Exporting from any country can be a headache and a half, which is why Apparel Network includes this service as part of its garment manufacturing process for clients. Exporting from China can be daunting — most foreign businesses and individuals hire agents to take care of the process. Here is an overview of how exporting goods from China works.
Who can export from China?
Anyone can export from China as long as they have the proper license, but most exportation from China is carried out by State Foreign Trade Companies. FTC’s can export products manufactured by third parties as well as acquire goods for export from the domestic Chinese market. Businesses and individuals are required to apply for authorization from the Ministry of Foreign Trade and Economic Cooperation (MOFTEC) before they can export, and because this process can be lengthy and complex, most companies will eventually approach a FTC to act as their agent.
There are a number of Export Commodities that require State-administered quota licenses; these are listed in the Export Commodities Measures. Of the 138 categories of goods listed, 114 require export licenses.
There are two types of licenses: General Licenses, and Special Licenses. General licenses enable FTC’s to execute any transaction within its authorized scope of business. Those holding a General License have the authority to deal with an array of goods for export.
Special licenses are valid for one-time transactions only, are required for individuals or businesses and for FTC’s that wish to export products that are restricted under MOFTEC. The list of goods restricted by MOFTEC is updated on a regular basis. Situations that require this license are varied but generally revolve around the quantity of goods to be exported. To apply for a license, the party must submit an application to the MOFTEC. If approved, the license is valid for approximately six months, although this can vary based on the date of delivery of the contract.
Export Duties are imposed on some resource products and semi-manufactured goods. The tax base for the tax is the Duty Paying Value, or DPV, and is calculated based on the price or value of the goods to be exported.
Note: The rules and regulations regarding export can differ form country to country.