In October 2025, China enacted a comprehensive tightening of its export and customs regime. The new regulation requires that every exporter and importer operating in China be officially registered and identifiable to the tax and customs authorities. It also requires an Import or Export license and the relevant business scope.
In practical terms, this means the end of the old “grey-trade” model in which intermediary so- called “trading companies” exported goods under their own license – without revealing the real manufacturer. That model may have been convenient (and cheap), but it exposed exporters and importers to serious risks.
The new regulations are officially dealing with Exports, but our on-the-ground experience shows that the tightening is an overall scheme applied to Imports, too.
As of October 1, 2025:
- All export-related documentation – invoices, statements, export declarations – must clearly reflect the actual source of the goods and identify the real manufacturer.
- Brokerage/trading firms are no longer allowed to submit export declarations on behalf of a third-party manufacturer. The exporting entity now must assume full ownership and responsibility for the goods (in more simplified words, they will actually need to buy the goods).
- Failure to comply – including inconsistencies or lack of transparency in documentation – may result in delays, credit rejection (e.g. VAT refunds), or even fines.
What Does the Reform Mean for International Companies Operating in China?
The new 2025 export regulations change the rules of the game also for all international procurement, distribution, and supply-chain operations. This applies firstly to exporting goods out of China, but as mentioned above, we’ve seen similar practices applied for importing goods as well. The entire flow of goods – inbound and outbound – is now under stricter scrutiny. Companies sourcing from China can no longer rely on outdated “buy through some Chinese trading company/freelancer” models. Instead:
- Transparency along the supply chain, reflected in the money transactions – from local purchase through to export documentation – is now mandatory.
- Responsibility becomes shared: both the Chinese manufacturer and the foreign company must ensure that all steps comply with the regulatory requirements.
- International companies that ignore the changes risk documentation problems, customs delays, and legal exposure – domestically and internationally.
Recommended Actions: How to Comply with the New Import-Export Rules
If you import to, export from, or manufacture in China, we recommend:
- Audit your supply chain – ensure every link (supplier, manufacturer, broker) is legal, properly registered, and fully complies with the new regulation.
- Avoid unlicensed or unofficial intermediaries – shortcuts through “quick-and-cheap” brokers may become costly under the new rules.
- Consider establishing a formal legal entity or working with licensed export/import partners when dealing with high-volume or recurring business.
- Maintain full documentation and rigorous compliance – from manufacturing orders, through logistics, to export declarations and invoicing.
- Work only with trusted, authorized partners – those capable of managing compliance, transparency, and all administrative responsibilities.
>> Read more about our Trading Services in China and our Import and Export Services in China
Now Is the Time to Work with a Trusted Partner
With the regulatory changes of 2025, the kind of model long practiced by PTL Group is no longer just recommended – it’s essential. PTL Group has operated in China for over 25 years with a fully transparent, compliant, and licensed operational model: from procurement and warehousing to logistics and export documentation.
Today, more than ever, international companies seeking stability, compliance, and growth in China can benefit from our deep experience in navigating the complex regulatory and logistical environment.
If you want to ensure your China import and export operations are built on a solid foundation – with compliance, transparency, and minimal risk, we are here to help.
