Want to send a
shipment to China, but not really sure whether you’ll have to pay custom duty
for it?
Or, is it that
you want to send over a parcel of your product sample but don’t really know
what regulatory aspects govern the shipment process?
In this post, we
try to cover the subject of shipments to China, particularly those shipments
against which you are liable to pay custom duty and other related taxes.
First Things First – The Customs
Registration Code
Whether you are
sending a product sample to your business partners in China or sending an
entire container of goods and items, you will need a Customs Registration Code
(CR Code) to get your shipment into the country. For that, you have to register
your company with China’s Customs authorities. This CR Code will be indicated
on all customs declaration forms for all shipments that you will send in future.
What about documents?
You don’t need a
Customs Registration code to send documents or personal effects to China.
What are
personal effects? We’ll discuss
them later.
Complying with Harmonized
System Code and China Compulsory Certification
Harmonized
system code or HS Code, helps to establish a standard system of classification
for goods that are sent all over the world. This system also applies to all the
shipments sent to China.
For example, if
you are sending electronic equipment, it has a unique HS Code. Similarly, if
you are sending a container full of pineapples, it would have its own HS Code.
By looking at
the code custom officials can identify what is in the container and it allows
them to calculate VAT liability and custom duty for the shipment.
China Compulsory Certification
or 3C Certificate, on the other hand, serves as a seal of validation that the
goods you are sending comply with China’s market standards.
For any shipment
you send under Customs Registration code, it must be affixed with a HS Code and
should be CCC marked.
Dutiable Shipments – Which Type
of Shipments Are Liable?
All shipments,
with the exception of documents and duty exempted consignments, are subject to
custom duty and VAT. This total fee will vary from 20–30% of the value of the
consignment that has been shipped.
Which consignments are exempted from custom duty?
Shipped items
need to have a certain threshold value to be exempted from custom duty. This
threshold value is the sum of VAT liability and to-be-assigned custom duty,
calculated on the basis of HS Code. It needs to be less than RMB 50 which
approximates to $7.
With personal effects carrying no CR Code, does that mean all personal effects are exempted from custom duty as well?
No. Only those personal
effects that are valued at less than 1000 Yuan are to be exempted from custom
duty.
Defining Personal Effects
Personal effects
are items of personal use, gifts and unaccompanied baggage.
What type of paperwork you need to custom clear personal effects?
Since personal
effects are not issued with a CR Code, there needs to be some additional
documentation or paperwork to help them get cleared from the customs.
- In case of gift items or commodities of personal use, you will need a Proforma invoice, copy of consignee’s ID and a document listing details about the personal effect.
- For unaccompanied baggage, you will need a Baggage Declaration Form attested by border customs, copy of passport with valid visa, entry stamp by immigration officials and a list containing details about the articles.
Got anything else to ask about sending dutiable shipments to China?
Reach out and we will make
sure all your queries are facilitated promptly. We can also help you with the
process to send your shipment to China, from choosing a HS Code for your
shipment to getting a CCC
approval for it.
We look forward
to serving you!