DHL CHINA FACT SHEET RUSSIA OVERVIEW Harbin The scale of China’s economic success is unprecedented: since introducing economic reforms in the late 1970s, the country has emerged as a leading world economy and the largest producer of manufactured goods. China’s growth helped raise living standards and transformed the country into a consumption-based economy – the soonto-be biggest global market for consumer goods. This economic landscape will continue to evolve: by 2020, more than half of China’s 357 million urban households are predicted to be upper-middle class, the world’s largest market for luxury goods and by 2022, their consumption is expected to reach nearly 27 trillion Chinese yuan. These consumers are increasingly sophisticated and often turn to the UK for innovative high-end items which local producers cannot supply. Shenyang Qinhuangdao The British Government is committed to further improving trade relations with China and is highly supportive of an EUChina free trade agreement. Sources: Deloitte, DHL, GOV.UK, McKinsey Global Institute, UKTI Beijing CHINA Qingdao Shandong Zhengzhou Xi’an Shigatse Dalian Tianjin Lanzhou Nanjing Shanghai Wuhan Chengdu Ningbo Lhasa Chongqing Guangzhou INDIA Macau Fuzhou Shenzhen Hong Kong BURMA While China has long been the main country the UK imports from China is also a top 10 export destination for British goods: UK to China exports have almost doubled since 2009 and currently exceed £1 billion per month. British goods and services, from luxury vehicles (which make up a third of UK exports to China) to fashion and healthcare, are considered hallmarks of quality and creativity. China is also turning to the UK for insights into developing long-term sustainability solutions. Though cultural and language differences remain, it is continuing to become easier for UK companies to reach Chinese consumers: online retail increased by 50 per cent in 2013; China’s infrastructure, including its high-speed rail network, is continuing to expand; and a free trade zone has been proposed in Shanghai. MONGOLIA Ürümqi DHL FACTS Locations: 495 Gateways into the Country:10 Number of Service Centres:131 DHL Delivery Zone:8 Vehicle Fleet:1819 Country Profile Capital Beijing Population 1.3 billion Area 9,596,961 sq km Currency 1 Chinese yuan/renminbi (CNY) = 10 jiao = 100 fen GDP US$ 12.26 trillion (2012 est.) Languages Standard Chinese or Mandarin (Putonghua, based on the Beijing dialect), Yue (Cantonese), Wu (Shanghainese), Minbei (Fuzhou), Minnan (Hokkien-Taiwanese), Xiang, Gan, Hakka dialects, minority languages Ethnic Groups Han Chinese 91.5%, Zhuang, Manchu, Hui, Miao, Uighur, Tujia, Yi, Mongol, Tibetan, Buyi, Dong, Yao, Korean, other nationalities 8.5% Source: CIA World Factbook KEY Capital City Major City DHL Gateway DHL China Fact Sheet TRADE INFORMATION ESSENTIAL CUSTOMS INFORMATION Exports from China Imports into China US$ 1.971 trillion (2012 est.) US$ 1.653 trillion (2012 est.) Export commodities Electrical and other machinery, including data processing equipment, apparel, radio telephone handsets, textiles, integrated circuits. Import commodities Electrical and other machinery, oil and mineral fuels, optical and medical equipment, metal ores, motor vehicles. Top Export Destinations USA, Germany, Japan, Netherlands, India, UK, Hong Kong. Top Import Origins Germany, USA, Hong Kong, Italy, South Korea, Japan, Singapore. Source: DHL, CIA World Factbook For an estimate of landed costs (duties, taxes and other import fees) for shipments going to China, use the free DHL Express Trade Automation Services (TAS) tool. tas.dhl.com TAS also provides information on regulation compliance and trade documentation. The receiver or import agent needs to have a Customs Registration (CR) number and Power of Attorney (POA) for all non-document goods except personal effects, regardless of value. Shipping paperwork – Waybills, labels and invoices must include: sender and receiver details (including the receiver’s CR); goods’ quantity, value and full description; clearly shown Commodity Codes; and a typed invoice with no manual changes. Handwritten invoices are only accepted for personal effects. A packing list is required if: the shipment value (CIF) exceeds CNY 5,000; the shipment weighs over 100 kg; the shipment includes more than two items; or the shipment is subject to import licences. Non-document goods subject to import licences will be cleared as a formal entry. The receiver is responsible for applying for and providing the licence. Wood packaging must have an Integrated Pollution Prevention and Control (IPPC) sign. Certain items require an import licence from the China Entry-Exit Inspection and Quarantine Bureau (CIQ). For ATA carnet shipments, state ‘ATA CARNET’ clearly on the Waybill or label and invoice. Only documents, certificates, bills, and similar materials that do not have a commercial value may be shipped as documents. Customs may ask for a document shipment to be cleared as a goods shipment, especially if it weighs over 5 kg. DUTY FREE ALLOWANCE CNY 50 If calculated duty/tax is under CNY 50 then the shipment is classed as duty free. UK to China Transit Times The times provided for dutiable shipments are based on the time expected for customs in China to clear the shipment. This is contingent upon the value of the shipment. Beijing Non-Dutiable: 3 days Dutiable: 5 days Shanghai Non-Dutiable: 3 days Dutiable: 5 days Tianjin Non-Dutiable: 4 days Dutiable: 6 days Shenyang Non-Dutiable: 4 days Dutiable: 6 days Wuhan Non-Dutiable: 4 days Dutiable: 6 days Prohibited Items The list below is in addition to DHL’s standard list of prohibited items. •Animal skins •Furs •Antiques •Items that could be used as weapons •Asbestos •Biological substances Category B, UN3373 •Ivory •Dangerous goods, hazardous or combustible materials •Military equipment •Firearms, or parts of •Jewellery •Perishables •Precious metals & stones 2 DHL China Fact Sheet Restricted Items Advertising brochures or pamphlets and non-advertising booklets or brochures Send as goods if quantity exceeds 100 items. Shipment needs to go through formal clearance. Alcoholic beverages, cosmetics, foodstuffs, grain samples, plants and plant products and seeds Certificate of Origin, sanitary certificate from origin country authority and import licence from CIQ required. Animal products Certificate of Origin, veterinary certificate from origin country authority and import licence from CIQ required. Books (hardback or paperback) for non-commercial use and publications not for public resale Include ‘NOT FOR SALE’ or similar mark on the publications. CDs, diskettes & computer tapes For computer software, clearly state the purpose of importations, e.g. commercial/research/training/company internal use. Only authorised importers holding an import licence may import audio or video products for commercial or entertainment purposes. Communications equipment, computer components and parts, mobile phones, mobile phone accessories & components, machine and electronic parts and telecommunications equipment Import licences from CIQ and the Ministry of Commerce may be required depending on the detail of information of the commodity. Costume jewellery Import licence from CIQ required. Drugs: Prescription and non-prescription Certificate of Origin, sanitary certificate from origin country authority and import licence from State Food & Drug Administration required. Magazines, periodicals, journals For commercial purposes: can only be imported by government-authorised receivers. For personal purposes: must be limited to 50 pieces or 10 sets. Personal effects Limited to unaccompanied baggage or commodities and gifts sent from one private individual to another within reasonable quantity for personal use. B2C (e-shopping) shipments cannot be cleared as personal effects but will go through the general clearance process. Value limits: Shipments to or from Hong Kong: CNY 800; shipments to or from another country: CNY 1,000. Shipments exceeding the limit cannot be cleared as personal effects, except when the shipment is a non-separate single item – Customs approval is required for this. Personal effects: Unaccompanied baggage Limited to shipments imported within 6 months from the entry date on passport. The passport needs to have a valid visa and entry/exit stamp by immigration. Baggage Declaration Form needs to be stamped by Border Customs. Include a full list of articles. Personal effects: Commodities & gifts Copy of receiver ID, item list in detail and pro forma invoice required. Personal mail / private correspondence Only permitted if the recipient is a foreign student, foreign tourist or chief representative with a non-Chinese passport. Must be sent as goods. Passports Further explanation required if quantity exceeds personal usage. Ship spares Can only be cleared by an authorised third-party agent in the port city in which the ship is anchored. Medical or dental supplies & equipment, tobacco Import licences from CIQ and the Ministry of Commerce required. Master tapes and video cassettes for resale Import licences from the Ministry of Culture or State Administration of Radio Film and Television required. For x-ray machines, please contact DHL Customs Services before shipping. 3 DHL China Fact Sheet IMPORTING FROM CHINA: ESSENTIAL CUSTOMS INFORMATION To commercially import into the UK, the receiver needs to hold an Economic Operator Registration Identification (EORI) number. This is issued by UK Customs, the HMRC. Guidance and further information on obtaining an EORI number: GOV.UK: EORI Scheme (www.gov.uk/economic-operator-registration-and-identification-eori-scheme) General guidance for importing into the UK, including information on restricted items and Commodity Codes: GOV.UK: Starting to Import (www.gov.uk/starting-to-import) IMPORTING: DUTIES AND TAXES PAYABLE To find applicable duty rates: GOV.UK: Trade Tariff (www.gov.uk/trade-tariff) Most goods imported into the UK from China are subject to the full rate of Customs duty and the applicable VAT rate. Many products manufactured in China are also subject to anti-dumping measures and may require the payment of high additional duties. For more information If you need support or advice on trading with China, help is available. Contact the DHL Express team on 0844 248 0675 DHL Customer Services is also available on 0844 248 0844 Contact your local Chambers of Commerce www.britishchambers.org.uk Contact your local UKTI www.ukti.gov.uk Visit www.dhlguide.co.uk for international trade information and to read our blog Follow us on Twitter @dhlexpressuk to keep up to date with all the latest developments in international trade ESSENTIAL PAPERWORK When exporting goods from China, the following documentation is usually required for clearance with China Customs: 1. DHL Waybill 2. Commercial Invoice Minimal required information: • Seller’s name, address and contact details • Receiver’s name, address and contact details, including EORI and VAT registration numbers where possible • Place and date of issue • Invoice number • Country of origin • Terms of delivery and payment (Incoterms®) • Marks and numbers • Number and type of packages • Exact description of goods, including Commodity Codes • Quantity of goods • Import licence number if applicable •Signed • Stamped if applicable Some non-hazardous chemicals may require additional certification from the Chinese authorities for Customs clearance to be given. 3. Power of Attorney (POA) – Letter of Authority This must be given by the sender to DHL in China to act on their behalf and clear the shipment through Customs. It must be an original copy. Once on file, this can be retained for future shipments. Valid from: 06/2014 4