International Trade
Trade Compliance Policies
Full B2B export policies. Effective 2026-09-15. Reviewed annually or upon regulatory change. Applies to all RFQs, contracts, and shipments worldwide.
Document owner: Sales & Legal · SHENHE ZHONGKE · Version: 1.0 (2026-09-15) · Source of truth: TRADE-COMPLIANCE.md (also distributed to llms.txt and ai.txt for AI agents)
SHENHE ZHONGKE · International Trade & B2B Compliance Policies
Effective date: 2026-09-15 Owner: Sales & Legal · SHENHE ZHONGKE Review cycle: Annual or upon regulatory change Applies to: All B2B export contracts, RFQs, and product shipments worldwideThis document is the source of truth for all trade-compliance disclosures on the SHENHE ZHONGKE website (shenhezhongke.com), in `llms.txt` and `ai.txt`, and in the i18n JSON files. Any change here must propagate to all consumer-facing surfaces.
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1 · Pricing & Currency (P0)
1.1 Display currency
- Default display currency: USD (United States Dollar)
- Tiered unit pricing shown on all product pages (per bottle / sachet / vial)
- Single-tier "from" price may appear in marketing copy; final price depends on volume, packaging, and Incoterm
1.2 Settlement currencies
- Accepted: USD, EUR, RMB (CNY)
- Default invoice currency is USD unless buyer requests EUR or RMB at quote time
- Bank wire fees on buyer's side; receiving-bank fees on supplier's side
1.3 FX / currency-risk policy
- Orders ≥ USD 30,000: FX rate locked at invoice date (invoice date = date of Proforma Invoice issuance). Rate = mid-rate from PBOC (People's Bank of China) plus 0.3% buffer
- Orders < USD 30,000: FX rate fixed at deposit-receipt date (date buyer's T/T arrives at our bank)
- Risk allocation: Buyer bears FX risk from invoice date to deposit-receipt date. Supplier bears FX risk from deposit date onward
- Currency conversion fees: All conversion fees are on the initiating party (buyer pays for USD→EUR conversion when paying in EUR)
2 · VAT, GST, and Import Duty (P0)
2.1 Pricing basis
- All published prices are EX-Works VAT-exclusive, GST-exclusive, and import-duty-exclusive
- Buyers (importers of record) are responsible for all destination-country taxes and import duties
2.2 EU / EEA buyers
- EU buyers with valid VAT registration: self-account VAT via their VAT number on the import declaration (reverse charge mechanism per EU VAT Directive Article 196)
- EU buyers without VAT registration: import via IOSS (Import One-Stop Shop) or standard customs clearance; we provide commercial invoice with HS code and country of origin for the declaration
- We do NOT charge EU VAT on B2B invoices
2.3 UK buyers (post-Brexit)
- Same VAT treatment as EU buyers but with GB EORI number required on import documentation
2.4 Other regions
- USA: buyer pays import duty and any FDA user fees at port of entry
- Canada, Australia, Japan: same — buyer self-declares at customs
- We provide: commercial invoice, packing list, certificate of origin (Form A or RCEP if applicable), HS code, country of origin = China
2.5 Tax documents provided per shipment
- Commercial invoice (signed, stamped)
- Packing list
- Certificate of Origin (issued by CCPIT)
- HS code (printed on commercial invoice)
- Fumigation certificate (if ISPM-15 pallet used)
- Insurance certificate (if CIF/CIP term used)
3 · Incoterms® 2020 (P1)
3.1 Default term
- FOB Guangzhou / Shenzhen (Free On Board, named port of loading = Guangzhou or Shenzhen, China)
- Risk transfers when goods cross the ship's rail at the named port of loading
- Supplier arranges export clearance; buyer arranges import clearance, ocean freight, insurance from FOB point onward
3.2 Other available terms (on request)
- EXW (Ex Works) — buyer collects at our Heyuan factory
- FCA (Free Carrier) — buyer nominates carrier at named place
- CIF (Cost, Insurance & Freight) — supplier pays ocean freight + 110% insurance to named port
- CFR (Cost and Freight) — same as CIF but buyer insures
- DAP (Delivered At Place) — supplier delivers to buyer's named address, duties unpaid
- DDP (Delivered Duty Paid) — supplier pays all duties and delivers to buyer's door
- DPU (Delivered at Place Unloaded) — supplier delivers and unloads at named place
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4 · Payment Terms (P0)
4.1 Standard terms
| Order value | Term | Mechanism |
| ------------- | ------ | ----------- |
| < USD 30,000 | 30% T/T deposit + 70% balance before shipment | Wire transfer (SWIFT T/T) |
| ≥ USD 30,000 | 30% T/T deposit + 70% L/C at sight | Wire + Letter of Credit |
| ≥ USD 100,000 | Custom (D/P, D/A, OA) on request | Negotiable per case |
- 30% T/T deposit is non-refundable once artwork approval and formula (if OEM) is finalized
- Custom formula R&D costs are non-refundable once lab bench work begins
4.3 Payment methods
- T/T (Telegraphic Transfer) — primary
- L/C (Letter of Credit) — at sight, irrevocable, confirmed by a Tier-1 Chinese bank
- D/P (Documents against Payment) — for established buyers
- D/A (Documents against Acceptance) — for established buyers
- PayPal — only for samples under USD 500
- RMB via domestic bank transfer — for Chinese buyers
5 · Cancellation, Refund, and Return Policy (P0)
5.1 Cancellation timeline
| Stage | Cancellation window | Refund |
| Before deposit | Anytime | N/A (no payment made) |
| Deposit paid, production not started | 7 days from deposit | 100% refund of deposit |
| Production started | After artwork approval | 30% deposit forfeited |
| Production 50%+ complete | After artwork approval | 30% deposit + 50% of balance forfeited |
| Production 100% complete | After artwork approval | 30% deposit + 100% of balance forfeited (or buyer accepts shipment) |
- Free samples of 16 existing SKUs: customer pays shipping only (USD 30-80 via DHL/FedEx)
- Paid custom-formula samples: USD 200-500 per formula; non-refundable once lab work begins
- Sample quantities: 3-5 units per SKU; turnaround 5-7 days (existing SKUs) or 7-14 days (custom)
5.3 Return / refund for defective goods
- 7-day acceptance window from arrival at destination port
- Buyer must file claim with photo evidence and lab report within window
- Verified defects: replacement at supplier's cost + return shipping back to FOB Guangzhou
- Force majeure / buyer-caused defects: no refund
6 · Quality Guarantee and Acceptance (P1)
6.1 Pre-shipment quality control
- 6-step in-house QC: IQC → batching → IPQC → filling → OQC → 3rd-party claim verification
- COA (Certificate of Analysis) per batch attached to shipment
- MSDS available for all 16 SKUs
6.2 Acceptance criteria
- Product must match Proforma Invoice specifications (formula, packaging, dimensions, labeling)
- Active-ingredient content within ±5% of declared value
- pH within ±0.5 of declared value
- Microbial load within EU/ISO 17516 cosmetic limits
- Appearance, color, fragrance must match approved reference sample
6.3 Acceptance window
- 7 days from arrival at destination port for visible / packaging defects
- 30 days for active-ingredient / efficacy claims requiring lab verification
- Force majeure events toll the acceptance window
6.4 Non-conforming goods procedure
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7 · Product Liability Insurance (P1)
7.1 Current coverage
- Product Liability Insurance (PII): Available on request
- Coverage limit: USD 1,000,000 per occurrence / USD 5,000,000 aggregate (underwritten by PICC Property and Casualty Company Limited)
- Policy number: on file — contact sales for certificate copy
- Geographic coverage: Worldwide (with USA / Canada / EU primary)
7.2 EU importers
- For EU-market buyers, we can add buyer as additional insured for orders ≥ USD 30,000 (one-time administrative fee USD 200)
- All EU importers should also maintain their own product liability coverage per EU Product Liability Directive 85/374/EEC
7.3 Indemnification
- Supplier indemnifies buyer against third-party product liability claims arising from manufacturing defects, formulation errors, or labeling non-compliance, up to PII coverage limit
- Buyer indemnifies supplier against claims arising from buyer's modifications, relabeling, or downstream marketing claims
8 · Regulatory Compliance (P1)
8.1 China
- GB National Standard compliance for all pet care products
- CSAR (Cosmetic Supervision and Administration Regulation) for applicable products
- CQC mark on selected consumer SKUs
8.2 USA
- FDA Facility Registration: [USER TO PROVIDE ACTUAL NUMBER — currently placeholder]
- 21 CFR (Code of Federal Regulations) for cosmetic / drug claims
- Fair Packaging and Labeling Act (FPLA) compliance
- Prop 65 (California) compliance — statement available on request
8.3 EU
- Regulation (EC) 1223/2009 (Cosmetics Regulation) for applicable leave-on / rinse-off pet care products
- REACH (Registration, Evaluation, Authorisation and Restriction of Chemicals) — SVHC declarations available on request
- CLP (Classification, Labelling and Packaging) — Safety Data Sheets (SDS) per Annex II
- CPSR (Cosmetic Product Safety Report) — available for applicable SKUs on request (lead time: 14-21 days, fee USD 500-1500)
- BPR (Biocidal Products Regulation 528/2012) — applicable to disinfectant SKUs
8.4 Other markets
- UK post-Brexit: UKCA marking where applicable
- Canada: Health Canada NNHPD notification where applicable
- Australia: TGA (Therapeutic Goods Administration) exemption for pet care cosmetics
- Japan: Quasi-drug registration where applicable
8.5 Documentation package per market (on request)
- CPSR (EU)
- SDS / MSDS (16-language)
- Ingredient disclosure (INCI)
- Allergen declaration
- Animal-testing statement (Cruelty-Free, Leaping Bunny pending certification 2027)
- Vegan / plant-based statement where applicable
- Certificate of Free Sale (CFSE)
9 · Intellectual Property and Confidentiality (P1)
9.1 Confidentiality
- All RFQ-stage exchanges covered by mutual NDA (Non-Disclosure Agreement)
- Standard NDA provided within 24 hours of inquiry
- Custom NDA accepted (buyer-drafted) with mutual review
- Survival: 5 years post-last-shipment
9.2 IP ownership
- ODM (our 16 SKU + your label): product formula IP owned by supplier; buyer owns label / brand IP; perpetual royalty-free use of formula for buyer
- OEM (your formula): full IP transfer to buyer upon full payment; supplier retains manufacturing process IP and right to use for other clients
- OBM (turnkey): joint IP shared; specific terms in SOW
9.3 Patents
- Supplier holds 8+ patents (bio-enzyme + probiotic complex, chlorine dioxide system, plant-based insect repellent blend, trigger-lock spray gun)
- Full patent register provided under NDA on request
10 · Sustainability and ESG (P2)
10.1 Current certifications
- ISO 22716 (Cosmetic GMP)
- Cruelty-free formulations (no animal testing on finished products; ingredients not tested on animals since 2020)
- Plant-based ingredient portfolio for 11 of 16 SKUs
10.2 In progress (2026-2027 roadmap)
- ISO 14001 (Environmental Management) — Q2 2027 target
- ISO 45001 (Occupational Health) — Q4 2026 target
- Leaping Bunny certification — 2027 target
- Sedex / SMETA 4-Pillar audit — Q4 2026 target
- Carbon footprint disclosure (Scope 1 + 2) — 2027 target
10.3 Social compliance
- Living wage floor for all direct employees (220+)
- 5-day work week; overtime capped at 36h/month per Chinese Labor Law
- Free on-site dormitory, cafeteria, clinic for all staff
- University partnerships (3 partner universities for formulation chemistry, microbiology, packaging engineering)
10.4 Environmental
- Class-D cleanroom waste water treated on-site to GB 8978-1996 standards before discharge
- Solar panel installation on warehouse roof — Q4 2026 target (1.2 MW capacity, 30% of facility demand)
- Plastic packaging: PCR (Post-Consumer Recycled) option available at +5% unit cost
11 · Dispute Resolution and Governing Law (P0)
11.1 Governing law
- All contracts governed by the laws of the People's Republic of China (excluding Hong Kong, Macau, Taiwan)
- Mandatory PRC law applies where Chinese parties are involved (per PRC Contract Law Article 7)
11.2 Dispute resolution mechanism
- Default: arbitration administered by China International Economic and Trade Arbitration Commission (CIETAC) in Shanghai
- Language: English
- Procedural rules: CIETAC Arbitration Rules (current edition)
- Number of arbitrators: 3 (one appointed by each party, one by CIETAC acting as presiding arbitrator)
- Seat of arbitration: Shanghai, China
- Award: final and binding on both parties; enforceable in 170+ jurisdictions under New York Convention 1958
11.3 Alternative mechanisms (on request for orders ≥ USD 100,000)
- ICC International Court of Arbitration (Paris) — preferred for EU / US buyers
- Hong Kong International Arbitration Centre (HKIAC) — preferred for Asia-Pacific buyers
- Litigation — only in PRC courts of competent jurisdiction (buyer's local courts not accepted unless mutually agreed)
11.4 Pre-arbitration dispute escalation
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12 · Contact for Trade Compliance Questions
| Topic | Contact | Phone | |
| ------- | --------- | ------- | ------- |
| Pricing / quote | Sales | wow1993.lin@gmail.com | +86-762-3909998 |
| Customs / HS code | Logistics | wow1993.lin@gmail.com | +86-762-3909998 |
| Compliance / REACH / FDA | Compliance | wow1993.lin@gmail.com | +86-13631559852 |
| Quality / dispute | Quality Manager | wow1993.lin@gmail.com | +86-13631559852 |
| NDA / IP | Legal | wow1993.lin@gmail.com | +86-13631559852 |
Document Control
- Version: 1.0 (2026-09-15)
- Author: Mavis (audit) + SHENHE ZHONGKE sales team
- Review: annual or upon regulatory change
- Distribution: public website, llms.txt, ai.txt, customer-facing sales materials