Importing (used) machinery into China – Master the challenges! …with the expertise & passion of the Karl Gross China Team Presented by: Claas Reiners Tommy Chun Sandra Nguyen Thanh www.karlgross.de www.karlgross.de Steps of the transportation process SHIPPER EXPORT CUSTOMS POL POD IMPORT CUSTOMS CONSIGNEE Points / Rules / Procedures to be paid special attention to >> Required Pre-Conditions >> Documents needed >> Export Customs Clearance >> Shipping Operations >> Import Customs Clearance >> Ways of on-forwarding www.karlgross.de www.karlgross.de Importing (used) machinery into China – General Information » AQSIQ - General Administration of Quality Supervision, Inspection and Quarantine of P.R.C. sets import requirements » Different rules apply for machinery imported for/as » consumption » an investment used in companies which are 100% FDI » an investment used in companies with foreign share holder (Joint Ventures) » Possible tariff exemption for new high-technology machinery (special import requirements apply) SHIPPER EXPORT CUSTOMS POL POD www.karlgross.de www.karlgross.de IMPORT CUSTOMS CONSIGNEE Importing (used) machinery into China – General Information » IMPORTANT - Catalogue: “Prohibited the import of used machinery and electronic products” » Partly different rules apply for importing used machinery vs. importing new machinery  for importing used machinery it takes all license requirements needed for imports of new machinery plus most likely additional documents » Extra certificates/documents generally needed for import of used machinery:  “Record of Reference for Preview before Loading” or  “Certificate for Exemption of Preview before Loading” » CCC-certificate (China Compulsory Certificate) might be needed for import of new and used machinery SHIPPER EXPORT CUSTOMS POL POD www.karlgross.de www.karlgross.de IMPORT CUSTOMS CONSIGNEE Importing (used) machinery into China – Documents needed I Documents necessary for application for pre-shipment inspection by CCIC: » » » » Original registration document for the pre-shipment inspection List of mechanical and electrical product components Application form for the pre-shipment inspection Purchase contract » Technical illustrations, made-date certificate, and instructions and maintenance reports (in Chinese language) After-Sales Service Terms Authorization for import issued by government institution – AQSIQ Permit » » » Depending on the actual condition of the machinery, CCIC keeps the right to require the applicant to hand in extra documents SHIPPER EXPORT CUSTOMS POL POD www.karlgross.de www.karlgross.de IMPORT CUSTOMS CONSIGNEE Importing (used) machinery into China – Documents needed II Pre-Shipment Inspection for used machinery: » » physical inspection of goods – usually at factory site of shipper takes 5-7 working days » » » » Amount / No of machinery Size of machinery Age of machinery Evaluation of safety, hygiene and environmental protection » No exemption from pre-shipment inspection possible if machinery is older than 8 years SHIPPER EXPORT CUSTOMS POL POD www.karlgross.de www.karlgross.de IMPORT CUSTOMS CONSIGNEE Importing (used) machinery into China – Documents needed III Overview of documents to be provided by shipper/shipper‘s side: Standard Documents: » Commercial Invoice (2x) » Packing list » „Export-Customs-Declaration-Document“ such as „ABD“ in Germany » Bill of Lading / Air Waybill For shipping of used machinery also: » Pre-Shipment Inspection Report & Certificate SHIPPER EXPORT CUSTOMS POL POD www.karlgross.de www.karlgross.de IMPORT CUSTOMS CONSIGNEE Importing (used) machinery into China – Shipping Operations » Documentation according to B/L Instructions » Sea Waybill or Original Bills of Lading » Shipping Avis » Gate In / On Board information SHIPPER EXPORT CUSTOMS POL POD www.karlgross.de www.karlgross.de IMPORT CUSTOMS CONSIGNEE Importing (used) machinery into China – Shipping Operations » Arrival Notice » Submit Bill of Lading to carrier » Cargo release » Arrival Inspection (for used machinery) » Customs Inspection » Gate out information SHIPPER EXPORT CUSTOMS POL POD www.karlgross.de www.karlgross.de IMPORT CUSTOMS CONSIGNEE Importing (used) machinery into China – Import Customs Clearance Options for import customs clearance include e.g. » Import of goods for consumption » Import of goods for transit to a free trade zone » Import of goods for temporary stay in China » Import of goods further processing/refinement Customs clearance procedure / process: Checking of Documents Checking of Cargo Collection of Duties Customs Clearance Important: All goods imported to China require a Harmonized System Code (HS CODE) to be indicated on the transport documents and customs declaration form. The HS Code consists of 8-digits. The first 6-digits are the same worldwide. SHIPPER EXPORT CUSTOMS POL POD www.karlgross.de www.karlgross.de IMPORT CUSTOMS CONSIGNEE Importing (used) machinery into China – Import Customs Clearance Documents needed: » Import License (CR Code) Importers can outsource this process to an Import company licensed to import any (non-restricted) products. The company would accordingly appear on the import documents for the customs clearance. » » Commercial Invoice Packing list » Bill of Lading / Air Waybill Extra Documents - if required/applicable: » Certificate of Origin » CCC-Certificate (China Compulsory Certificate) » Fumigation certificate (ISPM 15) » CCIC Inspection Report and Certificate SHIPPER EXPORT CUSTOMS POL POD www.karlgross.de www.karlgross.de IMPORT CUSTOMS CONSIGNEE Importing (used) machinery into China – Most common reasons for failure to import these goods » Machinery does not meet mandatory national (Chinese) technical specifications. » Arrival inspection outcome/finding do not match pre-shipment inspection outcome/findings. » “Communicational challenges with consignee of goods” » Documents are not made out correctly www.karlgross.de www.karlgross.de Your contacts for more information: Claas Reiners Route Manager China, Hamburg Customer Service Languages: German / English / Chinese +49 (0) 40 - 37 888 - 284 [email protected] Tommy Chun Senior Sales Executive, Shanghai Customer Service Languages: German / English + 86 (0) 21 - 63 52 10 37 [email protected] Sandra Nguyen Sales Executive, Shenzhen Customer Service Languages: German / English / Chinese + 86 (0) 755 - 25 18 05 97 [email protected] www.karlgross.de www.karlgross.de Thank you for your attention! www.karlgross.de