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PROTOCOL BETWEEN THE MINISTRY OF HEALTH OF THE ITALIAN REPUBLIC AND THE GENERAL ADMINISTRATION OF CUSTOMS OF THE PEOPLE'S REPUBLIC OF ON INSPECTION, QUARANTINE AND VETERINARY SANITARY REQUIREMENTS FOR TO BE EXPORTED FROM TO CHINA

The Ministry of Health of the Italian Republic (hereinafter referred to as MH) and the General Administration of Customs of the People's Republic of China (hereinafter referred to as GACC) have entered into the following Protocol on inspection, quarantine, and veterinary health requirements for beef to be exported from the Italian Republic (hereinafter referred to as Italy) to the People's Republic of China (hereinafter referred to as China).

Article 1 The General Directorate for Hygiene, Food Safety and Nutrition and the General Directorate of Animal Health and Veterinary Drugs of MH are the Competent Italian Authorities responsible respectively for the supervision, inspection and quarantine over food production of animal origin and for the animal diseases and management control measures, feed and veterinary drugs. The General Directorates are responsible to coordinate and supervise the activities granting that safety products are exported from Italy to China. Those activities are performed at local level by Official Veterinarians working at local Competent Authority. The Official Veterinarians are appointed as the competent persons to sign the official Veterinary Health Certificate jointly decided with GACC.

Article 2

MH will provide GACC with the Italian laws and regulations governing the slaughter, cutting, processing and storage of beef to be exported to China, the relevant inspection and quarantine programs which consist of monitoring programs, laboratory testing methods and procedures; and the veterinary inspection stamps or marks for export eligibility.

MH will provide GACC in an appropriate way with the following information every year:

1. The plans and annual reports of the national residue monitoring and control program and the national microbiological monitoring program. If applicable, nuclear radiation and other environmental pollutants monitoring program and reports will be included.

2. The preventive and control measures applied against the diseases listed in

Page 1 of 8 Article 3 of this Protocol, including but not limited to, specific geographical location of zoning, number of livestock within the zone, detail of the meat processing establishments for export and information on official supervision and controls.

3. The measures or relevant updates that have been taken to reduce the risk of Bovine Spongiform Encephalopathy (BSE) as a country having negligible risk for BSE, as recognized by the World Organization for Animal Health (OIE);

4. The implementation and verification of the ban on feeding ruminants with any meat-and-bone meal and greaves derived from ruminants; and,

5. The epidemic disease situation in of concern for both Parties.

The Italian administrative systems for food safety will comply with the requirements of China. When necessary, GACC may delegate experts to visit Italy, regularly or randomly, to conduct an on-site audit or retrospective inspection. MH will provide necessary assistance to enable the audit.

MH will share with GACC periodic verification information conducted by the Competent Authority on production, exportation as well as the sanitary and safety situations of the establishments that intend to export. Both Parties will establish an efficient information reporting mechanism to cooperate on investigating and handling issues; taking corrective and preventive actions to ensure the exporting establishments meet the requirements of China.

Article 3 MH confirms that: 1. the Italian territory is free from foot and mouth disease, contagious bovine pleuropneumonia, lumpy skin disease, peste des petits ruminants and rinderpest; and,

2. the BSE monitoring of cattle, the national feed ban, Specified Risk Materials (SRMs) control measures have been carried out and an effectively cattle traceability system has been established according to the recommendations of the OIE, and appropriate risk control measures for BSE have been applied as a country recognized by the OIE having negligible risk for BSE.

Article 4 The live cattle from which the beef to be exported to China is derived: 1. Are born, reared and slaughtered in Italy; have a unique identification mark that can be traced back to the farm of birth and rearing; 2. Originate from farms not having any risk of BSE and where there are not suspect or confirmed cases of BSE, or of their progeny or members of the known birth cohort (not be born in the same herd of the BSE case, and within 12 months of the

Page 2 of 8 birth of the BSE case) or of the feed cohort of a BSE case; 3. Originate from farms where there has been no clinical case of bluetongue, brucellosis, anthrax, tuberculosis, paratuberculosis, bovine viral diarrhea/mucosal disease, Q fever, enzootic bovine leukosis, infectious bovine rhinotracheitis/infectious pustular vulvovaginits, and bovine genital campyobacterosis for the past 12 months prior to slaughter; 4. Originate from premises not under quarantine or movement restriction due to other notified diseases in accordance with the OIE, Italy and China's animal health regulations for the past 6 months prior to slaughter; 5. Have never been fed with meat-and-bone meal or greaves derived from ruminants; 6. Have not been vaccinated against anthrax using live vaccine during the 14 days prior to slaughter; and, 7. Are less than 30 months of age at the time of slaughter.

Article 5

The establishments (including slaughtering, cutting, processing and storage) which intend to export beef to China will be under supervision of the Italian Competent Authorities and in compliance with the relevant laws and regulations of Italy and China on veterinary and public health.

The establishments for export of beef to China will be registered with GACC as per the Food Safety Law of the People’s Republic of China and Regulations on the Implementation of Law of the People's Republic of China on the Entry and Exit Animal and Plant Quarantine. Beef from establishments that are not registered with GACC will not be allowed to be exported to China.

Article 6 The Italian Official Veterinarians will attest, through the Veterinary Health Certificate, that: 1. The beef is derived from cattle that: 1. Are born, reared and slaughtered in Italy, have a unique identification mark that can be traced back to the farm of birth and rearing; 2. Have not been administered with restricted veterinary drugs or feed additives prohibited by China and Italy; 3. Are in conformity with Article 4 of this Protocol; 4. Have been subjected to ante- and post-mortem inspections with favorable results in accordance with the relevant Italian regulations and import requirements of China; 5. Are healthy and free of clinical signs of infectious disease, and no lesion has been found on the carcasses and viscera, from which the major lymphatic nodes, and glands have been removed;

Page 3 of 8 6. Were under 30 months of age at the time of slaughter. 2. During the slaughter process the cattle were not subjected to a stunning process, prior to slaughter, with a device injecting compressed air or gas into the cranial cavity, or to a pithing process; 3. The tonsils, distal ileum, brains, eyes, spinal cord, skull, vertebral column, dorsal root ganglion (DRG) have been removed in a safe and sanitary manner to avoid contamination according to the regulations of the European Union (EU) and Italy; 4. The beef exported to China is subject to the national residue monitoring and control program, and the residue level of the veterinary medicinal products, pesticides and environmental pollutant such as heavy metals, as well as other undesirable substances contained in the products do not exceed the Maximum Residue Limits (MRLs) stipulated by EU, China and Italy; the veterinary medicinal products and feed additives prohibited by both Parties should not be detected; 5. The beef exported to China is subject to the national microbiological monitoring program and is free from contamination of pathogenic microorganisms prescribed in the laws and regulations of China, the EU and Italy; and, 6. The beef is hygienic, safe, and fit for human consumption.

Article 7

1. During the period of transportation to the slaughterhouse and at the slaughterhouse, the cattle for slaughter and for export to China will not enter into contact with:

a. Animals of other species;

b. Any live cattle which do not comply with the requirements as per Articles 3 and 4 of this Protocol; or

c. Any live cattle or other animal species from an establishment which has not achieved registration as prescribed in Article 5 of this Protocol.

2. The beef for export to China will not be processed along with the following products:

a. Products of other animal species;

b. Animal products that do not conform to Articles 3 and 4 of this Protocol; or

c. Products that are not produced by this establishment; or

d. Products that are not exported to China.

Beef to be exported to China in freezer or chiller will be stored in a separate place that is clearly identified.

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Article 8

The beef exports to China will be packed with unused new packaging materials in compliance with China's national food safety standards and international hygienic standards.

The beef exports to China will be labeled with the product name, country of origin, establishment registration number and the batch number on the interior independent package. The product name, country of origin, product specifications, place of origin (specifying the province and city), establishment registration number, batch number, destination (People’s Republic of China will be specified as the destination), production date (year/month/day), shelf life and storage temperature will be labeled on the exterior package in Chinese. The official meat inspection mark used by the Italian authorities will be identified on the exterior package.

The labels of pre-packaged beef will comply with the standards and regulatory requirements of China on pre-packaged food labelling.

Article 9

During storage and transport the beef to be exported from Italy to China will meet the sanitary conditions prescribed by China and Italy that ensure protection against contamination from pathogenic microorganism or harmful and poisonous material.

The storage and transportation will be under suitable temperatures maintaining the core temperature of the frozen beef no warmer than minus 15 degrees Celsius and that of the core temperature of the chilled beef between zero degree Celsius and 4 degrees Celsius, respectively.

Prior to shipment, the container will be sealed under the supervision of an Italian Official Veterinarian. The number of the seal will be indicated in the Veterinary Health Certificate. During transportation, the package of the products should not be changed or opened.

Article 10

The chilled beef for export to China which is vacuum packaged or not vacuum packaged (irrespective of with or without modified atmosphere) will comply with the packaging material hygiene standards prescribed by China and Italy. The exporter will confirm the shelf life and indicate it on the exterior package.

The shelf life of chilled beef for exports to China which is vacuum packaged or not vacuum packaged will be no more than 120 days and 14 days, respectively.

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Article 11 Each consignment/container of beef exported from Italy to China will be accompanied by at least one original Veterinary Health Certificate attesting that the products comply with the veterinary and public health rules and regulations of China and Italy, as well as the relevant requirements of this Protocol. The Veterinary Health Certificate will be in Chinese, English and Italian. The certificate will be filled out in English. The format and content (attestation(s)) of the certificates will be jointly decided in advance by the Parties. For GACC records, MH will provide GACC with examples of the official meat inspection mark, the Veterinary Health Certificate and a list of authorized signatory veterinarians with their corresponding signatures, details of the anti-fraud features of the Veterinary Health Certificate and the email address through which the electronic certificates data will be delivered, as appropriate. If there are any modifications or changes in the above mentioned information, MH will notify GACC at least one month prior to the changes coming into effect. To facilitate border inspection in China, MH will deliver the electronic data of each Veterinary Health Certificate issued to China through official channels in a timely manner, as appropriate. MH will guarantee that the electronic data is correct and safe.

Article 12

In case of outbreaks of bovine infectious or parasitic disease(s), relevant to cattle, that might possibly be spread via beef, which are defined as List A diseases in the List of Quarantine Diseases for the Animals Imported to the People’s Republic of China by China's laws and regulations or are listed in Article 3, Point 1 of this Protocol, MH will stop the export of beef to China immediately, recall the products and other products with potential risk, and provide GACC with information on how the incident happened and was controlled.

If any infectious or parasitic diseases relevant to cattle, that might possibly be spread via beef, listed in Article 4, Point 3 of this Protocol or defined as List B diseases in the List of Quarantine Diseases for the Animals Imported to the People’s Republic of China by China's laws and regulations occur in Italy, or there is an incident of significant food contamination related to beef of a serious public health concern, MH will temporarily halt the exportation of the beef produced in the relevant zones/compartment or holdings of origin, immediately, recall the products and other products with potential risk, inform GACC and provide a detailed account of the situation.

If a new case of BSE is confirmed in Italy, MH will carry out an epidemiological investigation according to the OIE Terrestrial Animal Health Code recommendations, temporarily halt the beef derived from cattle not compliant with Article 4, Point 2 of

Page 6 of 8 this Protocol and recall the beef which has been exported or is on the way to China, notify GACC immediately and share the relevant information in detail. GACC will then take appropriate measures based on the results of the risk analysis.

At the end of the aforementioned investigation and subject to the intention to resume beef exports to China, MH and GACC will enter into bilateral discussions to reinstate trade.

Article 13 If the beef exported from Italy to China is found to be non-compliant with the requirements stated in this Protocol, GACC will notify MH in a timely manner on the return, destruction or other method of disposal of the non-compliant product. Both MH and GACC will cooperate to investigate the causes and take corrective actions and rectifications to prevent recurrence of the non-compliance.

Article 14 For the purposes of this Protocol, beef refers to the frozen and chilled deboned edible bovine skeletal muscles, derived from cattle less than 30 months of age at the time of slaughter, from which hair (fur), viscera, head, oxtail and feet (below ankle and wrist) are removed after slaughter and bleeding. , Minced beef, trimmings, scrap, mechanically separated meat and other byproducts are ineligible for export to China.

Article 15 This Protocol takes effect on the date of signature and may be amended in writing by mutual consent between the Parties. This Protocol will remain valid for five (5) years and will be automatically renewed for further periods of five (5) years, unless one of the Parties notifies the other of its intention to terminate it at least 6 months prior to the intended date of expiration.

Article 16 The activities set forth in this Protocol will be implemented by the Parties according to their ordinary budget availability without any additional costs for the ordinary State budgets of the People’s Republic of China and the Italian Republic.

Article 17 This Protocol will be implemented in accordance with the Chinese and Italian legislations, as well as applicable international law and, as for the Italian Party, the obligations arising from Italy’s membership of the European Union.

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Article 18 Any divergence in the interpretation or implementation of this Protocol will be settled amicably by means of direct consultations and negotiations between the Parties. Signed in Beijing on 8th April 2020, in two originals, each in the Chinese, Italian, and English languages, all texts being equally authentic. In case of divergence, the text in English will prevail.

Ambassador Luca Ferrari Vice Minister Zhang Jiwen

______For the Ministry of Health of the Italian For the General Administration of Customs of Republic the People's Republic of China

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