Customs Clearance Import and Export from China - Notes Rates

Source: DHgate, Tag: E-Commerce Tips

Custom clearance import and export from China includes some note rates that you need to look.

In China, customs clearance management is believed to be complicated. But this is not the case! You only need to learn about customs clearance and what documents it contains for import and export to handle the process smoothly.
As a wholesaler, you need to understand things you need to know about customs clearance and its preparation, for instance, the correct labeling and product testing. You should also understand what import tariffs and taxes will be applied to your products.

To help you understand the Chinese clearance import and export and its procedure, in this article, we have collected the critical information you need to know when managing custom clearance from China.
What is Customs Clearance?
Customs clearance is a procedure that involves the process and submission of documents required for export and import by customs authorities into a country. When importer or exporter provide their records through their agents, customs authorities use them to examine and assess the cargo to ensure a duty payment amount. Before your shipment is granted passage in or out of the country, you must fulfill all the clearance requirements set up by the country's customs laws.

The procedure of China Customs Clearance
You must confirm all the certifications and standards to meet and prepare all the required documents to pass the customs clearance process.
Remember that your importer must manage most of the customs clearance process. Moreover, communicate with your agent and consistently control the customs clearance procedure together to avoid time issues and get the work done quickly.

Before shipping, below are some of the most essential and fundamental aspects you will need to confirm.

Product Certification
There are two standard Chinese quality certificates CFDA and CCC (China Compulsory Certification).

You will need to get all your products certified and then give the certified documents to the custom to review when your products arrive in China.

HS Codes
HS means Harmonized Codes, used worldwide to categorize products traded in a country.

One problem that exporters face is that the customs experience challenges in specifying what HS codes apply to the products. They cannot determine what products are to export, so they have no idea what standards and regulations you will need to consider and follow.

Guobiao (GB) Standards
The Harmonized Codes will determine what GB standard you will need to meet. There are unique GB standards for almost everything from packaging to labeling to food products.
All you need is to provide test reports to show that your products comply with the Guobiao standards required for the products.
If you miss any test reports or certifications, you must provide the CQI declaration or missing docs.

Import Licenses
You must provide an import license if they are needed. Generally, the Chinese importer must apply for a vital license to ensure that they have an import license in the initial stage.
Following are the other documents that needed to be clear for your goods
⦁ Invoice
⦁ Bill of landing
⦁ Custom invoice
⦁ Packing list
⦁ Sales or trading contract
⦁ Insurance policy
⦁ Customs declaration
⦁ Import quota certificate
⦁ Quality certificate
⦁ Review licenses or certificate
⦁ Cargo manifest
⦁ Health and sanitary certificates
⦁ Processing trade handbook
⦁ Authorization and entrustment agreement
In addition, it would be best if you confirm the required documents with your Chinese importer before clearing the customs.

Import Taxes and Tariffs
It is important to know the costs of tariffs and import duties, and you will also need to know the calculation methods for the taxable amount.
Let's have a look below to review different taxes of import and tariffs that apply.

Tariff taxes are divided into six categories:
⦁ General rates
⦁ Tariff quota rates
⦁ Agreement rates
⦁ Provisional rates
⦁ MFN rates (applied and used for WTO)
Import Taxes
Below are the most common import taxes you will be required to pay as an exporter.

VAT
VAT is the same for regionally produced products and gives above 17 percent.

Custom Valuation
You must give the documentation, including the CIF prices such as insurance, cost and freight.

The CIF price comprises the standard price with the following items
⦁ Insurance cost
⦁ Packing cost
⦁ Commission for the seller
⦁ Freight costs
The China clearance contain databases to check your CIF price to see if it meets national tariffs and taxes. If the price difference is massive, then extra charges will apply.

Shipping List
A shipping list is important if you are shipping goods in large quantities through air or freight. The list should also add important details such as shipper, supplier, data, buyer, description, mode, net and gross of dimensions, packaging and invoice number details.

China Customs Tracking
Tracking your customs clearance is straightforward on DHgate. Visit the website of DHgate to track your order and follow 3 simple steps.

Step 1. Head over to the website of Dhgate and log in to your account.
Step 2. Click on the option ‘My Orders’.
Step 3. Select you order you want to track and see the other details there.
Common Problems During Clearing Goods At The China Customs

⦁ You are more likely to face issues if you have not specified the correct HS codes. These codes classify products traded in a country and decide the required product testing.
⦁ Problems with the correct product labeling.
⦁ Missing test reports.

How Long Does the Process of Chinese Custom Clearance Take?

It is thought that the process of Chinese custom clearance takes a lot of time which is different. The time depends on the various aspects that are not difficult to understand, and if managed correctly, the process is quick. In fact, the time required to clear your cargo in China relies on many aspects, such as port congestion issues and other things. During the summer season, Chinese ports are full of freight moving in or out of the country, so it might take more time. Usually, Chinese customs offer to visit sites during their working hours to process and release products whose duties have been paid with acceptable documentation. The process generally takes 2 to 2 days or more, depending on the season.

Required Documents for Import Custom Clearance

Bill of Entry
The cargo importer file the entry document bill, showing proof of the estimated value of outward remittance paid for the cargo. The bill of entry document should be filed within a month of cargo arrival at the destination port.

Commercial Invoice
Custom officials use the commercial invoice to estimate the value of products transported into the country. With the sourced information from this document, the officials will calculate the duty the importer must pay.

Airway Bill or Bill of Lading
Both the Airway Bill and Bill of Lading are the same. The airway bill is for airports, while the bill of lading is for cargo shipped in at seaports. The carrier issued these documents, showing the details and information about the cargo, such as the delivery terms.

Import License
Import licenses are required only for some special goods or products; this license provides the carrier the legal rights to transport items highly controlled by the government. If you plan to import material that comes into the list of regulated items, you will need to apply for the license. Once your products arrive, customs officials demand an import license for further processing.

Insurance Certificate
It is an evidentiary document that supports the delivery declaration of the importer. An insurance certificate helps customs ensure whether the cargo contains selling prices of inclusive insurance. Officials use this document and a commercial invoice to check the import duty charge.

Letter of Credit
A letter of credit reflects the terms and conditions in the sale contract by the seller and buyer. It is also a value taxation document submitted by the importer with other required documents.

Required Documents for Export Customs Clearance
Pro Forma Invoice
An exporter's plan to sell several things to a buyer or importer at a predetermined price is indicated by a pro forma invoice. The exporters mail it to the buyer by any pre-arranged media to conclude the transaction after it is generated based on the consent of both parties to the transaction.

Custom packing list
This is a list of every item in the shipment and compares that list to the details in the pro forma invoice. A customized packing list with the destination port is pasted on the container to prevent sending the container to the incorrect location.

CO Certificate
A country of origin certificate is the declaration of the exporter verifying that the goods that are about to be shipped have been packed in the origin country.

Custom Invoice
This documentary is important for all exports as it has valuable information for selling price packaging costs, product quality, product description and weight volume. All the information is what the customs establishments use in the importing country to inspect the consignment value.

Shipping Bill
This document is a repots serving as a sort of evaluation record by customs authorities. To get the shipping bill, the exporter will need to submit the documents given below:
⦁ Export License
⦁ Indent
⦁ Packing List
⦁ Letter of Credit
⦁ Purchase Order
⦁ GR Forms
⦁ Examination Certificate
⦁ AR4
⦁ Contract Acceptance letter
⦁ Sale invoice
⦁ Port of Trust document

Bill of Landing
The bill of lading for an exporter is identical to that for an importer. Along with other crucial information regarding the cargo, it gives information on the transport agreement between the carrier and the cargo owner. Without a Bill of Lading, customs cannot pass goods, making it a crucial document.
Bill of Sight
If the buyer (importer) is uncertain about the nature or quality of the goods being sent, the exporter will make this declaration to the customs. This law permits the person receiving the goods to examine them before paying customs duties. If a bill of entry certificate is absent, bill of sight documentation may be used.

Letter of Credit
A letter of credit serves the same purpose for exports as for imports, stating that the import will pay the exported an estimated sum when the transaction is completed. This document is issued based on agreed contractual terms and conditions.

Frequently Asked Questions

How long does China customs clearance take?
Usually, a product's package takes a few minutes and hours to clear customs. Though, it can also take days or sometimes even weeks if there are issues.
What items are not allowed to import?
Some prohibited items include lethal poisons, counterfeit currencies, disease-carrying plants and animals, illicit drugs and weapons.
What is a CR number?
When your importer register at the Chinese customs, you will receive a CR code (custom registration code) required for both exports and imports in china.

The code should be stated in the customs declaration to pass customs clearance.
What is China customs clearance fee?
It typically costs $50 to clear customs with China's Customs and an additional $100 to $120 to clear customs with CBP. Calculate Duties Before shipping, talk to a customs broker because the duties are complicated.
What is the import tax in China?
All taxable goods in China are subject to the regular VAT rate of 13%, except for agricultural and utility products. Instead, a 9% VAT rate is applied to these. The following formula can determine the import VAT: Composite Assessable Price x VAT Rate equals import VAT.
How is customs duty calculated in China?
To calculate, you need to add insurance, goods, freight, and extra cost values, then multiply the total by the duty rates. The total duty amount you will need to pay customs for shipment is the result.
How do I get customs clearance from China?
You can conduct customs clearance at any customs office in China. A packing list, commercial invoice, and the CIF should be provided for the shipment.
Does customs open every package?
No, customs officers don't open packages without any good reason. Every package goes under a scanner machine to verify the items match your custom forms.