## Customs Clearance Overview
### Regulatory Framework
– General Administration of Customs (GAC)
– Customs Law of PRC
– Import/Export regulations
– Product-specific requirements
### Clearance Locations
– Major ports (Shanghai, Shenzhen, Ningbo)
– Airports (Beijing, Shanghai, Guangzhou)
– Land borders (limited)
– Free trade zones
## Import Clearance
### Required Documents
| Document | Purpose |
|———-|———|
| Customs Declaration | Official form |
| Commercial Invoice | Value declaration |
| Packing List | Cargo details |
| Contract | Transaction proof |
| Bill of Lading | Transport document |
| Import License | If required |
### Process Flow
1. Submit declaration
2. Document review
3. Inspection (if selected)
4. Duty calculation
5. Payment
6. Release
### Inspection Types
| Type | Rate | Focus |
|——|——|——-|
| Document check | 100% | Paperwork |
| Physical inspection | 5-10% | Cargo verification |
| Sampling | Variable | Quality testing |
## Export Clearance
### Required Documents
| Document | Purpose |
|———-|———|
| Export Declaration | Official form |
| Commercial Invoice | Value |
| Packing List | Details |
| Export License | If required |
| Inspection Certificate | If required |
### Process
1. Prepare documents
2. File declaration
3. Inspection (if required)
4. Load cargo
5. Obtain export proof
## Duty Calculation
### Duty Rates
| Category | Rate Range |
|———-|———–|
| Raw materials | 0-5% |
| Machinery | 5-10% |
| Consumer goods | 10-30% |
| Luxury items | 30-60% |
| Automobiles | 15-25% |
### Tax Components
– Import Duty: Based on HS code
– VAT: 13% (standard) or 9% (reduced)
– Consumption Tax: For luxury items (1-56%)
### Calculation Formula
“`
Duty = CIF Value × Duty Rate
VAT = (CIF Value + Duty) × VAT Rate
Consumption Tax = (CIF + Duty) / (1 – CT Rate) × CT Rate
Total = Duty + VAT + Consumption Tax
“`
## Special Procedures
### Bonded Warehousing
– Duty deferred until release
– Storage up to 1 year
– Re-export allowed
– Popular in FTZs
### Temporary Import
– ATA Carnet accepted
– 6 months standard
– Extendable
– No duty if re-exported
### Express Clearance
– Simplified procedures
– Faster processing
– Higher cost
– For low-value shipments
## Compliance Requirements
### Record Keeping
– Import/export records: 3 years minimum
– Financial documents: 5 years
– Electronic records accepted
– Subject to audit
### Violations and Penalties
| Violation | Penalty |
|———–|———|
| Undervaluation | Fine + duty difference |
| Wrong classification | Fine + duty adjustment |
| Prohibited items | Confiscation + fine |
| Smuggling | Criminal charges |
## Free Trade Zones
### Major FTZs
| FTZ | Location | Focus |
|—–|———-|——-|
| Shanghai | Shanghai | Finance, trade |
| Guangdong | Shenzhen | Tech, manufacturing |
| Tianjin | Tianjin | Shipping, logistics |
| Fujian | Xiamen | Cross-strait trade |
### FTZ Benefits
– Simplified customs
– Duty deferral
– Tax incentives
– Faster clearance
– Bonded processing
## Digital Customs
### Single Window System
– Electronic declaration
– Multiple agencies
– One-time submission
– Reduced paperwork
### Paperless Clearance
– E-documents accepted
– Digital signatures
– Online payment
– Status tracking
## Tips for Efficient Clearance
1. **Accurate Documentation**: Complete and correct
2. **Proper Classification**: Verify HS codes
3. **Pre-arrival Filing**: Submit early
4. **Work with Experts**: Use licensed brokers
5. **Maintain Records**: Keep organized files
6. **Stay Updated**: Monitor regulation changes
Understanding customs procedures ensures smooth import and export operations.