The document outlines the key steps in the export procedure in China: 1. Companies must register with authorities like MOFCOM to obtain export rights. 2. Exporters also need to register for customs, tax, and foreign exchange purposes with agencies such as the General Administration of Customs and SAFE. 3. An export contract detailing items like price, payment terms, and insurance must be signed. 4. Arrangements are made for shipping, which may involve freight forwarders and bills of lading. 5. Licenses may be required for certain controlled export goods based on the export commodity catalogue. 6. Mandatory inspection is needed for some products based on another

1. BIT
Consulting
Introduction to Export Procedure
By Frank Zhang
Helping You Enter China Market!

2. BIT
Export Procedure Flowchart Consulting
1. Registration for Import & Export rights
2. Registration for Customs, Tax, and etc.
3. Signing of Export Contract
4. Shipping Arrangement
5. Application for Export Licenses
6. Application for Inspection & Quarantine
7. Customs Formalities
8. Foreign Exchange Verification
9. Tax refund or rebate
www.chinabizconsulting.com.cn Mar. 09, 2005 2

3. BIT
Registration for Export Rights Consulting
• Measures on Registration Procedures of Export Operators (Jun.
25, 2004)
Any companies can get export rights by registration
Individual can also get export rights
• Authority:
China MOFCOM or local Commissions of Commerce.
• Business scope:
Manufacturers: only own manufactured products.
Trading companies: general merchandises.
www.chinabizconsulting.com.cn Mar. 09, 2005 3

4. BIT
Registration for Customs . . . Consulting
• Customs
Registration No.
Company Info.
• State Administration of Foreign Exchange (SAFE)
Foreign Exchange Certificate
Foreign Exchange Verification Form
• Tax Authority
Tax Refund Certificate
• China Inspection & Quarantine Authority (CIQ)
www.chinabizconsulting.com.cn Mar. 09, 2005 4

5. BIT
Signing of Export Contract Consulting
• Price
– ICC Incoterms 2000 – FOB, CFR & CIF
– Cost components & risk transfer point
• Payment Terms
– Letter of Credit (LC)
– T/T
– D/P
– D/A
• Insurance: 110% invoice value, premium: 0.05% - 0.15%
– Free from Particular Average (F.P.A.)
– With Particular Average (W.P.A.)
– All Risks (A.R.)
– Warehouse to Warehouse Clause (W/W Clause)
• Inspection
– Loading Place Inspection for Delivery
– Destination Inspection for Claims
www.chinabizconsulting.com.cn Mar. 09, 2005 5

6. BIT
Shipping Arrangement Consulting
• Forwarding Agent – also handle customs clearance
• Containers: dry, refer, open top, flat rack
– 20’ Container: 5.89mx2.35mx2.39m, 30m3, 17.5mts
– 40’ Container: 12.02mx2.35mx2.39m, 60m3, 24mts
• Freight
– FCL: Full Container Load
– LCL: Less Than Container Load
• Bill of Lading
– Title to Goods
• Useful Words
– ETD: Estimated Time of Departure
– ETA: Estimated Time of Arrival
www.chinabizconsulting.com.cn Mar. 09, 2005 6

7. BIT
Application for Export Licenses Consulting
• 2005 Catalogue of Export Commodities subject to License
Control (Dec. 10, 2004)
• Scope: 47 categories and 316 H.S.Codes
– Export Quotas: main foods and raw materials- corn, cow, coke, oil,
zinc etc.
– Export Quotas by Bidding: 9 commodities
– Export Licenses: cows, sensitive chemicals, computers, electric
fans, bicycles, motorcycles and etc.
www.chinabizconsulting.com.cn Mar. 09, 2005 7

8. BIT
Application for Inspection Consulting
• Catalogue for import & export commodities subject to
Mandatory Inspection
• Scope: foods, machines, home appliances etc.
– Check with CIQ
– H.S Code
• Forms
– Quality Certificate
– Fumigation Certificate: wooden packages to US, EU …
www.chinabizconsulting.com.cn Mar. 09, 2005 8

9. BIT
Customs Formality Consulting
• Regulations on Import and Export Tariff of the People’s
Republic of China
• Customs Import and Export Tariff of the People's Republic of
China
• Document List for Customs Clearance
– Customs Declaration Form
– Copy of Export Contract
– Commercial Invoice
– Packing List
– Foreign Exchange Verification Form
– Export License or Quotas if Mandatory
– Inspection Certificate if Mandatory
www.chinabizconsulting.com.cn Mar. 09, 2005 9

10. BIT
Other Procedures Consulting
• Foreign Exchange Verification
– Payments received against declared export value
– Usually within 90 days after shipment
• VAT Refund or Rebate
– VAT: 17%
– Refund rate: 17%、13%、11%、8%、5%
– Accounting rules and procedures require expertise
• Other Issues:
– Certificate of Origin (C/O): CCPIT
– GSP Form A: CIQ
• GSP - Generalized System of Preferences
• EU, Japan, Australia, Canda, and etc.
www.chinabizconsulting.com.cn Mar. 09, 2005 10

11. BIT
Q&A Consulting
www.chinabizconsulting.com.cn Mar. 09, 2005 11

12. BIT
Consulting
www.chinabizconsulting.com.cn Mar. 09, 2005 12