Exporters urged to comply with strict Customs rules in China

The Department of Trade and Industry (DTI) is advising exporters to appropriately declare the actual number of items, weight, and volume of their product shipments to China to conform with the strict physical inspection being conducted by Chinese authorities in all its ports.

The DTI, through the Bureau of Export Trade Promotion (BETP), released the advisory following a commercial intelligence report received from Archimedes Gomez, commercial attaché at the Philippine Trade and Investment Center in Guangzhou, China.

According to Gomez, the Chinese Bureau of Customs is "carrying out strict monitoring on declared number of items, weight and volume of both incoming and outgoing goods," adding that the Chinese authorities are conducting physical inspection in all ports of entry and exit.

Gomez warned that "many of our Filipino businessmen are exporting to China and we advise them to properly observe this regulation."

"Pending the submission of the documents reflecting the actual number of items, weight and volume, shipment inconveniences such as a possible increase in storage costs and in some instances, the posting of guarantee fees, may occur," he added.

Export figures from the BETP showed that Philippine exports to China increased by 23.67 percent to $2.652 billion in 2004, from $2.144 billion in 2003.

The country’s trade with China grew from $1.61 billion in 1999 to $3.94 billion in 2003 at an annual rate of 26.81 percent, with exports outpacing import growth at 39.72 percent average each year from $575 million in 1999 to $2.14 billion in 2003.

In 2003, China ranked as the Philippines’ sixth largest trading partner, accounting for 5.38 percent or $3.94 billion of total trade.

China was the Philippines’ eighth biggest export market and sixth biggest supplier of imports in 2003, accounting for 5.99 percent of export receipts and 4.79 percent of imports, respectively.

Top exports during the year consisted of semiconductor devices and components amounting to $933 million or 43.55 percent of total export receipts; storage units which accounted for $362 million or 16.91 percent; copper cathodes, $170 million or 7.92 percent; parts and accessories of automatic data processing machines, $120 million or 5.59 percent; and portable digital automatic data processing machines, $54 million or 2.54 percent.

Leading imports, on the other hand, were semiconductor devices and components, $168 million; parts and accessories of automatic data processing machines, $142 million; motor spirit (gasoline), $92 million; wheat and meslin (unmilled), $46 million; and input or output units for automatic data processing machines, $37 million.

The Philippines and China have a strong relationship in the area of trade and shipping as manifested by the signing last year of a BETP-facilitated Sister Port Agreement between China’s Guangzhou Port Authority and the Philippine Ports Authority.