Written by Bruce Mitchell
Edited and published by William Billeaud
If you have available equipment in the U.S. that you can relocate without impacting your existing manufacturing capacity for current sales, you should seriously consider relocating the equipment to your China operations. It can be more affordable for the business to move production overseas and it can improve productivity too. Some companies are worried about moving overseas because they feel like the quality of the product may decrease but then that’s where independent third party organizations like Jonble come into play. Companies like Jonble can audit factories as well as complete full inspections of manufacturing to ensure that the products being created are fit for consumers. However, If you think that all you need to do is disconnect the equipment, perhaps clean it up a little, paint it, crate it and arrange for shipping by air or ocean freight, you may be sorely disappointed.
At best, you will have to pay to have the equipment shipped back to the U.S. Once it has been shipped back to the United States, it can then be transported to the relevant place from there. Of course, depending on the size of your freight, you may be required to look at the cost of pellet shipping from somewhere like CSA Transportation (https://www.csatransportation.com/blog/simplified-pallet-shipping-rate-pricing-better-serve-your-customers) to see how much you would be required to spend to make sure it reaches the right place. However, this option could be considered as a last resort. At worst, China Customs may refuse any attempts by you to transport the equipment to your facility and could impound your equipment indefinitely. Do you remember the scene in the Indiana Jones movie where they showed the crate of the Arc of the Covenant along with thousands of other similar crates in a warehouse that seemed to go on forever?! That could be your equipment stored right next to it! I have also heard of instances where the equipment was sold back to the original owners by China Customs. Following is the procedure that you will need to follow:
Used Equipment Import Procedure
1. Apply to the local China Entry-Exit Inspection and Quarantine Bureau (CIQ) for a Registration Record along with a list of the equipment to import with the following information for each:
B. Date of manufacture
C. Name of the manufacturer
D. Model number
E. Market value
F. Degree of use
G. Manufacturing purpose
H. HS code
I. UL approved?
J. Equipment currently operational?
K. Are there any environmental issues associated with the equipment?
2. From the equipment description the CIQ will determine whether or not the equipment can be imported into China.
3. If approved, CIQ will provide “Assignment Notice and Registered Record” to your local Chinese General Manager.
4. Apply to CCIC North America Inc. (CCIC NA) for a “Pre-shipment Inspection” which should include the following:
-The Assignment Notice and Registered Record for the used equipment issued by the CIQ.
– Pre-shipment Inspection Application for each piece of equipment includes the following:
a. The intended equipment to be imported
b. Manufacturer’s name
c. The manufacture date and equipment value.
d. Equipment function, principle of operation and manufacturing operation translated into Chinese
e. Operable or not?
f. Drawing or sketch showing where the equipment is located in your facility
5. Forward to the CCIC NA
6. CCIC NA reviews the documents and provides the applicant with an inspection quotation cost.
7. Mail or wire the payment for the inspection fees.
8. After the CCIC NA confirms receipt of payment they schedule an inspection date and an inspector.
9. CCIC inspector will visit the site to perform the inspection.
10. Inspector develops a report listing any non-conformances.
11. Develop a corrective action report that notes actions taken to overcome the non-conformities found during the inspection
12. Submit action items to the CCIC NA. They must be completed prior to arrival in China.
13. After reviewing and approving the action plan, CCIC NA issues a certificate of pre-shipment inspection on the equipment.
14. CCIC NA mails the inspection certificate directly to the Chinese General Manager in China.
15. General Manager then provides the inspection certificate to the CIQ for final approval.