Home»Machinery & Equipment» Exporting Agricultural Machinery from China: A Manufacturer's Guide to Customs, Tax Rebates & Compliance
Agricultural machinery made in China is gaining widespread popularity in the global market due to its high cost-performance ratio and increasingly advanced technological standards. For domestic manufacturers, this undoubtedly represents a huge development opportunity. However, successfully selling a combine harvester or a plant protection drone overseas is far more complex than domestic sales, involving a series of rigorous legal, customs, and financial procedures.
Many excellent manufacturers often face a core challenge: the enterprises focus on product R&D and production, but lack the ability to directly sign contracts with overseas customers, receive foreign exchange payments, and handle related financial transactions.Tax RebatesThe required "Import and exportThe "operating rights" refer to the rights granted by the government to a private entity to operate a public service or infrastructure project, such as a highway, airport, or power plant. These rights typically include the authority to collect fees, maintain facilities, and manage operations, ensuring that the project meets quality standards and operates efficiently. The term "operating rights" emphasizes the responsibility and accountability of the private sector in delivering public services, while ensuring that the project remains sustainable and meets public expectations.
This article aims to provide a professional and rigorous practical guide, systematically explaining the core processes and compliance requirements of agricultural machinery exports, helping enterprises understand the key steps on the path of "going global".
First, the first step of exporting: obtaining the qualification to "go global"
Before conducting any export business, a company must first obtain a legal "identification" from the customs authority.
(I) Standard Procedure: Record-filing of the importer/exporter qualification Companies need to pass the "China International Trade Single WindowOn the platform, submit enterprise information online to apply for the qualification registration of "import and export consignee". After being approved by the local customs, the enterprise will receive a ten-digit customs registration code and can subsequently apply for an e-port card. This is a legal prerequisite for enterprises to independently engage in import and export activities.
(II) Alternative Solution: Cooperate with a professional trading partner For many manufacturing enterprises focused on production, maintaining a complete set of trade, documentation, and finance teams in-house may not be the most optimal choice. In such cases, collaborating with a professional trade service provider that already holds all necessary import and export qualifications and letting them handle all external processes as the "exporter" is an efficient and compliant common practice.
II. The Foundation of Export: Accurate Commodity Classification (HS Code)
Product classification is the core of export declaration, which directly determines the regulatory conditions, export tax rebate rates, and import tariffs of the importing country. The core principle is to "classify according to function and use".
Reference Table for Customs Classification of Common Agricultural Machinery:
Machine category
Example of product names
Main HS codes (for reference)
Brief analysis of the reasons for the classification
A specialized planting machine used for transplanting seedlings.
Harvesting machinery
Combine harvester
8433.5100
A multi-functional machine that can complete multiple harvesting tasks in one go.
Plant protection machinery
Agricultural sprayer
8424.4100 / 8424.4900
The liquid spraying device is classified under heading 84.24.
Aircraft
Plant protection drone
8806.XXXX
Classify it under Chapter 88 according to the attributes of the unmanned aerial vehicle.
Traction vehicle
Wheeled tractor
8701.XXXX
As traction vehicles are classified under Chapter 87, they must be declared separately even when exported together with agricultural tools.
III. Core Process: Export Declaration and Document Preparation
Exporters or their agents are required to truthfully declare the detailed information of the exported goods, including product names, HS codes, specifications and models, quantities, prices, etc., to the customs through the "Single Window" platform. The core documents required usually include:
Export contract
export invoices
Packing list
IV. Key compliance points: regulatory requirements and export control
(I) General Supervision According to the customs regulations, the vast majority of agricultural machinery productsIt's not a product subject to statutory export inspectionThis means that there is no mandatory product inspection required for exports. However, the customs still reserves the right to conduct spot checks and inspections at the port of entry.
(II) Export License Administration
Regular agricultural machinery:?In the current Catalogue of Goods Subject to Export License Administration, there is no direct listing of conventional agricultural machinery.
Special circumstances:?If the exported agricultural machinery products contain controlled components, such as motorcycle engines and car chassis, it is necessary to carefully check the catalog to determine whether an export license is required.
Dual-use items and technologies:?This is a top priority for supervision. If agricultural machinery products (especially high-tech products) may be used for military purposes, they will be subject to the Regulations on the Export Control of Dual-Use Items and Technologies.
(III) Special Attention: Export Control on Plant-Protection UAVs Plant protection drones have been a hot export item in recent years, but they are also one of the agricultural machinery products subject to the most stringent export controls. According to the "Export Control List of Dual-Use Items of the People's Republic of China", if plant protection drones and their key components meet any of the following technical specifications, they must undergo pre-export inspection and approval procedures.It is necessary to apply to the Ministry of Commerce for the "Export License for Dual-Use Items and Technologies".:
Spraying system:?An efficient spray system capable of atomizing droplets to a volume median diameter (VMD) of less than 50μm and with a flow rate exceeding specific standards.
Flight performance:?Drones with a flight time of more than 30 minutes or 1 hour, and equipped with specific wind resistance capabilities.
Communication skills:?Communication equipment with a transmission distance of more than 50 kilometers beyond the line of sight.
Load capacity:?UAVs that include or are capable of being equipped with aerosol spraying systems with a capacity of more than 20 liters.
Professional Tip: The definition of dual-use items is highly technical. Before exporting high-performance agricultural drones, companies must carefully compare the product technical parameters with the control list. If there are uncertainties, seeking an evaluation from a professional customs consultant or trade service agency is a necessary step to avoid the risk of serious violations.
Fifth, the core of economic value: export tax rebates
Export tax rebates are an important policy implemented by the state to encourage exports and enhance the international competitiveness of domestic products.
Basic principle:
The basic principle of this method is to use a camera to capture the image of the object, and then process the image through computer algorithms to extract the object's three-dimensional shape and position in space.?For goods declared for export, the value-added tax paid during their production and circulation in China will be refunded.
Preconditions for execution:?Only enterprises that have the right to engage in import and export business, have completed formal export declarations, and safely recovered foreign exchange are eligible to apply for tax rebates from the tax authorities.
For manufacturers that do not have direct export qualifications, they can export their products through professional trading agencies (such asZhong Shen International Trade Co., Ltd.This is a description of the process of obtaining tax rebates for exports. After the agent company completes all the procedures as the exporter, the tax rebate will be returned to the exporter. This is the only compliant way to achieve this core economic benefit.
Conclusion
Exporting agricultural machinery, especially technologically advanced equipment, is a business that presents both opportunities and challenges. It not only requires companies to have high-quality products, but also demands a thorough understanding of international trade rules, customs regulations, and even national security control regulations.
For the majority of manufacturers, the most effective strategy may be "specialized division of labor": focusing the company's core resources on product research and development and production, while leaving complex international trade, logistics, finance, and compliance matters to experienced professional partners. This not only helps avoid risks, but also ensures that the company can fully enjoy all the economic benefits brought by exports.