Commodity Inspection Exporting from China

[Gertie]

Hello, I own a small company in Canada that has our parts produced in China.

We have had several shipments from different companies in China using tariff codes 9503.20.00.10 and 9503.90.90
A new company we are dealing with claims that if we use these tariff codes there will be a $300 commodity inspection fee..
Can someone answer how this could be if it has never been paid before?

Thank you,

Gert

Yes, some products need statutory inspection for exportation, and some not. Using respective H.S code, we can check for the conditions/requirement of exportation and importation at [url]http://www.china-customs.com/ (it is in Chinese).

I am not sure the customer have given the correct H.S code, because I can't find that code on the customs website, according to his description, I assume he is meaning he has been declaring to the customs using 9503.00.90(not 9503 90 90), which item is for toy, toy accessory etc. It requires a statutory inspection for that item exportation http://www.china-customs.com/customs-tax/95/ , the cost for inspection is about 1.5/1000 * invoice value.

Yes, if using the code proposed by the Chinese company, they don't have to pay the inspection fee(at that code, inspection is not required), but you wll have a potential risk if Canadian customs inspect the products and find what declared on the paper is not what the products really is. So in that case, I strongly suggest you use the correct H.S CODE to prevent potential harrass from the customs. As you can see, the inspection fee normally is very cheap.

The other question, if they have been using 9503.00.90 to export, then they must have paid the inspection fee every time with or without your client knowing it. I guess the supplier might have include the inspection fee into the product price.

[Gertie]

Thank you for taking the time to look at this for me

Gertie

I would make sure the numbers are correct. And don't always rely on the local trader in China unless it is an export company.

We had a similar issue in our company in North Dakota that spun out of control. Don't try to fudge the correct numbers.