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China Customs Enterprise Classification is a system used by China Customs to grade companies which engage in foreign trade.
Following a long implementation phase, a new classification system was confirmed in May 2018. It had been updated primarily to reflect China's broader implementation of a nationwide social credit system in recent years.
Under the new China Customs Enterprise Classification system, companies are no longer ranked AA, A, B, C or D - there are now 4 different categories which are introduced in this article.
Although China Customs have had a system in place for grading Chinese companies for many years, a big change was announced in 2014.
The previous China Customs Compliance Rating Scheme, which graded companies either AA, A, B, C or D, was to be replaced by a method based more closely on China's new Social Credit System.
With the new classification system, companies can apply for "Authorized Economic Operator" status which offers preferential treatment such as fewer inspections and simplified Customs processing.
On the other hand, companies with a bad social credit rating are subject to much tighter regulations which can really impede their business operations.
A decree from China Customs on 1 May 2018 heralded that implementation of the new Enterprise Classification system had been completed.
The below chart gives a simple approximation of how the new classification system compares with the previous one.
Note however that not all companies previously rated C or D are necessarily now considered to be "Discredited".
|Customs Accreditation Classification||Accreditation Logo||Previous Compliance Rating Scheme|
|Advanced Certified Enterprise||AA|
|General Certified Enterprise||A|
N.B. the text "AEO" present in the first 2 accreditation logos stands for "Authorized Economic Operator" and is given to all China Customs "certified" enterprises.
As you can see from the table above China Customs assesses 4 different levels for Chinese trading enterprises:
Companies with this authorization enjoy significantly reduced inspection rates, can declare goods prior to arrival at Customs and have a coordinator assigned. Re-authorization for advanced level is required once every 3 years.
With General Certified status companies are subject to inspection at a reduced rate and get priority in Customs clearance.
This is the default category for companies which haven't applied for "Authorized Economic Operator" status and have a regular social credit rating.
Discredited enterprises are still able to engage in foreign trade, but do so under much stricter conditions, such as enduring an increased rate of inspections & audits.
Here are some examples from our research in August 2018 of the current China Customs enterprise classification for some of the more famous of China's millions of companies:
|Customs Accreditation Classification||Company Name|
|Advanced Certified Enterprise||Lenovo (Shanghai) Electronics Technology Co., Ltd.|
|Tsingtao Brewery Co.,Ltd.|
|General Certified Enterprise||Sichuan Changhong Electric Co., Ltd.|
|General-Credit Enterprise||Beijing Jingdong Century Trading Co., Ltd.|
|Shenzhen Tencent Computer Systems Company Limited|
|Discredited Enterprise||Sinotrans (Tianjin) Storage and Transportation Co., Ltd.|
Have you received a China ISO 45001 certificate and wondered what it is, if it is real and how to check it?
Replacing the previous standard OHSAS 18001 in 2018, this new international standard specifies the requirements for occupational health and safety.
The uptake of certification to this standard in China has been quick and many Chinese organizations are providing their clients with copies of their China ISO 45001 certificate. Learn more about it here.
Whether you are planning a trip to China, researching a specific location, or trying to figure out how bad the Beijing rush hour is, there are plenty of good reasons to use China map websites.
Although most international map websites cover China, these websites face various restrictions which mean they can't provide a service as in-depth as their Chinese counterparts, so it is a good idea to know your options.
In this article we introduce the 8 most useful China map websites, including both international services available in your language, and some impressive domestic websites only available in Chinese.
With the high cost of sending freight by air, and the slow speed of sea freight, Chinese exporters are increasingly utilizing China to Europe freight trains as a means of sending their produce west.
As might be expected, the majority of these trains depart from cities located far from China's coastline and her seaports, but which Chinese cities have the most rail shipments?
We took a look at the data and found that the top 5 cities for China to Europe freight trains are each provincial capitals with huge populations - with Chengdu in Sichuan province leading the way.