Export License
Export licenses are based on the agreed incoterms and the goods’ categories such as type of items and volume. This certificate allows the exporter the legal rights and opportunity to export.
The document process helps the Chinese government gather information about the exporter, the buyer, the cargo, the value and the mode of transportation.
To know more about export license or export permit, visit MOFCOM Ministry of Commerce (MOFCOM).
Valid time of the export license
The valid time is established on the contract based on the delivery date where an export license depends on the delivery date.
The time period of an export license usually expires six months when it was issued.
If there is a delay on the delivery of goods exported during this period, an additional extension of two-months is possible.
Important note: your cargo cannot be shipped or be cleared through the Chinese customs without an export license.
2. Categories of export license
Two types of licences, General and Special:
- General export licence: when a FTC has a general license, it does not have to apply for an export license as soon as it ships goods out of China. Also, an export license can be gained if it is within the approved scope of the business and matches the transaction.
- Special export licence: A special license is required if the MOFCOM publishes the product (item) on the list of restricted items.
3. How to get an export licence in China?
3.1 Who is responsible for an export license?
Chinese companies exporting goods from China to worldwide markets. If a company does not hold an export license, expect the company to have a freight forwarder with a FTC and hold an export license.
Please note: Overseas buyers don’t have to get a license neither a permit in China.
3.2 Different steps to gain an export license
The MOFCOM issues export licences, if you have not chosen FOB price quotations, consider the following:
- Be recognised as an exporter by the Ministry of Commerce (MOFCOM),
- Register with the local foreign trade department to become a so-called Foreign Trade Company (FTC)
- Apply for an export license
Applicants have to submit written applications to the issuing authority, the Ministry of Commerce.
A) How to apply for an export license?
Provide the following information:
- Related to the item: The name of the export items, their specificities, the destination countries and regions, the quantity, the unit price, the total amount, the delivery date, the form of payment
- Related to the kind of company: the original contract (or copy) for the FTC, the approval by the competent department for the foreign non-trade companies
Also, make sure you provide all relevant documents.
Example: if you want to export books and magazines, you will need the approval from the department of publication.
Exporting famous paintings or a different type of art would require approval by the Ministry of the Culture.
Warning: Be careful, when you apply for an export license as a FTC for the first time, you need to provide the copies of the approval of the establishment of the company and the company regulations.
B) Verification and Form Filling
After verifying and considering the goods to be exported, the applicant must provide the necessary documents and will need to fill in the People’s Republic of China export license application form.
C) Issuing of the License
If the application form was successful and accepted, an Export License will be delivered by the People’s Republic of China after three working days.
Example of an export license
4. The categories of goods: permitted goods, restricted goods & prohibited ones
The Chinese Ministry of Commerce has classified goods into three categories for type of export license: permitted goods, restricted goods and prohibited goods.
4.1 The permitted goods
This category is automatically licensed, that is to say that you need a license to ship goods out of China but this latter will be issued automatically on application.
The automatic license is valid for six months, and you may have up to six batches of goods on it.
4.2 The restricted goods
A license approval or annual quotas is required by the Chinese government for control and regulatory requirements.
Its validity time is one year, this type of goods can be exported but require an approval to be issued for each shipment.
Info: What Articles Are Restricted on Exit from China?
4.3 The prohibited goods
Banned and cannot be traded by FTC. MOFCOM has defined the list of prohibited goods.
Info: What Are the Goods Listed in the Catalog of Goods Prohibited from Export?
5. Exporting from China
Export from China to other parts of the world such as Northern America, Europe or Asia?
The below sets out the different country requirements detailing specific information such as custom clearance, goods’ control and whether the country requires import license or permit.
Also, before the scheduled departure. E-Forms exempts duties and taxes, however, VAT is still mandatory.
Country’s category of goods for import purposes:
Documents needed for export license when starting a business
- Registration card of a foreign trade participant
- Certificate of registration with the customs office
- Customs declaration
- Materials for entering the electronic customs system (海关电子口岸)
- Certificate of self-examination of cargo at customs (自理报检备案登记证明书)
- Export Import License (进出口权)