Distributing a product

Evolution of the sector

Dominated by an official system in the past, distribution today obeys the rules of saving in not structured trade. Principal activity areas of the country are located around Shanghai, Beijing, Guangzhou and HongKong. Retail distribution has developed in big towns, hypermarkets are increasing rapidly in the majority of the big Chinese cities.

Market shares

Mass distribution is dominated especially by large Asian groups such as Shanghai Bailin which has 5000 sales outlets and a turnover of 6.8 billion Euros. However, foreign groups have successfully established in China, such as Carrefour or Wal-Mart. Chinese distributors have the most significant market share. Asian groups are also present in China, such as the Thai Lotus.
In the rural areas, traditional trade is still significant because foreign firms have not yet established there.

Organizations in the retail sector

Chinese Chamber of Commerce (CGCC)
China Chain Store and Franchise Association

We can identify professional tradeshows on your sector.

Market access procedures

International Conventions

Member of World Trade Organisation
Party to the Kyoto protocol
Party to the Washington convention on International trade in endangered species of wild fauna and flora
Party to the Basel convention on the Control of Transboundary Movements of Hazardous Wastes and their disposal
Party to the Montreal protocol on Substances that deplete the Ozone Layer

Main International economic cooperation

Asia-Pacific economic cooperation Organization (APEC).
Bilateral Treaties and Accords.
AFTA and ASEAN - China Free Trade Area.
Consult the Free Trade Agreement signed by China. 

Non tariff barriers

Only companies or institutions authorized by the Ministry of Foreign Trade and Economic Co-operation (MOFTEC) can run foreign trade operations. Two methods are possible: Foreign Trade Companies or producing companies entitled to trade with foreigners (import for their personal use provided they have stable export balances). Today, there are nearly 9000 companies authorized to run foreign trade operations in China (14 in 1979).
More than half of value imports of China is subject to import licenses. Initial authorisation is issued by various organisations according to the product, but the final delivery is subject to acceptance by the MOFTEC. To obtain these authorizations, the importer must have exact foreign exchange reserves and justify the necessity to import. Delivery of licenses often depends on the sphere of activity, which may be encouraged, allowed, restricted or simply prohibited, according to the investments regulation promulgated by China. It is essential in all cases to have solids relations within the Chinese Administration for obtaining these licenses.
Many goods imported into China are subject to inspection. Prior inspection in the exporting country for certain products (textile in particular), or inspection at the port or the incoming airport to check that the products are well in conformity with the Chinese standards. These checks are carried out directly and exclusively by the Chinese authorities.

Customs duties and taxes on imports

8.37% according to UNCTAD. A relatively low rate.
Consult customs duties of various products by clicking here.

Customs classification

China applies the Customs Harmonised system (on the basis of the international 6 figure key). 

Import procedures

To reduce customs clearance time, certain companies can, in cases where description, specifications and quantity of import of goods are determined, declare to the customs in advance and present the documents after the imports are dispatched or before the arrival or in the 3 days which follow the arrival of the goods in a customs surveillance zone. The Customs will examine the goods directly and will release the goods after their arrival.
The declaration can be done via the customs site, by indicating the place of arrival of the goods, as well as all the customs data. Once the data is analyzed by the customs, a receipt will be sent, so that the company can complete the cargo of the goods. Custom duties is then paid by bank transfer.
Documents to be presented to customs vary according to the products. However there are standard documents to be presented: the bill of lading, the invoice, the packing list, the customs declaration, the insurance policy, the sale contract or the inspection certificate of the AQSIQ (General Administration of the PRC for Quality Supervision, Inspection, and Quarantine) or other licenses of safety and quality.

Importing samples

Samples imported or exported must be declared at the customs (free or not). The customs examines and releases them.

For further information

Customs
Ministry of Foreign Affairs
Ministry of Commerce

We can indicate you which are the customs duties applied to your product.

Find out the local taxes that apply to your product.

Organizing goods transport

Main useful means of transport

The largest port is Shanghaï, with an annual ocean freight of 250 million tonnes. Each year, Chinese ports dispatch 5.6 billion tons of goods and 93 million of containers.
Goods transport by road represents approximately 12 billion tons of freight. Road transport accounts for 13% of cargo in China.
Air transport represents approximately 2.2 million tons of freight of merchandises.
Railroads are the principal mode of transport and the cheapest solution for long distance freight. Each year, railroads provide the transport of 1,500 billion tons kilometers of goods.

Ports

Shanghai port
Dalian port
Tianjin port
Guangzhou port
Xiamen port

Airports

Beijing airport
Dalian airport
Shanghaï airport
Chengdu airport
Guangzhou airport
Shenzhen airport

Sea transport organizations

Ministry of Transports

Air transport organizations

Ministry of Transports

Road transport organizations

Ministry of Transports

Rail transport organizations

Ministry of Railways

Get a ballpark figure for transportation costs for your product in this country through a shipping estimate.

Identifying a supplier

Type of production

Industry accounts for 49% of the Chinese GDP (including 6% of the construction sector). Principal industries in China are mining industry (world leader in reserves of tungsten , molybdenum and titanium), the coal industry (world leader in coal production and consumption), metallurgical, petrochemical, naval (18% of worldwide production, 3rd world producer), cars (6.6% of the GDP), energy (second producer in electrical energy). China is also the 1st world producer of electric household appliances products (1/3 of the worldwide production), 3rd producer in data-processing products (2nd for the PC), the 1st world producer of toys with 70% of worldwide production, 1st world producer of shoes and finally the 1st producer and exporter country of textile.

Business directories

Chinapages
ChinaBig

Manufacturers associations of the main industries

National council of light industry (CNLIC)
Chinese Association of the renewable energies industry(CREIA)
Chinese Association of leather industry
Chinese Association of pharmaceutical industry (CIPA)
International Association of Chinese Automobile Manufacturers (CAMAI)
Chinese national council of textile and clothing

Trade Agencies and their representations abroad

Chamber of commerce for import and export of light industrial products and arts and crafts (CCCLA)
Chamber of commerce for import and export of minerals, metals and chemical products (CCCMC)
Chamber of commerce for import and export of food products, country products and animal products (CFNA)
Chamber of commerce for import and export of textiles (CCCT)

Enterprises federation

Chinese association of international cooperation of SME

Standards

National standards organizations

Standardisation Administration of China (SAC)
Chinese Association for Standardisation

Integration in the international standards network

SAC is the member of:
- The Internationale Standardisation Organisation (ISO) and of the International Electronic Commission (IEC)
- The APEC/SCSC, sub-committee of Standards and Conformity of the organisation of Asia- Pacific economic cooperation
- The ASEM/TFAP/SCA, Plan and Standards of action for facilitation of commercial exchanges and evaluation of conformity of the Asia-Europe Dialog (ASEM)
- The Congress of Standards for the Pacific Zone (PASC)

Classification of standards

List of Chinese Codes and Standards.

Online consultation of standards

Publications relating to the Chinese standards of the SAC.

Certification organizations

CCC
CNCA
Certification organizations
AQSIQ

Find out the standards and labelling requirements that apply to your products.

Intellectual Property

National organizations

National Office of intellectual property (SIPO) 
National administration of copyrights

Regional organizations

Expert Group on intellectual property rights (IPEG)

International membership

Member of the WIPO (World Intellectual Property Organization)
Signatory to the Paris Convention for the Protection of Intellectual Property
Membership to the TRIPS agreement - Trade-Related Aspects of Intellectual Property Rights (TRIPS)