Foreign Trade

Source: Investment Yunfu Published: 11/25/2015 14:55 PM Views: 5632

According to the Foreign Trade Law of the People’s Republic of China, the State applies a unified system of foreign trade, encourages its development and preserves a fair and free foreign trade order, on the principle of equality and mutual benefit. The following section describes the main aspects of China’s foreign trade regime.


Import – Export

Foreign funded enterprises can export and import product and services directly, except goods subject to state trading. Using a local import/export agent or trade company is no longer required. In order to be authorized to engage in foreign trade activities, registration with Customs before conducting the first operation is required. Importers and exporters are required to file customs declarations within 24 hours before the goods are loaded. Custom review process shall take 48 hours or less. Generally, imported goods are subject to custom tariffs and import Value Added Tax (VAT).Tariff rates are determined according to the Harmonized Commodity Description and Coding System and the origin of the goods (see below China’s FTA network).Duties exemptions and duties reduction are available for certain goods when they are imported to be utilized in industries qualified as a priority by the Chinese government.


Types of tariff Rates

1、General Tariff (applicable to the imported goods that do not fall under one of the categories described below)

2、Most-favored Nation Tariff (applicable toimported merchandise which origin are WTO member countries)

3、Preferential Tariff Rates (applicable toimported goods originated at countries that have subscribed special trade agreements with China either individually or as part of a regional agreement.)

4、Interim Rates (applicable temporarily tospecific imported goods to promote the country’s industrial policy)


Key Regulations

Customs Law of the People’s Republic of China


Special Custom Zones

China has a number of different special custom zones that offer preferential customs and VAT treatment. These zones are specific geographical areas that are marked out and administered by Customs.They may be considered to be outside the Customs territory of China, but may beconsidered to be part of China Proper by other agencies. The preferential treatment that an enterprise established within the various zones may bedifferent, and the type of activities permitted may also be different.



China’s customs practices are adapted to international standards. China follows the Harmonized Commodity Description and Coding System developed by World Customs Organization. Import/ Export standards have been implemented at a national, local, professional and industry levels.These standards could be mandatory or voluntary. Different product or services requires different standards.


Key Regulations

Customs Law of the People’s Republic of China

Standardization Law of the People’s Republic of China

Regulations for the Implementation of the Standardization Law of the People’s Republic of China

For more information on standardization:Standardization Administration of China


China’s Free Trade Agreements Network

Since becoming a member of WTO in 2001,China has deepened the opening up process to enhance the country’s commercialties. China has entered into several trade agreements that allow its productsto obtain preferential access to some of the most dynamics global markets. In addition, several more trade agreements are currently under negotiation.Foshan’s strong trade infrastructure makes the city an ideal platform to sell products and services from here to the world.


China Free Trade Agreements(FTA)


China-Pakistan FTA

China-Chile FTA

China-New Zealand FTA

China-Singapore FTA

China-Peru FTA

China-Costa Rica FTA

China-Iceland FTA

China-Switzerland FTA

Mainland and Hong Kong Closer Economic and Partnership Arrangement

Mainland and Macau Closer Economic and Partnership Arrangement


Free Trade Agreements under Negotiation

China-GCC(Gulf Cooperation Council) FTA

China-Australia FTA

China-Norway FTA


Free Trade Agreements under Consideration

China-India Regional Trade Arrangement Joint Feasibility Study

China-Korea FTA Joint Feasibility Study

China-Japan-Korea Joint Feasibility Study


Preferential Trade Agreement

Asia-Pacific Trade Agreement