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How to verify Chinese company (import and export) foreign trade registration

How to verify Chinese company (import and export) foreign trade registration

by · 7/20/2020, 6:19:19 AM

In addition to verifying the business licenses of Chinese companies, you can also verify whether they are registered to engage in foreign trade. Such registration is necessary for them to legally engage in import and export business directly.

According to Chinese law, any individual or organization exporting goods with a value of more than 1,000 yuan (ie exporting all products) must first apply for an export license. It is illegal to export without this permit. There are some restricted products, even if the company has exports, it cannot legally export licenses.

Foreign trade registration is carried out through the Ministry of Foreign Trade and Economic Cooperation (ministryofforeigntradeandeconomiccooperation), and the passed company is recorded as registered. This is what we call foreign trade registration. The enterprise obtains an export license or an import and export license.

If they carry out foreign trade business without this document (nor registered in official records), the customs will refuse to enter the port. Licensed companies or individuals are called "foreign trade dealers". Units that handle foreign trade procedures and engage in foreign trade according to law.

One point that foreign trade operators should pay attention to is that they can engage in foreign trade on behalf of others. This is actually very common in China's foreign trade. If you like to read a lot of legal details, you can read more about the specific legislation of China's foreign trade.

It is a mistake to assume that Chinese suppliers must hold export licenses/foreign trade registration certificates to do business with foreign companies. In fact, it is common for Chinese suppliers to operate without a license. The most common is that Chinese factories or suppliers arrange their foreign trade through a licensed foreign trade dealer. Trading companies go through foreign trade procedures so that factories do not have to go through registration procedures and develop successful export experience and procedures. Therefore, it is normal to see the name of the trading company instead of the name of the supplier on the export documents. In some cases, this will lead to confusion and may lead to correct inspection and verification by the relevant company.

The best practice is to verify all participating companies and confirm that these companies are properly registered and can perform their duties in the process. In addition, when a "company" registers an independent business entity for its production and export operations, it may cause confusion. In other words, it plays the role of two companies-a supplier and a foreign trade distributor. The actual arrangement of the owner may require many arrangements. Similarly, it is wise to verify each register (business register and foreign trade register) separately and confirm that they are allowed to do what they claim to be responsible for.

An export license does not represent quality. People who buy products from China have a common misunderstanding, that is to say, China's export licenses indicate the quality of products, services or companies to a certain extent. But in fact, it's not. It is unwise to explain any meaning from the fact that Chinese companies have exports. The export license only indicates that the company has applied for and obtained an export license. They only need to go through a program and provide basic documents to achieve this. There is no inspection of their products, so the export license does not indicate the quality.

How to check the foreign trade registration of Chinese companies? Although the industrial and commercial registration can be checked by the relevant industrial and commercial bureau, the foreign trade registration cannot be checked in this way. On the contrary, there are two ways to confirm the foreign trade registration of Chinese companies. If the company provides a copy of the import and export license, it can be verified by identifying the specific issuing authority (probably the company's location) and communicating with them to confirm the documents. If only the license number or foreign trade registration number is provided, this can be confirmed through records in official government data.

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