Want to sell your presses, coaters, slitters or converting-equipment components to China? Be prepared to negotiate a labyrinth of government regulations and translate an alphabet soup of agency acronyms, warns Brian Smith, chief executive of Atlanta-based SIMCOM Intl.

Smith spoke June 2 at the 2005 Converting Equipment Manufacturers Association (CEMA) annual meeting in Lake Tahoe, CA. His presentation detailed the ins and outs of doing business in China, specifically addressing the needs of OEMs. As an official "consultative agent" recognized by the Chinese government, SIMCOM has worked with companies ranging from Bridgestone Tire to Dell Computer.

Smith began with a review of China's Safety License System for Import Commodities and told how over the past 15 years that program evolved into the Compulsory Product Certification System (CPCS). A hallmark of the current CPCS is the issuance of CCC Marks (similar to the European Community's CE Mark) to prove that an imported product has met safety, fire and/or electromagnetic standards. While over the years, precursors to CCC Marks were granted via a hodgepodge of regulatory agencies, today's certification typically comes from China's provincial governments.

The seven-step certification process to receive a CCC Mark begins with a formal application, which Smith likened to "handing over all your proprietary information," including assembly drawings, schematics and list of critical components and materials. Following product testing by a Chinese laboratory, a lengthy questionnaire about your factory as well as a factory inspection by Chinese officials is required. A final review and approval of your CCC labels is done, along with a follow-up factory inspection.

Be ready to pay significant fees, which can total anywhere from about $15,000 to $250,000, depending on the complexity of the product. "The initial application can take three to five months," Smith says. "And without help, the entire process timeframe could be more than one year...if ever."

Fortunately, for most makers of converting equipment, there are special exemptions to allow companies to avoid the entire CPCS hassle, Smith explains. A product may not require a CCC Mark at all; it may require a mark but its normal scope of operation is different; or a technical exemption letter can be submitted. The Chinese provincial governments deal exclusively with granting either these administrative or technical passes.

Given the complications of selling products into China, Smith advises suppliers to look before they leap. "Don't just jump on the China bandwagon. If you go to China, you've got to be committed to it, or it's not worth the trouble, expense and time."

Top officers for the CEMA Board were chosen during the group's meeting. Elected were president Jeff Damour, Converter Accessory Corp.; vice president Ron Schmidt, Maxcess Intl.; and secretary/treasurer Mike DeRosier, Paper Converting Machine Co. CEMA also made plans for future educational seminars and meetings. Among the events:

• A half-day Coating & Laminating Seminar during the CPP Expo 2005 trade show, Sept. 26–28 in Las Vegas.
• The group's regular fall meeting during the AIMCAL Fall Technical Conference, Oct. 16 at the Marriott Resort at Grand Dunes in Myrtle Beach, SC.
• A two-day Slitting & Rewinding Seminar, Nov. 15–16 in Ontario, CA.

The program concluded with a lively, Converting-sponsored informal discussion of industry issues affecting converting-equipment makers. Topics included major challenges, return on investments, converter consolidation, foreign competition, protection of intellectual property and patent infringement.

More info: 803/802-7820, fax: 803/802-7821, www.cema-converting.org