Chinese people market can be both attractive and daunting for small, and medium-sized enterprises choosing to export many. However, the opportunity for selling goods or services in the market of virtually 1.35 billion people should not be missed.
Though there are numerous criteria that businessmen must take into mind upon choosing where to export their goods, market dimension is one of many key components for determining this decision.
Exporting to China can be daunting in the beginning for small and medium-sized enterprises (SMEs), especially looking at its population of just about 1.35 billion people.
Checking out the China provides great insight into the country’s business climate and its people
Cultural, legal and in many cases language barriers separating China from Latin America might be resolved. To facilitate this venture, the next elements should be thought about upon exporting products to China:
The Harmonized Tariff Schedule in China differs from those of Europe along with the Usa. The 1st six digits of this code are usually the same worldwide, although last digits can vary greatly. Mahoney mentions that in China: “though the first six digits are similar quite often, the seventh and eighth digit and also the two-digit suffix will often be completely different from what we used in the U.S. To add confusion, many goods that utilize full ten digits from the U.S., don’t use anything but eight digits in China and vice-versa.”
Every importer in China have to have a Customs Registration Code. Mahoney explains that “all products brought into China require an import license. The registered importer isn’t necessarily your customer, nevertheless the entity which has the import license (just like a trading company).” Consult this problem with your buyer, particularly when he lacks importing experience.
All products exported to China must be along with a specific group of documents. A few of the mandatory documents include: an invoice containing the producer’s information, a packing list, a certificate of origin plus a bill of lading.
Certain products require additional documentation. With respect to the product, it might be essential to include health certificates in the country of origin, production or packaging dates, etc.
Several products require inspection and certification, including China Compulsory Certification (CCC). Several products require inspection certification from the Chinese government. If the company applies because of this certification, inspectors through the China Quality Certification Center (CQC) will look at the factory to confirm the fabrication process. The united states Department of Commerce’s website lists some firms that will assist using this type of procedure.
China has strict rules on food labeling. In line with the US Treasury Department, “all imported meals is be subject to inspection and should obtain a clearance certificate through the Customs authority. The data should be present on the label, in Chinese. Labels must be accurate, truthful, and non-misleading. Please be aware that the label must meet these requirements prior to importation.” Label requirements include: product name and brand, their list of ingredients, the degree or weight, the date of production, producer information, country of origin, expiry date, kind of product, etc.
To achieve better knowledge of these issues it may be preferable to visit China before exporting. The United States Department of Commerce says on its website that “a stop by at China can offer great clues about the country’s business climate as well as people. Chinese company representatives respect face-to- face meetings.”
If these problems become complex, it may be beneficial to make use of a trade agent. Exactly the same website reports that “local agents hold the knowledge and contacts to improve promote U.S. products and stop working institutional, language, and cultural barriers.”
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