Shipping to China – Tips and Process

Shipping to China - Tips and Process
Shipping to China - Tips and Process

Despite the current uncertainty surrounding the trade relationship between the U.S. and China, the Asian giant remains the largest importer of U.S. goods on the other side of the Pacific.

China accounts for 11% of total U.S. exports.

That may not seem like much, but it's certainly impressive considering its neighbors Japan and South Korea account for only 5.3% and 3.9% of U.S. exports, respectively - their combined share is still lower than China's share.

The product categories that the U.S. exports the most to China include transportation (21 percent), machinery (19 percent), and vegetable products (11 percent). Here's a breakdown of each category.

Tips for Shipping to China

As a booming economy, China certainly has many business opportunities. However, there are certain aspects of shipping to China that you should keep in mind to ensure a seamless shipping process.

1. Keep abreast of trade war developments

As the U.S.-China trade war continues and signs of volatility in its outcome, it's important to keep an eye on the news. This will allow you to anticipate any increases in responsibilities and better prepare you for them.

The tit-for-tat tariff increase is a problem for shippers on both sides. Even though the tariff hike may not target the products you're shipping to China, and it won't directly affect you, it may affect shipping capacity and rates, which can directly affect your supply chain.

2. Check your calendar

If you are an inexperienced shipper, it may interest you that for two full weeks throughout the calendar year, port and logistics activity in China is almost completely stopped.

These are called Golden Weeks. The first occurs at the beginning of the year, usually in January or February, to celebrate the Lunar New Year. The second Golden Week commemorates China's National Day and takes place in the first week of October.

During this period, it is not possible to transport goods into or out of the country. Note that the weeks around Golden Week could also be problematic due to the import and export boom before the country shut down, and the time it would take to recover once operations resume.

3. Familiar with special economic zones

China currently has 12 Special Economic Zones (SEZs) that U.S. exporters should take advantage of if they are not already doing so, as doing business in China can be particularly complex.

These special zones allow goods to be processed (stored, manufactured, re-exported) without paying import duties and taxes and are part of the reforms set up by the Chinese government to open up the Chinese economy. It also speeds up the customs clearance process, adding more flexibility to your supply chain.

In addition, these SEZs are mostly located along the coast to facilitate the movement of goods in and out of China's many shipping ports.

4. Cooperation with freight forwarders

Trying to navigate China's import regulations can be very frustrating, especially if you're not familiar with the language. It also doesn't help that the information can be very contradictory depending on where you get it from.

To avoid complications, we recommend that you always book your ocean freight services to China with a reputable forwarder who has extensive experience and a proven track record on the specific route you are interested in.

Not only will they be able to properly guide you through China-specific import regulations, but they can also advise you on prohibited items and help you with the paperwork you need to avoid customs issues.

5. Check if your shipment needs CCC

The China Compulsory Certification (CCC) mark, as the name suggests, is a compulsory certification for more than 132 products (including auto parts, medical equipment, electrical equipment, etc.) imported into China.

The CCC mark is China's quality control method, and it is estimated that one-fifth of US exports to China require the CCC mark. Any lack of the CCC mark may result in the goods being held by customs or returned to the shipper at origin and subject to heavy fines.

Before exporting, please make an effort to check whether your goods require CCC. Please note that applications for the CCC mark may take up to 90 days or more to process.

Also, always keep in mind that no matter where you're shipping to, there are certain steps you absolutely must take if you're dealing with hazardous materials.

How to Import Computer Parts from China

How to Import Computer Parts from China
How to Import Computer Parts from China

If you plan to market your tech business to China, or you want to reduce overhead costs by purchasing parts, you need to understand the reasons for importing electronics from China. Specifically, computer parts require some special care and some import know-how.

In the past few years, China has adjusted some industrial policies and has become an important computer hardware producer in the world. In order to work with Chinese suppliers, it is important to understand these policies. Fortunately, these policies are not difficult to follow. Let's take a look at everything business owners need to know about importing technology from China.

Find Computer Parts Suppliers in China

The process of finding computer parts suppliers in China is not difficult. However, caution should be exercised when contracting with them. You should always do some homework before trusting a computer parts supplier.

First, check online reviews of different suppliers and warehouses in English. If this doesn't lead to any fruitful leads, your next step should be to work with an international law firm that specializes in translation, connecting business owners with Chinese suppliers, and handling Chinese intellectual property law and patents. This will ensure that you find a reputable supplier before you start signing contracts, and your lawyer will also help you translate and negotiate before signing.

If you want to import laptop and desktop parts from China, it is highly recommended that you work with a reputable and reliable freight forwarder, or possibly a law firm that specializes in Chinese trade.

Generic HS Code for Computer Parts

The HS (Harmonized System) code is a 10-digit code used by the United States to classify different export products. You need to be familiar with these codes before importing parts from China.

Regulations and requirements when importing electronic components from China
Some business owners are wary of importing electronics from China due to Chinese and U.S. regulations that have not been ideal for foreign businesses in the past. However, simply knowing how to comply with these regulations can make the process productive.

First, you should always look for suppliers that are 100% compliant with Chinese and US import and manufacturing laws. This can be difficult as many vendors may not invest in certification and compliance in different markets.

FCC certification

Compared to other countries, the U.S. rules on imports from China are relatively simple. The biggest certification you should consider is the FCC certification, which you can easily get for only a few hundred dollars. The FCC regulates any electronic product, including computer parts and Bluetooth devices. Any electronic components and components that emit radio waves that you want to import from China should be FCC certified.

If you are a retailer, in addition to the FCC, you will also need to have your parts and finished products certified by UL. This is not required by law, but voluntary compliance will show your consumers the quality of the products you produce.

Insurance

You also need to consider product liability insurance. Product liability insurance will protect you from possible problems if you import computer parts in bulk from China.

Some countries or regions toy certification system.

In order to ensure the safety of children, many countries or regions have formulated strict laws, regulations and safety standards for toy products, and formulated corresponding certification systems according to international practices and national conditions. As an import and export party, it is necessary to understand the laws and regulations, safety standards and certification systems of the corresponding countries, and always pay attention to their changes and make corresponding adjustments accordingly, so that toy products can be exported smoothly and avoid the risk of notification and recall. This article briefly summarizes the certification systems of some countries or regions.

China

China Compulsory Certification(CCC
China Compulsory Certification(CCC

CCC certification

The full name of CCC certification is "China Compulsory Product Certification", and the English name is: China Compulsory Certification (CCC). It is a product conformity assessment system implemented by the Chinese government in accordance with laws and regulations in order to protect the personal safety and national security of consumers and strengthen product quality management.

EU

CE certification

CE certification is a pass for toy products to enter the EU market. In order to protect the life and property safety of the people of the EU member states, whether it is a product produced by an enterprise within the EU or a product produced by any country or region outside the EU, if it wants to circulate freely in the EU market, it must be affixed with compulsory certification. CE mark to indicate that the product complies with the essential requirements of the EU Directive on New Methods for Technical Harmonization and Standardization.

Germany

GS certification

GS certification is a voluntary certification based on Germany's "Product Safety Law" and tested in accordance with the European Union's unified standard EN or German industrial standard DIN. It is a German safety certification mark recognized in the European market. However, it should be noted that while the product meets the GS certification, it must also meet the requirements of the EU CE certification.

U.K.

UKCA certification

On December 31, 2020, the UK officially left the EU. The UK Toys (Safety) Regulations UKCA certification is revised and fully effective on 1 January 2021. On August 24, 2021, the British government issued the latest announcement on the requirements for the use of the UKCA logo on the official website: It was originally scheduled to be launched in the UK market (including England, Scotland and Wales from January 1, 2022, but not applicable to North America). Ireland) the period in which the CE marking can no longer be used has been extended until 1 January 2023. However, it should be noted that this notification is based on the premise that the UK and EU regulations are still consistent, that is, if the EU updates its regulations, and the CE marking on the manufacturer's products complies with the new regulations, then these CE marked products will not be used. UK market accepted. From 1 January 2023, products entering the UK market must be marked with the UKCA mark in accordance with regulations.

U.S.

"CPSC certification + UL certification + FCC certification"

CPSC (Consumer Product Safety Committee) is an important consumer protection agency in the United States, namely the Consumer Product Safety Commission. CPC (Children's Product Certificate) is the Children's Product Certificate. The United States requires manufacturers and importers to certify in writing that their children's products comply with the applicable US safety regulations, based on the qualified test report issued by a CPSC-accredited laboratory that meets the requirements of CPSIA and ASTMF963-17, toys and children sold to the United States Products must have CPC.

In addition to the regulatory tests that meet the CPC requirements, related products sold to the U.S. market for children under the age of 12 must also comply with the Tracking Label requirements. The purpose of this move is to ensure that when there is a problem with the product, consumers can trace the source to the responsible party to deal with related compliance issues. Therefore, traceability labels are required on both packaging and products (except for exemptions). If it is a durable product for infants and young children, it must also meet the relevant requirements of the Product Registration Card.

In addition to obtaining CPSC certification, some toys also need to apply for UL certification and FCC certification.

Sri Lanka in deepest economic crisis in decades

According to foreign media reports, Sri Lankan President Gotabaya Rajapaksa declared a state of emergency in the country on April 1. Sri Lanka is mired in its worst economic crisis in decades, facing severe shortages of foreign currency and fuel and other necessities.
Sri Lanka, a country of 22 million people, is dealing with a severe foreign exchange crisis that has devalued the country's currency and affected the supply of basic commodities such as food, medicine and fuel. The government is struggling to secure foreign exchange to pay for fuel and other vital imports.

What happened in Sri Lanka?

The island's foreign exchange reserves have hit rock bottom, with commercial banks unable to obtain dollars to finance imports of food, fuel and medicines. Sri Lanka was in the throes of a severe economic crisis when the Covid-19 pandemic hit, reducing remittances from foreign workers and denting the lucrative tourism industry - the economy's main source of dollars.
In turn, Sri Lanka's debt management plan, which relied on access to these markets, was derailed, and foreign exchange reserves plummeted by nearly 70% in two years.

What happened to Sri Lanka's foreign debt?

The country had only $2.31 billion in reserves left as of February, but faces about $4 billion in debt repayments in 2022, including a $1 billion international sovereign bond (ISB) due in July.
The ISB accounts for the largest share of Sri Lanka's external debt at $12.55 billion, with the Asian Development Bank, Japan and China being the other major lenders.
In an assessment of the country's economy published last month, the IMF said public debt had risen to "unsustainable levels" and foreign reserves were insufficient to cover near-term debt.
Citi Research said in a report late last month that the conclusions of the IMF report and the government's recent measures were insufficient to restore debt sustainability, strongly suggesting "the need for debt restructuring."

Laugfs Gas LGGL.CM, which ordered cooking gas, was unable to get $4.9 million in payments from local banks due to a severe shortage of foreign exchange, and a vessel carrying 5,500 metric tons of gas had to leave Sri Lankan waters.

The Sri Lankan government said it was seeking a bailout from the International Monetary Fund and loans from India and China. Indian traders have loaded 40,000 tonnes of rice, the first large-scale food aid from India since Colombo received a line of credit from New Delhi.

After offering CBSL a $1.5 billion swap and a $1.3 billion syndicated loan, China is considering a $1.5 billion credit line and up to $1 billion in separate loans to the island nation.