Commercial contracts are an important tool for securing international transactions. They are especially important if products are imported from China. When importing from China, the topic of the so-called Chinese export license often came up. Is a Chinese export license currently required?
What is a Chinese export license?
A Chinese export license is a document issued by authorized Chinese government institutions (e.g. MOFCOM). It authorized companies to legally export goods from China. Without such a license, companies could only sell on the domestic market, and export abroad was reserved for companies registered as exporters with the appropriate permits.
A Chinese export license was required to:
- carry out export customs clearance
- issue an export invoice
- obtain a certificate of origin (CO)
- legally obtain profit from export.
What is a Chinese export license called in Chinese?
The Chinese name for the export license in the People’s Republic of China is 对外贸易经营者备案登记.
Is the Chinese export license still valid?
The Chinese export license has been a requirement in many industries for years. However, the liberalization of foreign trade in China has made export licensing no longer mandatory for most industries. On December 30, 2022, the 38th meeting of the Standing Committee of the 13th National People’s Congress voted and adopted a decision to amend the Foreign Trade Law, removing Article 9 of the “Foreign Trade Law of the People’s Republic of China” regarding the declaration and registration of foreign trade entities.
However, after the mandatory registration for an export license is abolished, enterprises still need to undergo customs registration to obtain the right to submit customs declarations. In addition, in some cases, special approval from the authorities may still be required to carry out exports.
Why is it worth including a Chinese export license in your commercial contract?
Even if a Chinese export license is not formally required, if your Chinese supplier has one, it is worth including it in your commercial contract. As it is proof that the supplier has exported legally in the past, this document will secure your future transaction. The Chinese export license contains company data and can be helpful in the event of a legal claim or document audit.
Chinese export license and import from China
A Chinese export license used to be the key document regulating foreign trade in China. Although it is not required in most cases today, it is still worth including it when drawing up a commercial contract with a Chinese partner, as it is a form of legal security.
Are you importing from China? Make sure to be prepared legally and contact us to receive a personalized bilingual commercial contract with a Chinese supplier that complies with applicable Chinese and international law.