Import: Special Provisions

Special provisions allow importers greater flexibility in the import process.

Special Economic Zones (SEZs)

Special Economic Zones (SEZs) are areas established for the purpose of introducing foreign capital and technology in accordance with China's policy of opening the country to foreign business. In particular, the Shenzhen SEZ has achieved rapid development due to its proximity to Hong Kong. During initial phases of the establishment of SEZs, the primary and secondary sectors formed the bulk of the industries to move in, but presently, the tertiary sector—including commerce, tourism, and scientific technology research facilities—has moved in as well. These SEZs have developed into comprehensive areas, such as Shenzhen, Zhuhai, Shantou, Xiamen, and Hainan.

Open Coastal Cities

In addition to SEZs, 14 coastal harbor cities are designated as open coastal cities for further promotion of the policy of opening the country to foreign business. Such designated cities are allowed to adopt Special Economic Zone-level foreign capital preferential treatment, including corporate income tax relief. The open coastal cities are:

• Beihai
• Dalian
• Fuzhou
• Guangzhou
• Lianyungang
• Nantong
• Ningbo
• Qingdao
• Qinhuangdao
• Shanghai
• Tianjin
• Wenzhou
• Yantai
• Zhanjiang

Economic and Technological Development Zones

These are areas established on the outskirts of Open Coastal Cities in distinction to the inner-city district, initially in 14 places. These are mainly industrial development areas established for the purpose of introducing foreign capital and technology. However, research institutions or development centers are also permitted to move into these areas. These areas are not particularly separated from general areas, and as such residences, stores, and office buildings are mixed together in some Economic and Technological Development Zones.

High-Tech Industrial Development Zones

The establishment of high-tech industrial development zones has brought Chinese industrial technology up to a world-class level. Presently, there are 53 state-sponsored High-tech Industrial Development Zones across the country. They provide some preferential treatment, such as corporate income tax cuts.

Software Parks

Software parks were established in principal Chinese cities to develop the software industry under the China High-Tech Industry Guideline Program. The popular software parks include:

• Shenyang NEU Software Park
• Jinan Qilu Software Park in Shandong
• Changsha Chuangzhi Software Park in Shandong
• Chengdu Tuopu Software Park in Sichuan

Open Inland Cities

Open Inland Cities were established for the purpose of correcting salary standards, standards of living, and employment opportunity gaps between coastal areas and inland areas resulting from the intense focus of capital introduction and export promotion program in coastal areas.

Changjiang Area Open Cities

Open Cities, established along the Changjiang (Yangtze River) basin for promoting the inland cities' economy, industry, and export, consist of three basins: 

• Shanghai-centered lower Changjiang economic bloc 
• Wuhan-centered middle Changjiang economic bloc
• Chongqing-centered upper Changjiang economic bloc

Border Economic Cooperative Zones

Border Economic Cooperative Zones were established for the purpose of promoting border trade with the countries that directly border China, including Russia, Mongolia, some Central Asian countries, Vietnam, and Myanmar based on the omni-directional open policy. Some examples are:

• Heihe, Suifenhe, Manzhouli, Hunchun, Erenhot, and Dandong in the Northern region of China for trade with Russia and Mongolia
• Yining, Bole, and Tacheng in the Western region for trade with the Central Asian countries
• Pingxiang Dongxing, Wanding, Ruili, and Hekou in the South for trade with Myanmar and Vietnam

Free Trade Zones (FTZs)

There are 15 free trade zones (FTZs) in China. These provide exceptions to the usual customs procedures and allow for preferential tariff and tax treatment. All forms of trade conducted between companies in FTZs and areas in China outside the zones are subject to the usual rules that would apply to imports into China.

The FTZ provides trade service functions, including bonded storage and product displays, international intermediary trade functions, and export processing. The establishment of a 100 percent foreign-owned company, exemption from payment of customs duty and Value-added Tax, and indefinite import cargo bonded storage are allowed in the FTZ.

ATA Carnet

The ATA Carnet was formed by an international convention. It refers to an international customs document having a worldwide usage to ease procedure of temporary importations into 60 member countries.

ATA Carnets are conditionally acceptable for temporary movement of goods into China. Currently China allows only those goods intended exclusively for use in exhibitions to be accepted for import via the Carnet system. Articles consigned for Temporary Import traveling under Carnets, such as goods for repair, goods for incorporation into other articles, and goods imported for further processing and re-export, are not acceptable for import into China.

Bonded Transfer

Bonded Transfer refers to goods transported from one customs establishment to another within the Chinese territory, under supervision and control of customs authorities. Formerly used for all transit goods, it is now used when customs approves declaration at a customs office other than the office of entry.

Not all commodities are acceptable for bonded transfer. The following commodities are restricted:

• Waste materials, such as animal waste, waste from the manufacture of iron or steel, wood waste and scrap, textile waste, waste of base metals and articles of base metals, waste of hardware, electrical machinery and equipment, waste of transport equipment, waste imported for special purpose, plastics waste, parings, and scraps
• Chemicals, such as controlled and restricted chemicals or materials for chemical weapons, chemicals depleting the ozone layer, precursors for chemical weapons, materials for chemical weapons, toxic chemicals, and sodium cyanide
• Automobiles

Samples

Samples and advertising materials that meet the following criteria are nondutiable:

• No commercial value
• Not for other use
• Used for analysis, quality control, and/or testing and are completely consumed in such use
• To be processed with other foreign or domestic samples
• With a total value per shipment of less than 400 Chinese yuan ($59 USD)

Samples and advertising materials are dutiable under the following conditions:

• Total value per shipment above 400 Chinese yuan (only the value exceeding 400 yuan is dutiable)
• Articles have commercial value
• Articles have other uses
• Articles are not used for analysis, quality control, and/or testing
• Articles are not completely consumed while used for analysis, quality control, and/or testing

The following samples are dutiable regardless of value: 

• Acoustic equipment
• Air conditioners
• Amplifiers
• Bicycles
• Calculators
• Cameras
• Electric fans
• Electric gramophones
• Electronic color analyzers and their major parts
• Electronic microscopes
• Motor vehicles
• Photocopiers
• Projectors
• Radios
• Recorders
• Refrigerators
• Sewing machines
• Televisions
• Vacuum cleaners
• Video cameras
• Video recording equipment
• Watches

In these cases the shipper should not only use the word "sample" on the freight document and Commercial Invoice, but also include a detailed description of the commodity.

Import Financing

Credit for Resource Import is a scheme for loans, denominated in either Chinese yuan or foreign currencies, designed to finance resource imports by Chinese companies. This scheme is provided by the Export-Import Bank of China (China EXIM bank). 

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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