For any
manufacturer, the prospect of tapping the Chinese market is tempting and
promising—after all China is
one of the world’s largest economies. However, the process is
characterized by complications and exhaustive go-through steps.
And, after
all the hard work, wait and expenses incurred in the due diligence, seeing the
shipped product being extendedly held by the customs department can be
deflating.
- It adds to the warehousing and storage fees for the manufacturer/importer, or both (depending on the agreed terms of shipment).
- It results in loss of business reputation sustained by delayed shipment.
Therefore,
it’s important that manufacturers and exporters who want to ship their product
to China, exercise all the required steps to ensure that the product clears
Chinese customs efficiently and without any delays.
Listed
below are the four biggest hindrances to clearing Chinese customs, the
considerations surrounding which should entail every manufacturer’s custom
clearance strategy.
An Inappropriate HS Code Selection
Every
commodity or product that is to be shipped into a country, needs to be affixed
with a HS code that helps in its identification and achieving uniform
classification. This makes it easier for custom officials to physically check
the goods, to assess whether the shipment complies with the description as
stated on the shipment documents and it helps in the calculation of import
duty.
The HS
coding system is based on a standardized 6-digit nomenclature, with every
country free to extend it by at least 2-digit or 4-digit provisions. China has
its own defined
extensions.
A wrong HS
code selection can cause confusion among the custom officials and could lead to
delays in the clearance process. In some cases, the clearance process may have
to be restarted.
Not Following the Proper Shipment
Protocol
To ship a
product to China, you require the services of a shipping company and an
expediter. Then, you have to make sure that the shipment plan you created,
tallies with the paperwork from the shipping company and that prepared by the
expediter.
Any
inconsistencies or exercised negligence while preparing the plan and matching
it with the paperwork can lead to unwelcome delays in the custom clearance
process.
Failure to Obtain the Right
Compliant Certification
Obtaining compliance certificate is important in establishing that your product complies
with the safety and other regulatory requirements as set by the market
authoritative agencies of a specific jurisdiction. For legally shipping a product
to China, this means applying for a China Compulsory Certification, also
known as 3C Certificate.
The 3C
Certificate regulates more than 132 product categories in the country, which
includes motor vehicles, technology equipment and more.
In some
cases, such as edible products, you may also need additional certificates from
other Chinese regulatory agencies.
Failure to
obtain product-specific compliant certification would result in the shipment
being held at customs—along with penalties that may prove to be too costly.
Unable to Validate CCC Exemptions
Where
majority of products need to be CCC marked, the Chinese government has a few exemptions.
However, in that case, the manufacturer or the exporter must properly document
the proof of exemption, otherwise the product won’t be cleared by the custom
officials.
The
proposed suggestion in this case is to work alongside Chinese regulators or an
international homologation service provider that has the experience of working
in the Chinese market.
Structure a
strategy based on the above discussed points of consideration and you won’t
face any difficulties or delays in getting your product customs cleared.
Need Help?
G&M
Compliance can help. The company has been providing international homologation
services to businesses worldwide, helping them to get their product in an
international market as quickly as possible.
Included in
its service portfolio is the assistance with China customs clearance process, providing CCC exemption
certificate, helping in the application for CCC certificate and offering
guidance with regards to other internationally regulated market compliancy
requirements. For more details, call at 714 628 1020.