china logistics seminar: tax, duties, import & export
DESCRIPTION
2013-03 Presentation at event hosted by IsCham Shanghai, BenCham Shanghai and KPMG ShanghaiTRANSCRIPT
March 5, 2013
Logistics seminar Arie Schreier – VP Sales and Marketing
www.PTL-Group.com
Excellence in Management
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Everything is possible
Nothing is easy
A foreigner is always a foreigner
THE 3 GOLDEN RULES IN CHINA
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Everything is possible
1
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There is always someone with more connection or more professional.
There is always a chance to do it easier or cheaper in another location
The power of local governments
(Duty rates, VAT refund, Inspections, licenses)
Nothing is curved in stone
Page 5
Cases, smooth importing with PTL suggestion
Product Description
HS code Tariff Import restriction PTL suggestion
1 Pulsator 84341000 10% Milking machines Import Food Hygiene Supervision Inspection
90329000.9 5% Accessories of Automatic controlling instruments
Nil
2 Solenoid 84818040.9 7% Other valves Certificate of Inspection for goods inwards
39269090 7% Other articles of plastics Nil
3 Power adapter 8504401990 0% Other voltage-stabilized supplier
CCC
8504401400 7% Other DC voltage-stabilized supplier<1KW
Nil
4 KVM switch 8543709990 0% Other electrical machines with individual functions
Automatic import license for machinery & electrical products
8517623900 0% Other transmission apparatus
Nil
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Nothing is easy
2
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Things that are simple in other countries are very complicated in China
Communication barrier doesn’t make is easier
Cheap service provider / product = becomes very expensive
Nothing is easy
Page 8
Import Restrictions/Regulations General inspection Legal Inspection Commodity check Animal & Plant inspection Health inspection Quarantine Food hygiene supervision inspection Civil commodity import inspection certificate Pressure test for Autoclave Explosion-proof test for Hazardous materials
Page 9
Documents subject to Customs controlImport license (Quota / License Administrative Bureau
Ministry of Commerce)
Certificate of inspection for goods inward (the Administrations of Quality supervision)
Import license for machinery & electrical products (BIZ Dept. of Electrical/mechanical service)
Environment control release notice for poisonous chemicals (State environmental protection administration of China)
Certificate of Origin (Ministry of Commerce )
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A foreigner is always a foreigner
Get shipping documents checked BEFORE sending the shipment out
Plan carefully shipments before/after public holidays (especially CNY, Q1)
Logistics offers hide many unexpected costs – ask for a demo
Direct contact with the forwarder/ warehouse/ driver etc.
Insurance issues: warehouse, transportation, 3rd party, fidelity, and everything in between (forklift)
Transfer pricing (Chinese customs knows)
How to make it a bit easier 1
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A foreigner is always a foreigner
Used products, machines, molds, equipment are not welcomed in China
Wooden pallets
Import for export – assembly in FTZ or not?
Export for import – export to FTZ?
Free Trade Zones
How to make it a bit easier 2
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A foreigner is always a foreigner
3
In China things are rarely as they seem so always expect (mostly bad ) surprises
Every link in the supply chain must be monitored Logistics / financial IT Control systems: ERP, EDI Training, supervising, training, monitoring,
training Having your own management team in China Trusted and reliable service providers in China Local partners - long term relationship
Control issues
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A foreigner is always a foreigner
Nothing is obvious, specify every details in writing One accountable person for each process. Who is in
charge? Check business license, scope of service, address
and name of company matches the contract details Define clear procedure for loading and
transportation
Selling your product as part of a larger order or part of system
Distributor/client import the goods directly, no transparency, VAT refund, duties
Tips
Page 16
More import tipsHS code : http://hs.e-to-china.com/
http://chinahscode.com/ Favorable duty for MFN (most-favored nation) – WTOVAT 13% or 17%Articles for exhibition (VAT + Duty can be refunded)Samples and Demo – pay only the duty imported by
authorized organizations
PTL Group Introduction
Outs
ourc
ed
Man
agem
ent
Serv
ices
Industrial Project
Managem
ent &
Manufacturing
Business Recovery Services
Since 2000 PTL Group has been supporting foreign companies with establishing well managed independent sales and manufacturing operations in China.
Import/Export
Warehousing
Marketing
Recruitment
HR
RMB Invoicing
Finance
Assembly Operations
MANAGEMENT SERVICES
Employment
Office Sharing
Industrial Project Management & Manufacturing
- Industrial Incubator Initiative
Business Recovery Services- Operational Audits
Investments and funding
- Private Equity funds- Mutual fund
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Shanghai Head OfficeRoom 301, 798 ZhaoJiaBang Rd.Shanghai, 200030, P. R. ChinaPhone: +86 21 64453190, Fax: +86 21 64453191Email: [email protected]
Arie SchreierEmail: [email protected]: +86 13817825201Skype: ariesher
Contact Us:
www. PTL-Group.comChina • Israel • The Netherlands • Italy