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Description |
Fresh grape wine in a container of 2 liters or less |
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European Customs HS Code
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2204.2109 |
(the first 8 digits out of 10) |
Chinese customs HS code |
2204.2100 |
(according to the China nomenclature) |
China import General rate |
180 % |
(rate applicable if no customs agreement) |
MFN (most favored nation) rate |
14 % |
(applicable to Europe for example) |
Current 2024 rate for a USA origin |
from 29% to 54% |
(temporary trade war retaliatory measures) |
Conventional rate |
11.2 % |
Pakistan origin |
2,8 % |
Korea origin |
|
1,9 % |
Peru origin |
|
1,4 % |
Swiss origin |
|
0 % |
Chile, Singapore, Island, Géorgia |
|
0 % |
Hongkong, Taiwan, Macao |
|
RCEP members rate |
0 % |
ASEAN + Australia + New Zealand |
12.7 % |
Japan |
|
Consumption tax |
+ 10 % |
(applicable on ordinary wine) |
Value added tax (VAT) |
+ 13 % |
the ordinary rate of 13% applies |
In their continued fight against corruption, the authorities have largely involved consumers in these measures. They encourage denunciation with dedicated hotlines phone number made available to complainants.
These provisions affect first of all aspects of current consumption (counterfeits, forged products, expired consumption date, etc). They also have a strong impact on import export operators. A complaint or denunciation file often comes from a competitor, a customer, or a unhappy employee. Whether justified or not, the denunciations remain a problem that leads to dedicated inspections. The control offices, including those of the Chinese Customs, have the obligation to send conclusions in writing to the complainant.
Apart from administrative and criminal sanctions (fines, penalties and directors' liability), it is the company's reputation that is damaged in China. Thus, administrative convictions, fines and past offenses are listed in the public registry of official information.
As a non-tariff barrier tool that is developing as China has become a key player in international trade, the authorities have developed a specific system of standards and certification. Throughout China, port and airport Customs offices are one of the import checkpoints.
The CNCA (China and Accreditation Administration) controls the system of Chinese standards GB (Guo biao standing for national standard). They constitute the only standard of normative tests to be conducted to certify a product sold in China. Without a GB standard, a CCC (China Compulsory Certification) certificate is not required. On the other hand, the Chinese customs do not recognize an American or European Certificate of Approval. They do not recognize either a test report, certificate and compliance markings associated with the UL, GS, or NF standards for example.
In addition of from the regular import procedure subject to customs duties and taxes, there are 3 special customs regimes. They are the temporary admission, warehousing, inward processing trade and outward processing trade regimes. All may suspend the tax and duties payment.
It is intended for a temporary importation of goods that will be re-exported as is, without processing or modification. Their use is therefore predefined. The most frequent situation concerns products presented during a trade fair or exhibition. The organizers of international fairs in China do have special agreements with dedicated and usually imposed service providers.
Some exhibition organizers allow exhibition products to be sold, consumed or destroyed on site. In this case, the customs regime will change. Other fairs or exhibitions are organized in such a way that the products must leave the Chinese territory. For temporary exports, China has, since the late 90's, accepted ATA carnets only for use at fairs and exhibitions. Since January 2019, Chinese customs also accept ATA carnets for commercial samples and professional equipment. However, prior declarative procedures must be well prepared in advance, as simply presenting the carnet upon arrival will not be enough. |
The bonded warehousing regime allows for the storage of unprocessed goods pending their assignment. Thus, they can either be imported into China (definitive import regime) or re-exported from China. For some situations, China's 21 Free Trade Zones (FTZ) present a convenient option of a logistics base. Compare with other types of zones. .
It allows the export of a product to be processed in China for modification, repair or upgrade before being shipped back. Depending on the status of the consignee who will conduct the modification in China, duties and taxes may or may not be levied by the Chinese authorities. It is recommended to check this aspect carefully. On this kind of subject, the customs will approve only on a case by case basis any application files. China has its own regulations, different from the ones in USA and Europe. It means the customs officers do not handle a processing trade status with the same logic.
Outward processing trade in China refers to a specific kind of trading activity where a domestic company import raw materials or intermediate inputs, process them locally, and then export the finished goods. These exported items are not intended for domestic use or consumption within China. This type of trade is distinct from general trade and bonded warehouse business. The key advantage it may offer is the companies involved may benefit from an exemption or suspension of customs duties and import taxes. This apply on imported raw or auxiliary materials, parts and packaging.
Still, to enjoy the benefits and savings of these preferential measures, the Chinese service supplier shall seek a specific approval from the local authorities (including but not limited to the Customs). Among the items to check carefully, the exact nature of the processing, the customs registration status, the import and export documentation. The contract terms (ownership) between the exporter and the Chinese sub-contractor matters too. At this point, the choice of the incoterm matters too. The possibility to enjoy the benefits and savings of an outward processing trade is not necessarily restricted so some production areas such as a Free Trade Zone (FTZ) or an Export Processing Zones (EPZ).
To save costs on the reduced (or zero) tariffs, the enterprise shall prepare a handbook and get approved first. The handbook keep records of the imported materials, finished goods to be produced and the actual consumption ratio. An accurate method of working is crucial so as to comply with the China importation rules.
Then, all supporting evidence are provided to the customs for verification :
If the declaration is compliant, the import customs duties and tax (VAT or GST) may be waived or refunded. Last, please note all the operations shall be completed within a given pre-approved deadline.
Before engaging in such a trade pattern, it is advised to conduct first a professional in-depth check on the current regulatory and approval conditions. The authorities would give approval only on a case by case basis only.
Inward processing from China is intended to import products from China, process them in a foreign country and re-export them to China. The processing consists of a modification of the good for assembly, repair, upgrade of components. This type of trade operation is possible between China and the rest of the world. Its principal benefit are exemption of duties / tax upon re-importation in China. However, this type of project deserves a good preparation and follow-up with the customs authorities of both countries. The declared values and transfer price, added value breakdown, et are key matters for tax optimization.
On April 12, 2021, the Customs Administration published 2 decrees that come into force starting Jan 1, 2022.
a. decree GACC 248 is the "Regulation on Registration and Administration of Foreign Producers of Food Imported to China" (GACC Decree 248). It requires that foreign food manufacturers and storage sites that export to China must register with the Chinese customs. The decree also stipulates that food products are divided into two categories.
b. decree GACC 249 is the “Administrative Measures on Food Security in Import and Export of China” (Decree 249). It covers a wide range of requirements for exporting food products to China. It includes the registration of overseas production manufacturers, the processing records traceability by importers and exporters, quarantine & inspection matters and food labeling guidelines.
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Except in special cases, a regular shipment from Europe or USA is not subject to a strong customs control when being exported. In China, fairly heavy export customs clearance procedures exist for almost all shipments. The procedures to export may be as demanding and time consuming as they are for importation. Why ?
First because the export value of each shipment from China is subject to a VAT (tax) refund to the exporter. This refund is a part of the VAT paid on domestic purchases and services contracted during the assembly. In past years, there have been many abuses in the declaration of exported value.
Herebelow is the header of an export clearance notice issued by Chinese customs. |
Chinese Customs do not provide any tracking service for your blocked parcels. They also cannot receive information, request or documents directly from you.
Typical situation example : you have returned a product to China for reimbursement or replacement. The package is stopped at Customs. A document is missing (invoice, description, indication of value) or the package is damaged upon arrival. Only the consignee in China of the returned package can contact the domestic office or agent of the express courier company you used (UPS, TNT, DHL, Fedex, etc). This agent only may contact the Chinese Customs, if necessary. Also note the China Post and affiliated quick delivery services EMS (Express Mail Service) or SF-Express are agents of many overseas Post Offices.
Before returning a parcel from your country to a seller in China, make sure you have oberved all the necessary shipping instructions. This applies for the markings, labeling as well as for the packaging quality if a product value refund or an item replacement is involved.
Be careful with "sample" shipments even if they show "no commercial value". There is a lot of abuse of this process for products that are not actually samples. The Chinese Customs can stop, return or destroy the package if its content do not meet the required standards. The Customs also reserves the right to collect customs duties + VAT, according to a value and tax reckoning base of their choice.
It is advised to check with your supplier or prospect in China for specific declaration statements and other points of attention before sending or returning a product to them.
To an extent applicable since January 1, 2024, the Customs Tariff Committee of China's State Council decided to adjust its tariff schedule for 2024 and expand the number of tariff items. Starting this year, China is imposing provisional import duty rates on 1,010 items, the rates of which are lower than the MFN duties. These products can be classified into the following categories:
To improve public health and ease the financial burden on patients, customs duties are being removed from anti-cancer drugs. In particular those used for malignant liver tumors, as well as on drugs and raw materials intended for rare diseases, such as those treating pulmonary hypertension. Customs duties are also reduced on certain food preparations intended for specific medical purposes.
To encourage innovation in the high-tech manufacturing industry, a reduction in duties is applied to strategic equipment and components. Including the gas diffusion layers of fuel cells, biogas-powered generators with internal combustion piston engines.
Customs duties are also reduced on sweet corn, coriander and burdock seeds.
Benchmarking of transport services providers (air, sea, rail, road) on logistics and warehousing projects, freight forwarders monitoring and calls for bid.
Optimization of costs and logistics process : implementation of import and export customs clearance procedures, inward and outward processing trade files, optimization of import export flows, LCL/LCL, LCL/FCL grouping consolidation. Consulting and Standard Operating Procedures (SOP) service for Customs declaration formalities.
Advice and preparation of specific projects and temporary imports : regulations and practice of ATA carnets in China, imports for processing and re-export.
Cross-border eCommerce : comparison of Chinese cross-border import solutions for B2C export sales of exported products sold to the Chinese customers.
Preparation of health compliance files for foodstuffs as well as for pharmaceuticals, drugs, cosmetics and medical devices. Watch service on the Chinese market.
Standards, Certificate of Approval and certification in China : preparatory files for CCC conformity marking and compared solutions from authorized laboratories.
Export to China of machinery and industrial equipment : these files deserve special attention. We take care of the preparation of the import file with the Customs so as to ease the import process by your China subsidiary or agent.
Implementation of storage, delivery and distribution solutions by product category. Dry items, temperature-controlled or regulated products.
Projects negotiation and assistance during disputes with the chinese administrations (Customs office, AQSIQ, CIQ, CFDA, port authorities, Free Trade Zones (FTZ), bonded logistics zones).
Customs regulatory watch & advisory : laws and regulations, Chinese HS codes classification, negotiation and assistance during inspections.
Import files advice and follow-up. Qualification and manufacturing SOP for dangerous or sensitive products
Consultant in managing the logistics function within the scope of a larger sourcing project, qualification or relocation of Chinese suppliers and distributors.
Our added value for China business services |
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