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
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
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.