18 Dec 2014
Online CBA: What Are the Procedures and Tariffs Involved in Selling Products to the Mainland Domestic Market?
Q: My company in Hong Kong has all along been engaged in export business commissioning mainland manufacturers to produce goods for sale abroad. But now we want to sell products to the mainland domestic market. What are the procedures and tariffs involved?
Generally speaking, there are three major formats that can be adopted:
1. Licensing: If you own intellectual property rights such as trademark or design, you can license companies in the mainland to undertake production and sale, and you receive a licensing fee in return.
2. Trading: This is similar to your current operation format in foreign markets, that is, you identify one or more mainland distributors who would import your products for sale. Under this model, you have to export your products out of the mainland first and then re-import them into the mainland.
3. Investment: Under this model, you have to invest in setting up a company in the mainland. You can either manufacture by yourself or commission a third party to do so.
For information on mainland import tariff rates, you can register with HKTDC and use the tool China HS Codes and Tariff Rates provided.
(The HKTDC provides one-on-one China Business Advisory Service free of charge to assist companies in resolving problems encountered when doing business in China. For enquiries and appointments, please call (852) 1830 668 or register online.)