Overview of Process and procedures for importing goods into China
Importing goods from foreign countries into China is carried out according to the following basic steps:
Step 1: Determining the import category/import conditions of goods
Not all goods are allowed to be imported into China, and not all imported goods are subject to the same import mechanism. Similar to Vietnam and other countries in the world, China also sets regulations on import bans, import restrictions or special controls for certain goods.
Therefore, before importing goods into the Chinese market, importers should carefully consider whether the goods belong to one of the following categories:
- Goods prohibited from import
- Goods subject to special control/inspection
- Goods that must have an import license
Detail of Step 1 at: https://wtocenter.vn/rcep-market/23979-determining-the-import-categoryimport-conditions-of-goods-into-china
Step 2: Determining the classification of goods
Determining the classification (HS) of a product is a very important step in determining the tariff applicable to that product.
From August 1, 2019, the China Customs Commodity HS Code has been changed from the original 10-digit HS code to the new 13-digit HS code. Meanwhile, Vietnam is currently applying the 8-digit HS system according to the ASEAN Harmonised Tariff Nomenclature (AHTN). Therefore, to import goods into China, businesses should pay attention to determining HS codes according to China's HS system (not Vietnam's HS system).
Accurately determining HS code of goods is very important, not only for import declaration but also for declaration on the certificate of origin (if any) in case imported goods want to enjoy preferential tariffs under FTAs between Vietnam and China (ACFTA or RCEP).
Detail of Step 2 at: https://wtocenter.vn/rcep-market/23978-determining-the-classification-of-goods-imported-into-china
Step 3: Determining tariffs, duties and fees
Import tariffs
After determining the HS code of a product according to China's HS system, the importer can identify the import tariff rate applicable to that product. Most tariffs are calculated based on a percentage of the customs value of the goods.
For Vietnamese goods imported into China, there are 3 tariff options, each option corresponding to a certain tariff rate and conditions for enjoying it. Importers will base on the specific conditions of the goods to choose the most appropriate and beneficial tariff for themselves. Specifically:
- MFN tariff
- ACFTA tariff
- RCEP tarif
Other taxes and duties
In addition to import tariffs, goods imported into China are also subject to other taxes, such as:
- Value added tax (VAT)
- Consumption tax
- Anti-dumping duty, anti-subsidy duty and safeguard duty
Detail of Step 3 at: https://wtocenter.vn/rcep-market/23977-determining-tariffs-duties-and-fees-of-imported-goods-into-china
Step 4: Import declaration, tariffs payment, taxes and customs clearance
All goods imported into China must be notified to the Chinese Customs authorities.
Importers must prepare a customs declaration form and submit necessary documents to the Chinese Customs.
After the importer submits all required documents and tariffs/taxes/fees, China Customs will clear the shipment and release the goods. After customs clearance and release, imported goods can circulate freely in the Chinese market.
Detail of Step 4 at: https://wtocenter.vn/rcep-market/23976-import-declaration-tariffs-payment-taxes-and-customs-clearance
Source: Center for WTO and International Trade
