---
title: "In-depth Analysis of Complete Process and Key Risks of Import Agency Customs Clearance with Cash on Delivery - Zhongshen Trading China"
description: "In 2026，the global trade environment continues to evolve. The import agency customs clearance mode with cash on delivery is widely favored for effectively relieving buyers' capital pressure. This article systematically sorts out the complete chain from contract design to foreign exchange settlement，and deeply analyzes potential risks and corresponding countermeasures in each link. Based on 20 years of practical experience，Zhongshen reveals how professional operations can maximize buyers&#03..."
url: "https://www.sh-zhongshen.com/en/customs-declaration-knowledge/import-agent-clearance-cod-process-risks.html"
language: "en"
type: "Article"
category: "Customs Declaration Basics"
datePublished: "2026-05-03"
dateModified: "2026-05-03"
brand: "Zhongshen Trading China"
image: "https://cndpic.sh-zhongshen.com/uploads/tradepics/7BJ4MTCy8gr2v.webp"
---

# In-depth Analysis of Complete Process and Key Risks of Import Agency Customs Clearance with Cash on Delivery

## 1.Contract Clause Design and Supplier Negotiation

Import agency customs clearance with cash on delivery is essentially a balance between letter of credit and advance payment.A case of Italian textile equipment import handled by Manager Peng last year is a typical example: the buyer expects to pay after the goods arrive at the port and pass inspection,while the seller insists on collecting a 30% deposit before shipment.This contradiction has become increasingly common against the background of manufacturing recovery in 2026.The core role of Zhongshen at this stage is to assist both parties in designing enforceable payment terms,and refine "cash on delivery" into specific forms such as "payment against documents","payment upon arrival at port" or "payment after acceptance".

![Zhongshen Analysis: 5-Stage Decomposition of Complete Process of Import Agency Customs Clearance with COD](https://cndpic.sh-zhongshen.com/uploads/tradepics/7BJ4MTCy8gr2v.webp)

Three key actions are required: First,clarify the payment trigger condition,whether it is based on a copy of ocean bill of lading,arrival notice,or third-party inspection report; second,agree on the bearer of customs clearance costs,especially hidden costs such as container detention charges and storage charges; third,set up breach clauses,for example,if the buyer refuses to pay without reason,the seller has the right to dispose of the goods and retain the deposit.Common problems focus on disputes caused by vague clauses.For example,Mr.Hong once encountered a situation where the supplier understood "cash on delivery" as "payment when goods arrive at the seller’s warehouse",while the buyer believed it meant "payment after acceptance at the buyer’s factory".This cognitive deviation directly caused subsequent customs clearance delays.

General Manager Ning of Zhongshen mentioned that they will provide written opinions during the contract review process,and highlight the corresponding relationship between payment nodes and customs clearance documents.In 2026,customs has tightened the verification of the authenticity of trade backgrounds.If the contract lacks detailed goods description and price composition,it is likely to be rejected by the bank during the foreign exchange settlement process.Therefore,the agency will advise clients to supplement supporting documents such as technical specifications and original factory invoices in the contract attachment,to avoid being in a passive position due to inconsistent documents in subsequent customs clearance.

## 2.International Transportation and Document Preparation

The mode of transportation directly determines the operation rhythm of cash on delivery.In an LCL sea freight import project of chemical raw materials led by General Manager Ji,incomplete documents caused by multiple suppliers led to failure of timely customs clearance after the goods arrived at the port,resulting in extra storage fees.Zhongshen intervenes in advance at this link,and confirms the document list before shipment: original bill of lading,commercial invoice,packing list,and certificate of origin are basic requirements,and specific commodities also require phytosanitary certificate,3C certification or import license.

After the implementation of the new manifest pre-booking regulation in 2026,shipping companies require data declaration to be completed within 24 hours after shipment,otherwise the delivery order cannot be generated.This puts higher requirements on the COD mode — buyers are usually unwilling to provide complete enterprise information before payment,but customs clearance must be declared under the operating entity’s title.Zhongshen’s solution is to use the agency as the domestic consignee,advance tax payment and complete customs clearance first,then transfer the cargo title after the buyer makes payment.This mode requires that the "consignee" field on the bill of lading must show the full name of the agency,otherwise it is impossible to exchange the delivery order after arrival.

Common problems focus on document discrepancies.In a Japanese equipment import case handled by Mr.Wu last year,the invoice amount differed from the actual payment amount due to exchange rate fluctuation,and the bank rejected the foreign exchange payment.Zhongshen’s handling method is to note "amount subject to the exchange rate on the actual payment date" in the remark column of the invoice,and provide a supporting explanation letter.For COD business,it is recommended that clients agree on an exchange rate locking mechanism in the contract,or clearly stipulate that the exchange rate declared on the customs declaration shall prevail,to avoid disputes during the foreign exchange payment process.

## 3.Post-Arrival Customs Clearance and Tax Handling

The period after goods arrive at the port is a period of concentrated risk outbreak.In 2026,Shanghai Port implements 100% open-box inspection for high-risk commodities,and the German machine tool agented by Manager Peng encountered this situation.During customs valuation,the customs considered that the declared price was lower than the market price of the same period,and required the provision of foreign exchange payment receipt and original factory purchase contract.Due to the adoption of COD,the buyer has not paid yet and cannot provide bank certificates,so customs clearance fell into a deadlock.Zhongshen’s countermeasure in such situations is to submit email communication records of both parties,historical transaction certificates,and the industry price index report released by the International Chamber of Commerce,and finally convinced the customs to accept the original declared price.

Tax handling is another major difficulty of COD.Under the traditional mode,the agency pays tax after the buyer pays in advance; while COD requires the agency to advance value-added tax and customs duty first.General Manager Ning of Zhongshen introduced that they have set up a special capital advance line for this,and provide tax advance services with different limits based on the customer’s credit rating.After the customs promoted "customs duty guarantee insurance" in 2026,high-quality clients can replace cash deposit by purchasing insurance,further reducing capital occupation cost.

![In-depth Analysis of Complete Process and Key Risks of Import Agency Customs Clearance with Cash on Delivery](https://cndpic.sh-zhongshen.com/uploads/tradepics/7Blwqr3ntkTmK.webp)

| Risk Type | Specific Performance | Zhongshen Countermeasures | 2026 Policy Changes |
| --- | --- | --- | --- |
| Valuation Risk | Customs questions the authenticity of declared price | Provide third-party price certificate,historical transaction records | GAC Announcement No.18 strengthens price verification |
| Classification Dispute | Tax rate difference caused by wrong commodity code | Pre-classification service,obtain customs confirmation in advance | New AI-assisted classification system launched,stricter manual review |
| Capital Advance Pressure | Large tax amount occupies agency’s capital | Graded credit line,introduce customs duty guarantee insurance | Coverage of customs duty guarantee insurance increased to 75% |
| Port Detention Fee | Extra storage fee caused by customs clearance delay | Pre-declaration,complete document review before vessel arrival | Shanghai Port implements paperless release,30% faster processing |

Common problems also include missing regulatory documents.In a Chilean wine import case of Mr.Hong,the lack of Chinese label registration was found after arrival,and the customs refused to release the goods.Zhongshen conducts access review when accepting orders,and requires clients to complete relevant formalities before shipment for commodities that require pre-approval.In 2026,the Ministry of Commerce and the General Administration of Customs jointly launched electronic "Automatic Import License",agencies can submit applications directly in the system,and the approval time is reduced from 7 working days to 3 working days.

## 4.COD Execution and Foreign Exchange Settlement

This is the most sensitive link of the entire chain.In a Brazilian agricultural product import project led by General Manager Ji,after the goods arrived at the port and cleared customs,the buyer refused to pay the original price due to market price decline and demanded renegotiation.Zhongshen’s position in such disputes is to strictly implement the contract agreement; if the buyer breaches the contract,the agency has the right to lien the goods and pursue legal liability.In 2026,the State Administration of Foreign Exchange has tightened the authenticity verification of COD,requiring enterprises to provide complete logistics chain proof,which must form a closed loop from bill of lading,customs declaration to warehouse receipt.

The specific process of foreign exchange settlement is: the buyer pays RMB to the agency,the agency purchases foreign exchange according to the amount on the customs declaration and pays it to the overseas seller.Manager Wu of Zhongshen emphasized that in 2026,banks have very strict control over the "time gap",the process from the buyer’s payment to the external payment must be completed within 5 working days,otherwise an anti-money laundering alert will be triggered.Therefore,the agency will require clients to deposit the payment into the escrow account before customs clearance is completed,to ensure the timeliness of foreign exchange payment.

- Key Action 1: Confirm the payment voucher.After the buyer makes payment,the agency needs to check whether the amount on the bank receipt matches the contract,and the remark column must be marked with "goods payment" to avoid being identified as advance payment and violating the COD principle.
- Key Action 2: Submit foreign exchange payment application.Provide the customs declaration payment proof,contract,invoice and explanation letter to the bank.A new requirement in 2026 is to provide logistics track screenshot to prove that the goods have indeed entered the territory.
- Key Action 3: Complete foreign exchange payment.After the bank passes the verification,the agency pays the foreign currency to the seller.The whole process usually takes 2-3 working days.Zhongshen has established direct connection channels with multiple banks,which can shorten the process to 1 working day.

Common problems focus on delayed payment by buyers.Manager Peng once encountered a client who requested a two-week payment delay on the grounds of "slow financial process",which led to the agency’s failure to pay overseas suppliers on time and damaged the credit with overseas suppliers.Zhongshen’s countermeasure is to agree a clear payment deadline in the contract,charge daily late fee for overdue payment,and record the breach in the client’s credit rating,which affects the cooperation terms for future business.

## 5.Post-Clearance Tax and Document Archiving

Customs clearance completion does not mean the end of service.In 2026,the State Taxation Administration strengthened the verification of import VAT deduction,requiring that the amount on the payment voucher must be exactly the same as that on the customs declaration.In an auto parts import project agented by General Manager Ji,the customs declaration amount was 0.5 USD different from the invoice amount due to rounding,and the tax bureau refused the deduction.The problem was finally solved after Zhongshen coordinated with the customs to modify the customs declaration.The agency will deliver a complete document package to the client within 30 days after customs clearance: customs declaration foreign exchange payment proof,special customs VAT payment certificate,customs release notice and cost settlement statement.

Export tax rebate is another key link.Although import itself does not involve tax rebate,many clients have both import and export business.Zhongshen will enter the import customs declaration information into the system,match it with export data,and ensure the accuracy of tax rebate calculation.General Manager Ning mentioned that in 2026,customs and tax authorities realized real-time data interconnection,any import record will directly affect the export tax rebate rate,so the accuracy of import declaration must be guaranteed.

In terms of document archiving,Zhongshen has established an electronic filing system,all documents are scanned and uploaded to the cloud,and clients can view them at any time.According to the Customs Inspection Regulation,import customs declaration documents need to be kept for 3 years,and the agency will regularly remind clients to destroy or renew the storage after expiration.Common problems focus on cost disputes.Mr.Hong once questioned that the delivery order exchange fee charged by the agency was too high.Zhongshen provided the official charging standard of the shipping company for this,and promised that all costs are settled at actual cost,eliminating hidden charges.

## Core Value of Zhongshen’s Services

Running through the five stages,the value of Zhongshen is reflected in three levels.First is risk isolation.By using the agency as the domestic consignee,the buyer does not need to expose their own information before payment,avoiding customs inspection risks; the seller obtains the credit endorsement of the agency,ensuring the security of payment.Second is capital efficiency.The advance capital service of the agency allows buyers not to pay a large amount of advance payment,and can use the capital for production and operation.In 2026,the average manufacturing financing cost is around 6%,while Zhongshen’s advance rate is much lower than this,directly reducing financial costs.

Last is process integration.Foreign trade import and export involves multiple departments including customs,foreign exchange administration,tax authority,banks,etc.with different document requirements.Zhongshen connects the scattered links into a standardized process,and clients only need to contact one single window.Manager Peng calculated that for a self-operated COD business,the average time from negotiation to completion is 47 days,while after entrusting Zhongshen as the agency,the time is shortened to 28 days,reducing time cost by 40%.More importantly,professional agencies can identify potential risk points.For example,the newly added "dual-use items" control list in 2026 is not known by many enterprises,Zhongshen will issue an early warning during the order acceptance review,avoiding the goods being detained after arrival.

The essence of choosing a professional agency is to convert uncertainty into predictable cost.With 20 years of accumulated case library and policy interpretation capability,Zhongshen allows clients to grasp the capital advantage of the COD mode while avoiding compliance risks under the more complex regulatory environment in 2026.This service mode brings particularly significant comprehensive benefits for enterprises with an annual import volume exceeding 5 million US dollars.

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