in the certification field, resulting in a total of 118 million yuan in fines. They also dealt with 59 illegal certification organizations, leading to the revocation or suspension of certification certificates for numerous companies.

To avoid getting involved in such troubles, companies should first have a clear understanding that certification, accreditation, inspection, and testing are intended to strengthen their quality awareness and fulfill their responsibilities as entities. As the "credit certificate" of a market economy, the "health certificate" of quality management, and the "passport" for international trade, quality certification is essentially about "building market trust and serving high-quality development" rather than being just a piece of paper.

Quality certification falls under the category of scientific and technical services. During the implementation of product certification, it not only requires large-scale laboratories and precision equipment but also involves the appointment of experts to evaluate aspects such as company management systems, production processes, and environmental protection. These experts help identify issues, assist in rectification and optimization, and provide valuable guidance throughout the process. Many examples exist where companies, driven by a lack of quality awareness and a desire for low-cost certification, have suffered severe consequences due to certification bodies bypassing crucial evaluation stages. In the end, the losses incurred are borne by the companies themselves, outweighing any initial gains.

Lastly, if a company is approached by an agency, it is crucial to inquire about the actual certification body they are partnering with, verify the qualifications of the organization, and conduct a thorough background check. It is important not to blindly enter into contracts with agencies without proper due diligence.