Against the backdrop of global efforts to promote green buildings and energy efficiency, high-quality insulation materials have become a necessity in the international market. As the world's leading building materials producer, China is witnessing unprecedented export opportunities for its rock wool boards, foam plastic boards, and various refractory materials.
However, for many excellent manufacturers who focus on technology and production, the threshold for international trade is not product quality, but two core qualifications and financial challenges:
Lack ofImport and exportBusiness License:?It is not possible to sign contracts with overseas clients in one's own name and receive foreign exchange payments.
I can't enjoy itTax Rebates:?They missed out on the important policy dividends provided by the state to encourage exports, which could significantly increase their profits.
This article aims to provide a professional and rigorous practical guide, systematically explaining the core processes and compliance requirements for the export of insulation materials, helping relevant enterprises understand the key steps in the process of "going global".
I. The cornerstone of the export process: accurate product classification (HS Code)
Product classification is the first and most crucial step in all export work. It directly determines the regulatory requirements and export tax rebate rates. The core principle is to classify products based on their characteristics and functions.Material components, processing techniques, and main functionsTo determine the HS code.
Reference for customs classification of common insulation materials:
Material type
Common HS codes for reference
The main reasons for the classification
Mineral products (e.g., rock-wool board, glass-magnesium board)
6806.9000
The main components are a mixture of mineral fibers or mineral materials, and the core function is to provide insulation and soundproofing.
Foam plastic board (e.g., polystyrene board)
3921.1100
The basic characteristic is that it is "plastic" rather than "mineral", and it is in the form of "foam" boards and sheets.
Made from ceramic materials, it is specifically designed to withstand extremely high temperatures and is classified as a specialized refractory material.
Master the core principles of classification:
Function-oriented principle:?The core function of the product is the primary basis for classification. For example, although both are "boards," the rock wool board used for insulation is classified under Chapter 68, while the board used for electrical insulation may be classified under Chapter 85.
The material determines the destination:?The nature of the material largely determines the chapter in which the product is classified. Plastic products are in Chapter 39, and mineral products are in Chapter 68. For composite products made of multiple materials (such as metal-faced insulated sandwich panels), they need to be classified according to the core material that gives the product its basic characteristics.
II. Core Export Process: From Order to Payment Collection
On the basis of accurate classification, the complete export process includes the following key steps:
(I) Contract & Payment Collection For manufacturers that do not have import and export rights, this is the primary obstacle. Cooperating with professional trade agents is a common and efficient solution in the industry. The agent will act as the exporter, sign foreign sales contracts with overseas customers, and be responsible for safely and compliantly collecting US dollar payments, before settling the payments in RMB with domestic manufacturers.
(II) Verification of Regulatory Conditions Before the goods are ready for export, it is necessary to verify the regulatory conditions corresponding to their HS code.
Export License:?Check whether this insulation material is subject to export license management.
Technical export restrictions:?In particular, it is important to note that some advanced insulation material production technologies may be included in the "China's List of Prohibited and Restricted Export Technologies". If the transaction involves technology transfer, it is essential to verify and obtain the relevant permits in advance.
(III) Documentation Preparation & Export Declaration Prepare all necessary commercial documents (contracts, invoices, packing lists) in accordance with regulatory requirements. When declaring to customs, it is essential to fill in the declaration elements in accordance with the norms, which typically include: product name, material, specification and model, processing technology, and usage, etc. Clear and accurate declaration is a prerequisite for ensuring the smooth customs clearance of goods.
(IV) Logistics & Transportation Arrange the booking of shipping space.Tow truckCarry out a series of logistics operations such as port entry to ensure that the goods arrive at the destination port safely and on time.
(V) Export Tax Rebate Processing This is a crucial step in maximizing export profits. Only after the goods have been declared for export and successfully received foreign exchange, can enterprises with export qualifications apply to the tax authorities for a refund of the value-added tax paid during the domestic production of the products.
For manufacturers:?If the goods are exported through a trade agent, the agent will be responsible for completing the entire tax refund application process and returning the approved tax refund amount in full to the manufacturer. This amount is one of the core profit sources of the export business.
III. Compliance Risks and Professional Advice
Risk: Delays or penalties resulting from disputes over customs classification.
Professional advice:?For new or complex composite insulation materials, it is strongly recommended that before the goods are exported, an application be submitted to the customs office directly under the registered location through the customs' “pre-ruling” system to obtain an official classification opinion with legal effect. This can fundamentally avoid subsequent disputes.
Risk: Unintentionally violating technical export control regulations.
Professional advice:?When signing contracts involving technology transfer, enterprises should actively refer to the "China Catalogue of Prohibited and Restricted Export Technologies". If there are any uncertainties, consulting professional legal or trade advisors is a necessary measure to avoid serious legal risks.
Risk: The tax refund may fail due to discrepancies in the documents.
Professional advice:?EnsureExport ClearanceSingle document, invoice, packing list,?Forex Settlement?All information in the documents, such as product names, quantities, and amounts, must be highly consistent. It is crucial to establish a standardized document management process.
Conclusion
Successfully exporting insulation materials not only tests the performance of the products, but also requires comprehensive competence in applying international trade rules, customs regulations, and financial policies. For most manufacturers, the most effective strategy is "specialized division of labor": focusing core resources on product innovation and production management, while leaving complex trade qualifications, cross-border finance, logistics declaration, and tax refund matters to experienced professional partners to handle.
This not only helps to avoid potential compliance risks, but also ensures that enterprises can fully enjoy all the economic benefits brought by the national export policy, making high-quality "Made in China" insulation materials more competitive in the global market.