Local representation

There are many agents and consultants willing to act on behalf of United Kingdom companies wishing to do business in China. These range from large overseas trading firms with branch offices in China, to small specialist agencies based in the region. Lists of such companies may be obtained from the UK Trade & Investment China Unit (see Setting up and Contacts), CBBC and the Commercial Section of the British Embassy.

An agent or consultant can prove invaluable to a company without the resources to establish a representative office in China, or to those needing additional business intelligence on business practices in the region. The main role of a representative office is to promote products and make contact with end users, to liaise with Chinese commercial and government organisations in matters relating to the company, and to follow up market opportunities.

Labelling and packaging regulations

Information is currently being compiled. Please contact the China Unit: tel. 020 7215 8446.

Import controls

New legislation covering imports and exports regularly enters the statute books. Exporters are advised to consult their shipping agents for up-to-date information. The following is a selection of regulations:

Interim provision concerning rating system on income for exportation of foreign exchange
Issued by State Administration of Foreign Exchange and the Ministry of Finance - April 1999
Interim provisions for the Granting of Rights of Self-Managed Import and Export to Privately-Owned Production Enterprises and Scientific Research Academies and Institutes. Approved by the State Council on 2 September 1998 and promulgated by the Ministry of Foreign Economic Relations and Trade on 1 October 1998 ? PRC Customs Inspection Regulations (3 January 1997). These regulations updated the previous 1994 regulations. Customs regulations are continually updated and vary from product to product.
There is also a large body of legislation concerned with intellectual property and copyright. As well as its own comprehensive copyright and patent laws, China has signed several international treaties aimed at protecting copyright and intellectual property The Ministry of Commerce (MOFCOM) website has news on the latest laws in China. Also there is a CD-ROM called 'China Laws' which is published by the China Legal System Publishing House. It has information on literally hundreds of Chinese laws and it is produced by the Information Centre of the:

Legislative Affairs Office of the State Council
No.9 Wenjinjie
Beijing 100017
Email: gala@public3.bta.net.cn
Tel: + 86 10 63097599
Fax: + 86 10 63097448

The UK Government maintains export controls to prevent the export of goods, including technology, for a variety of reasons including:

the collective security of the UK and its allies in NATO
national security and foreign policy requirements
international legal obligations and commitments
non-proliferation policy
concerns about terrorism
internal repression
other human rights violations

Export Controls

If goods or technologies are subject to UK export controls, a licence is required to gain the legal authority to export them. The Department of Trade and Industry is the licensing authority.

The DTI's Export Control Organisation's Helpline is the first point of contact for information on export controls. The Helpline provides advice on many issues, including how to establish whether or not specific goods need an export licence, the different types of export licences, how to complete export licence application forms and how long they take to process. The Helpline is also the point of contact for Export Control Organisation publications and licence application forms.

The Defence Export Services Organisation (DESO) can provide information concerning the export of defence related equipment.

For information concerning export controls on antiques and works of art, please visit the Department for Culture, Media and Sport website.

Customs duties

The latest available information about import duties, import control regulations, taxes and other legislation in China affecting British exports may be obtained through the UK Trade & Investment China Unit.

In line with increasing international pressure to "level the playing field" and open up its market, the Chinese government has reduced duties on a number of import commodities - though duties on alcohol, tobacco and electronic products remain generally high.

Additional taxes

VAT is 17%

Additional information

Intellectual Property Rights (IPR) in China
Virtually all busineses in China - whether domestic or foreign - are at risk of some form of IPR abuse such as piracy, counterfeiting or industrial espionage, and the risk of IPR abuse is commonly cited by UK companies as one of the deterrents to doing business in China. The Chinese Government recognises the problem at the highest level and is committed to improving the situation through awareness-raising programmes and crackdowns, but enforcement remains a problem.

It is therefore advisable to explore the potential risk to your company's products before entering the market. The China-Britain Business Council has produced some IPR Guidelines which provide guidance on the current IPR situation, what companies can do to minimise the risk to their products and what steps to take if it happens to you. The IPR Guidelines can be downloaded from this page.

Standards and Technical Regulations

Technical Help for Exporters (THE) is a service provided by the British Standards Institute (BSI) to provide information and advice on compliance with overseas statutory and other technical requirements.

THE produces a wide range of publications and provides a special updating service of information in some product fields. THE can supply detailed information on foreign regulations; identify, supply and assist in the interpretation of foreign standards and approval procedures; research and consult on technical requirements for a specific product; and provide translations of foreign standards, items of legislation and codes of practice.

Fees vary according to the amount of work involved.

For further information visit the British Standards Institute (BSI) website or e-mail: The@bsi-global.com

UK Trade & Investment Contact:
mushtaq.bux@uktradeinvest.gov.uk
Publication date: 13/05/2004