Import: Basic Process

Customs Entry

The customs authority in China is known as the General Administration of Customs.

Documentation Package

The registered importer or its agent submits a documentation package consisting of the Customs Declaration Form and other supporting documentation to the General Administration of Customs.

Documentation Review

Customs reviews the documentation to check for:

• Authority of the entity to import
• Consistency of information across documents
• Legality of the proposed import
• Proper product classification and valuation

Customs also:

• Establishes whether to order an inspection of the shipment
• Computes duties, taxes, and other fees
• Refers documentation to other governmental agencies for imports of controlled products
• Establishes any special requirements for final clearance of the shipment

Except by special permission, import articles may enter China only at specific places allowed by customs. In instances where articles must travel overland from the border before reaching the nearest customs office, the route must be the one approved by customs. A distribution map of the customs offices is provided on the customs website.

The declared information allows customs to assess duties, keep statistical records, and assign the shipment to the appropriate customs procedures: Consumption (Definitive) Entry, Temporary Import, Suspensive Import, or Transit Entry.

Import articles for transit procedures are normally declared at the customs office of entry or the place where the importer is registered. However, the importer may obtain permission from customs to file the declaration at the customs office of destination. In this case, articles may be transported to the office of destination under customs escort.

Articles temporarily imported must be re-exported within six months. Customs may grant extensions in some circumstances.

Before submitting the declaration, the importer may wish to check the articles or draw samples. This may be done only after obtaining permission of customs through an application form. Customs rejects any declaration that contains an error. It allows the declarant to correct the problem and re-declare the articles.

Customs law stipulates that the owner (presumed to be the importer) of the import articles may make the declaration or engage the services of a customs broker to do so. Both the importer and the agent must be registered with customs or the Ministry of Commerce before declaring articles.

Time to File

Within 14 days of the advance notification of arrival, articles should be declared using the Customs Declaration Form, the primary legal document required for declaration of all import articles. Late declaration incurs a fine.

Before arrival, the carrier must notify customs of the estimated time when the means of transport will arrive at the customs border and, where different, the carrier's final destination and place where the shipment is to be unloaded. From the moment of arrival in China, the imported articles are under customs control and may not be opened, modified, transferred to another owner or carrier, used, or disposed of except in the presence, and with the permission, of customs officers.

When customs approves, declaration may be made within three days before the import articles arrive in the customs custody area. The freight document or list of articles must be submitted, and the names, quantity and specifications of the articles must be confirmed.

An importer may also submit to customs a written request for pre-classification of the import articles in advance of shipment. If the request is approved, customs sends personnel to examine the articles or to take samples in order to make the correct determination. A Decision of Pre-Categorization is then given to the importer to accompany the Customs Declaration Form. The document is valid for identical articles shipped subsequently.

Electronic Filing

Customs may require electronic filing of some or all documents related to the import process. For further information or to file electronically, go to http://english.customs.gov.cn.

While customs law states that documentary (paper) declarations and electronic declarations have equal legal effect, the importer should be prepared to submit a paper copy in addition to the electronic one if customs requires it. The paper and electronic versions must have identical information.

Import License, Clearance, Permit

As a general rule, all kinds of imported articles are allowed into China. For freely-importable articles customs does not require prior approval or clearance from any governmental agency. Some restricted articles, however, require an import license, clearance, or permit. See the Restricted and Prohibited page

Tariff Regimes

China is one of more than 180 countries that use the Harmonized Commodity Description and Coding System (Harmonized System or HS). The HS is an internationally standardized system of names and numbers for classifying traded products and is maintained by the World Customs Organization (WCO).

Additionally, China is a signatory to a number of trade agreements that provide for reduced-duty or duty-free import of certain articles from certain countries. Some of the major trade agreements include:

• Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP)
• China-ASEAN Free Trade Agreement
• China-Singapore Free Trade Agreement
• China-New Zealand Free Trade Agreement

For a complete list of trade agreements to which China is a party, see the Trade Agreements page.

Import Documentation

All imports of physical articles require the following basic documentation:

• Customs Declaration Form
• Commercial Invoice (CI)
• Freight Document: Bill of Lading (B/L) Airway Bill (AWB), Rail Waybill, or Road Waybill
• Packing List (P/L)
• Certificate of Origin (CoO)

Some imports may require specialized documentation:

• Health Certificate
• Phytosanitary Certificate
• Insurance Document
• Import Licenses, Permits, Certifications
• Documents as may be required by the terms of a bank letter of credit (L/C) or documents against payment (D/P) provision

Restricted and Prohibited Articles

For restricted and prohibited articles an import license, clearance, or permit must be obtained from the governmental agency that regulates that article. This document must be submitted to customs upon filing of the customs Declaration Form or prior to release of the regulated article from customs custody. See the Restricted and Prohibited page for additional information.

Inspection

The General Administration of Quality Supervision, Inspection and Quarantine of the People's Republic of China (GAQSIQ) is the oversight body for inspection of import and export articles. GAQSIQ maintains two lists of articles subject to inspection:

• Catalog of Import and Export Commodities Subject to Compulsory Inspection
  
  • Articles subject to statutory inspection are listed in this catalog, which GAQSIQ compiles based on dialogue with customs, foreign trade departments, and other agencies concerned with imports. The list is published 30 days before going into effect.
• Commodities Subject to Verification Administration
  
  • Articles on this list require documentary review to ensure that required licenses and certifications are in order and correspond to the shipped articles.

The GAQSIQ establishes inspection and quarantine bureaus at the provincial, regional, and municipal levels and at ports and import distribution centers. Importers of articles on the lists should apply to these bureaus to request inspection, submitting contracts and invoices, packing lists, bills of lading, and other relevant documents.

The inspection bureaus, in addition to examining articles on the lists named above, also inspect documents and/or articles as needed for the following reasons:

• Verification of the tariff classification for purposes of statistical records and determination of duties
• For safety, health, and environmental protection
• Risk assessment indicating inspection to detect deception, smuggling, or other irregularities
• Quality control of articles covered by technical specifications, such as medicines, instruments of measurement, boilers, ships, and airplanes
• Random sampling ordered by customs

Shipments that fail inspection for safety or health reasons may be destroyed or returned to their place of origin. Imported articles that fail inspection but may be rendered acceptable by technical treatment, may be so treated under supervision of inspection authorities and re-inspected. When articles have passed inspection, the inspection/quarantine bureau issues a certificate to this effect.

A few categories of export articles require inspection in the country of origin. Certifying bodies approved by China carry out inspection of these articles, which may require inspection for security or health reasons (in the case of some used electronic products) or because of unusual characteristics (high value, large dimensions, or complex technology).

Payment of Duties and Taxes

Customs verifies the customs value of the articles and the corresponding duties, taxes, and fees. It issues a Duty Memorandum indicating the total amount owed. The importer must pay this amount through the importer's bank of deposit, or provide a security, within 15 days in order to avoid fees for delayed payment. The shipment is not released before payment or security is submitted, except in cases of special customs approval.

Clearance and Release of Shipment

Release of shipment normally takes place without delay once declaration is accepted and inspection and payment are completed.

When declaration or classification and valuation cannot be completed quickly, the importer may ask customs to release the articles against a security before the usual steps are done. The following means of security, provided by the importer or another interested party, are accepted:

• Currency
• Cashier's check, bank draft, bond, or certificate of deposit
• Bank guarantee
• Other security approved by customs

The importer must still comply with normal import procedures.

Importers must take note that customs may, at any time for three years following import, audit import articles, accounts, and documents submitted for customs clearance. It is therefore essential for the importer to retain documentation.

Import Support

For more information, contact the General Administration of Customs.

Note: The above information is subject to change. Importers and exporters are advised to obtain the most current information from a customs broker, freight forwarder, logistics professionals, or local customs authorities.

Source: General Administration of Customs

Article written for World Trade Press by Taylor Holloran, Jennifer Goheen, and Nina Bellucci.
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