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Trading Across Borders: Importing and Exporting from ChinaThe benefits of trade are well documented—as are the obstacles to trade. Tariffs, quotas and distancefrom large markets greatly increase the cost of goods or prevent trading altogether. But with faster shipsand bigger planes, the world is shrinking. Global and regional agreements have brought down tradebarriers. Yet Africa’s share of global trade is smaller today than it was 25 years ago. So is the MiddleEast’s, excluding oil exports. The reason is simple: many entrepreneurs face numerous hurdles toexporting or importing goods. They often give up. Others never try.Doing Business compiles procedural requirements for trading a standard shipment of goods by oceantransport. Every official procedure—and the associated documents, time and cost—for importing andexporting the goods is recorded, starting with the contractual agreement between the two parties andending with delivery of the goods. For importing the goods, the procedures measured range from thevessel’s arrival at the port of entry to the shipment’s delivery at the factory warehouse. For exporting thegoods, the procedures measured range from the packing of the goods at the factory to their departurefrom the port of exit.To make the data comparable across countries, several assumptions about the business and the tradedgoods are used. The business is of medium size, with 100 or more employees, and is located in theperiurban area of the country’s most populous city. It is a private, limited liability company, domesticallyowned, formally registered and operating under commercial laws and regulations of the country. Thetraded goods are ordinary, legally manufactured products, and they travel in a dry-cargo, 20-foot FCL (<strong>full</strong>container load) container.Documents recorded include port filing documents, customs declaration and clearance documents, andofficial documents exchanged between the concerned parties. Time is recorded in calendar days, fromstart to finish of each procedure. Cost measures the fees levied on a 20-foot container in U.S. dollars. Allthe fees associated with completing the procedures to export or import the goods are included, such ascosts for documents, administrative fees for customs clearance and technical control, terminal handlingcharges and inland transport. The cost measure does not include tariffs or trade taxes.Countries that have efficient customs, good transport networks and fewer documentrequirements—making compliance with export and import procedures faster and cheaper—are morecompetitive globally. That leads to more exports—and exports are associated with faster growth andmore jobs. Conversely, a need to file many documents is associated with more corruption in customs.Faced with long delays and frequent demands for bribes, many traders avoid customs altogether.Instead, they smuggle goods across the border. That defeats the very purpose in having border control oftrade—to levy taxes and ensure high quality of goods.40
1. Historical data: Trading Across Borders in ChinaTrading Across Borders dataDoing Business2006Doing Business2007Doing Business2008Rank 31 42Documents for export (number) 6 7 7Time for export (days) 18 21 21Cost to export (US$ per container) 335 390 390Documents for import (number) 11 6 6Time for import (days) 24 24 24Cost to import (US$ per container) 375 430 4302. The following graph illustrates the Trading Across Borders indicators in China over the past 3 years:6771821211166242424335390390375430430Documents for export(number)Time for export (days)Cost to export (US$ percontainer)Documents for import(number)2005 2006 2007Time for import (days)Cost to import (US$ percontainer)41
Page 1 and 2: China
Page 3 and 4: © 2007 The International Bank for
Page 5: IntroductionDoing Business 2008 is
Page 8 and 9: 9. In China, a new property law put
Page 10 and 11: Summary of Indicators - ChinaStarti
Page 12 and 13: Starting a Business in China: Entry
Page 14 and 15: 3. Steps to Starting a Business in
Page 16 and 17: The following table shows Starting
Page 18 and 19: 1. Historical data: Dealing with Li
Page 20 and 21: 13. Review of construction drawings
Page 22 and 23: The following table shows Dealing w
Page 24 and 25: 1. Historical data: Employing Worke
Page 26 and 27: The following table shows Employing
Page 28 and 29: 1. Historical data: Registering Pro
Page 30 and 31: 4. Benchmarking Registering Propert
Page 32 and 33: Getting Credit in China: Legal Righ
Page 34 and 35: 3. Benchmarking Getting Credit Regu
Page 36 and 37: Protecting Investors in ChinaOffici
Page 38 and 39: 3. Benchmarking Protecting Investor
Page 40 and 41: Paying Taxes: Tax Payable and Compl
Page 42 and 43: 3. Benchmarking Paying Taxes Regula
Page 46 and 47: 3. Benchmarking Trading Across Bord
Page 48 and 49: Enforcing Contracts: Court Efficien
Page 50 and 51: 3. Benchmarking Enforcing Contracts
Page 52 and 53: Closing Business in China: Bankrupt
Page 54 and 55: 3. Benchmarking Closing Business Re
Page 56 and 57: APPENDICESStarting a Business in Ch
Page 58 and 59: - Appointment documents and identif
Page 60 and 61: Cost to complete:Comment:no chargeA
Page 62 and 63: 14 *Receive review of building draw
Page 64 and 65: Procedure1Request and obtain approv
Page 66 and 67: Comment:Procedure6The Shanghai Hous
Page 68 and 69: Procedure14Receive review of buildi
Page 70 and 71: Comment:No time limits apply for in
Page 72 and 73: 建建建建建建建建建
Page 74 and 75: Employing Workers in ChinaEmploying
Page 76 and 77: Registering Property in ChinaThis t
Page 78 and 79: Procedure3(v) Photocopy of the iden
Page 80 and 81: Protecting Investors in ChinaThe ta
Page 82 and 83: Paying Taxes in ChinaThe table belo
Page 84 and 85: Trading Across Borders in ChinaThes

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