How Can I do Business in China from India

Last Updated at: June 13, 2020
307
  1. What is Import Export License?

  2. How Vakilsearch helps you avail IEC Certificate

  3. Step by step procedure for import from China to India

  4. International Commercial Terms

  5. Step by step procedure for export from India to China

What is Import Export License?

Import Export License is a prerequisite to do business with any country abroad, including China. IEC (Import Export Code) is a 10 digit identification number, issued from the office of Director-General of Foreign Trade, Ministry of Commerce and Industries, Government of India. To do business in China, first, you need to obtain it.

How Vakilsearch helps you avail IEC Certificate

Vakilsearch helps you avail IEC Certificate in 3 simple steps:

  1. We do a thorough check of all the required documents  you send to us for filing an IEC
  2. Then we process your application online
  3. Additionally, we also follow up with the DGFT until your code gets an issue. The TIN is within 10-15 days of the application.

So, it’s always better to take the help of an expert. Next, you have to follow the following parameters/procedures to do business in China

Step by step procedure for import from China to India

  1. Get the importing entity registration and obtain TIN from Tax authorities.
  2. It is the importer’s responsibility to ensure that the goods on import are to be with a variety of specific rules and regulations. Importing unsafe goods could end up costing massive money in fines and penalties.
  3. Customs duty should have as per law, on the quantity, quality, and nature of goods to be on import.
  4. The ten-digit tariff classification number along with a Certificate of origin requires determining the rate of duty.
  5. Calculate the landed cost.
  6. INCOTERMS (discussion below) that finalize with the seller in China, before placing the order with the supplier.

get legal advice 

International commercial terms 2020

INCOTERMS become applicable at the time of import/export business. These are rules that define the responsibility between buyer and seller as to who will handle Customs clearance/ duties, carriage arrangement, and payment, risk of loss/damage, Insurance, permits, permissions, etc. Additionally, it has a set of 11 International standard trade terms, duly that approves the International Chamber of Commerce (ICC), which groups into four parts:

  1. Departure: The term applicable is EXW (EX Works).
  2. Main carriage not paid by seller: Applicable terms are FCA (free carrier), FCA (Free alongside ship) and FOB (free on board)
  3. Main carriage payment by the seller: here, the applicable terms provide CFR (cost and freight), CIF (cost, insurance, freight), CPT (carriage paid to), and CIP (carriage and Insurance).
  4. Arrival: DAT (Deliver at Terminal), DAP (Deliver at the place that mentions by buyer), DDP (deliver Duty Paid) are the terms applicable on the arrival of the consignment.

Thus, while EXW represents a minimum obligation on the part of the seller, DDP represents a maximum obligation on his part.

A screenshot of INCOTERMS is given below:

INCOTERMS

Step by step procedure for Export from India to China

  1. Finding out the applicability of taxes on imports in China:
  2. Import duty is different for import from MFNs and others.
  3. Additionally, Import Value-added Tax.
  4. Moreover, consumption tax.
  5. Checking new regulations
  6. Similarly, Submissions should be 24 hours before loading.
  7. We are ensuring that the Cargo description is complete and accurate.
  8. Full contact details of the shippers/consignee and Enterprise code are mandatory requirements.
  9. Classification of goods imported into China-
  10. Goods with permission- License for licensed products automatically gives on receipt of an application which is valid for six months.
  11. Further, Goods with restrictions: can import on approval /specific License that receives for each shipment.
  12. Additionally, Goods that prohibit were on the ban. MOFCOM is the authority for defining goods with prohibition.
  13. Import License: MOFCOM requires certain information/documents for issuance of Import license in China, such as importer/exporter/ consignment details, use of goods/ automatic Import License and its expiry date, etc.
  14. Similarly, Importers in China will require to register themselves with customs for Importer Customers registration code (CR code).

An importer or exporter needs to follow these prescribed guidelines to carry out a hassle-free Import and Export trade, particularly with China. Therefore, clear cut guidelines are known in various applicable acts, and non- compliance thereof leads to avoidable complications. Additionally, in such circumstances, the cargo may get stuck at the port of the other country and may attract demurrage.

 

 

0

How Can I do Business in China from India

307
  1. What is Import Export License?

  2. How Vakilsearch helps you avail IEC Certificate

  3. Step by step procedure for import from China to India

  4. International Commercial Terms

  5. Step by step procedure for export from India to China

What is Import Export License?

Import Export License is a prerequisite to do business with any country abroad, including China. IEC (Import Export Code) is a 10 digit identification number, issued from the office of Director-General of Foreign Trade, Ministry of Commerce and Industries, Government of India. To do business in China, first, you need to obtain it.

How Vakilsearch helps you avail IEC Certificate

Vakilsearch helps you avail IEC Certificate in 3 simple steps:

  1. We do a thorough check of all the required documents  you send to us for filing an IEC
  2. Then we process your application online
  3. Additionally, we also follow up with the DGFT until your code gets an issue. The TIN is within 10-15 days of the application.

So, it’s always better to take the help of an expert. Next, you have to follow the following parameters/procedures to do business in China

Step by step procedure for import from China to India

  1. Get the importing entity registration and obtain TIN from Tax authorities.
  2. It is the importer’s responsibility to ensure that the goods on import are to be with a variety of specific rules and regulations. Importing unsafe goods could end up costing massive money in fines and penalties.
  3. Customs duty should have as per law, on the quantity, quality, and nature of goods to be on import.
  4. The ten-digit tariff classification number along with a Certificate of origin requires determining the rate of duty.
  5. Calculate the landed cost.
  6. INCOTERMS (discussion below) that finalize with the seller in China, before placing the order with the supplier.

get legal advice 

International commercial terms 2020

INCOTERMS become applicable at the time of import/export business. These are rules that define the responsibility between buyer and seller as to who will handle Customs clearance/ duties, carriage arrangement, and payment, risk of loss/damage, Insurance, permits, permissions, etc. Additionally, it has a set of 11 International standard trade terms, duly that approves the International Chamber of Commerce (ICC), which groups into four parts:

  1. Departure: The term applicable is EXW (EX Works).
  2. Main carriage not paid by seller: Applicable terms are FCA (free carrier), FCA (Free alongside ship) and FOB (free on board)
  3. Main carriage payment by the seller: here, the applicable terms provide CFR (cost and freight), CIF (cost, insurance, freight), CPT (carriage paid to), and CIP (carriage and Insurance).
  4. Arrival: DAT (Deliver at Terminal), DAP (Deliver at the place that mentions by buyer), DDP (deliver Duty Paid) are the terms applicable on the arrival of the consignment.

Thus, while EXW represents a minimum obligation on the part of the seller, DDP represents a maximum obligation on his part.

A screenshot of INCOTERMS is given below:

INCOTERMS

Step by step procedure for Export from India to China

  1. Finding out the applicability of taxes on imports in China:
  2. Import duty is different for import from MFNs and others.
  3. Additionally, Import Value-added Tax.
  4. Moreover, consumption tax.
  5. Checking new regulations
  6. Similarly, Submissions should be 24 hours before loading.
  7. We are ensuring that the Cargo description is complete and accurate.
  8. Full contact details of the shippers/consignee and Enterprise code are mandatory requirements.
  9. Classification of goods imported into China-
  10. Goods with permission- License for licensed products automatically gives on receipt of an application which is valid for six months.
  11. Further, Goods with restrictions: can import on approval /specific License that receives for each shipment.
  12. Additionally, Goods that prohibit were on the ban. MOFCOM is the authority for defining goods with prohibition.
  13. Import License: MOFCOM requires certain information/documents for issuance of Import license in China, such as importer/exporter/ consignment details, use of goods/ automatic Import License and its expiry date, etc.
  14. Similarly, Importers in China will require to register themselves with customs for Importer Customers registration code (CR code).

An importer or exporter needs to follow these prescribed guidelines to carry out a hassle-free Import and Export trade, particularly with China. Therefore, clear cut guidelines are known in various applicable acts, and non- compliance thereof leads to avoidable complications. Additionally, in such circumstances, the cargo may get stuck at the port of the other country and may attract demurrage.

 

 

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