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China has emerged as an amazing economic power that brings plenty of opportunities for entrepreneurs and business people alike from outside China. If you plan to do business in China, there are several areas you should study prior to launching your business venture. The following resources include journals and newspapers, informative articles, blogs and podcasts, and free classes to help you learn about international business, Chinese culture, and even how to speak Chinese. Take advantage of these resources to get the best start possible on your business relationship in China.

Business Journals and Newspapers

Stay on top of all the news that affects business in China with these journals and newspapers.

1. The China Business Network. Learn about advertising, technology, cultural business strategies, and more as well as read interviews from important business people in this online journal.
2. China Success Stories. Take advantage of the experience of those who have gone before you and learn what these business people did to create a successful business venture in China.
3. China Economic Review. Stay on top of the economy in China with this journal.
4. The China Business Review. Find out about the supply chain, exporting, environmental issues, and more in this journal.
5. China Business Info Center. Read the latest news and headlines that pertain to doing business in China here.
6. Asia Times Online Greater China Business. Get all the news happening in China that may affect business there.
7. China Stocks, Companies, and Industry Analysis. Learn about the news that relates to stocks in China from this source.
8. China Briefing. Publishing in China since 1999, this business news publication offers news and information about doing business in China.
9. China Digital Times. The site sponsored by the Berkeley China Internet Project brings news stories about business, tech, and more coming out of China.
10. Wall Street Journal China Journal. Learn about Chinese business, economy, and culture with the reports from this respected news source.
11. China Business Market News. Get free articles on Chinese economy, investments, retail, pharmaceutical, technology, and more.
12. China Business News. Interfax China provides news that touches on telecommunications, metals, energy, commodities, and more.

Organizations

Being connected with other business people can be important to the success of your business venture. From business associations to sustainable development groups, these organizations will help you make important connections.

1. The US-China Business Council. This non-profit organization exists to support and maintain positive US-Chinese trade practices.
2. American China International Business Association. Working to develop successful business relationships, this non-profit organization works closely with government and businesses in China.
3. The American Chamber of Commerce in the People’s Republic of China. This non-profit organization works to provide solid business practices for its members.
4. Committee of 100. This group of American citizens with Chinese backgrounds has worked to secure important and respected positions in the community and work to better US-Chinese relations as well as provide a forum for specific issues faced by Chinese-Americans.
5. The 48 Group Club. This independent business network, with a heavy British presence, serves to promote good relations with China.
6. China Council for The Promotion of International Trade. Working to promote foreign trade, investment, and technologies, this group strives to create strong working relationships between China and foreign countries.
7. China Business Council for Sustainable Development. This organization of Chinese and foreign businesses work together to create sustainable development in an effort to promote environment health safety and social responsibility.
8. International Chamber of Commerce. This international business group works to strengthen the world economy, job growth, and overall prosperity in a global environment.
9. Business for Social Responsibility. This global network of businesses work together to create sustainable business practices. This organization also has a Chinese counterpart.
10. Transparency International. With a chapter of this organization in China, this politically non-partisan group works to end corruption in both public and private sectors around the world.

Articles

From learning what to do or not to do when conducting business in China to the importance of being in business groups, these articles will inform you on the best business practices in China.

1. 7 Deadly Perceptions About Doing Business with China. Don’t fall victim to these misperceptions and you will be on the way to a successful business partnership.
2. China Tries to Solve Its Brand X Blues. This article offers insight to the importance of branding in China and the struggles currently faced by companies there.
3. 7 Secrets to Business Success in China. These simple yet effective suggestions will have you starting off on a promising venture in China.
4. Starting a Business in China. Discover the procedures and costs involved with setting up a business in China with this table provided by Doing Business.
5. Business China. This interview with a European businessman working in China for 16 years provides insight to what it is like to do business in China.
6. Business Groups in China: Is Qiyejituan Membership a Guaranteed Advantage?. This article from the W.P. Carey School of Business explores the role of business groups to the success of firms in China.
7. ‘Quality Fade’: China’s Great Business Challenge. Take a look at one popular theory as to why the quality of Chinese goods has deteriorated and how they can improve.
8. Business Travel in China. Learn invaluable tips from meals to dress code to business card etiquette to use while on business in China.
9. Why China Won’t Come to the Rescue. Looking at the recent financial history between China and New York, this article explains an important reason why China may not help America’s financial crisis.
10. Tips on Doing Business in China and China Sourcing. While this article is intended as a sales tool to use this company’s services, it nevertheless provides valuable information on doing business in China.
11. Inside the War Against China’s Blogs. This Business Week article describes the power of blogs when it comes to businesses and their practices in China.
12. Rough Guide to Outsourcing in China. Read this businessman’s journal documenting his experience while in China to visit suppliers. After the article, scroll down for tips on finding a supplier in China and survival tips while traveling in China.
13. 10 Best-Kept Secrets to Selling in China Successfully. Two experts in Chinese business offer suggestions for successful business relations in China.

Government, Legal, and Non-Profit Resources

These resources range from governmental websites about exporting to China to Chinese laws to a database of important Chinese leaders.

1. China Business Information Center. Learn all about exporting to China with this resource from Export.Gov.
2. China Business Intelligence. This site from The American Chamber of Commerce in the People’s Republic of China offers links to other sites ranging from legal issues to tax issues to human resources.
3. China International Economic and Trade Arbitration Commission. Find arbitration rules and news pertaining to arbitration at this site.
4. China Stands Up. This series from Project Syndicate examines China’s impact on world trade and the global environment.
5. Foreign Trade Law of the People’s Republic of China. With this resource, you will ensure you understand the laws in China regarding foreign trade.
6. Securities Law of the People’s Republic of China. Having a business in China may mean you become involved with investors, public stock in your business, or other securities issues. Know the Chinese law before you begin.
7. China Commodity Net. Find Chinese suppliers with international certification or browse by location within China or product name to find suppliers at this government site.
8. China Data Center. From the University of Michigan, this site offers statistics on China including information on census, agriculture, economics, and more.
9. China Watch. A part of World Watch, this organization monitors safety, health, and environmental issues in China as they pertain to policy-makers, businesses, and non-governmental agencies.
10. China Vitae. This site keeps information on over 3000 Chinese leaders from several sectors including government, politics, business, education, and the military.
11. Global Institute of Logistics China Report. This organization works to connect academia with the business world, and this page is devoted to business in China.
12. Business Library 2.0: Doing Business in China. These links provided by the University of Florida offer articles, advice, and resources for doing business in China.

Blogs

Blogs hold an important place in the business culture in China. Follow these blogs to learn what you need to know and help you become a part of the Chinese business community.

1. Asiabizblog. Learn about the latest news about doing business in China with this blog that is updated twice weekly.
2. ChinaSolved Blog. The blog at this site offers great advice to help you improve your business relations with your Chinese counterparts.
3. China Business Blog. From the financial markets to trade surplus, learn what is affecting businesses in China at this blog.
4. China Business SEO Marketing Guide. Find out how to boost your online presence for your business in China with the advice on this blog.
5. All Roads Lead to China. Get a better understanding of China through the posts offering strategic insight and advice on this blog.
6. Business and Finance on Danwei. From Chinese labor laws to technology policies in Asia, learn about the details of doing business in China here.
7. Best Practices China Blog. This blog offers "international business skills for China’s professionals" with advice and suggestions to improve your business relationships.
8. China Business Law Blog. Written by a Chinese man attending law school in Texas, this blog offers insight and news analysis of China and business law.
9. China Environmental Law. Keep up-to-date with Chinese environmental and energy laws and policies with this blog written by an international lawyer in China.
10. China Financial Markets. Written by a business professor in China, this blog offers important information about the financial markets.
11. Experience Not Logic. This blog states its purpose to "explore the business and legal culture of China."

Videos and Podcasts

These videos and podcasts can help you stay on top of the news, culture, and even learning the language in China.

1. ChinaOnTV Business Videos. Watch video clips featuring business news from China at this site.
2. China Business Blog and Podcast. Listen to podcasts from this consulting firm offering information on doing business in China.
3. China Talk Radio. Get podcasts here that deliver speeches from some of the top business people working in China.
4. The China Business Show. These podcasts bring interviews from experts in the fields of advertising, business culture, entrepreneurship, and much more.
5. ChinesePod. Learn Chinese with these podcasts. One week is free, but then you will need to pay to continue the service.
6. Interview with Jill Buck, Founder of the Go Green Initiative. Listen to this podcast to learn about this organization and how it is working with China.
7. The Cool Aid . Listen to podcasts from bizCult about living and doing business in China from this site.
8. Danwei FM. Get podcasts from one of the most popular China blogs on the Internet.
9. Marketplace from American Public Radio. The Asia section covers all of Asia, but has a preponderance of podcasts on China.
10. Peace Corps Language Lessons. Get Mandarin lessons on podcast from the Peace Corps here.
11. CSLPod. These podcasts are intended for those learning Chinese as a second language.

International Business Schools

The business schools in China have gained a reputation as some of the best in the world. If you plan to pursue your MBA in China, check out these schools.

1. China Europe International Business School. Earn an MBA at this school located in China run exclusively for business people operating in or moving to China.
2. University of International Business and Economics. The first institute of higher learning for Chinese international business, this business school enjoys an excellent reputation as a leader in business education.
3. Cheung Kong Graduate School of Business. The first non-profit business school in China, this school not only attracts top educators, it also promotes a strong sense of social justice in its education.

Free International Business and Politics Classes

Whether you already have an MBA or are just gaining more knowledge about doing business in China, these free classes will help you understand the economic, political, and business culture in China.

1. International Trade. Study current topics of international trade to determine the flow of goods across borders and what determines the flow of savings and investments between countries.
2. International Economics. Learn the basics in trade theory, policy, and international finance in this class.
3. International Economics I. This graduate level class from MIT explores the field of international trade and foreign investment.
4. FT Business School Growing Business Opportunities in China. From Financial Times, this course offers videos, online Q&As, and more to help you learn about doing business with China.
5. Global Markets, National Politics and the Competitive Advantage of Firms. Study the risks and opportunities available to businesses operating in a global markets.
6. Global Entrepreneurship Lab. Learn about the challenges faced by entrepreneurs in the global world of business in this lab class.
7. Global Strategy and Organization. This course teaches business owners and managers how to lay the foundation for a successful company in international business.
8. International Relations. This introductory course strives to teach students the basics of international relations including idealism and realism.
9. International Relations of East Asia. Explore western relations with East Asia both before and after the Cold War and examine how this history has shaped current relations.
10. International Environmental Negotiation. Learn how to successfully negotiate for sustainability when working internationally in this graduate level course.
11. Government and Politics of China. Examine pre-Communist and Communist China to discover how the current political system has developed.
12. Comparative Politics and China. Study contemporary Chinese politics and relate them to the wider field of comparative politics in this graduate class.
13. Analyzing & Accounting for Regional Economic Change. Learn about factors within regions that affect economic growth and development in a global economy.

Language Classes

Doing business in China means you will probably need to speak some of the language. These university courses are all free and will have you speaking Mandarin before you know it.

1. Chinese I. Learn the basics of Mandarin with these lessons specially created for open courseware. This is the first in a series of four classes.
2. Chinese II. The second course of the series, this class focuses on conversation, reading, and the structure of the Chinese written language system.
3. Chinese III. In the third section of this series, this class builds upon what was learned in the prior classes to strengthen conversation and writing skills.
4. Chinese IV. Continue your lessons in the final course of the series while focusing on strengthening your reading skills and gaining confidence with the spoken word.
5. Chinese V: Chinese Cultures and Society. This course combines text lessons with real-life explorations of Chinese culture.
6. Chinese VI: Discovering Chinese Cultures and Society. Sharpen the sophistication of your written and oral Mandarin in this course that explores various real-life resources to further your studies. Conducted in Mandarin only.

Culture Classes

Before you begin doing business in China, you should get an understanding of the culture there. These free classes will enlighten and educate you in the ways of the East.

1. Chinese Foreign Policy. Learn the history of Chinese policy from the Cold War era to present day with this class offered through MIT.
2. Traditional Chinese Literature: Poetry, Fiction, and Drama. Learn about the major Chinese genres in traditional literature in this class.
3. Cultural Performances of Asia. Examine the way traditional and present-day performances in Asia communicate culture in this class that utilizes text, video, audio, and online materials to teach the subject.
4. Smashing the Iron Rice Bowl: Chinese East Asia. Follows the lives of ordinary Chinese citizens as they experience enormous changes of 19th and 20th centuries in this course.
5. Race and Gender in Asian America. Explore the Asian American experience so that you can better understand the intersection of traditional Asia and America in your business practices.
6. Working in a Global Economy. Find out about practice and policy of doing business in a global economy.
7. Communicating Across Cultures. Learn how to bridge culture gaps in this class that focuses on communication issues.
8. East Asia in the World. Study the history of East Asia, most specifically China and Japan, and their relationships within East Asia and abroad.
9. Introducing Regional Integration. From the United Nations University, this course teaches about integrating regions both across countries and within countries.

The General Administration for Quality Supervision, Inspection and Quarantine (AQSIQ) is the administrative and law enforcement organ for quality control, measurement, inspection of import and export commodities, entry-exit health quarantine, entry-exit animal quarantine, certification and standardisation in China. It is the result of a merger between the State Bureau of Quality and Technical Supervision and the State Administration for Entry-Exit Inspection and Quarantine (CIQ) in April 2001. There are still quality and technical supervision departments and entry-exit inspection and quarantine departments in various provinces, autonomous regions and municipalities, but the entry-exit inspection and quarantine departments are directly under the administration of AQSIQ.

3.1.2 Objects Subject to Entry-Exit Inspection and Quarantine

Objects subject to entry-exit inspection and quarantine include commodities (including animal and plant products), and means of transportation and transport equipment carrying commodities, animals, plants and passengers in and out of China, as well as persons entering and exiting the country.

The former CIQ published the Catalogue of Import-Export Commodities Subject to Inspection and Quarantine by Entry-Exit Inspection and Quarantine Organs, which was revised in January 2005. The catalogue is regularly updated based on the latest foreign trade situation, and covers the majority of commodities, means of transportation and transport equipment subject to mandatory inspection and quarantine. Commodities not listed in the catalogue but are found to have problems unexpectedly must undergo statutory inspection and quarantine within a specified time. Commodities for which inspection and quarantine are required in foreign trade contracts are also subject to mandatory inspection and quarantine.

3.1.3 Customs Declaration for Goods Subject to Inspection and Quarantine

China adopted the practice of "quarantine inspection before customs declaration" in customs clearance following the establishment of a new clearance system for goods subject to inspection and quarantine on 1 January 2000. Import Goods Clearance Slips and Export Goods Clearance Slips stamped with the special seal of inspection and quarantine authorities are issued to goods subject to entry-exit inspection and quarantine upon satisfactory inspection. For import goods, inspection and quarantine authorities will issue an Import Goods Clearance Slip after receiving application for inspection. Customs will examine and release the goods upon presentation of the slip. Goods that pass inspection and quarantine will be issued an Import Goods Inspection and Quarantine Status Notice, while those that fail will be issued a quarantine inspection report for claiming compensation. For export goods, those that pass inspection and quarantine will be issued an Export Goods Clearance Slip to be used by customs as the basis for the verification and release of the goods. In cases where foreign importers require inspection and quarantine certificates, such certificates will be issued upon application by the foreign trade party and satisfactory inspection and quarantine. A non-conformity notice will be issued if the goods fail inspection.

For import and export goods (including transit goods) listed in the catalogue, customs will examine and release the goods against the Import Goods Clearance Slip or Export Goods Clearance Slip issued by the entry-exit inspection and quarantine authorities at the place of declaration. Unless otherwise specified in AQSIQ documents, if an enterprise is required to provide inspection certificates on the quantity etc of import and export goods not listed in the catalogue, it may obtain such certificates from inspection organisations designated, recognised or approved by AQSIQ.

Inspection and quarantine procedures normally include six steps: application for inspection, acceptance of application, calculation and collection of fees, inspection and quarantine, decontamination treatment, and issuance of certificate and release of goods.

3.1.4 Content of Entry-Exit Inspection and Quarantine

(a) Import and Export Commodity Inspection

• Inspection appraisal procedures
  
  According to the latest amendment of China's Commodity Inspection Law, the appraisal procedures for import and export commodities include sampling, inspection and examination; appraisal, accreditation and certification; and registration, authentication and approval.
  
  
• Pre-shipment inspection for import wastes
  
  China practises a system of pre-shipment inspection for wastes imported as raw materials. In contracts concluded between consignors and consignees on the import of wastes, it must be clearly stipulated that the wastes to be imported measure up to China's environmental protection standards and must be inspected and approved by AQSIQ or inspection organisations recognised by the state before shipment. Five categories of commodities are listed in the catalogue under this system. They include paper waste, metal waste, plastic waste, wood product waste and textile waste.
  
  
• Inspection of packaging for transporting export commodities
  
  Packaging for transporting export commodities that require inspection by AQSIQ in accordance with the catalogue or other laws and regulations must undergo performance tests by AQSIQ or its designated inspection organisations. Packaging not inspected or fail to pass inspection may not be used for containing export commodities.
  
  China practises a dangerous export goods quality licensing system for packaging for dangerous goods for export. Production enterprises must register with AQSIQ and apply for an export quality licence. Packaging for dangerous goods must undergo performance and usage tests before it can be produced and used.
  
  
• Exemption from inspection for import and export commodities
  
  The Commodity Inspection Law stipulates that import and export commodities subject to mandatory inspection may be exempt from inspection upon approval of applications from consignors or consignees by commodity inspection departments.
  
  Offshore production enterprises applying for exemption of export commodities from inspection should have passed appraisal and been issued quality assurance certificates by organisations recognised by or have certification agreements with AQSIQ. Production enterprises for export commodities should have passed appraisal and been issued quality assurance certificates by the China National Accreditation Board (CNAB).
  
  Import and export commodities with safety, sanitary and other special requirements may not apply for exemption from inspection. AQSIQ conducts random checks on import and export commodities exempted from inspection; goods found with quality problems will not be released.

(b) Animal and plant quarantine

• Objects of quarantine
  
  The following must undergo animal and plant quarantine: animals and plants, animal and plant products and other quarantine objects for import, export or transit; containers, packages and dunnage used for carrying animals and plants, animal and plant products and other quarantine objects; means of transportation from epidemic areas; old and disused vessels entering the country for salvage purposes; and other goods or articles subject to quarantine in accordance with the provisions of relevant laws, administrative regulations, international treaties or trade contracts.
  
  
• Animals and plants prohibited from import
  
  The following are prohibited from entering China: pathogenic micro-organisms (including seed cultures of bacteria and viruses) of animals and plants, pests and other harmful organisms; related animals and plants, animal and plant products and other quarantine objects from countries or regions with outbreak of animal or plant epidemic; animal carcasses; and soil.
  
  
• Entry quarantine
  
  An entry quarantine licensing system is adopted whereby the consignee is required to make an application in advance for the import of animals, animal products, seeds, seedlings and other propagating materials, and complete the quarantine approval application formalities before concluding the trade contract. Application should be submitted to the local inspection and quarantine authorities at the port of entry upon arrival of the goods. Goods that fail to pass quarantine or require further quarantine measures will be returned, destroyed or decontaminated by the inspection and quarantine authorities.
  
  
• Exit quarantine
  
  Animals and plants, animal and plant products or other quarantine objects for export are subject to quarantine supervision in their production, processing and storage. Applicants should apply to the inspection and quarantine authorities at the port of exit for quarantine prior to the export of goods. Objects failing to pass quarantine will not be allowed to leave the country.
  
  
• Transit quarantine
  
  For the transit of animals and plants, animal and plant products and other quarantine objects (including transshipment), application should be made to the inspection and quarantine authorities for quarantine. For the transit of animals, it is necessary to obtain an Animal Transmit Licence in advance.
  
  
• Quarantine of objects carried by passengers or by post
  
  Animals and plants, animal and plant products and other quarantine objects carried or posted into China will be returned or destroyed if they are included in the List of Animals and Plants, Animal and Plant Products and Other Quarantine Objects Prohibited from Being Carried or Posted into China. Those not covered by the list will be released after quarantine.
  
  
• Quarantine of means of transportation
  
  The inspection and quarantine authorities will carry out on-the-spot quarantine for means of transportation from epidemic areas. Vehicles carrying animals out of the country must be disinfected under the supervision of the inspection and quarantine authorities before loading. Vehicles carrying animals and plants, animal and plant products and other quarantine objects must conform to the relevant epidemic prevention and quarantine regulations. For empty vehicles returning after carrying animal supplies to Hong Kong and Macau, the inspection and quarantine authorities require that the entire vehicle has to be disinfected for epidemic prevention.

(c) Sanitary Quarantine Measures

• Content of sanitary quarantine
  
  Entry-exit inspection and quarantine authorities are responsible for conducting medical and sanitary examinations on persons, means of transportation, containers, biomaterials and dead bodies (human bones) as well as luggage, goods, postal parcels which may spread epidemic infectious diseases entering or leaving China.
  
  
• Quarantine of means of transportation and persons
  
  Means of transportation and persons entering the country are subject to quarantine at their first port of arrival, and those leaving the country at the last port of departure. Inspection and quarantine authorities will issue an entry or exit quarantine certificate to persons not found with infectious diseases or to vehicles that have already undergone sanitation treatment.
  
  
• Epidemic monitoring of persons
  
  Inspection and quarantine authorities may require persons on arrival or departure to complete health declaration card and present vaccination/ inoculation certificate, health certificate or other relevant documents. They may also isolate and detain for examination persons on entry or exit found to have contracted plague, cholera and yellow fever, and deny entry to foreigners with AIDS, venereal diseases, leprosy, mental illnesses or open tuberculosis. Persons found to have epidemic infectious diseases may be detained for examination or issued medical treatment cards.
  
  
• Sanitary supervision of means of transportation
  
  Entry-exit ports and means of transportation staying at these ports are subject to sanitary supervision by inspection and quarantine authorities. The authorities are responsible for supervising and giving instructions on the prevention and extermination of germ-carrying rodents and insects; inspecting and testing food, drinking water and facilities for their storage, supply and transport; monitoring the health conditions of employees engaged in the supply of food and drinking water; monitoring and checking the disposal of garbage, waste matter, sewage, excrement and ballast water; and taking the necessary measures where sanitary conditions are poor or factors exist that may cause the spread of infectious diseases.
  
  
• Sanitary treatment
  
  Inspection and quarantine authorities will conduct sanitary treatment such as sterilisation and extermination of rats and insects on vehicles, containers, luggage and postal parcels entering from or leaving for epidemic areas, contaminated by infectious diseases, or found with infectious diseases media.

2.3.3 Domestic Sale of Materials, Parts and Finished Products

Materials and parts imported in bond must be re-exported after processing, and enterprises may not sell their bonded materials and parts or finished products in China. If such goods have to be sold on the domestic market for special reasons, approval must be obtained from the commerce authorities in charge of processing trade at provincial level as well as Customs. Business enterprises and processing enterprises must promptly pay the tariffs and VAT exempted on the imported materials and parts if these goods are sold domestically, whether the import settlement is in renminbi or in foreign currency. For commodities subject to import restriction or import licensing, enterprises should apply for approval in arrears from the authorities concerned and obtain the necessary import approval documents or import licence. The commerce authorities in charge of processing trade at provincial level will verify the enterprise's application and import licence issued by the relevant import administration organ and issue a Domestic Sale Approval Certificate for Bonded Materials and Parts for Processing Trade (i.e. Domestic Sale Approval Certificate), specifying the corresponding import licence name and number in the "remarks" column. With this Domestic Sale Approval Certificate and the valid licence whose number is specified therein, Customs will proceed with taxation for domestic sale and verification and cancellation procedures in connection with processing trade. If an enterprise is unable to submit the import licence issued by the relevant import administration organ, the commerce authorities in charge of processing trade at provincial level may still issue the Domestic Sale Approval Certificate once Customs proceed with the verification and cancellation of the processing trade handbook after levying on the enterprise duties and interest thereon and a penalty ranging from 30% to 100% of the declared value of the imported materials and parts.

2.3.4 Transfer of Bonded Goods for Deep Processing

If a business enterprise wishes to transfer its processed bonded goods to another processing trade enterprise for deep processing and re-export, it must seek approval from the commerce authorities and complete the necessary customs formalities before making the actual transfer. Unprocessed bonded materials and parts may not be transferred.

To transfer bonded goods to another enterprise for deep processing, the transfer-out enterprise, after obtaining its Registration Handbook, should submit its transfer plan to Customs by presenting the Transfer of Bonded Goods for Deep Processing Application Form. Upon approval granted by the local customs where the transfer-in enterprise is located, the goods may be transferred in batches. In completing customs transfer procedures, the transfer-in enterprise has to re-register the contract with its local customs and open a customs duty deposit account with a designated branch of BOC. The transfer-out enterprise should complete the customs transfer procedures for the intermediate goods with its local customs by presenting the Registration Handbook issued by the local customs where the transfer-in enterprise is located. Subsequently, the transfer-out enterprise should go through the contract and customs duty deposit account verification and cancellation procedures with its local customs by presenting the receipt issued by the customs office where the transfer-in enterprise is located.

2.3.5 Cross Customs Area Processing

In the case where a business enterprise wishes to commission the processing of imported materials and parts to a processing enterprise in a different customs area, both parties must submit their transfer plans to their respective customs offices by presenting the Transfer of Bonded Goods for Deep Processing Application Form and, upon filing, complete the actual transfer and customs declaration formalities.

Within 20 days from filing with the customs where the transfer-out enterprise is located, the transfer-in enterprise must complete the registration procedures with its local customs by filling out and presenting the Application Form. If the transfer-in enterprise fails to submit the Application Form within 20 days or fails to obtain Customs approval due to the fact that the contents of the Application Form do not meeting customs requirements, the Application Form will be invalidated and both the transfer-in and transfer-out enterprises must submit their applications and register anew.

After the actual transfer, both the transfer-in and transfer-out enterprises must complete the customs declaration procedures with their respective customs offices by presenting an Application Form covering the goods in batches or in one lot within 90 days of the transfer. For each and every batch of goods, the transfer-in enterprise should declare with its local customs the import of the transferred goods by presenting the Application Form and Registration Form and notify the transfer-out enterprise on the following working day. Within 10 days from the receipt of the notification, the transfer-out enterprise must declare with its local customs for export of the transferred goods by presenting the Application Form and Registration Form.

2.3.6 Tax Exemption Procedures

An export enterprise should, after importing raw and auxiliary materials, parts and components, apply to the tax department in charge of export rebates for "tax exemption proof" by presenting its import customs declaration form and Registration Handbook. With this proof, it can apply to the tax department in charge of tax collection for exemption of VAT and consumption tax on processing trade. If processing is commissioned to other enterprises, the "tax exemption proof" should be passed to the processing enterprise to apply for VAT and consumption tax exemption. After exporting the processed goods, the export enterprise should proceed to the tax department in charge of export rebates to complete the verification and cancellation procedures by submitting the export customs declaration form, the Registration Handbook already verified and cancelled by customs, and the foreign exchange receipt slip. If it fails to complete the verification and cancellation procedures before the time limit, the tax department in charge of export rebates, the tax collection department and Customs will jointly demand tax payment and impose penalties.

2.3.7 Quota and Licensing Control

(a) Quotas and Licences for Imported Materials and Parts

With the exception of classified chemicals and poisonous chemicals, the import of commodities subject to licensing control for processing trade is exempt from import licence. For the import of classified chemicals, it is necessary to obtain an import licence by presenting the Classified Chemicals Import Approval Form issued by the Office of the Working Group on Fulfilment of the Treaty on Banning Chemical Weapons of the state, as well as the import contract (original and copy). For the import of poisonous chemicals, it is necessary to obtain an import licence by presenting the Poisonous Chemicals Import Approval Form issued by the Ministry of Commerce, as well as the import contract (original and copy). Processing trade import quota certificates are issued by the Special Commissioner's Offices and Quota and Licence Affairs Bureau under the Ministry of Commerce.

Furthermore, quotas must be obtained for the import of commodities subject to tariff-rate quota management at the quota tariff rates.

(b) Domestic Sale of Imported Materials and Parts

If the imported materials and parts granted approval for domestic sale are subject to import restriction or licensing, the enterprise should apply for approval in arrears from the authorities concerned.

(c) Export of Finished Products

If the finished products of processing with imported materials are subject to export quota control, the business enterprise must seek approval from the commerce authorities before signing the contract. After obtaining the export quotas, it can apply for an export licence by presenting the export quota certificate and the Processing Trade Approval Certificate, which must be submitted at the time of customs declaration. The export of products processed with supplied materials or assembled with supplied parts is exempt from export licence but is subject to customs supervision.

2.3.8 Online Supervision of Processing Trade Enterprises

With a view to strengthening supervision of processing trade by means of modern management methods and facilitating the development of new and high technology industries, the former MOFTEC and General Administration of Customs (GAC) jointly promulgated the Interim Measures for the Administration of Online Supervision and Approval of Processing Trade Enterprises on 25 October 2001. The measures provide a simplified framework for the administration of enterprises participating in the online system.

According to the measures, these "online enterprises" engaged in processing trade are exempt from the customs duty deposit system. The commerce authorities would no longer examine and approve their processing trade contracts and would only appraise their qualification for carrying out processing trade, business scope and processing capabilities.

Online enterprises applying for permission to engage in processing trade should submit to the commerce authorities their financial proofs and application materials. These include: business licence (copy), approval certificate of online enterprise issued by Customs, Registration Form for import-export rights or FIE approval certificate (copy), record of passing the joint annual appraisal (except newly established enterprises without such record), original of processing trade enterprise production capability certificate issued by the local commerce authorities at county-level or above, proof of the online enterprise's export performance in the previous year (copies of customs declaration forms or processing trade contract verification/cancellation forms), brief profile of the enterprise and the raw materials and parts it imports and the products it exports, and checklist of business scope.

Upon receipt of an online enterprise's application, unless the processing trade activities involved are prohibited by the state, otherwise the commerce authorities would grant approval and issue an approval certificate to the online enterprise to engage in processing trade. Based on this certificate, Customs will set up a processing trade electronic account for the online enterprise concerned and implement online supervision. The online enterprise may then import raw materials and parts and export products within the approved scope.