The Flanders-China Chamber of Commerce (FCCC), with the support of Flanders Investment & Trade, organized a webinar focused on 'Belgian Customs and its activities in China' on 19 March 2024.
Ms Gwenn Sonck, Executive Director, Flanders-China Chamber of Commerce, welcomed the participants to the webinar and introduced the speakers. China is a very rapidly changing market, so it is important to respond quickly and flexibly to the opportunities and challenges that arise. One of the main issues for companies doing business with China is the slowdown of the Chinese economy, but with a predicted growth of around 5% this year, China still remains one of the fastest-growing economies compared to other major economic players. The slowdown in the global economy is also a problem for our companies, as well as the geopolitical situation that doesn't make business any easier. To be successful it is important that companies continue to adjust their China strategy in a timely manner. Flemish exports to China in the January-November 2023 period increased by 8% compared to 2022 to €6.60 billion. Imports from China to Flanders reached €27.38 billion, a decrease of 8.5%.
Mrs. Isabelle Bedoyan, Counselor, Customs Attaché, Embassy of Belgium in China, introduced the topic “Procedures and regulations of the Chinese customs and other institutions related to import or export”. She announced that she will end her posting in Beijing this summer. In history, the Great Wall of China was a border, a defense against unwanted guests, and in modern times the Wall can still be as intimidating for businessmen and women. There are many gatekeepers on the Wall, regulating access. They must be addressed with the correct code. No adventure can be successful without the right guide and the right tools.
You have to ask the question: “Do you have all the tools for this adventure?”. Mrs. Bedoyan will be a guide to the Customs in China as she has been posted there since 2018 and has been part of the Belgian Customs for much longer. It is also important to plan well. Export of goods does not start at the border. Depending on the type of product, it requires preparation time, such as preparing licenses. Is essential to acquire some knowledge about what happens before the goods arrive at the border. Imports are often handled by the Chinese distributor or customer, but it is very important for you as an exporter to have an insight about what is going on. This will also facilitate the communication with the Chinese partner and service provider. Finally, you have to see if you have all the right instruments, such as knowledge, information sources and the helplines when something unexpected happens.
There has been a Belgian Customs Attaché in China since 2008, covering mainland China, Hong Kong and Macao, where there are three different Customs, three different market access rules, and three different fiscal systems. The Belgian Customs Attaché has strong ties with the local Customs Administrations. Trade facilitation is an important task of the Customs Attaché: assisting and informing investors and economic operators regarding Customs and excise regulation. We emphasize prevention and helping you to understand Customs regulations. Prevention is not only easier but it is also much cheaper than looking for information once you run into an issue. We also provide assistance in case something goes wrong and act as intermediaries between Belgian operators and Chinese Customs. However, Belgian Custom Attachés are not lawyers and they will always respect national laws and local authorities.
Attention points in China are language and cultural barriers; procedures before import and at the border; being aware of changing legislation; and market access and border control. The key player for import and export activities in China since 2018 is China Customs, when the quarantine responsibilities of AQSIQ were integrated into Customs. Other important institutions are the State Administration of Market Regulation (SAMR), and the Ministries of Agriculture and Commerce.
Commodity codes are important because they link your product to import rules and procedures. Internationally the commodity code has six digits, while in China is can go up to 10 or 13 digits, so it is not easy to find a match between the two codes. It is important to regularly check the commodity codes. VAT-rates on imported goods have decreased over the last years to a minimum rate of 9% and a maximum rate of 13%. Consumption tax is applicable on particular categories of products such as tobacco, alcohol, cosmetics and luxury goods. There may be variations every year, so it is important to check regularly.
The China Compulsory Certification (CCC) will also impact certain goods. It is comparable to the European EC certification and covers 150 types of mostly technical products. Compulsory testing by a Chinese laboratory might be required.
When sourcing from China, you can check the “Safe non-food consumer products in the EU and China” (SPEAC) which provides information and a training program to help Chinese manufacturers sell safely to the EU (https://speac-project.eu/). The focus is on EU product safety regulations for toys, juvenile products and household appliances. The Carbon Border Adjustment Mechanism (CBAM) is an EU tool to put a fair price on carbon emission for carbon-intensive goods that are entering the EU. CBAM is focused on cement, iron and steel, aluminum, fertilizers, electricity and hydrogen. The transitional regime started on October 1, 2023 and implies reporting by the importer and the operator. From 2026 onwards you will need to be registered as an authorized declarant and there will be financial obligations. (https://taxation-customs.ec.europa.eu/carbon-border-adjustment-mechanism_en#cbam). Regularly there are Chinese export restrictions which should be checked, such as on gallium, germanium and graphite. There is also a yearly revision of the dual-use catalogue.
There is an upcoming revision of the Chinese Customs Law, the first one since 2000. It has been submitted to the Ministry of Justice, the State Council and the NPC Standing Committee. Added were the principle of national security; a risk management chapter; and changes in enforcement, such as “proportional penalties”. If you have questions, there are several help lines, such as the Flanders-China Chamber of Commerce, the Belgian Embassy and the economic support team of Belgian Customs (da.mf.es@minfin.fed.be).
Ms. Annabelle Schreiber, Agricultural Attaché, Embassy of Belgium in China, talked about the support given by the Federal Agency for the Safety of the Food Chain (FASFC) to local companies when exporting to China. The FASFC integrates all the Belgian authorities that are competent for the food chain, including animal and plant health, and food safety. It is responsible for the implementation of European legislation in Belgium, performs import checks in designated border control posts and provides export certificates. The main contact points for companies are the nine local control units. The FASFC conducts negotiations on sanitary and phytosanitary import conditions, issues instructions for exporters, performs export inspections, and collaborates with other Belgian authorities.
The FASFC opened an office in Beijing in 2021, its only office abroad. The first year was quite challenging building up the local network during Covid-time. It is important to note that the FASFC office is not responsible for agricultural and economic aspects, which are the competence of the regions. It is responsible for contacts with Chinese counterparts; negotiation of health certificates, protocols and MOUs, lifting of animal disease bans, and the organization of inspections.
The FASFC in China provides support for Belgian companies, such as accompanying them in their registration process on the CIFER platform; helping them with their food safety and SPS questions; be the contact point in case of SPS issues at the Chinese border, and collaborating with the Customs Attaché and other colleagues. Since the last webinar, the FASFC renegotiated the health certificates on greasy wool, hides and skins, and feeding stuffs. Protocols were signed related to chicory and bell peppers; and MOUs on the prevention and control of BSE and ASF, including the lifting of bans. Inspections or video-inspections were organized on chicory, fresh apples, ASF and HPAI. There are 10 ongoing SPS market access files, while more than 150 registration requests in CIFER for middle and high-risk products were handled. The CIFER platform is available at https://cifer.singlewindow.cn and questions can be asked at registration_cn@favv-afsca.be
A Q&A session concluded the webinar. Q.: What are your top 3 tips? Ms. Schreiber: Make sure to check that you have the right code in CIFER. Mrs. Bedoyan: My tip is also to check the commodity code. Communication and knowledge in advance is very important. Try to have more than one source and have a few helplines if something goes wrong unexpectedly. Talk with people who have experience. Ask yourself if there is something too good to be true or whether you are missing something. Keep up to date, as things can change. Consider what is happening before and after in your supply chain.
