China Business Law – Import and Export

In China, businesses have freedom in undertaking all sorts of imports and exports with the inclusion of international trade and the exclusion of items forbidden by the state regulations. For conducting business in China, it is very important to know about the import and export procedures, some of which are open to choice. Whether abiding by the chalked out procedures is necessary or not is decided by the kinds of exports and imports and the categories under which the import or export commodities fall.
Import Procedures In China
Almost all the import business in China is conducted in the FOB prices. The ones which are not conducted in the FOB prices are conducted in the CIF prices. The means of payment in most of the cases is in L/C (letter of credit).

The import of commodities in China includes several different steps starting from signing a contract to making a payment.
 Under The FOB Terms, The Import Procedure Includes

• Writing down a contract for the import
• Writing the L/C (letter of credit)
• Booking the required space
• Pushing for the shipment
• Checking all the relevant documents
• Making the payment
• Declaring the import commodities to the customs
• Receiving the shipment
• Inspecting the goods delivered
• Claiming the import indemnity

Another very important step that needs to be included in the import procedure in China is the insurance. Under FOB and CFR terms, the insurance of the import contract is on the purchasing side. For goods that are carried across the open sea, the insurance is entrusted to the China National Foreign Trade Transportation Corporation, which signs preliminary insurance contract with People’s Insurance Company of China (PICC).
Export Procedures In China
As far as the export business in China is concerned, only the countries and regions that have signed the agreements with China on the same delivery terms fall under the BOF terms. Most of the countries conduct their business on CIF terms or CRF terms and are paid in letters of credit. This type of contracts for export includes several links with several complicated procedures.