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China Export-Import Guide — Customs, Payment Terms, Incoterms & Documentation

Exporting from China involves navigating customs regulations, choosing the right payment terms, understanding Incoterms, and preparing correct shipping documentation. This guide provides a comprehensive overview of import-export procedures for manufacturers sourcing from China.

Customs Procedures

Chinese Export Requirements

To export from China, your supplier must have:

Export Process Flow

  1. Goods delivery to port — Supplier delivers cargo to the port warehouse before customs deadline
  2. Document preparation — Commercial invoice, packing list, bill of lading, customs declaration form
  3. Customs declaration — Submitted electronically via China's single-window system (单一窗口)
  4. Customs inspection (if selected) — Random inspection rate approximately 5-10% of shipments
  5. Release and loading — Once cleared, goods are loaded onto the vessel/aircraft
  6. Document release — Original documents sent to the buyer for destination customs clearance

Payment Terms

T/T (Telegraphic Transfer / Wire Transfer)

The most common payment method for China manufacturing:

L/C (Letter of Credit)

Common for high-value orders ($50k+) or first-time transactions:

Other Payment Methods

Method Best for Risk level
Cash in advance Small orders / established trust Low for seller, high for buyer
Open account (net 30/60/90) Long-term relationships only Very high for seller
DP (Documents against Payment) Intermediary option Moderate for both
PayPal / Alibaba Trade Assurance Small orders (<$5,000) Low (dispute resolution available)

Incoterms 2020

Incoterms define the responsibilities, costs, and risks between buyer and seller. The most common terms for China exports:

Incoterm Meaning Responsibility Common use
EXW (Ex Works) Seller makes goods available at their factory Buyer handles everything Buyer has own freight forwarder
FOB (Free on Board) Seller delivers goods onboard the vessel at the named port Seller pays to port; buyer pays from port Most common for sea freight from China
CIF (Cost, Insurance, Freight) Seller pays cost, insurance, and freight to destination port Seller handles most logistics Common but risk transfers at origin
DAP (Delivered at Place) Seller delivers goods to the named destination (buyer's warehouse) Seller handles door to door Increasingly popular for e-commerce and smaller importers
FCA (Free Carrier) Seller delivers to a carrier at a named place Seller to departure point Growing use for containerized cargo

Key recommendation: FOB is the most commonly used Incoterm for sea freight from China. It provides a clear division of responsibility (seller manages origin logistics, buyer manages international shipping and destination clearance).

Shipping Documentation

Essential Documents

Document Purpose Issued by
Commercial invoice Declares the value and description of goods Supplier
Packing list Details of each package (weight, dimensions, contents) Supplier
Bill of lading (B/L) Contract of carriage and title document (sea freight) Shipping line
Air waybill (AWB) Contract of carriage (air freight) Airline/forwarder
Certificate of origin Proof of where goods were manufactured China Chamber of Commerce
Packing list with HS codes Customs classification codes for duty calculation Supplier
Inspection certificate Third-party quality report (if required) SGS/BV/Intertek
Insurance certificate Proof of cargo insurance Insurance company

Trade Compliance

HS Code Classification

Proper HS (Harmonized System) code classification is critical. Incorrect classification can lead to:

Best practice: Have your supplier provide the HS code, then verify it with your customs broker before shipping.

Export Control and Sanctions

Certain products exported from China are subject to export controls:

Anti-Dumping and Tariffs

Certain Chinese-manufactured products face additional tariffs in destination countries:

Check before ordering: Always verify current tariff rates for your HS code at your country's customs authority website.

Importing to Your Country

While each country's import procedure is different, the general steps are:

  1. Pre-clearance filing (ISF for US, ENS for EU) 24-48 hours before loading
  2. Destination customs declaration with supporting documents
  3. Duty and tax payment (typically VAT + customs duty)
  4. Customs inspection (if selected)
  5. Release and delivery

Simplify Your Import Process with MoldKey

When you work with MoldKey, we handle export documentation, arrange freight, and ensure all customs requirements are met. With regular shipments to North America, Europe, and Asia, our logistics team ensures your goods move smoothly from our factory to your receiving dock.

→ Related: China Supply Chain Management Guide
→ Related: Packaging & Shipping Guide

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