YCD Trivia: China Customs Clearance Procedure
Overseas exporters prepare for the shipment of goods before shipment
Overseas exporters in the shipment of goods before the need for goods exported to China to understand the relevant requirements, such as: China’s HS code categorization, import tariffs and CIF cost calculations, customs declaration of relevant documents and requirements, if the wrong HS code categorization, not ready to prepare the relevant documents, not for the necessary market pre-approval certificate will result in the inability to normal customs clearance, the goods are stranded in the port, incurring additional costs, high fines, and even the goods are refused clearance, and even face some civil and criminal charges. High fines, and even the goods are refused to be cleared, and even face some civil and criminal charges;
Importers prepare customs declaration documents
If your buyer has import and export qualification, it can directly handle the import customs clearance process, otherwise, you need to appoint a customs broker to handle the customs clearance process;
China Customs e-Port system online pre-declaration
All Chinese importers and exporters are required to make a customs filing and obtain the relevant filing number and ID before logging on to the Customs e-Port system (e-Port) for customs declaration;
Transportation of goods to China Customs Ports (Customs Supervised Warehouses)
Before formal customs clearance, all goods need to be kept in the customs supervised warehouse, and need to be cleared as soon as possible, otherwise too long detention will bring high storage costs;
Submission and examination of customs declaration documents
Different types of goods will have different requirements for customs declaration documents and files, if the documents are missing or do not meet the requirements, the application for customs declaration will be rejected;
Inspection and quarantine of imported goods
The Customs Inspection and Quarantine (CIQ) department will inspect and quarantine the imported goods to ensure that their quality meets the requirements of the relevant Chinese regulations and standards, including the Chinese labeling; if they do not pass the inspection and quarantine, they cannot be cleared;
Payment of Import Duties and Taxes
Import taxes mainly include import duties, consumption tax, value-added tax, etc. Import fees mainly include: inspection and quarantine fees, storage and transportation fees at customs ports, etc;
Customs Inspection
Customs will check that the actual goods are consistent with the contents of the customs declaration documents;
Customs clearance
Customs will issue the relevant customs clearance documents, imported goods can be shipped out of the customs supervision warehouse.
Tips for China Import Customs Clearance
Preparation of bill of lading (waybill)
- The consignment description (weight, number of parcels, value, currency, payer information) must be accurate, and ensure that all the information in the various customs clearance documents is consistent. In addition, altered consignment descriptions need to be (re)approved by Customs and will result in serious delays.
- For handwritten bills of lading (waybills), please make sure that each copy is clear enough to be easily recognized; for courier automation (system) users, please double-check the quantity and value of the shipment, as there are times when customers forget to amend previous shipment records.
- Accurate and valid consignee contact information, including extension number, cell phone number and e-mail address; thus facilitating the staff at the port of destination to contact the consignee in time to notify the arrival information, and at the same time, the necessary clearance documents can be checked over the phone.
- Zip code must be correct to avoid transportation to other locations due to sorting errors.
- The correct declared value, which must be consistent with the invoice amount, with the currency indicated. Regardless of whether the final (declared) value is high or low, it is very difficult to change the declared value once the shipment reaches the destination port.
- If you are aware of this, please fill in the HS code, which will avoid unnecessary inspection procedures and customs clearance delays.
- If you consign more than one shipment in one day, please make sure that each parcel is accompanied by the correct bill of lading (waybill).
- Please fill in the correct payer information and FedEx account number in order to collect the shipping fee and duty.
Invoice Preparation:
- The invoice should include a detailed description of the goods, value, quantity, unit price, total amount, currency, country of origin, and the value is recommended to be CIF (Cost + Insurance + Freight).
P.S. The declared value must be reasonable (and at market price), otherwise customs will ask the consignee or shipper to provide proof of value. - If the shipper sells goods to the consignee, please fill in the order (P/O) number.
- Brand information is required for apparel, shoes, handbags, purses and eyeglasses, whether declared as samples, official imports, personal effects or returns.
- Products of different origins, sizes or models need to be indicated separately on the invoice.
- Shipper and consignee name, phone number, e-mail address, company name and address must be consistent with the bill of lading (shipping).
- The invoice should have the shipper’s signature or the company’s signature.
- Use the correct quantities for different shipments.
- Use generic product descriptions (e.g. toys, tops, shoes, integrated circuits) rather than internal model numbers.
- Please provide detailed composition and usage instructions for goods such as raw materials, chemicals, powders, liquids, etc. Special Requirements Goods:
The following products imported into China may require special licenses or documents for customs clearance. – Wooden packaging – Used mechanical and electrical products – Medical equipment – Animal products – Plant products – Biological products – Cosmetics – Pre-packaged foodstuffs – Pharmaceuticals – Video tapes, motion picture films, audio/video publications – Publications for commercial purposes – Mechanical or electronic goods – Batteries – Toys – Paints and Coatings – Exhibitions and other temporary imported goods (TIB) where an import deposit is required for import customs clearance purposes (Federal only offers BSO – Selective Clearance Agent service). – Liquor
Packing List:
- For MPS (multiple packages under one waybill) or shipments weighing more than 100kg, shippers are required to provide a Packing List (PL).
- It must be titled “Packing List”. The shipper shall not use a delivery note, shipping order or other form of documentation in lieu of a PL.
- The packing list shall show the description (which must be accurate and legible), quantity, net and gross weight of each item in each box, as well as the total net and gross weight of the shipment and the method of packing. If the shipper consigns more than one kind of goods, the shipper should provide packing list.
- Goods with the same HS code should be counted or listed together.
- The packing list must contain the shipper’s signature or company seal.
Other “must know” tips: - For all non-documentary shipments, the shipper must issue a bill of lading and invoice. – Personal effects.
1) A legible packing list is essential; it should include a clear description of the goods, quantity, brand, material and unit price as well as total price.
2) The value of each shipment of personal effects from/to Hong Kong, Macau and Taiwan, China, shall not exceed RMB 800, or may exceed RMB 800 for a single item; e.g., the total value of a consignment of shoes, fountain pens and clothing shall not exceed RMB 800, while there is no limit on the value of a consignment of a laptop computer or a mobile phone.
3) Shipments of personal effects originating from/to other countries or regions may not exceed RMB 1,000 in value, or RMB 1,000 for a single item. For example, the total value of a shipment of shoes, pens and clothes must not exceed RMB 1,000, while there is no limit on the value of a laptop computer or a cell phone.
4) Food items are subject to net weight.
5) Medicines are subject to doctor’s prescription.
- Shippers should notify consignees of the commodity name, value, trade type, contract and other information before shipment, or request consignees to preview the invoice and packing list, so that consignees can pre-check the special documents or certificates required for import clearance in China, especially when consignees don’t have the import license, they need to seek forwarders to prepare all the documents for the import clearance, and at the same time, some of the At the same time, some license applications will take a long time (e.g. CCC certificate, Energy Efficiency Labeling, etc.), so it is recommended that you ship the goods that require special certificates in batches.
- Repair and Return
For goods that need to be repaired overseas and returned to China, either exported from China (goods that need to be repaired) or re-imported (repaired goods) must be formally declared and marked as “repaired and returned”. When the goods are returned to China, the consignee will be required to produce a previous export declaration to prove that the goods are indeed “repaired and returned”, and customs duties and taxes will be calculated on the basis of the cost of repair as stated on the invoice. Otherwise, China Customs will treat it as import duty evasion. - MICE Parcel
MICE shipments require special customs clearance procedures. Whether the goods are temporarily bonded or the customer appoints an agent to declare the goods to the customs of the convention center, the customs duty and tax will be exempted. In both cases, Express China will not accept import customs clearance unless the customer agrees to change the goods to excise taxable imported goods.