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DHL Express in China
Overview and China Customs regulations
November, 2012
Deutsche Post DHL | Page China Overview | Nov 2012
Content Page
DP-DHL Overview
Country & Macro-Economics Overview
Custom Clearance
Order 33 & 43
Import Regulations
Export Regulations
Deutsche Post DHL | Page China Overview | Nov 2012
Content Page
DP-DHL Overview
Country & Macro-Economics Overview
Custom Clearance
Order 33 & 43
Import Regulations
Export Regulations
Deutsche Post DHL | Page China Overview | Nov 2012
China Facts
Economic growth driver
• Growth engine of the world economy and has experienced rapid growth: China 2011 GDP: 9.2% in 2011, totaling
approximately 47.2 trillion CNY according to the government National Bureau of Statistics. 8.9% in 2012
• China is now the 2nd largest economies in the world behind the US
Strong trade activities:
With a total international trade value of US$3.64 trillion–1.9 trillion in exports and US$1.74 trillion in imports (2011)
Factory of the world: World largest producers of toys, leather shoes, automobiles, television, garments
Talent pool:
• Young workforce with a rapidly improving skill set
• Emerging capabilities in research and development: 3C; Pharmacy; Engineering and Manufactory; Fashion
*Source: WTO 4
China
Land Area 9.6 million km²
Population (2011) 1.347 billion
Population Density
(2011) 140 pp/ km²
GDP nominal (2011) RMB 47,156 billion
(€5,777 billion)
GDP per Capita
(2011) RMB 34,999 (€4,288)
China
Deutsche Post DHL | Page China Overview | Nov 2012
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
2011 4.9% 4.9% 5.4% 5.3% 5.5% 6.4% 6.5% 6.2% 6.1% 5.5% 4.2% 4.1%
2012 4.5% 3.2% 3.8% 3.4% 3.0% 2.2% 1.8% 2.0% 1.9%
0%
2%
4%
6%
8%
2009 2010 20112011 Sep
YTD
2012
Sep YTD
(3)2012 RF
(1)GDP 9.2% 10.4% 9.3% 10.7% 7.7% 7.8%
(1)Retail Sales of Consumer Goods 15.5% 18.4% 17.1% 17.0% 14.1% -
(2)Export (in value) -16.0% 31.3% 20.3% 22.7% 7.4% 6.2%
(2)Import (in value) -11.2% 38.7% 24.9% 26.6% 5.0% 7.2%
(2)Export (in weight) - - - - -6.1% -
(2)Import (in weight) - - - - 12.5% -
(1)Fixed Assets Investment 30.1% 24.5% 23.8% 24.9% 20.5% -
(1) Value Added Industry 11.0% 15.7% 13.9% 14.2% 10.0% -
(1)NBS, 2011 GDP w as restated in Sep 2012; (2)CEIC; (3)EIU: updated Oct 11, 2012
5
Detailed Information—Macro Economic Indicators
Key Macro Economic Indicators
Inflation: CPI Inflation: PPI
Data source: (1) CEIC; (2) China Customs; (3) EIU; inflation—NBS
2011 FY: 5.4%
2012 Sep YTD: 2.8%
2011 FY: 6.0%
2012 Sep YTD: -1.5%
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
2011 6.6% 7.2% 7.3% 6.8% 6.8% 7.1% 7.5% 7.3% 6.5% 5.0% 2.7% 1.7%
2012 0.7% 0.0% -0.3% -0.7% -1.4% -2.1% -2.9% -3.5% -3.6%
-4%
-2%
0%
2%
4%
6%
8%
Deutsche Post DHL | Page China Overview | Nov 2012
10.5
21.0
23.1
20.8
14.1 13.9
14.7
15.8
13.4 11.2 10.8
13.0
11.8
9.1
12.1711.4 9.9
22.9
7.0
3.7 5.2
4.3 4.5
3.6 2.9
12.3
22.7
25.6
23.3
15.7 15.3
14.7 13.4
13.8
11.0 10.5 12.5
11.8
9.3
14.4412.8
10.1
24.7
3.8
1.6
4.1 3.3 3.0 1.1 0.9 0
10
20
30
Jan-10 May-10 Sep-10 Jan-11 May-11 Sep-11 Jan-12 May-12 Sep-12
50.4
51
55.1 54.5
49.8
49.2 49 48.749.8
46.9
51.1
51.952.2
50.4
47.546.6 46.6
48.8
40
50
60
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
New orders New Export Orders
50.5 51
53.1
53.3 50.4 50.2 50.149.2 49.8
48.849.6
48.3
49.3
48.448.2
49.3
47.6 47.9
40
50
60
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Official PMI HSBC PMI
6
Detailed Information—PMI & Electricity Consumption
Official PMI vs. HSBC PMI New Order Index vs. New Export Order Index
Electricity Consumption YOY Growth
Total
Industry
Data source: CFLP, CEIC
%
Deutsche Post DHL | Page China Overview | Nov 2012
60
80
100
120
140
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Qutantum Index Price Index
80
100
120
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Qutantum Index Price Index
7
Detailed Information—Foreign Trade Trend
Export Trade Index
Data source: Foreign trade data—CEIC
Import Trade Index
101.3
111.1
104
98.3
0%
15%
30%
45%
0
50
100
150
200
Q1 10
avr
Q2 10
avr
Q3 10
avr
Q4 10
avr
Q1 11
avr
Q2 11
avr
Q3 11
avr
Q4 11
avr
Q1 12
avr
Q2 12
avr
Jul 12
avr
Aug 12
avr
Sep 12
avr
Total Exports in Value
US$ bn YoY 2011 FY
20.3%
2010 FY
31.3% Exports
9.8%
Exports 2012 YTD
7.4%
-15%
0%
15%
30%
45%
60%
75%
0
50
100
150
200
Q1 10
avr
Q2 10
avr
Q3 10
avr
Q4 10
avr
Q1 11
avr
Q2 11
avr
Q3 11
avr
Q4 11
avr
Q1 12
avr
Q2 12
avr
Jul 12
avr
Aug 12
avr
Sep 12
avr
Total Imports in Value
US$ bn YoY 2010 FY
38.9%
2012 YTD
5%
2011 FY
25% Imports
2,3%
Deutsche Post DHL | Page China Overview | Nov 2012
Content Page
DP-DHL Overview
Country & Macro-Economics Overview
Custom Clearance
Order 33 & 43
Import Regulations
Export Regulations
Deutsche Post DHL | Page China Overview | Nov 2012
DHL as a Strategic Resource
Deutsche Post DHL | Page China Overview | Nov 2012
One Stop Logistics Provider – DHL China
Deutsche Post DHL | Page China Overview | Nov 2012
Content Page
DP-DHL Overview
Country & Macro-Economics Overview
Custom Clearance
Order 33 & 43
Import Regulations
Export Regulations
Deutsche Post DHL | Page China Overview | Nov 2012 12
Introduction to China Customs Import / Export Formalities
This documents serves as a network introduction to the detailed and complex requirements for both imports and
exports to & from China.
Recent customs legislation changes have caused more stringent clearance procedures,
notably through:
1) HS codes on all import / export WPX shipments
2) Customs Registration (“CR”) number
(or appointment of an IOR / EOR (Importer/Exporter of Record) for all inbound & outbound parcel
shipments)
3) Change to Import Deminimis status
whereby if the duty assessment is less than CNY50.00 (approx. USD7.00) the shipment is now deemed
deminimis.
Previously deminimis was based on declared value. The change now causes a Customs declaration to
be calculated and completed to establish the ―deemed duty‖ thus affecting clearance time.)
Document: Order 33
The effect of Order 33 is that a number of our inbound shipments
are no longer Cleared on Arrival.
Deutsche Post DHL | Page China Overview | Nov 2012 13
Introduction to China Customs Import / Export Formalities
Document: Order 43
1. Personal Effects are limited to unaccompanied baggage (luggage or articles transported
separately from passenger) or as commodity / gift sent from private individual to private
individual (sent from relatives or friends) and within a reasonable quantity for personal use.
2. Business to Consumer (B2C) including internet shopping shipments cannot be cleared as
personal effects, instead they should go through general Customs clearance process
(informal / formal) which requires IOR (see prev page).
3. Value limit on Personal Effects shipment is CNY800.00 (approx. USD117.00) from / to Hong
Kong, Macau & Taiwan or CNY1,000.00 (approx. USD147.00) from / to other countries.
4. Shipments that exceed the above value threshold will not be allowed to be cleared as
Personal Effects, except for instances when there is only one single item inside a shipment
and the value for that single item is already over the above value threshold. Those
shipments will then need to be reviewed and approved by Customs on a case by case
basis.
Deutsche Post DHL | Page China Overview | Nov 2012
Content Page
DP-DHL Overview
Country & Macro-Economics Overview
Custom Clearance
Order 33 & 43
Import Regulations
Export Regulations
Deutsche Post DHL | Page China Overview | Nov 2012 15
China Customs Regulations in Express Industry – Import
At the National Government level Customs regulations are clear but at field level they are subject to local interpretation and execution…
Deutsche Post DHL | Page China Overview | Nov 2012 16
Special Notes on Informal / Formal Import Clearance
All inbound parcel shipments to China requires:
A HS code (preferably the first 6-8 digits input at origin), clear written description (compatible
with HS code), and desirably the consignee CR number (if possible, but not mandatory)
The Customs Registration number (CR number) which serves as identifying the consignee as
the Importer of Record (IOR).
Consignee must have IOR (Importer of Record) status with Customs for deminimis, informal &
formal clearance, otherwise consignee needs to appoint a 3rd party agent to act as IOR on
their behalf. (DHL cannot unilaterally appoint an IOR on behalf of the consignee).
Quarantine Certificate (where applicable) e.g. Certificate of Inspection for Goods Inward, China Compulsory
Certificate (3C), etc.
Import Licence (where applicable) e.g. Automatic Import License (for machinery and electrical products, etc. .
Deutsche Post DHL | Page China Overview | Nov 2012 17
Types of Clearance
Types of Clearance:
1. Deminimis Clearance (<CNY50) –All done by DHL
2. Informal Clearance (>CNY 50 – CNY5000) –All done by DHL
3. Formal Clearance (>CNY5000)
Consignee can choose DHL or their own broker to do formal clearances.
If consignee chooses DHL to clear formals, the following paperwork needs to be provided:
- Power of Attorney (with IOR information, description in Chinese) of all items listed on invoice, HS code,
import mode – general import, duty free, etc., Duty/VAT settlement)
- Customs Handbook (where applicable, typically used by manufacturers importing raw materials)
The standard processing time for a Formal Entry is 2 business days, including quarantine declaration. (informal quarantine only, if
formal quarantine required, 1 extra day to be added)
Clearance time could be shortened if the required clearance paperwork are kept on file by gateways with part master file and blank
POA’s.
Consignee’s response time in providing clearance paperwork is crucial for quick clearance.
If consignee is located in a bonded area (FTZ – Free Trade Zone or EPZ – Export Processing Zone), bond transfer clearance will
need to be done by consignee’s appointed broker with extra charge.
Returned To Origin (―RTO‖) is strictly controlled by China Customs. The standard processing time for RTO approval is around 3
weeks – DO NOT Miscode.
Deutsche Post DHL | Page China Overview | Nov 2012 18
Special Notes on Informal / Formal Import Clearance
Customers in China can access the following Customs website addresses to find out the
guidelines and procedures on how to get registered with China Customs to get a CR number for
import and export activities.
This can only be applied at local level in China.
Beijing: http://beijing.customs.gov.cn/tabid/29866/Default.aspx
Shanghai: http://shanghai.customs.gov.cn/Default.aspx?tabid=5771
Guangzhou: http://guangzhou.customs.gov.cn/tabid/4028/Default.aspx
Shenzhen: http://service.customs.gov.cn/default.aspx?tabid=12293
Deutsche Post DHL | Page China Overview | Nov 2012 19
Sample Paperwork – Import
Deutsche Post DHL | Page China Overview | Nov 2012 20
Content Page
DP-DHL Overview
Country & Macro-Economics Overview
DHL Express
DHL Global Forwarding
DHL Supply Chain
Custom Clearance
Order 33 & 43
Import Regulations
Export Regulations
Deutsche Post DHL | Page China Overview | Nov 2012
Content Page
DP-DHL Overview
Country & Macro-Economics Overview
Custom Clearance
Order 33 & 43
Import Regulations
Export Regulations
Deutsche Post DHL | Page China Overview | Nov 2012 22
China Customs Regulations in Express Industry – Export
At the National Government level Customs regulations are clear but at field level they are subject to local interpretation and execution…
Deutsche Post DHL | Page China Overview | Nov 2012 23
Special Notes on Formal Export Clearance
Formal export declaration is required when value is above CNY5,000 (around US$700.00).
Shipper should have EOR (Exporter of Record) status (i.e. a CR number) with Customs for
formal export declaration, and the following paperwork need to be provided:
- Power of Attorney (with EOR information)
- Export Declaration Form (not more than 5 line items per form)
- Customs Handbook (where applicable)
- Export License (where applicable)
Formal export declaration takes 1 business day, however for shipments originated from East
China cities, same day uplift can be achieved if shipment is collected before cutoff time.
Some customers might have special request to do formal export declaration on their informal
shipments (for tax return or payment remittance purpose), then the 24 hours processing time for
export formality will apply.
When shipper is located in FTZ (Free Trade Zone) or EPZ (Export Processing Zone),
additional FTZ/EPZ declaration and bond transfer with extra charges will be required.
Deutsche Post DHL | Page China Overview | Nov 2012 24
Sample Paperwork – Export
Deutsche Post DHL | Page China Overview | Nov 2012 25
End