 | Market Reports/Tariffs
Textiles, Apparel, Footwear and Travel Goods
China
Last updated on 08/23/2011
If you have any questions about the following information, please contact Linda Martinich at the U.S. Department of Commerce Office of Textiles and Apparel at
202-482-4058 or click here for e-mail access.
**The following information is provided only as a guide and should be confirmed with the proper authorities before embarking on any export activities.** |
Import Tariffs - China
Import tariff rates are divided into six categories: general rates, most-favored-nation rates, agreement rates, preferential rates, tariff rate quota rates and provisional rates. As a member of the WTO, imports from the United States are assessed at the most-favored-nation rate. The five Special Economic Zones, open cities, and foreign trade zones within cities offer preferential duty reductions or exemptions. Companies doing business in these areas should consult the relevant regulations. Duties are assessed on the c.i.f. (cost, insurance, freight value) of the imported goods.
China: tariffs (percent ad valorem) on Textiles, Apparel, Footwear and Travel Goods
| HS Chapter/Subheading | Tariff Rate Range (%) |
| Yarn | | |
| -silk | 5003-5006 | 6 - 9 |
| -wool | 5105-5110 | 3 - 6 * ** |
| -cotton | 5204-5207 | 5 - 6 ** |
| -other vegetable fiber | 5306-5308 | 6 - 10 |
| -man-made fiber | 5401-5406/5501-5511 | 2 - 5 |
| ........................ |
| Woven Fabric | | |
| -silk | 5007 | 10 |
| -wool | 5111-5113 | 10 |
| -cotton | 5208-5212 | 10 - 14 |
| -other vegetable fiber | 5309-5311 | 10 - 12 |
| -man-made fiber | 5407-5408/5512-5516 | 10 - 18 |
| ........................ |
| Knit Fabric | 60 | 10 - 12 |
| ........................ |
| Non Woven Fabric | 5603 | 10 |
| ........................ |
| Industrial Fabric | 59 | 8 - 14 |
| ........................ |
| Apparel | 61-62 | 14 - 25 |
| ........................ |
Home Furnishings
including: bed, bath, kitchen linens, etc. | 63 | 10 - 17.5 |
| ........................ |
Carpet
Footwear
Travel Goods | 57
64
4202 | 10 - 16
10 - 24
10 - 20 |
* Tariff on carded or combed wool fiber is 38%.
** Tariff rate quotas (TRQs) allow for imports of cotton and wool in limited quantities at reduced duties, ranging from 1 percent to 9 percent. Imports exceeding set quota levels are assessed at a much higher rate of duty.
For more detailed tariff information, see the WTO Current Situation of Schedules of Members on the World Trade Organization website.
Tariff Rate Quota (TRQs)--China maintains TRQs for imports of cotton and wool, and certain other Ag products. Under the TRQ system, China places quantitative restrictions on the amount of these commodities that can enter at a low “in quota” tariff rate. Any imports over that quantity are charged a prohibitively high duty.
TRQs for the next calendar year are allocated to users no later than December 31 of the current year and are valid throughout the next calendar year. Unused quotas must be returned to the authorities (within a scheduled time limit) for reallocation. TRQ holders that do not fully use the TRQ for the year and do not return the unfilled quota within the scheduled time limit, will have their quota allocation for the subsequent year reduced.
Applications must be submitted to entities with the authorization of either The Ministry of Commerce (MOFCOM) (for wool and wool tops), or the National Development and Reform Commission (NDRC) (for cotton). MOFCOM and NDRC, through the authorized entities, allocate import tariff-rate quotas to applicants. The allocation of TRQs for wool and wool tops is on a first come, first serve basis. China reserves a portion of the in-quota imports for state trading enterprises (ranging from 10 percent to 90 percent, depending on the commodity). See the list of products here.
Additional Import Taxes and Fees--Most imported and domestic goods are subject to a VAT, which is applied on the c.i.f. plus duty value. China’s application of the VAT, which ranges between 13 percent and 17 percent, depending on the product, continues to be uneven. Also, a consumption tax of 2 – 3 percent (varies according to provincial) is applied on the c.i.f. value.
VAT Rebate Program--China retains an active VAT rebate program for exports. China's Ministry of Finance increased the VAT rebate for most textile and apparel products to 16 percent in 2009. The rate for leather and leather apparel products is now 13 percent. HS numbers for products affected by rate changes became effective April 1, 2009. The full list of HS numbers corresponding to the most recent rate increase is available for download from China's State Administration of Taxation website. For more information, Ministry of Finance decree Cai Shui 2009 no. 43 dated March 27, 2009, is available in Chinese via the following website:http://www.chinatax.gov.cn/n8136506/n8136593/n8137537/n8138502/8916348.html
Samples/Temporary Entry--Tariff exemptions apply to advertising materials and samples of no commercial value. Goods imported in China for display or demonstration at trade shows and exhibitions are exempt from Customs duty, provided they are re-exported within three months. The time for re-export may be extended with Customs approval. The exhibition organizer must obtain advance approval from Customs, provide certain shipping documents and a list of items to be exhibited, and coordinate with Customs officials. Customs may sometimes request a guarantee in the form of a deposit or letter. China is a member of the ATA Carnet system.
An ATA Carnet or "Merchandise Passport" is a document that facilitates the temporary importation of products into foreign countries by eliminating tariffs and other import taxes or charges normally required at the time of importation. For more information or to apply for an ATA Carnet, see the United States Council for International Business website.
| The first step in determining tariff and tax information is to identify the Harmonized System (HS) number for your product(s). Many times an HS tariff classification can be provided by the company agent in the country of destination. Freight forwarders are another valuable source for classification information. However, the ultimate authority regarding products imported into a country is the local Customs authority. |
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Import Documentation/Procedures - China
Import Licenses--The import licensing regime is regulated by the Foreign Trade Law, the Administrative Permission Law, as well as the Measures on Administration of Import Licences for Goods, and the Measures on Administration of Automatic Import Licensing for Goods. Details of commodities subject to import licensing are published annually by the MOFCOM in the Catalogue of Goods Subject to Import Licence Administration and the Catalogue of Goods Subject to Automatic Import Licensing Administration. Licences are not transferable. No fees, charges, deposits or advance payments are required for the issuance of licences.
The importation of cellulose diacetate filament tow is subject to automatic import licences, which involves no restriction in terms of import quantity or value. Applications for automatic import licences must be submitted to the relevant entities authorized by MOFCOM. As long as the content and format of the application are correct, the licence is granted immediately. Although it may take up to ten days to issue a licence. An automatic import licence is valid for a maximum 180 days within a given calendar year; it can be extended in case of an incomplete importation, or an unperformed business contract. The licence may be cancelled at any time by MOFCOM if it decides to temporarily prohibit imports of the goods or to impose a quantitative restriction.
Trading and Distribution Rights--Trading and Distribution are two separate issues and are, accordingly, covered separately by China's World Trade Organization (WTO) implementation documents. Trading simply covers the rights to import and export a product into and from China. Distribution, on the other hand, covers the movement of products once they enter China.
The Chinese government has moved to dismantle the near monopoly on trading rights previously enjoyed by a few state-owned firms. Liberalization of the trading system was given a major push in early 1999 when the government announced new guidelines allowing a wide variety of Chinese firms to register to conduct foreign trade. The guidelines allowed, for the first time, both manufacturing and "non-production" firms with high annual export volumes to register for trading privileges. These guidelines were further loosened in 2001, and in 2004, China issued regulations to implement its WTO obligation to extend full trading rights to minority, majority, and wholly-owned foreign-invested enterprises, as it committed to do three years after WTO accession. In June 2004, MOFCOM promulgated "Measures on the Registration and Filing of Foreign Trade Operators". According to the Measures, any "foreign trade operator" engaging in import and export of goods or techniques should apply to the Ministry of Commerce (MOFCOM) or the agencies authorized by MOFCOM for registration; otherwise, Customs will not perform the inspection and release procedures. In order to register for trading rights, companies must apply through the relevant local Office of Trade and Economic Cooperation. Applications are available on MOFCOM's website. Some goods, including cotton and petroleum, are still imported principally through state trading enterprises. Firms with trading rights must undergo an annual qualifications test and certification process.
Distribution rights cover five related activities: commission agent services, wholesale services, retailing, franchising, and direct selling (in most countries, direct selling is considered part of retailing, but China regulates direct sellers separately). In general, foreign firms in the past had only been allowed to distribute products that they manufactured in China. As part of its WTO Accession Agreement, China agreed to phase out distribution restrictions for most products within three years of accession. In 2004, the Chinese government extended commercial distribution rights to minority, majority and wholly-owned foreign and domestic companies and individuals, as it committed to do when it joined the WTO. Additional implementing procedures on distribution clarifying business' rights and designating provincial authorities the right to grant distribution licenses were published in August 2005 and February 2006.
For additional information on trading and distribution rights in China, please refer to http://export.gov/china/, your local U.S. Commercial Service representative, and the relevant authorities in China listed on China's Ministry of Commerce (MOFCOM) website. Some large city governments, such as Shanghai, also provide information to businesses and are allowed to approve certain trading and distribution rights applications at the local level.
For more information on customs rules and regulations and tariffs, contact the local Customs authority:
General Administration of Customs Website (Chinese only): http://www.customs.gov.cn
Shanghai Customs Website (Chinese only): http://www.shcus.gov.cn/apec/index.jsp
Guangzhou Customs Website (Chinese only): http://guangzhou.customs.gov.cn/publish/portal31/
English (abbreviated): http://guangzhou.customs.gov.cn/Default.aspx?tabid=5942
Export.gov China's Import and Customs Regulations
Certificate of Origin (CO)--Many countries require textile and apparel imports to be accompanied by a CO, which is provided by the manufacturer in the country of origin. The CO generally must be notarized in the country in which the product was produced. A U.S. Chamber of Commerce usually can notarize a CO for products made in the U.S. Some countries also may require that the CO be notarized or legalized by the commercial section of the consulate of the destination country. For further information, contact the Trade Information Center at 1-800-USA-TRADE.
For more information on import procedures and documentation requirements, see the Country Commercial Guides (CCG) in the U.S. Commercial Service Market Research Library (enter your country of interest in the "country" field, and enter "Country Commercial Guide (CCG)" in the "Report Type" field. Some market research reports are available only to U.S. companies and U.S. students/researchers that are registered with Export.gov. |
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Import Restrictions - China
Used garments are prohibited from export into China. Imports of certain leather and textile sector goods are also prohibited or restricted. Firms should contact the China General Administration of Customs for guidance regarding the import of "restricted commodities" into China. A new catalogue of prohibited and restricted imports becomes effective August 1, 2009. For more information on specific products on the prohibited and restricted lists, please contact the Office of Textiles and Apparel at 202-482-4058.
For additional information on import restrictions, see China's Laws, Standards, and Customs Regulations on the Export.gov website.
U.S. Export Restrictions:
The Office of Foreign Assets Control (OFAC) in the U.S. Department of the Treasury administers and enforces economic and trade sanctions against targeted foreign countries, terrorists, and international narcotics traffickers and their agents in accordance with U.S. foreign policy and national security goals. The OFAC website includes summaries of sanctions programs for various countries and the “Specially Designated Nationals and Blocked Persons” (SDNs) list of entities and individuals with whom U.S. persons may not conduct business and whose property must be blocked if under the control of a U.S. person.
The Bureau of Industry and Security (BIS) in the U.S. Department of Commerce is responsible for implementing and enforcing the Export Administration Regulations (EAR), which regulate the export and re-export of most commercial items. BIS maintains the Denied Persons List, which consists of individuals, and companies that have been denied export and re-export privileges by BIS, and the Entity List, which consists of foreign end users who pose an unacceptable risk of diverting U.S. exports and the technology they contain to alternate destinations for the development of weapons of mass destruction |
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Standards - China
Labeling - China
The labels on textile products should be in the Chinese characters and include the following mandatory data:
- name and address of the manufacturer
- name of the product (in accordance with Chinese standard)
- size (in accordance with standard GB 1335)
- product composition: name and composition of the various raw materials used
- cleaning instructions (compulsory use of symbols defined by GB/T 8685-2008 -- SGS information sheets are available in English and in Chinese.)
- storage conditions and other recommendations: compulsory for delicate products
- ‘best before’ date (only for products that are perishable)
- Nš of standard
- quality classification (if required by Chinese standard)
The labels also have to respect the following presentation, according to the product:
- printing or direct weaving in the fabric
- label sewn, or affixed or hanged to the product
- printing or pasted to the packaging
- in the documents accompanying the product
Information including the model, type, and specifications of the product, product composition and cleaning instructions must be affixed in a permanent label. For fabrics, the label can be either hanged, printed, or woven.
It is also important to note that in many instances the Chinese importer will affix the label after importation.
Certain imported commodities requiring safety and quality inspection must have safety labels affixed. Labels are issued by the China Commodity Inspection Bureau.
The Product Quality Law governs labeling issues and may be available on the following Chinese law website:http://www.isinolaw.com/isinolaw/english/index.jsp (English) or http://www.isinolaw.com/.
The agency that mandates the labeling issues is AQSIQ (the State General Administration for Quality Supervision and Inspection and Quarantine).
State Administration for Inspection of Import and Export Commodities
Beijing 100020
Tel: (86-10) 6599-4328/4329/4305 |
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Intellectual Property Rights - China
Chinese Government agencies most often involved in administrative enforcement actions include the following: the State Administration for Industry and Commerce; the General Administration of Customs; the National Copyright Administration.
The State Intellectual Property Office (SIPO) is in charge of receiving patent applications and granting patents, while local IPR administrative offices are responsible for patent disputes.
The State Administration of Industry and Commerce (SAIC) is responsible for the registration and administration of trademarks. Local enforcement authorities are in charge of administration of trademarks at the local level. All applicants are required to register their trademarks with the State Trademark Office.
The National Copyright Administration of China under the State Council administers copyrights on a national scale. However, local copyright administration offices (under the local governments of provinces, autonomous regions, and municipalities directly under the Central Government) are in charge of local copyright registration and administration.
For additional information on IPR, see China's Laws, Standards, and Customs Regulations on the Export.gov website. Also see the China IPR Toolkit on the STOPFAKES.gov website.
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See the Export.gov China Business Information Center website --find market information that describes opportunities in China for international sales, explore government resources that can help your company do business in China, learn about opportunities in China's Emerging Markets, learn to protect your IPR in China, take an assessment to determine if you are ready to do business in China, or learn about Suspicious Chinese Business Practices.
Government Procurement-- See Global Procurement Opportunities for U.S. exporters
See the official Chinese government procurement website. Other designated media include the China Government Procurement Magazine and the China Fiscal and Economics News.
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