CHINA: CUSTOMS PROCEDURES AND LOGISTICS

WEBINAR

10 March 2020

2

SPEAKERS

Andrea Kubista, Deputy Head AußenwirtschaftsCenter Peking

Michael Zhang, Head of Project and Intermodal Transportation

Gebrüder Weiss China Ltd.

Duration: approx. 40 min presentation, 20 min Q & A

Do you have any questions or technical issues? Use the chat function to contact us!

Powerpoint slides and feedback link will be sent to you by email

The webinar will be uploaded to our YouTube channel

3

GETTING STARTED

CURRENT

CHALLENGES:

COVID-19

CUSTOMS

CLEARANCE AND

INSPECTIONS

FREE TRADE ZONES

/ BONDED ZONES

Q & A

4

AGENDA

5

trucks on the road for

GW on any given day

million shipments

forwarded worldwide

annually

GW locations

worldwide

logistics area

employees

3,500

12.7

150

1,547

626,109 m²

7,000

million Euro net

turnover

GEBRÜDER WEISS – FACTS AND FIGURES

6

Logistics solutions

Tailor-made solutions

for your supply chain

Industry solutions

Our reaction on

special challenges

Integrated transport

solutions

Air freight

Fast, flexible and

reliable in the air

Sea freight

Safe and cost-efficient

on the sea

Land transport

GEBRÜDER WEISS – RANGE OF SERVICES

International flights cancellation/ suspension

about 20% space available

Road transportation restrictions in China

Drivers are required to fill out a registration form and health declaration

Export controls on medical protection materials

surgical masks, protection suits

China-Europe/Central Asia Block Trains are back on track

since the end of February except Wuhan

covers main European hubs like Lodz, Liege, Hamburg, Duisburg, Hungary, Nuremberg,

Moscow , Almaty, Tashkent 7

CURRENT CHALLENGES: COVID-19

Importer with valid foreign trade license (import/export)

Harmonized system (HS): first 6 digits correspond with European HS codes (TARIC)

Applicable tariffs, import VAT and conditions (tariff directory)

HS code assigned by customs when importing for the first time

Import licenses (if required), compliance with Chinese national standards, labeling and

packaging regulations

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CUSTOMS CLEARANCE: BASICS

Chinese customs increasingly demands indication of place of origin (certificates of origin)

Especially relevant for goods with US origin (US-China trade dispute)

Goods produced in two or more countries: place of origin is the country where the goods

undergo a final substantial change

Which tariffs apply if the goods are produced in the US, but exported via a third country?

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PLACE OF ORIGIN

E-declaration nationwide

Consignee can make the declaration and pay duty/ tax in local customs office instead of port

of entry

The cargo release/physical inspection will be done at port of entry

10

CUSTOMS CLEARANCE: PROCEDURE

TEMPORARY IMPORT

Duty-free temporary import for 6 months (subject to renewal)

Deposit equal to import duties (import tariff + VAT)

China accepts Carnet A.T.A. for exhibitions, professional equipment/tools, sports equipment

for international matches

Chinese customs can request additional evidence to verify that goods are used for the stated

purpose

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IMPORT OF SPARE PARTS

Import of spare parts under warranty of the equipment

Certified by CCIQ

Return the damaged parts first before re-importing spare parts

New shipment declared as "replacement shipment“

No import duties for replacement shipment

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What are the main concerns of customs?

When paperwork does not apparently match the cargo in packing/ quantity /marks etc.

When declared value is much higher/lower than market level

When customs officers think the HS codes are incorrect

When the cargo comes from origins which have special duty agreements or FTA countries

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CUSTOMS INSPECTIONS

Importing materials, components, accessories etc. for assembly or processing in China and

re-exporting finished products

Bonded system (bonded zones, factories bonded warehouses)

Tariff exemption for goods imported for processing trade

Import-export declaration by Chinese company: import materials with bonded handbooks, re-

export finished products for verification of the handbooks

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PROCESSING TRADE

18 Free Trade Zones in China

Factories / warehouse / shops in free trade zone

Goods can be transported between FTZ and overseas without paying taxes and duties in

China

Import duties are to be paid when goods are released into the market

Bonded Logistic Zones

Goods are stored /neutralized packing only

Bonded Processing Zones

Goods are processed in bond (import of raw materials / export finished products)

15

FREE TRADE ZONES

Austrian Company (A) A’s dealer in Korea

A’s producer in China A’s customer in China

Bonded

warehouse for

neutralization

Paym

ent

Payment

Export Import

Sale

s contra

ct

Paym

ent

Sales contract

Sale

s contra

ct

Products Products

Offshore trade

SIMULATED IMPORT

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Questions?

AußenwirtschaftsCenter Peking

Andrea Kubista

T +86 10 8527 5050

F +86 10 8527 5049

E peking@wko.at

W wko.at/aussenwirtschaft/china

Gebrüder Weiss China Ltd.

Michael Zhang

T +86 10 6554 7908 / 6554 1916 ext. 201

F +86-10-6554 3090

E michael.zhang@gw-world.com

W gw-world.com