Understanding the Chinese Single Window: What importers and exporters need to know
If businesses are seeking to import or export goods to and from China, it is vital that they are familiar with the digital tools used for managing critical customs and declaration processes in the country.
These are integrated into a system known as the Single Window, which aims to consolidate and streamline all aspects of international trade, from declaring goods to paying duties and applying for refunds. Understanding how this works is critical to smooth trade in one of the world's largest markets.
With this in mind, here's what you need to know about the Chinese Single Window.
What is China's Single Window?
The Single Window refers to a digital platform that is used for all aspects of customs clearance and reporting when importing or exporting goods in China. It can be seen as broadly similar in purpose and functionality to consolidated platforms in other territories such as the EU's Single Window and the US' Automated Commercial Environment.
It has been in operation across all major ports in China since 2018 and allows a range of stakeholders - including traders, shipping companies and customs brokers - to submit all necessary customs clearance documents and data through a single electronic portal. This means that instead of dealing separately with multiple government agencies, all activities can be handled through a connected dashboard.
What are the major functions covered by the Single Window?
The system aims to consolidate a range of functionality and reporting into a single platform. Among the key elements that make up the system are:
- Customs declarations
- Cargo manifest submissions
- Transport vehicle declarations
- Electronic payment of duties, taxes and other fees
- Applications and submissions of trade licenses
- Certifications such as rules of origin declarations
- Applications for tax refunds
- Statistical queries
These functionalities cover the full trade process, ensuring that only one portal is needed for almost any critical customs compliance activity.
Key benefits of the integrated customs platform
This single platform offers much faster, more streamlined and easier to use solutions for making essential declarations and payments when doing business in China. Major benefits firms have seen as a result of the implementation of China's Single Window include the following:
- Improved efficiency: According to the World Customs Organization (WCO), prior to the Single Window, there were up to 44 categories of classification for over 70 types of goods, as well as up to 150 pages of paper documents that may have been required for shipments, which has been greatly reduced by the platform.
- Faster processing: Similarly, the WCO noted that the Single Window has seen the average time required for customs clearance procedures reduced from 16 hours to just two.
- Reduced costs: Faster processing and less manual paperwork requirements translate directly into cost savings for businesses, with some estimates suggesting that the Single Window can lead to a 50 percent reduction in overall customs clearance costs.
- Improved compliance and transparency: Having a single platform for all customs requirements makes it easier for companies to ensure they are compliant with all rules and regulations, while the visibility offered by the system helps reduce corruption.
- Increased standardization: A single solution across all of China's ports guarantees greater consistency in how customs rules such as classifications are applied, while the reduced need to deal with multiple agencies also reduces the risk of errors being made with manual submissions.
- Higher competitiveness: Ultimately, the goal of the Single Window regime is to make China an easier, more business-friendly place for companies to operate.
What must firms do to connect with the Chinese Single Window?
The system offers a single point of access to China's customs environment. Therefore, it will be essential for every business operating in the country to know how to connect with and use the system.
To register their business, organizations must first create an account on the official China Single Window website. This can either be done by a company itself or an approved broker.
Details that will be requested include:
- Company business license information
- Ten-digit customs registration number
- Organization code certificate
- Contact information
- Any required licenses or certificates
Once done, firms may need to use specific software to interact with the system to ensure a secure connection. Software like MIC-CUST® for customs declarations can be used to streamline your Chinese customs processes and make the submission process as easy and accurate as possible.
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