Despite the current uncertainty surrounding the trade relationship between the U.S. and China, the Asian giant remains the largest importer of U.S. goods on the other side of the Pacific.
China accounts for 11% of total U.S. exports.
That may not seem like much, but it's certainly impressive considering its neighbors Japan and South Korea account for only 5.3% and 3.9% of U.S. exports, respectively - their combined share is still lower than China's share.
The product categories that the U.S. exports the most to China include transportation (21 percent), machinery (19 percent), and vegetable products (11 percent). Here's a breakdown of each category.
Tips for Shipping to China
As a booming economy, China certainly has many business opportunities. However, there are certain aspects of shipping to China that you should keep in mind to ensure a seamless shipping process.
1. Keep abreast of trade war developments
As the U.S.-China trade war continues and signs of volatility in its outcome, it's important to keep an eye on the news. This will allow you to anticipate any increases in responsibilities and better prepare you for them.
The tit-for-tat tariff increase is a problem for shippers on both sides. Even though the tariff hike may not target the products you're shipping to China, and it won't directly affect you, it may affect shipping capacity and rates, which can directly affect your supply chain.
2. Check your calendar
If you are an inexperienced shipper, it may interest you that for two full weeks throughout the calendar year, port and logistics activity in China is almost completely stopped.
These are called Golden Weeks. The first occurs at the beginning of the year, usually in January or February, to celebrate the Lunar New Year. The second Golden Week commemorates China's National Day and takes place in the first week of October.
During this period, it is not possible to transport goods into or out of the country. Note that the weeks around Golden Week could also be problematic due to the import and export boom before the country shut down, and the time it would take to recover once operations resume.
3. Familiar with special economic zones
China currently has 12 Special Economic Zones (SEZs) that U.S. exporters should take advantage of if they are not already doing so, as doing business in China can be particularly complex.
These special zones allow goods to be processed (stored, manufactured, re-exported) without paying import duties and taxes and are part of the reforms set up by the Chinese government to open up the Chinese economy. It also speeds up the customs clearance process, adding more flexibility to your supply chain.
In addition, these SEZs are mostly located along the coast to facilitate the movement of goods in and out of China's many shipping ports.
4. Cooperation with freight forwarders
Trying to navigate China's import regulations can be very frustrating, especially if you're not familiar with the language. It also doesn't help that the information can be very contradictory depending on where you get it from.
To avoid complications, we recommend that you always book your ocean freight services to China with a reputable forwarder who has extensive experience and a proven track record on the specific route you are interested in.
Not only will they be able to properly guide you through China-specific import regulations, but they can also advise you on prohibited items and help you with the paperwork you need to avoid customs issues.
5. Check if your shipment needs CCC
The China Compulsory Certification (CCC) mark, as the name suggests, is a compulsory certification for more than 132 products (including auto parts, medical equipment, electrical equipment, etc.) imported into China.
The CCC mark is China's quality control method, and it is estimated that one-fifth of US exports to China require the CCC mark. Any lack of the CCC mark may result in the goods being held by customs or returned to the shipper at origin and subject to heavy fines.
Before exporting, please make an effort to check whether your goods require CCC. Please note that applications for the CCC mark may take up to 90 days or more to process.
Also, always keep in mind that no matter where you're shipping to, there are certain steps you absolutely must take if you're dealing with hazardous materials.