China Import China's Importation Documentation Requirements, Procedures,

China Import China's Importation Documentation Requirements, Procedures, Programs, and Policies: An Overview Every business endeavor has certain legal and procedural requirements that must be known and followed in order for the endeavor to be both successful and viable in the long-term. Embarking on any business or trade venture without first ascertaining the legal requirements and bureaucratic procedure is setting the venture up for outright and immediate failure at the worst, and an increased risk of inefficiency and heightened costs at the best.

This is why obtaining pertinent information prior to actually beginning to conduct business is so important -- it will make for a much smoother establishment of the business and its necessary operations, and will also increase the efficiency and cost effectiveness of these operations. When business is conducted on an international basis, the situation becomes complicated by the multiple sources of often differing laws that can affect operations.

For business that consists of importing and/or exporting goods, the specific documentation that is needed at an international border or port in order for the goods to be admitted into the country where the goods are to be sold is one of the more pressing areas of law and procedure.

Every country has their own specific documentation requirements for goods coming in from foreign countries, and though many of these documents and procedures are standardized or highly similar, knowing and understanding the specifics required for a given venture is a must if that venture is to be successful. The following pages will provide an overview of such requirements when goods are imported into China.

Basic Requirements For certain types of goods that are largely considered low-risk and innocuous, such as software or other non-consumable products and others where safety concerns are virtually non-existent, the basic pieces of documentation required for importing goods into China are very standard and straightforward. A bill of lading is one of the most basic documents for any shipment of cargo, domestic or international, and is at the top of the list for documents required by the Chinese governments for goods coming into their country (Yan & Shen 2008).

There are only a handful of other documents required for the importation of most other non-consumable and low-risk goods, with only five additional pieces of documentation needed in most instances according to the latest information available (this actually reflects a recent increase in the wake of certain international issues, after which China increased the amount of information required for imports (Yan & Shen 2008; Trading Economics 2011).

These other documents consist of items that are almost as basic and commonplace as bills of lading, including invoices, packing/shipping lists, and customs declaration forms (Yan & Shen 2008; Global Trade 2011). All of these basic document requirements are similar in almost every country (Global Trade 2011).

They contain simple information regarding the specific items contained in the shipment and the geographical as well as the commercial origins and destinations (that is, the physical route being traveled as well as the companies and/or individuals responsible for the items at both ends) (Global Trade 2011).

The final two pieces of documentation that are required by the Chinese government to accompany all goods being imported into China are the sales contract(s) for the goods being shipped, and evidence of a proper and adequate insurance policy for the goods being shipped (Global Trade 2011).

The information contained on these documents is not quite as simple or straightforward as the information contained on the other basic requirements listed above, but rather contains more detailed information regarding the actual value of the goods being shipped -- not only the market value of the goods, as is most often evidenced by the price agreed upon in the sales contract, but also the actual value that the shipper (potentially the buyer and/or seller) places on these goods, as evidenced by the insurance policy.

Such documentation is intended to reduce corruption and smuggling attempts by creating greater controls on shipments entering the country and placing them under greater scrutiny (Yan & Shen 2008). Special Documentation In addition to the basic documents that the Chinese government requires for all imported goods, there are other documents that can be required for certain classes or types of goods and products.

Certain general commodities are required to have import quota certificates, in order to maintain certain levels of domestic good production and sales and limiting the amount of imports that can come in for each general type of commodity (Global Trade 2011). Import quote certificates are official documents that are issued only up to the amount of the quota established for each type of general commodity covered by this type of provision.

Import licenses can also be required in certain cases, depending both on the type of good or product being imported and on the nature of the businesses involved in the transaction, especially if a foreign company is actually still in charge of the shipment at the time it is entering China (FIDI 2009). These licenses provide the Chinese government a way to more closely monitor and regulate certain types and purposes of importation by creating a system of explicit knowledge and scrutiny for certain importers.

Other goods, especially live animals and the very few fresh and non-packaged food items that China allows to be imported, might also be.