-The process of finalizing the order takes place within a day for both companies. -Upon confirming the terms, a sales contract is drawn up.
1. Purchase Order is created and signed by exporter and importer
-Purchasing order and the OEM contract
1. Based on the information in the purchasing order and the OEM contract, the company fills an online application form for the Customs Department and the Committee of Foreign Trade and Economic Cooperation (CFTEC). 2.The Customs Department will take two to three days to verify the information and will provide an online approval. 3.The online approval is printed for a verification stamp by the CFTEC, which can be done in half a day. 4.The stamped certificate is passed to the State Administration of Taxation for final approval and stamping. Documents: Purchase Order OEM Contract Import Permit
-Trade terms agreed upon and import permit obtained
1.The exporter sends seven documents to the importing company (Companies X and P in this case). These documents include the Bill of Materials, Bill of Lading, the Purchase Order, the invoice, the packing list and a certificate of non-wood packing. 2.These documents, plus the registry book, a declaration of entrustment and an entrustment declaration for commodity inspection, are then handed over to the customs broker/freight forwarder. The preparation of these additional certificates will take the company half a day. Documents: -Bill of Material -OEM Contract -Purchase Order -Commercial Invoice -Packing List -Bill of Lading -Export Register Book -Packing List -Certificate of non-wood packing -Declaration certificate of entrustment -Commodity inspection of entrustment -Import Permit
-Import documents completed
1.The customs broker switches the Bill of Lading with a Delivery Order issued by the shipping company. The shipping company charges about RMB 200 per Bill of Lading. This is a quick process as no government agency is involved
1. The customs broker makes an application for customs clearance on behalf of the company 2. Inspection by the Commodity Inspection Bureau is random. If the goods are approved without inspection, the process can be done in half a day. If an inspection is required, however, the process can take between one and five days (the higher end for auto products)
The inspection certificate, the declaration of entrustment and the registry book are forwarded to the Customs Department for customs clearance. The clearance can be done in half a day.
1. The certificate of customs clearance, the delivery order and the packing list are given to the transportation company to get approval for the release of the goods from the port.
1. Payment for the imported goods is made according to the contract. Since both Company X and P have long term relationships with the Japanese sources of the imported products, payments are made on a regular basis rather than per shipment. If the consignment is based on an OEM contract, the company makes no payment to the exporter. If there is a need to prepare documents for the payment procedures, both Company P and X spend about half a day on this.