The Chinese market may be both attractive and daunting for smaller than average medium-sized enterprises choosing to export their products. However, the opportunity of selling goods or services in the market of nearly 1.35 billion people shouldn’t be missed.
However, there are lots of criteria that businessmen should take into consideration upon choosing where you should export their goods, market dimensions are one of several important elements for determining this decision.
Exporting to China might be daunting to start with for smaller than average medium-sized enterprises (SMEs), especially looking at its population of nearly 1.35 billion people.
A visit to China offers great clues about the country’s business climate as well as people
Cultural, legal and in many cases language barriers separating China from Latin America could be resolved. To facilitate this venture, the next elements should be thought about upon exporting products to China:
The Harmonized Tariff Schedule in China is different from those of Europe as well as the United States. The very first six digits on this code are usually the same around the globe, although the last digits may vary. Mahoney mentions that in China: “though the first six digits are exactly the same most of the time, the seventh and eighth digit and the two-digit suffix will often be not the same as what we should utilization in the U.S. To add to this confusion, many items that utilize full ten digits within the U.S., don’t use anything but eight digits in China and vice-versa.”
Every importer in China should have a Customs Registration Code. Mahoney explains that “all products brought into China require an import license. The registered importer just isn’t necessarily your customer, but the entity containing the import license (just like a trading company).” Consult this matter using your buyer, particularly when he lacks importing experience.
All products exported to China must be that has a specific pair of documents. Some of the mandatory documents include: a bill containing the producer’s information, a packing list, a certificate of origin along with a bill of lading.
Certain products require additional documentation. With respect to the product, it can be important to include health certificates from the country of origin, production or packaging dates, etc.
Several products require inspection and certification, including China Compulsory Certification (CCC). Several products require inspection certification through the Chinese government. In case a company applies for this certification, inspectors from your China Quality Certification Center (CQC) will go to the factory to verify the fabrication process. The united states Department of Commerce’s website lists some businesses that will help with this procedure.
China has strict rules on food labeling. In accordance with the US Treasury Department, “all imported meals are subject to inspection and must be given a clearance certificate with the Customs authority. The knowledge must be present around the label, in Chinese. Labels have to be accurate, truthful, and non-misleading. Please be aware that the label must meet these requirements before importation.” Label requirements include: product name and brand, the list of ingredients, the amount or weight, the date of production, producer information, country of origin, expiry date, kind of product, etc.
To achieve better idea of these complaints it may be preferable to visit China before exporting. America Department of Commerce says on its site that “a trip to China offers great insight into the country’s business climate and its particular people. Chinese company representatives respect face-to- face meetings.”
If these problems become complex, it may be beneficial to work with a trade agent. Precisely the same website reports that “local agents possess the knowledge and contacts to better promote U.S. products and break up institutional, language, and cultural barriers.”
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