- Q
How to address payment risk and forex control in African market?
- A
Prioritize Letters of Credit (L/C): Mitigate default risk through bank guarantee, particularly when trading with new African customers. Focus on foreign exchange control countries: in countries like Nigeria and Angola where foreign currency is scarce, confirm in advance whether buyers can secure USD quotas or agree upon partial settlement with local currencies. Utilize China-Africa financial platforms such as the China-Africa Development Fund and Bank of China Africa can provide cross-border RMB settlement services to mitigate the risk of exchange rate fluctuation.
- Q
How can Chinese companies cope with Africa's complex customs clearance and tax policies when exporting?
- A
Study the policies of target country in advance: customs and tax systems of different African countries vary significantly (e.g., 15% VAT in South Africa and high external tariffs in the East African Community); obtain updated regulations via Chinese embassies or professional consultancies. Choose reliable customs clearance agents: Some African countries have low clearance efficiency and gray fees. You may entrust Chinese logistics companies (e.g., COSCO Shipping, China Merchants) or local compliant agents.
- Q
What categories of exhibits can be admitted to the China-Africa Expo?
- A
For exhibits requiring quarantine approval (e.g., animals/plants, special goods), exhibitors must submit their application for approval before entry and obtain customs clearance. Animal and plant products without import quarantine approval are prohibited from entry for exhibition. Exhibits shall comply with the “List of Restricted Items for Inspection and Quarantine at the 3rd China-Africa Economic and Trade Expo” and the “List of Prohibited Items for Inspection and Quarantine at the 3rd China-Africa Economic and Trade Expo”.
