2013-03 Presentation at event hosted by IsCham Shanghai, BenCham Shanghai and KPMG Shanghai

1. March 5, 2013
Logistics seminar
Arie Schreier – VP Sales and Marketing
www.PTL-Group.com
Excellence in Management

2. www.PTL-Group.com
Everything is possible
Nothing is easy
A foreigner is always a foreigner

3. www.PTL-Group.com
Everything is possible
1

4. www.PTL-Group.com
There is always someone with more connection
or more professional.
There is always a chance to do it easier
or cheaper in another location
The power of local governments
(Duty rates, VAT refund, Inspections, licenses)
Nothing is curved
in stone

5. Page  5
Cases, smooth importing with PTL
suggestion
Product
Description
HS code Tariff Import restriction PTL
suggestion
1 Pulsator 84341000 10% Milking machines Import Food Hygiene
Supervision Inspection
90329000.9 5% Accessories of Automatic
controlling instruments
Nil
2 Solenoid 84818040.9 7% Other valves Certificate of Inspection
for goods inwards
39269090 7% Other articles of plastics Nil
3 Power adapter 8504401990 0% Other voltage-stabilized
supplier
CCC
8504401400 7% Other DC voltage-stabilized
supplier<1KW
Nil
4 KVM switch 8543709990 0% Other electrical machines
with individual functions
Automatic import
license for machinery &
electrical products
8517623900 0% Other transmission
apparatus
Nil

6. www.PTL-Group.com
Nothing is easy
2

7. www.PTL-Group.com
 Things that are simple in other countries are very complicated in China
 Communication barrier doesn’t make is easier
 Cheap service provider / product = becomes very expensive
Nothing is easy

8. Page  8
Import Restrictions/Regulations
 General inspection
 Legal Inspection
 Commodity check
 Animal & Plant inspection
 Health inspection
 Quarantine
 Food hygiene supervision inspection
 Civil commodity import inspection certificate
 Pressure test for Autoclave
 Explosion-proof test for Hazardous materials

9. Page  9
Documents subject to Customs control
 Import license (Quota / License Administrative Bureau Ministry of
Commerce)
 Certificate of inspection for goods inward (the
Administrations of Quality supervision)
 Import license for machinery & electrical products
(BIZ Dept. of Electrical/mechanical service)
 Environment control release notice for poisonous chemicals
(State environmental protection administration of China)
 Certificate of Origin (Ministry of Commerce )

10. www.PTL-Group.com
A foreigner is always
a foreigner
 Get shipping documents checked BEFORE sending the shipment out
 Plan carefully shipments before/after public holidays (especially
CNY, Q1)
 Logistics offers hide many unexpected costs – ask for a demo
 Direct contact with the forwarder/ warehouse/ driver etc.
 Insurance issues: warehouse, transportation, 3rd party, fidelity, and
everything in between (forklift)
 Transfer pricing (Chinese customs knows)
How to make it a bit easier 1

11. www.PTL-Group.com
A foreigner is always
a foreigner
 Used products, machines, molds, equipment are not welcomed in China
 Wooden pallets
 Import for export – assembly in FTZ or not?
 Export for import – export to FTZ?
 Free Trade Zones
How to make it a bit easier 2

12. www.PTL-Group.com
A foreigner is always
a foreigner
3

13. In China things are rarely as
they seem so always expect
(mostly bad ) surprises

14.  Every link in the supply chain must be monitored
 Logistics / financial IT Control systems: ERP, EDI
 Training, supervising, training, monitoring, training
 Having your own management team in China
 Trusted and reliable service providers in China
 Local partners - long term relationship
Control issues

15. www.PTL-Group.com
A foreigner is always
a foreigner
 Nothing is obvious, specify every details in writing
 One accountable person for each process. Who is in charge?
 Check business license, scope of service, address and
name of company matches the contract details
 Define clear procedure for loading and transportation
 Selling your product as part of a larger order or part of
system
 Distributor/client import the goods directly, no transparency,
VAT refund, duties
Tips

16. Page  16
More import tips
HS code : http://hs.e-to-china.com/
http://chinahscode.com/
Favorable duty for MFN (most-favored nation) – WTO
VAT 13% or 17%
Articles for exhibition (VAT + Duty can be refunded)
Samples and Demo – pay only the duty imported by
authorized organizations

17. PTL Group Introduction
Business Recovery
Services
Since 2000 PTL Group has been supporting foreign companies with establishing
well managed independent sales and manufacturing operations in China.

18. Import/Export
Warehousing
Marketing
Recruitment
HR
RMB
Invoicing
Finance
Assembly
Operations
Employment
Office
Sharing

19. Industrial Project Management
& Manufacturing
- Industrial Incubator Initiative
Business Recovery Services
- Operational Audits
Investments and funding
- Private Equity funds
- Mutual fund

20. www.PTL-Group.com
Shanghai Head Office
Room 301, 798 ZhaoJiaBang Rd.
Shanghai, 200030, P. R. China
Phone: +86 21 64453190, Fax: +86 21 64453191
Email: sales@ptl-group.com
Arie Schreier
Email: arie@ptl-group.com
Cell: +86 13817825201
Skype: ariesher
Contact Us:
www. PTL-Group.com
China • Israel • The Netherlands • Italy