The Steps to Export a Food Machine

How Exporting a Machine Differs From Selling in Taiwan

When selling a machine in Taiwan, delivery is done once a truck brings it to the customer's plant, it's connected, test-run, and the staff are trained. Exporting adds several hurdles: the destination's power supply and regulations, trade terms, export customs clearance, ocean freight, import clearance, and finally installation and training. Each step can affect delivery time, so thinking the process through before exporting matters more than anything.

Step 1: Confirm Specifications and Destination Requirements

When an overseas customer inquires, first confirm a few things:

• The product to be made: Product type, unit weight, and required capacity. Ideally, ask the customer to send recipes or product photos to confirm the model is suitable.
• Power supply: Local voltage, phases, and frequency. Taiwan is 60Hz, while many countries are 50Hz; see voltage and frequency differences by country.
• Regulations and certification: Selling to the EU requires CE; see CE marking. Selling to the US requires confirming hygiene and electrical requirements; see FDA, NSF, and UL for the US market.
• Export controls: Confirm that the destination country and buyer aren't subject to controls; see Export Controls and Sanctioned Countries.

Step 2: Quotation, Contract, and Payment

The quotation should clearly state the model, accessories, power specifications, unit price, trade term (for example, FOB Kaohsiung Incoterms® 2020), packing method, delivery time, payment terms, and whether installation and training are included. For choosing trade terms, see How to Choose Trade Terms.

Common payment methods are telegraphic transfer (for example, a deposit plus the balance before shipment) and letters of credit. With a letter of credit, the documents must match the L/C terms exactly, or the negotiating bank will flag discrepancies.

Step 3: Production, Test Runs, and Packing

The machine is built to the agreed specifications and test-run before leaving the factory, ideally using ingredients supplied by the customer or a similar recipe. The test run can be recorded on video for the customer to approve.

Next comes export packing: cleaning, securing, rust protection, moisture protection, and an outer wooden crate. Solid wood crates must comply with ISPM 15; see How to Pack Machinery for Ocean Export and ISPM 15 Wood Packaging Rules.

Step 4: Booking and Export Customs Clearance

The party responsible for freight (the buyer under FOB, the seller under CIF) books space with the shipping line or freight forwarder and obtains the shipping order or booking note.

The legal basis for export customs clearance is the Customs Act (關稅法) and the Ministry of Finance's Regulations Governing the Declaration, Inspection, and Release of Export Goods (出口貨物報關驗放辦法):

• Declaration timing: Under Article 16 of the Customs Act, export goods must be declared within the specified period before the means of transport clears customs or departs; advance declaration is also possible.
• Documents: Under Article 17 of the Customs Act and Article 6 of the release regulations, you need an export declaration, shipping order or booking note, packing list, and proof of warehouse entry; goods exempt from export permits are declared at actual value with an invoice or other proof of value attached.
• Clearance channels: Customs' computer system sorts declarations into three channels: C1 (no document review or inspection), C2 (document review), and C3 (physical inspection). C1 can be released directly for loading; C2 and C3 are released after documents are submitted or inspection is completed.
• Loading: Under Article 20 of the release regulations, goods may only be loaded after release, and must be loaded within 30 days from the day after release; otherwise the shipment must be withdrawn.

Who Handles Customs Declaration

Under Article 22 of the Customs Act, customs procedures "may" be entrusted to a customs broker; this is an option, not a requirement. In practice, machinery exports are mostly handled by customs brokers, who declare electronically with review and certification by a licensed customs specialist; a power of attorney must be attached when entrusting a broker. What the exporter must prepare are commercial documents such as the invoice and packing list, along with the correct description and tariff code; see export documents and HS tariff codes.

In addition, under Article 9 of the Foreign Trade Act (貿易法), companies engaged in import and export business must first register as importers/exporters; the current Regulations Governing Registration of Exporters and Importers (出進口廠商登記辦法) no longer have a capital threshold, and all applications are made online.

Step 5: Documents and Tax After Loading

After loading, the carrier issues the bill of lading; a certificate of origin is applied for if needed. Customs issues a copy of the export declaration within 15 days from the day after the vessel departs.

Exported goods are zero-rated under Article 7, Subparagraph 1 of the Value-added and Non-value-added Business Tax Act (加值型及非加值型營業稅法); for goods exported through customs, no other supporting documents are required under Article 11 of the Enforcement Rules.

Finally, the bill of lading, invoice, packing list, certificate of origin, and so on are delivered to the buyer (or negotiated through a bank). The buyer collects the goods at the destination port with the bill of lading, clears import customs, and then arranges installation; see Overseas Installation, Training, and Remote Support.

How Long Does It Take?

The overall time is mainly held up in three places: machine production and test runs, vessel schedules, and the ocean voyage. Customs clearance itself is quick when documents are complete and the declaration is released under C1; C2 and C3 take extra time for supplementary documents or inspection. Actual timelines depend on the model, production schedule, destination port, and vessel schedules, and should be planned together with the manufacturer and freight forwarder when ordering.

For Dong-Yih Machinery's export process and lead times, please call 06-257-4644 or reach us through our contact information page.

FAQ

Q: What steps are involved in exporting a machine?
A: Confirm specifications and destination requirements → quote and sign the contract → production and test runs → export packing → booking → export clearance and release → loading and obtaining the bill of lading → delivering documents to the buyer → import clearance and installation.

Q: Do we have to use a customs broker for export declaration?
A: Not necessarily. Article 22 of the Customs Act says customs procedures "may" be entrusted to a customs broker, but in practice most machinery exports are handled by brokers, who declare electronically.

Q: What are C1, C2, and C3?
A: Customs clearance channels. C1 means no document review or inspection, C2 requires document review, and C3 requires physical inspection; Customs' computer system selects the channel based on the company's record and the nature of the goods.

Q: Do we charge business tax on export invoices?
A: Exported goods are zero-rated under Article 7, Subparagraph 1 of the Value-added and Non-value-added Business Tax Act, and for goods exported through customs, the export declaration serves as proof with no other documents required.

Q: How long from order to the customer receiving the machine?
A: It depends on the production schedule, vessel schedules, and voyage time; customs clearance itself is usually not the bottleneck. Confirm the actual timeline with the manufacturer and freight forwarder.