China is a crucial piece of the growth strategy of many companies worldwide, and with that growth comes the need for trade compliance understanding. China’s logistics sector is growing at an extraordinary rate due to the rapid expansion of the country’s industrial base and the rise of its domestic consumer markets. Chinese policymakers recognize the need to invest in China’s logistics sector in order to further develop its economy and have spent double that of most developed countries in building its logistics infrastructure. Many years ago JSI was quick to recognize the opportunity that China presented, and we continue to make direct investments in establishing our presence in China and creating strategic partnerships.
One area of China trade compliance that companies find particularly difficult is the China Compulsory Certification process (sometimes referred to as “3C” or “CCC Mark”) which is governed by the China Entry & Exit Inspection Quarantine Bureau (CIQ). JSI Logistics has many years of experience in assisting companies with the proper processing of the China Compulsory Certification and can help guide your company through all the proper steps, making the process as smooth as possible.
In China the General Administration of Customs (GAC) is the authority over the country’s trade compliance rulings (the GAC is an administrative agency within the government of the People’s Republic of China (PRC)). As a member of the World Trade Organization (WTO), the GAC is striving to become a modern and transparent authority.
China Customs is a government agency that supervises and manages all arrivals in and departures from the Customs territory of the mainland of the People’s Republic of China. It exercises a centralized management structure. Its essential tasks are entry and exit control, revenue collection, fighting smuggling and foreign trade statistics compilation. It also shoulders such major responsibilities as duty collection, Customs control, supervision and management of bond operations, foreign trade statistics compilation, audit-based control, Customs intellectual property rights protection, anti-smuggling and port management.
China’s Value Added Tax (VAT) was implemented in 1984 and is administered by the State Administration of Taxation. According to The Provisional Regulation of P.R.C on VAT, Value Added Tax should be paid by enterprises or individuals who sell merchandise, provide processing, repairing, or assembling service, or import goods within the territory of the People’s Republic of China on the added value derived from their production, selling merchandise, providing industrial repairing or assembling service. The standard VAT for most products is currently 17%, while some limited products are rated at 13%. JSI can help customers who ship products to China pay the applicable VAT or defer the VAT through our operations located in special Free Trade Zones, Bonded areas or via other special government approved programs. Many factories in China who manufacture products on behalf of our customers are located in special government approved areas and/or maintain special government permissions to import products for manufacturing and re-export without paying VAT. Please contact JSI to discuss your specific supply chain and how we can help your company be in compliance with China’s VAT and import requirements.
JSI has logistics centers throughout China including Hong Kong, Shenzhen, Chengdu, Beijing, Shanghai, and Zhengzhou. Every one of our China logistics centers is able to assist with all methods of transportation including intra-China road transportation, sea freight, air freight, Customs clearance, duty/tax protection programs, high security warehousing and has professional, knowledgeable local staff to manage all your import, export, freight forwarding, warehousing & distribution, compliance and overall supply chain needs.