All you need to know about export licences in China

All you need to know about export licences in China

By Jade Xia, 11 November 2020

Export licence. It doesn’t sound all that complicated, right? However, if you are looking to export from China or are an overseas buyer, you know it can be a real pain in the neck. Especially when it comes to figuring out who is responsible for what. Well, look no further. In this blog post, I will ease your pain and sort it all out for you.

What is an export licence?

To the fundamental question: What is an export licence? An export licence is a document issued by the relevant authority, in this case, the Chinese government, that gives exporters permission to ship goods out of the country. If the exporter doesn’t have an export licence, the goods will not be cleared through Chinese customs.

Why is an export licence needed?

An export licence is a way for a country to control the goods going out of the country – just like an import license is a way to control incoming goods. The export licence is issued according to the country’s export laws and regulations. The export can be restricted or prohibited to meet the demands of the domestic market and consumers and protect the national economy.

Who is responsible for obtaining an export licence?

It is the Chinese companies that want to export goods from China to overseas markets that are responsible for obtaining the export licence, either by applying for the license themselves or by letting a trading agent handle it.

What needs to be included in the export licence application?

Exporters need to include export details such as the name of the export goods, specifications, destination countries and regions, quantity, unit price, total amount, delivery date, and form of payment.

Also, other relevant documents such as a copy of the original contract, business license, annual export plan, or documents of approval need to be presented to the authority. Once the export licence is approved, the exporter should also fill in the People’s Republic of China export licence application form.

Export licences for China

Do buyers need to pay any export fees in China?

Yes and no. As an overseas buyer, you do pay for fees related to export clearance. But they are all included in the FOB (Free On Board), CIF (Cost, Insurance, Freight), and DAP (Delivered At Place) shipping agreements. So, you don’t really need to think about that. 

However, if you import the goods on EXW (Ex Works) terms, you will have to pay for export fees as they are not included in the price.

Why don’t some exporters in China have export licences?

Today, most exporters in China have export licences. However, some don’t. These exporters are often smaller companies that want to avoid the bureaucracy and the cost that comes with applying for the export licence.

Do you need help with export or import?

We know just how confusing and frustrating it can be having to deal with export and import, or any other customs related issues, for that matter.

Often, there are a number of procedures that need to be followed and completed before importing or exporting the goods. There might be special preparations required such as accompanying certificates and approvals for the cargo. Perhaps, the mode of transport you use or the region you are shipping to demands particular preparing procedures.

10 years of experience, local knowledge and presence in China

If you need help, we at Greencarrier Freight Services are here to assist you. We have been working in China for over ten years and gained a lot of experience over the years. Based on our local knowledge and presence, we have everything required to prepare your goods, complete your documents, and confirm all the details before shipping. We offer a full range of customs services and are happy to optimise your customs procedures including export licenses.

Got some answers to your questions? I really hope so. If not, let me know in the comments, and I will do the best I can to help you out. Or, you can email me directly. If there is someone else you think will find this post helpful, make sure to share it.

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AUTHOR
Jade Xia
Branch Manager
Greencarrier Freight Services

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