Import and Export Regulations in China
Note: This is an introduction to the import and export regulations in China. The following document will outline some of the issues you should consider if you wish to import goods into or export goods from China. As Chinese foreign trade regulations are complex and continually changing, please be aware that this is not an exhaustive discussion of the subject matter.
Importing to China?
What is required for importing goods into China?
In order to purchase imported goods, an importer in China must have:
a. authorisation from the various governmental bodies;
b. sufficient foreign exchange; and
c. an import license (in some cases).
What authorisation does an importer need to obtain?
An importer in China must acquire approval from the following governmental bodies before purchasing imported goods:
a. the supervising organisation The importer must get approval, at either the county or the municipal level, from the industrial bureau or the industrial corporation that normally administers its activities.
b. the state planning commission (SPC) The State Planning Commission determines the general economic plans for each region and any proposed imports must be consistent with the State Planning Commission's economic development policies. Basically, the SPC determines the pattern of development in various industries and assigns foreign exchange accordingly. More specifically, it is charged with approving the construction of new factories and the importation of equipment and machinery for these factories.
c. the economic commission The Economic Commission carries out the economic directives of the State Planning Commission. Once the State Planning Commission decides a product will be imported in order to fulfil one of its economic objectives, the Economic Commission determines which enterprise will import the product. An importer must have the approval of the Economic Commission before purchasing imported products.
d. the Ministry of Foreign Trade and Economic Cooperation (MOFTEC) The MOFTEC and its regional branches oversee state foreign trade companies (FTC). As well, this governmental body develops and executes import and export plans for each region, along with the State Planning Commission.
e. Foreign Trade Companies (FTCs) An importer in China can have a state FTC sign the import contract with the foreign supplier as an agent of the importer. A FTC may supply an importer foreign exchange quota if the importer lacks foreign exchange, if the purchase is consistent with the general economic plan of the region and considered to be profitable.