Q&A with Sara Cheng from the NSW Business Chamber

Sara Cheng, Head of International Business at Australian Business Consulting & Solutions, part of the NSW Business Chamber, joins us this month to answer your questions about exporting to China.

Q. Once you have trademarked your products in China, are you legally protected against counterfeiting?

A. Yes, the Chinese government strictly implements IP (intellectual property) protection laws.

The Chinese government values the protection of foreign trademarks and encourages businesses to develop their intellectual properties in China. China’s long-term strategy is to move away from being the world’s factory and encourage businesses to invest in research and development and become brand owners, so the respect and protection of trademarks, patents and copyrights are of the highest importance.

China’s trademark system operates on a ‘first-submission-first-get’ basis. You are unable to file the same or a similar trademark once it has been submitted to the Chinese government for registration. This is why we always encourage Australian businesses to start considering trademark registration in China as soon as they can, even if they don’t plan to enter the Chinese market for another five years. As one of the largest agencies to register Australian trademarks in China, we have seen quite a few Australian businesses’ trademarks “hijacked” before they’ve had the opportunity to register it themselves.  

Q. Do all cosmetics exported from Australia need to be tested on animals for sale in China?

A. If your business intends to export its cosmetics products to China through traditional in-store trade, then yes, your products will need to be tested. However, if you sell your cosmetic products into China via cross-border e-commerce channels, no animal testing is currently required. We often recommend Australian businesses looking to trade in China start with cross-border e-commerce channels.

China is also considering relaxing its animal testing requirements for imported cosmetic products.

Q. What product categories need CNCA approval to enter China?

A. CNCA stands for Certification and Accreditation Administration of the People's Republic of China, a government body that oversees the testing, certification and accreditation of both locally manufactured and imported products.

CNCA regulates and manages foreign food supplier registration, food products filing, registration for mechanical or electrical products, glass products, building materials, toys, etc. The requirements for product and supplier registrations are complex and depend on the product category. Hence regulatory clarification is the next step after trademark registration for any business considering the China market

Q. What barcodes are seen as legitimate in China?

A. EAN (European Article Number) barcodes are widely accepted in China. When suppliers use the EAN barcodes, they need to register them directly with Chinese government agencies or through their importers, distributors, agents.

Q. Where can I find out more information on the China–Australia Free Trade Agreement and what the import taxes on my products will be?

A. The China-Australia Free Trade Agreement (ChaFTA) entered into force on 20 December 2015. Both countries have reciprocally reduced their import duties, which will eventually be down to zero, for most of the product categories imported from the other country. The import duty under ChaFTA can be found on DFAT’s ChaFTA webpage here.

To enjoy the benefits of reduced import duties, exporters must obtain a ChaFTA Certificate of Origin. The NSW Business Chamber, trading as Australian Business Chamber in the overseas market, is authorised to issue Certificates of Origin under ChaFTA.

Q. Where can I get help if I want to start exporting to China?

A. There are several organisations you can consult if you are looking to export to China, these include Austrade, state chambers, relevant industry associations, foreign countries’ embassies, consulates in Australia and export consultancies.

Of course, you are also most welcome to talk to my team the International Business department at Australian Business Solution Group. We are a commercial division of the NSW Business Chamber who specialise in assisting Australian businesses to enter and expand into foreign markets, especially China.

We are regarded as the leader in China export services, serving more than 150 businesses each year through our offices in both Sydney and China. Our Chinese trade specialists offer several services to Australian exporters, including trademark registration and opposition in China, strategy, social media, building critical business contacts and local representation in China.

For more information or if you would like to get in contact with Sara Cheng, please email sara.cheng@australianbusiness.com.au. You can also view Sara Cheng’s Australian Made webinar here.

Disclaimer: The above information is general in nature and not tailored to your business objectives, market situation or needs. Businesses looking to export to China should consult relevant government agencies and experts for specific business advice, as practices and regulations are constantly changing.