Jilian Consultants Co., Ltd.
Jilian Consultants Co., Ltd.

Analysis of the Applicable Scope and Management Points of Import Export Licenses

Definition of import export licenses

Import export license refers to the permit issued by the Ministry of Commerce or its authorized issuing agency for importing goods that are subject to quantity restrictions or other restrictions. The supervision code for import license is "1".

Application scope of import export licenses

Goods subject to quantity restrictions and managed by quota or export quota bidding management.

Two categories of goods are currently subject to import export license management, namely substances that deplete the ozone layer and key used electromechanical products. (Note: The Ministry of Commerce, together with the General Administration of Customs, formulates, adjusts, and publishes the annual "Catalogue of Goods for Import License Management" and the annual "Classified and Issuing Catalogue for Goods for Import License Management").

Key points for management of import export licenses

  • Enterprises that import any substance that depletes the ozone layer in any form must present the import license issued by the authorized issuing agency of the Ministry of Commerce to the customs for clearance procedures.

    Enterprises that import electromechanical products must present the import license to the customs for clearance procedures. For key used electromechanical products imported into customs territory, enterprises must present the import license issued by the Quota Licensing Office of the Ministry of Commerce to the customs for clearance procedures. For key used electromechanical products that enter special customs supervision zones or bonded customs supervision sites, import licenses are not required for clearance.

  • Import export license management is subject to network verification. Both the hard copy and electronic data of the license are used as customs supervision basis. The name of the importer or consignee on the import declaration should match that on the import license.

  • The validity period of an import license starts from the date of issuance and expires on December 31 of the same year. The license must be used within the validity period.

  • Import export license is managed on a "one declaration, one license" basis, meaning the license can only be used for customs declaration in one direct customs area.

  • In general, import licenses are issued on a "one batch, one license" basis. If a non-"one batch, one license" basis is used, it must be indicated in the remarks column. Specifically:

    (1) "One batch, one license" means that the license is used once within its validity period.

    (2) For non-"one batch, one license" basis, the license can be used multiple times within its validity period, but not more than 12 times. This refers to the same batch of goods transported by the same mode of transport. Even if the license still has unused quantities, it cannot be used after the 12th declaration.

  • The license number of import export license should be filled in the "license number" column, and only one license number is allowed for each declaration.

  • The amount of bulk cargo overflow shall not exceed 5% of the imported quantity on the import license. For non-"one batch, one license" basis, the actual imported quantity shall be deducted for each batch, and the overflow quantity of the last batch shall be calculated based on the actual remaining quantity on the license, within the prescribed limit of 5%.