Frequent Problems at Customs Clearance

Customs Clearance in China poses a significant challenge for most companies. Lack of transparency, seemingly ambiguous tariffs, required product regulations, and licensing issues are only a few of the barriers a shipper may face.

Additionally, it is often difficult to correctly classify a product, especially in regards to harmonized customs tariff numbers in connection with the CCC obligations. Incorrect classification of a product can result in the product being mistaken for a product needing CCC certification. Customs tariff numbers (HS Codes) indicate an authorization or certification requirement, so any mistake with the HS Code may result in customs requiring to see a CCC certificate and detaining the product.
Application of the HS Code for Determine the CCC Obligations of Products

The HS Code (HS stands for “harmonized system”) or the respective customs tariff number, is often used, mistakenly, by companies as an indicator to determine the CCC obligation of products or single components. This often results in detained goods at Chinese customs.

In 2012, the Chinese authority CNCA published a list with 491 HS Codes and the corresponding GB Standard since then that list has since been expanded to 892 codes. This list is helpful to figure out the corresponding GB Standard, but should not be used to determine the CCC obligation of products. For all reliable determinations of CCC obligation, the product should be analyzed according to its specific product functions and performance.

 

Problems with using the HS Code for CCC determination:

• HS Code does not reflect the performance and/or features of the products which does not provide a good basis of comparison with the GB-Standards.
• HS Codes are independent from the CCC product catalogue, and are not simultaneously updated. This often results in incorrect correlation of product categories.
• Some HS Codes are not assigned to GB-Standards, although the product requires CCC certification.

Please contact us for a free and non-binding CCC check of your product.
Write us an Email or call us: Germany: +49 69 271 3769 150, UK: +44 2071931135,
US: +1 773 654 2673

For more detailed information please download our free booklet “CCC Made Easy” and “Customs Clearance”

China Certification Corporation consults you for certificates and customs clearance:

• Straightforward, transparent handling of the certification process
• All-inclusive consulting through our German, Chinese and US based offices
• Important contacts to all relevant Chinese institutions
• No Chinese language skills are required, we will handle all of the necessary communications with the certifying authorities and test labs for you

CCC: In 2014 P. R. China will hold the position as top trading nation

For many years it was clear that the People’s Republic of China would become the top trading nation, and in 2013 the P. R. China reached this position which was formerly held by the United States. Their position will be strengthened by a continuing, fast growing foreign trade volume in 2014.

According to Germany Trade and Invest (GTAI), in May 2014 China’s exports regained ground and increased up to 7%, after exports had fallen in the first quarter of 2014 by 3.4% ($ 491.3 billion). Additionally, according to a forecast by the Union Bank of Switzerland (UBS), the expected annual growth of exports is projected at nearly 10%.

Similar growth trends are evident throughout each individual industry sector of the economy.
In the Chinese information and communication industry, the current 5 year plan is to modernize and expand the telecommunications, broadband and internet technology infrastructure with 3.2 Mill. RMB (GTAI), to meet the growing demands.

According to a statement from the Ministry of Industry and Information Technology (MIIT), the Chinese electrical and electronics industry grew by 10.9% in 2013 due to growing foreign demand. This growth trend is expected to continue in 2014.

The demand for medical technology in the P. R. China has shown rapid growth and is estimated to reach an annual growth rate of at least 20%.
As for the machinery and plant engineering, GTAI also predicts a growth rate of 7% in 2014. It appears however, that Chinese manufacturers take over the market for themselves what makes it increasingly difficult for foreign manufacturers to export machines to China. The demand for specialized machines, high-quality machinery and plant engineering remains solid, since the quality of the products and environmentally friendly production in the P. R. China is becoming increasingly important.

If you have any questions regarding the import of your products to China or you require more information on the required certification(s) for China, please feel free to call or email us. China Certification is always happy to help.

Information about the CCC-certification, CEL-certification or the CFDA-approval can be found on our website. More detailed information is available in our free brochures “CCC Made Easy”, “CEL-The Booklet” or “CFDA China – The Booklet”,
which can be downloaded as PDF files. If you are interested in learning more about the entire certification process, we recommend our book “A Brief Guide to CCC: China Compulsory Certification”, which can be ordered directly on Amazon here.

Please do not hesitate to call (UK: +44 2071931135, US: +1 773 654-2673) or email with any questions you may have.

CCC: Market for product certifications in China will be liberalized

On June 6, 2014, the Chinese authority CNCA (Certification and Accreditation Administration of the People’s Republic of China, Chinese: 中国国家认证认可监督管理委员会) published a significant announcement on their website. They announced that they will open the market for product certifications in China, allowing other certifying authorities besides the existing ones (e.g. CQC and CCAP or the Shanghai Motor Vehicle Inspection Center) and accredited test laboratories the opportunity to accept applications for CCC certifications and/or to conduct product tests in the future.
By allowing more choices, the Chinese certification industry should become more “market-driven” and competitive. More and more products and product groups are added to the official CCC product catalogue, requiring more applications to be handled. In addition, new or updated GB Standards and implementation rules are published consequently and they must be implemented accordingly. Opening the certification market up should help relieve the workload from the existing certification authorities.
The CNCA will be re-evaluating their resource allocation, to streamline the certification process. This new policy of allowing more certifying authorities will ultimately give the CNCA more authority, minimizing the National government and State control in the field of product certification.
In an effort to control and minimize these adverse effects, there are strict guidelines and requirements for institutions which are seeking certification approval. For example, the maximum number of approved bodies will be regulated and limited, based on the product groups. Also, the geographical distribution will be determined to avoid a concentration of certification bodies, in for example urban areas.

Test laboratories and institutions which are planning to apply certification approval must meet the following requirements:

• The test lab or certification body shall have at least two years of experience in the field of product certifications
• They must have solid financial backing
• They must have a qualified and certified staff
• They must be independent and impartial
• The technical equipment and devices must be approved and meet the requirements of CCC regulations and GB Standards

It remains to be seen how the market for product certifications will develop in China. The hurdles to be officially authorized by the Chinese government are stringent and difficult. At this point it is unknown to what extent the liberalization of the certification process will be and if the CCC applicants will be able to freely choose their certifying authority.

Do you seek for more information about this topic or do you have questions? Please do not hesitate to contact us by phone (UK: +44 2071931135, US: +1 773 654-2673) or email with any questions you may have.

In our “News” section we will keep you informed about all announcements of the Chinese authorities. Please check our website regularly since these official announcements are often made without any advanced notice.

Information regarding GB-Standards, CCC certification, the certification process and the costs can be found on our website. You will also find details regarding our certification package on our website including a general anticipated time frame. Take a look at our references section to see a list of some of our clients and what they are saying about us. For more detailed information please download our free booklet “CCC Made Easy” here.

You may also consider our book “A Brief Guide to CCC: China Compulsory Certification”, which can be ordered directly on Amazon here.

Presentation about CCC certification at the Chamber of Commerce Mainz

On September 8, 2014, China Certification Corporation will give a presentation regarding CCC certification at the Chamber of Commerce Rheinhessen (Mainz) taking place during “Business Forum China”. Take the opportunity to get insight into the subject and get to know China Certification personally. There will also be time to discuss any specific questions you may have in regards to CCC certification.

There will be other many other interesting presentations at the “Business Forum China,” which include:

• A representative of the German Industry & Commerce of Beijing who will hold a lecture on the “Business opportunities for German companies in China”.
• A representative of Commerzbank AG who will give insight into the “financial framework” regarding the Chinese market.
• A personal review of experience by an entrepreneur, who has expert knowledge of the Chinese market.

The “Business Forum China” will take place at the German Industry & Commerce Rheinhessen, Schillerplatz 7, 55116 Mainz, Germany from 3:00pm to 5:30pm.
You are welcome to register here for the “Business Forum China”. More information is available on the website of German Industry & Commerce Mainz hier auf der Webseite der IHK Mainz.

Since 2005, the China Certification Corporation has been helping companies around the world obtain CCC (China Compulsory Certification), CEL (China Energy Label) and CFDA (Chinese Medical Products Registration China State Food and Drug Administration) certification. Besides the certification for products we also offer Customs Clearance in China.

If you would like more Information regarding CCC certification, please visit our website. Here you can learn more about the certification process and the costs associated with certification. You will also find details regarding our certification package on our website including a general anticipated time frame. Take a look at our references section to see some of our clients and what they are saying about us. For more detailed information please download our free booklet “CCC Made Easy” here. You may also consider our book “A Brief Guide to CCC: China Compulsory Certification”, which can be ordered directly on Amazon here.

CCC: New regulations regarding product tests in China – Random Test Sampling

To further ensure consistent quality and safety of CCC certified automotive parts, the Chinese certification authorities have recently implemented a new system of product testing in China. The new regulations for “random test sampling” empower the CQC (China Quality Certification Centre, Chinese: 中国质量认证中心), and CCAP (China Certification Centre for Automotive Products, Chinese: 中汽认证中心) to randomly select parts from a facilities certification scope and require additional testing in a Chinese test lab. The selection may be made prior to the annual follow up inspection, or during the audit itself.

To date the regulation applies only to CCC certified automotive parts and includes the entire product range (interior trimming materials, headrests, seats, fuel tanks, etc.). You can find an overview of mandatory CCC automotive parts and the relevant GB Standards here.
It is possible to apply for an exemption for parts that are very expensive to manufacture and that are only produced in small volumes, however the decision as to whether testing in China can really be avoided is entirely at the discretion of the CQC or the CCAP.

Since May 2014, the Chinese certification bodies are executing random test sampling more frequently. It is important for automotive suppliers to take these random test sample costs into consideration and prepare for the possibility of higher costs in the future. The manufacturer is responsible for the associated costs and execution of the process, which can present a big challenge. To keep your time and effort as low as possible, we can assist you in managing your random sample tests. China Certification will coordinate and take care about all necessary steps for you, including:

• Communication with the responsible authority and clarification of which parts from the certification scope will require testing
• Assistance in preparation of the test samples and required documentation
• Complete customs clearance in China
• Transfer of the test samples and documentation to the test laboratory in China
• Review of test reports regarding completeness and accuracy of content
• Payment of all test costs and authority fees
• Transfer of the test reports to the CQC or CCAP

Please do not hesitate to contact us if you are unsure whether you are affected by random test sampling or if you would like to know more about the new regulations. We are able to provide you with reliable, first-hand information and to work out the best solution for your CCC project, due to our close relationships to the Chinese certification authorities.

You will find detailed information about CCC certification in our free booklet “CCC Made Easy” that can be downloaded here. You may also consider our book “A Brief Guide to CCC: China Compulsory Certification”, which can be ordered directly on Amazon here.

Please do not hesitate to contact us by phone (UK: +44 2071931135, US: +1 773 654-2673) or email with any questions you may have.