China’s regulations on import activity

       Like every country, China has regulation and control over imported goods . The introduction of  imported products and their marketing authorisation are complex. But aiming for a constant economic dynamism Chinese regulations change quickly and the signature of  partnerships may smooth import activity.

    Nowadays, the companies which intend to join the import business, have to register at the Trade Minister (MOFCOM) in compliance with International Trade Law. This registration process has been established since China joined the World Trade Organisation.

Foreign and Chinese companies are allowed to trade most of the categories of goods except for a limited number of products reserved for national firms.

Concerning import duties, the country commands  ad valorem tax on imports. It means that the cost of tax will amount proportionally to the value of the product imported. Ad valorem tax includes the handling charge, the freight, insurance premium, and other services before the unloading of the container at the arrival point. However since China has joined the WTO the number of import duties fell down. The medial rate of import duties dropped from 15,3% in 2000 to 9,3% in 2017. Furthermore, how the fares amount are decided and how it is managed are matters dealt by the General Customs Administration. A pricing list is published yearly and it is available at the China Customs Press.

I took the liberty of adding their address and a list of items restricted for import to China. Consulting the Chinese custom website will provide a better support for a serious undertaking import . 

China Custom Press
Jia 1, East Fourth Ring South
Chaoyang District
Beijing, 100023
Phone number : 86-10-6519 5616
Restricted items:

•        Antiques

•        Asbestos

•        Biological substance, Category B UN3373

In other words  human or animal material including blood, tissue, tissue fluids or body parts being transported for purposes such as research, diagnosis, investigational activities, disease treatment or prevention.

•        Dangerous goods like Firearms or parts of, Military equipment

•        Ivory ,animal skins and furs

•        Gambling devices

•        Precious metals & stones and Jewellery

•        Perishables (food that can rott)

•        Personal mail

•        Pornography

•        Rader equipment i.e. transmitters / receivers.

-VAT:

VAT involves almost all products and the consumption tax most of them. These taxes are run at the place of import .

It can range  from 10% to 16% for some items.

Actually, for books, newspapers, magazines, cereals, edible vegetable oils, tap water, heaters, coal products for residential use the VAT is 13 %.

-The consumption taxe:

Tobacco, alcohol and cosmetics involve a consumption tax which can amount to 40% of its value.

However, not only  the value and the nature of the goods imported influence
 the tax pricing but the zone of trade has an impact too.

     















     Actually, China counts many special trade zones which offer preferential pricing and tax treatments without the regular custom procedure. They are called free trade zones. All the business activities made between companies inside and outside of these trade zones are subjected to the regular import duties procedure in China. The free trade zones are great  assets for the country's economy and in order to make the most of it, the government and companies have invested in flight routes and logistics.

For example, Changan Modern Logistics founded  3 international airlines specialized in freight departing from Xi’an. The total volume  generated  is about 8400 tons. Now  the company’s objective is to build a supply chain of high value with Xi’an as the center.

“The number of flight route will be increased up to 40 in 2020, the last year of the 13^th five-year plan (2015-2020)” announced ZHANG Qiong, general manager of the transport department of Henan province.

Hu Heping, governor of the Shaanxi province, made a reminder of Shaanxi’s geographical important position. Shaanxi is steered by the free trade zone located in the inland center of China. This region is the starting point of the Silk Road and therefore it possesses unique advantages in terms of localisation. Shaanxii may become a centre of aviation and freight.

    China has already created 11 free trade zones in order to speed up the opening up of the country and stimulate the initiative of «The belt and the road ». Specially in cut off areas such as Shaanxi and Henan’s regions  and coastal provinces such as Zhejiang and Guangdong.

                                                                                                                    

                                                                                                                                Hassan.L