Overview
Businesses engaging in cross-border trade in China must obtain the proper import and export certificates before goods can clear customs. The process involves registering with the Foreign Trade Unit and the Inspection and Quarantine Bureau, as well as obtaining an Electronic Port Card for digital customs processing.
Export License
An export license is a document issued by the Chinese government granting permission to ship goods out of the country. Without it, goods will not clear customs. It serves as a mechanism for the government to control outgoing goods.
Chinese companies are responsible for obtaining the export license, either directly or through a trading agent.
Application Requirements
The export license application must include the following details:
- Goods name and specifications
- Destination country
- Quantity and unit price
- Total value
- Delivery date
- Payment form
Supporting documents include the original contract, business license, and annual export plan.
Export Fee Responsibility
Overseas buyers typically pay export fees through the shipping terms. Under FOB, CIF, or DAP terms, the fees are included in the product price. Under EXW (Ex Works) terms, the buyer must arrange and pay for export fees separately. Some smaller exporters may avoid the formal export license process due to the bureaucratic complexity and associated costs.
Import License
Non-automatic import licenses are used to control products subject to quotas. They serve as a non-tariff barrier designed to protect the local economy. Applications are submitted to the Ministry of Commerce (MOFCOM).
The importer manages the application process. The application form must be signed and stamped by the legal representative. Required supporting documents include the organization code certificate and a stamped business license, submitted to the Department of Commerce.
Automatic Import License
Most products in China are classified as “permitted goods” and require only an automatic import license. This type of license is used primarily for trade statistics rather than quota control. There is no limit on the number of automatic licenses that can be issued.
Each automatic import license is valid for six months and typically covers one batch of goods. In some cases, multiple batches may be covered under a single license.
Four Categories of Importations
Application Process
Import license applications must be submitted before customs clearance. Processing typically takes approximately two weeks. There is no fee for the application.
The application form can be downloaded from the MOFCOM website. The importer is typically responsible for handling the entire process.
