An Analysis of Import-Export Procedures and Processes in China

Study cases

Case study basic information

Product:

Garments

Corridors and routes:

Pinghu - Shanghai - Japan

Process analysis:

Export from China

Importing Country:

Japan

Exporting country:

China

Use case diagram

Time procedure charts

Procedure details

Procedure name:

Conclude contract and trade terms

Click for details

Country and procedure description	Conclude contract and trade terms/Buy (Export from CHN to JPN/Garments)
Actors & participants	- Importer - Exporter
Input and criteria to enter or begin the business process	Acceptance by both parties
Activities and associated documentary requirements	1. Upon acceptance by both parties, the sample garment is confirmed and a contract is signed. The entire process can be done electronically. Due to the long-term relationship that Company X has with its Japanese client, the process generally takes no more
Activity diagram
Number of documents required	1
Average time required	1.00

Procedure name:

Arrange transport (shipping)

Click for details

Country and procedure description	Arrange transport (shipping) (Export from CHN to JPN/Garments)
Actors & participants	- Exporter - Shipping Company - Customs Broker（报关行）
Input and criteria to enter or begin the business process	Order completed
Activities and associated documentary requirements	1. When the order is close to completion, shipping arrangements need to be confirmed. 2. The company uses a customs broker to liaise with the shipping company. 3. The company provides the broker with some basic information, including the destination, quantity and date of shipment. 4. When a suitable vessel has been found, the broker makes a booking request and confirms the shipping details and shipping cost. 5. Finally, a shipping order is issued.
Output criteria to exit the business process	A shipping order is issued
Activity diagram
Number of documents required	1
Average time required	1.00
Average cost	2000-3000RMB

Procedure name:

Obtain cargo insurance

Click for details

Country and procedure description	Obtain cargo insurance (Export from CHN to JPN/Garments)
Actors & participants	- Exporter - Insurance company
Activities and associated documentary requirements	1. Information regarding the market value of goods and shipping information is provided so that insurance cover can be secured.
Activity diagram
Number of documents required	1
Average time required	1.00
Average cost	0.3-0.5 percent of the sum insured

Procedure name:

Arrange inspection

Click for details

Country and procedure description	Arrange inspection (Export from CHN to JPN/Garments)
Actors & participants	- Exporter - Commodity Inspection Bureau(进出口商品检验局）
Activities and associated documentary requirements	1. Company X now requests an inspection of its garments by the local Entry-Exit Inspection and Quarantine Bureau (or Commercial Inspection Bureau). This step may take up to 2 days, although the inspection itself is done within half a day. 2. The inspecti
Activity diagram
Number of documents required	8
Average time required	1.00
Average cost	0.15 percent of the total value of the goods

Procedure name:

Collect empty containers from yard

Click for details

Country and procedure description	Collect empty containers from yard (Export from CHN to JPN/Garments)
Actors & participants	- Exporter - Shipping Company, Transportation company - Customs Broker
Activities and associated documentary requirements	1. On the day that the goods are to be loaded into the container, the customs broker will instruct the internal transportation company to pick the container from the yard. 2. The shipping company is informed and the assigned container is made available to
Activity diagram
Number of documents required	1
Average time required	1.00

Procedure name:

Stuff containers

Click for details

Country and procedure description	Stuff containers (Export from CHN to JPN/Garments)
Actors & participants	- Exporter - Transportation company
Activities and associated documentary requirements	1.Goods are loaded on to the container within one day.
Activity diagram
Number of documents required	1
Average time required	1.00

Procedure name:

Load container and transport to port (airport) of departure

Click for details

Country and procedure description	Load container and transport to port (airport) of departure (Export from CHN to JPN/Garments)
Actors & participants	- Transportation company - Shipping Company
Activities and associated documentary requirements	1. The sealed container is transported to the port, and is checked by the shipping company at the entrance to the port. Company X uses the Shanghai Port, which is about one and a half hours away from the warehouse. The container is docked at the required
Activity diagram
Average time required	1.00

Procedure name:

Handle container at the terminal & stow onto vessel (airport)

Click for details

Country and procedure description	Container handling at the terminal & stow onto vessel (airport) (Export from CHN to JPN/Garments)
Actors & participants	- Customs Department - Customs Broker - Shipping company - Port Authority（港务局）
Activities and associated documentary requirements	1. The green light note is then passed to the shipping company or its agent, who will then make a plan on where the container will be stowed. 2. The port authority will then stow the container according to this plan.
Activity diagram
Number of documents required	1

Procedure name:

Clear goods at port/border by customs

Click for details

Country and procedure description	Customs clearance at port/border (Export from CHN to JPN/Garments)
Actors & participants	- Customs Broker - Shipping Company - Customs Department
Activities and associated documentary requirements	1. The container undergoes scanning and, upon the request of the customs officers, the container is opened for examination. 2. Having cleared this process, the relevant documents are verified. In addition to the documents mentioned earlier, Company X mus
Activity diagram
Number of documents required	5
Average time required	1.00

Procedure name:

Prepare documents for importer

Click for details

Country and procedure description	Prepare documents for importer (Export from CHN to JPN/Garments)
Actors & participants	- Exporter
Activities and associated documentary requirements	1. Upon the receipt of the Bill of Lading, together with the Commercial Invoice and Finished Goods Inspection Certificate (by third Party, or sometimes by Company X), the documents are mailed to the Japanese client.
Activity diagram
Number of documents required	3
Average time required	0.50

Procedure name:

Prepare documents for (bank) payment

Click for details

Country and procedure description	Prepare documents for (bank) payment (Export from CHN to JPN/Garments)
Actors & participants	- Exporter - Importer - Exporter's bank - Importer's bank
Activities and associated documentary requirements	1. All documents required for the LC (Invoice, Packing List, Bill of Lading etc.) are submitted to the bank.
Activity diagram
Number of documents required	4
Average time required	0.50
Average cost	0.1 per cent of the LC amount

Case study name:

Export of Electronic Appliances from China to Japan, 2010

Study cases

Case study basic information

Product:

Electronics

Corridors and routes:

Through Foshan and Shenzhen ports - Thailand

Process analysis:

Export from China

Importing Country:

Thailand

Exporting country:

China

Use case diagram

Time procedure charts

Procedure details

Procedure name:

Conclude contract and trade terms

Click for details

Country and procedure description	Conclude contract and trade terms/Buy (Export from CN to TA/Electronic products)
Actors & participants	- Importer - Exporter
Activities and associated documentary requirements	1. The client places an order via email, which is then entered into Company M’s E-system. 2. A pro-forma invoice is provided to the client. Once the order is approved by the relevant managers, the manufacturing process starts. Alternatively, if stocks ar
Activity diagram
Number of documents required	2
Average time required	2.50

Procedure name:

Obtain export permit

Click for details

Country and procedure description	Obtain export permit (Export from CHN to THA/Electronic products)
Actors & participants	- Exporter - Commodity Inspection Bureau(进出口商品检验局）
Activities and associated documentary requirements	1. The exporting company applies for an export permit online. 2. To obtain the permit, the company provides the necessary information (destination port, unit numbers, gross weight etc.) and a permit is issued when approved. 3. According to Company M, th
Activity diagram
Number of documents required	1
Average time required	5.50
Average cost	THB 1,170

Procedure name:

Arrange transport (shipping)

Click for details

Country and procedure description	Arrange transport (shipping) (Export from CHN to THA/Electronic products)
Actors & participants	- Exporter - Shipping Company
Activities and associated documentary requirements	1. Booking the vessel for the transportation of the goods to Thailand should be done two to seven days in advance. This is done simultaneously with the export permit application.
Activity diagram
Number of documents required	1
Average time required	4.50
Average cost	THB 5,640

Procedure name:

Obtain cargo insurance

Click for details

Country and procedure description	Obtain cargo insurance (Export from CHN to THA/Electronic products)
Actors & participants	- Exporter - Insurance company
Activities and associated documentary requirements	1. Insurance is applied for online. Payment for insurance cover is made every six months by Company M, rather than per shipment.
Activity diagram
Number of documents required	1
Average time required	0.50

Procedure name:

Arrange inspection

Click for details

Country and procedure description	Arrange inspection (Export from CHN to THA/Electronic products)
Actors & participants	- Exporter - Importer - Private inspection institute or client's branch in China
Activities and associated documentary requirements	1. This is either done by the client’s branch office in China or by a third party.
Output criteria to exit the business process	An inspection certificate is issued to the company if all requirements have been met
Activity diagram
Number of documents required	5
Average time required	1.00

Procedure name:

Provide Customs declaration

Click for details

Country and procedure description	Provide Customs declaration (Export from CHN to THA/Electronic products)
Actors & participants	- Exporter - Customs - Transportation Company - Carrier (Shipping Line)
Activities and associated documentary requirements	1. Company M needs to prepare the packing list, shipping order, purchase order, inspection certificate, the HS Code and the invoice.
Activity diagram
Number of documents required	6
Average time required	1.00

Procedure name:

Collect empty containers from yard

Click for details

Country and procedure description	Collect empty containers from yard (Export from CHN to THA/Electronic products)
Actors & participants	- Exporter - Transportation Company - Shipping Company
Activities and associated documentary requirements	1. The company informs the inland transportation company to collect the empty container that has been assigned by the shipping company. This is done on the same day as the stuffing and customs clearance.
Activity diagram
Number of documents required	2
Average time required	1.00

Procedure name:

Stuff containers

Click for details

Country and procedure description	Stuff containers (Export from CHN to THA/Electronic products)
Actors & participants	- Exporter - Transportation Company
Activities and associated documentary requirements	1. The container is loaded and a packing list is provided to ensure all goods have been loaded.
Activity diagram
Number of documents required	1
Average time required	1.00

Procedure name:

Load container and transport to port (airport) of departure

Click for details

Country and procedure description	Load container and transport to port (airport) of departure (Export from CHN to THA/Electronic products)
Actors & participants	- Exporter - Transportation Company
Activities and associated documentary requirements	1. Company M uses two ports – Shenzhen and Foshan. The choice of port depends on where the ship is berthed. Shipments to Europe and the US are mainly through Shenzhen Port. For smaller shipments, Foshan is used. The necessary documents are given to the in
Activity diagram
Average time required	1.00
Average cost	THB 2,600

Procedure name:

Handle container at the terminal & stow onto vessel (airport)

Click for details

Country and procedure description	Container handling at the terminal & stow onto vessel (airport) (Export from CHN to THA/Electronic products)
Actors & participants	- Customs Department - Shipping company - Port Authority（港务局）
Activities and associated documentary requirements	1. The green light note is then passed to the shipping company or its agent, who will then make a plan on where the container will be stowed. The port authority will then stow the container according to this plan.
Activity diagram
Number of documents required	2
Average time required	1.00

Procedure name:

Clear goods at port/border by customs

Click for details

Country and procedure description	Customs clearance at port/border (Export from CHN to THA/Electronic products)
Actors & participants	- Transportation Company - Exporter - Shipping Company - Customs Department
Activities and associated documentary requirements	1. As the company is large exporter, the customs clearance procedure is done within a day. The container is scanned and if required, it is opened for closer scrutiny. The necessary documents are verified, and a green light note is issued.
Activity diagram
Number of documents required	8
Average time required	1.00
Average cost	THB 200

Procedure name:

Prepare documents for importer

Click for details

Country and procedure description	Prepare documents for importer (Export from CHN to THA/Electronic products)
Actors & participants	- Exporter - Importer
Activities and associated documentary requirements	1. Among the documents prepared for the client is the Verification Certificate, which is a copy of the Electric Products Safety Certificate issued by various third party certification authorities. These certificates are applied for the whole range of prod
Activity diagram
Average time required	1.00

Procedure name:

Prepare documents for (bank) payment

Click for details

Country and procedure description	Prepare documents for (bank) payment (Export from CHN to THA/Electronic products)
Actors & participants	- Exporter - Importer - Exporter's bank - Importer's bank
Activities and associated documentary requirements	1. The necessary documents are prepared to be submitted to the exporter’s bank to enable payment.
Activity diagram
Number of documents required	2
Average time required	0.50

Case study name:

Import of Textiles to China from Japan, 2010

Study cases

Case study basic information

Product:

Textiles

Corridors and routes:

Not Specified

Process analysis:

Import to China, Export from Japan

Importing Country:

China

Exporting country:

Japan

Use case diagram

Time procedure charts

Procedure details

Procedure name:

Conclude contract and trade terms

Click for details

Country and procedure description	Buy/Conclude contract and trade terms (Import to CHN from JPN/Textiles)
Actors & participants	-Importer, -Exporter/Representative
Input and criteria to enter or begin the business process	-The process of finalizing the order takes place within a day for both companies. -Upon confirming the terms, a sales contract is drawn up.
Activities and associated documentary requirements	1. Purchase Order is created and signed by exporter and importer
Output criteria to exit the business process	-The Japanese sellers will then prepare the goods for shipment.
Activity diagram
Number of documents required	1
Average time required	1.00

Procedure name:

Obtain import recommendation/permit

Click for details

Country and procedure description	Obtain import recommendation/permit (Import to CHN from JPN/Textiles)
Actors & participants	-Importer -Customs Department -Committee of Foreign Trade and Economic Cooperation(对外贸易经济合作局） -State Administration of Taxation（国家税务局）
Input and criteria to enter or begin the business process	-Purchasing order and the OEM contract
Activities and associated documentary requirements	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
Output criteria to exit the business process	-Stamped/Approved Import Permit Obtained
Activity diagram
Number of documents required	3
Average time required	3.50
Minimum cost	USD 366 (for entire import process, not just obtainig the permit)
Maximum cost	USD 440 (for entire import process, not just obtainig the permit)

Procedure name:

Prepare/collect/endorse documents

Click for details

Country and procedure description	Prepare/collect/endorse documents (Import to CHN from JPN/Textiles)
Actors & participants	-Importer -Exporter -Customs Broker/Freight Forwarder（报关行/货代)
Input and criteria to enter or begin the business process	-Trade terms agreed upon and import permit obtained
Activities and associated documentary requirements	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
Output criteria to exit the business process	-Ready for Import
Activity diagram
Number of documents required	12
Average time required	1.00
Minimum cost	USD 366 (for entire import process, not just obtainig the permit)
Maximum cost	USD 440 (for entire import process, not just obtainig the permit)

Procedure name:

Switch for delivery order

Click for details

Country and procedure description	Switch for delivery order (Import to CHN from JPN/Textiles)
Actors & participants	-Shipping Company -Customs Broker/Freight Forwarder
Input and criteria to enter or begin the business process	-Import documents completed
Activities and associated documentary requirements	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
Output criteria to exit the business process	-Ready for inspections of goods
Activity diagram
Number of documents required	2
Average time required	0.50
Minimum cost	USD 366 (for entire import process, not just obtainig the permit)
Maximum cost	USD 440 (for entire import process, not just obtainig the permit)

Procedure name:

Inspect goods at check point by customs

Click for details

Country and procedure description	Customs inspect goods at check point (Import to CHN from JPN/Textiles)
Actors & participants	- Importer - Customs broker/freight forwarder - Commodity Inspection Bureau
Activities and associated documentary requirements	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)
Activity diagram
Number of documents required	9
Average time required	1.25
Average cost	0.15 percent - 10 percent of the value stated in the invoice

Procedure name:

Clear goods by customs

Click for details

Country and procedure description	Customs clearance (Import to CHN from JPN/Textiles)
Actors & participants	- Importer - Customs Broker/Freight Forwarder Company - Customs Department
Activities and associated documentary requirements	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.
Activity diagram
Number of documents required	4
Average time required	0.50

Procedure name:

Transport to destination

Click for details

Country and procedure description	Transportation to destination (Import to CHN from JPN/Textiles)
Actors & participants	- Shipping company - Transportation company - Customs broker/freight forwarder
Activities and associated documentary requirements	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.
Activity diagram
Number of documents required	3
Average time required	1.00

Procedure name:

Claim payment

Click for details

Country and procedure description	Claim payment (CHN-JPN/Textiles)
Actors & participants	- Importer - Exporter - Importer’s Bank - Exporter’s Bank
Activities and associated documentary requirements	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.
Activity diagram
Number of documents required	3
Average time required	0.50

Case study name:

Import of Auto Parts to China from Japan, 2010

Study cases

Case study basic information

Product:

Auto-parts

Corridors and routes:

Not Specified

Process analysis:

Import to China, Export from Japan

Importing Country:

China

Exporting country:

Japan

Procedure details

Procedure name:

Conclude contract and trade terms

Click for details

Country and procedure description	Buy/Conclude contract and trade terms (Import to CHN from JPN/Auto Parts)
Actors & participants	- Importe - Exporter/Representative
Input and criteria to enter or begin the business process	-The process of finalizing the order takes place within a day for both companies. -Upon confirming the terms, a sales contract is drawn up.
Activities and associated documentary requirements	1. Purchase Order is created and signed by exporter and importer
Output criteria to exit the business process	-The Japanese sellers will then prepare the goods for shipment.
Activity diagram
Number of documents required	1
Average time required	1.00

Procedure name:

Obtain import recommendation/permit

Click for details

Country and procedure description	Obtain import recommendation/permit (Import to CHN from JPN/Auto Parts)
Actors & participants	-Importer -Customs Department -Committee of Foreign Trade and Economic Cooperation(对外贸易经济合作局） -State Administration of Taxation（国家税务局）
Input and criteria to enter or begin the business process	-Purchasing order and the OEM contract
Activities and associated documentary requirements	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
Output criteria to exit the business process	-Stamped/Approved Import Permit Obtained
Activity diagram
Number of documents required	3
Average time required	3.50
Minimum cost	USD 293 (for entire import process, not just obtainig the permit)
Maximum cost	USD 440 (for entire import process, not just obtainig the permit)

Procedure name:

Prepare/collect/endorse documents

Click for details

Country and procedure description	Prepare/collect/endorse documents (Import to CHN from JPN/Auto Parts)
Actors & participants	-Importer -Exporter -Customs Broker/Freight Forwarder（报关行/货代)
Input and criteria to enter or begin the business process	-Trade terms agreed upon and import permit obtained
Activities and associated documentary requirements	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
Output criteria to exit the business process	-Ready for Import
Activity diagram
Number of documents required	12
Average time required	1.00
Minimum cost	USD 293 (for entire import process, not just obtainig the permit)
Maximum cost	USD 440 (for entire import process, not just obtainig the permit)

Procedure name:

Switch for delivery order

Click for details

Country and procedure description	Switch for delivery order (Import to CHN from JPN/Auto Parts)
Actors & participants	-Shipping Company -Customs Broker/Freight Forwarder
Input and criteria to enter or begin the business process	-Import documents completed
Activities and associated documentary requirements	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
Output criteria to exit the business process	Ready for inspections of goods
Activity diagram
Number of documents required	2
Average time required	0.50
Minimum cost	USD 293 (for entire import process, not just obtainig the permit)
Maximum cost	USD 440 (for entire import process, not just obtainig the permit)

Procedure name:

Inspect goods at check point by customs

Click for details

Country and procedure description	Customs inspect goods at check point (Import to CHN from JPN/ auto parts)
Actors & participants	- Importer - Commodity Inspection Bureau - Customs Broker/Freight Forwarder Company - Customs Department
Activities and associated documentary requirements	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)
Activity diagram
Number of documents required	9
Average time required	4.00

Procedure name:

Clear goods by customs

Click for details

Number of documents required	4
Average time required	0.50

Procedure name:

Transport to destination

Click for details

Number of documents required	3
Average time required	1.00

Procedure name:

Claim payment

Click for details

Number of documents required	3
Average time required	0.50

You are here

Study cases

Study cases

Study cases

Study cases