China has the world's largest economy on a wide range of metrics. Its influence on global trade is so evident. However, this powerful giant causes many small and midsize exporters to pause. Pessimism among American exporters is evident, particularly in light of China's slowing economic growth, growing worries about the implications of technology supply chains for national security, and retaliatory tariffs between the United States and China. In this article, I'll cover a variety of aspects of exporting to China that you can use to determine whether or not this market is a good fit for you.
Know about China Exports
China's exports increased by $263, 9 billion in May 2021 over the same month the previous year, a decrease from the 32.3% growth recorded in April. Additionally, this fell short of the Bloomberg survey's conclusion of 32% growth. Although this was the 11th straight period of export growth, the most recent data also came from a low base due to the export decline of 3.3% in May 2020.
How are China's imports doing?
The National Bureau of Statistics reports that imports increased by 51.1% to US$218.4 billion in May 2021 from a year earlier, which is an increase from the 43.1% growth in April. This fell short of the median outcome of an analysts' poll conducted by Bloomberg, which called for growth of 54.5%.
The rate of growth in imports during this time period was the quickest since January 2011, and it was the eighth consecutive period of growth. However, the extent of the increase this year was influenced by the fact that imports decreased by 16.7% in May 2020 as a result of the coronavirus.
Do you want to export products to China? Have you consistently utilised the same HS Code and paid the same import duty amount over time? If so, it's time to determine if your products still fit best with the present HS Code.
What is the China HS Code?
A standardised international method for classifying goods that are traded internationally is known as the Harmonized System, or HS Codes. HS codes are used internationally for a number of significant purposes, but its primary goal is to facilitate trade by establishing uniform classifications for various items. HS codes typically have six digits, but the exact number varies from country to country. The China Customs Commodity HS Code, for instance, has been modified and now includes 13 digits:
The most-favourable-nation (MFN) duty rates, conventional duty rates, special preferential duty rates, general duty rates, tariff quota duty rates, and others make up the duty rates on imported goods in China. For imports made within a certain window of time, temporary duty rates could be applicable. Here, we use an illustration to illustrate the construction of the Chinese Harmonized System. Consider the HS Code for guava to be 08045010.
How to Find Your Product's HS Code in China
According to China customs, you may quickly find the HS code of your product online. Here are some instructions for finding the 2017 China Customs HS Code List online:
At each level, i.e., the 2-digit, 4-digit, 6-digit, and 8 to 10 digit level, the HS code of any product is provided. You might use a product description or a two-digit chapter code to search the HS code.
Why is it vital to use HS codes when exporting to China?
One of the major problems exporters encounter is that the customs regulations are not very clear about which HS codes apply to their items. It's critical that you are able to classify your goods using the appropriate HS codes so that customs officials are aware of the rules and certifications that apply to your goods. By delaying customs clearance and costing you time and money, using the incorrect HS codes. If you mistakenly use the incorrect HS code, you should work with your Chinese importer and, ideally, obtain assistance from a knowledgeable third party.
Since HS codes can be regularly impacted by new government reforms to optimise imports, by China's signing of preferential treaties with different countries, as well as by the professionalism of your local agents when dealing with customs authorities, it is important to verify that the HS Code you use is the one that is most appropriate for your products.
Easy evaluation of your product’s HS Code
When creating a Chinese business, HS codes are crucial. A corporation must specify its business scope, which includes the HS codes of the goods it intends to import, export, and trade, as part of the registration procedure. This list will ultimately determine whether the company needs additional licences and what steps need to be taken. A Seair Exim Solution is a platform where you can obtain your product specific HS code. They also provide custom data, global trade data, and provide you updated HS Code to enhance your business growth.
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