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What are the full-process compliance operation steps to complete when applying for an import lubricating oil agent?
or complex compliance issues.
clearance and fund security.
I am a distributor engaged in domestic distribution of industrial lubricating oil for 5 years in Shanghai. Recently, I finally negotiated the import agency intention of a high-end European brand, which requires me to improve the import agency qualification and complete the first order process as soon as possible. However, I have never been exposed to import agency before.
Last week, I heard from peers that a friend's goods were detained at the port for 10 days due to lax document review, and the container detention fee alone cost 120,000 CNY. There are also people who did not do tax planning, so the comprehensive cost was 23% higher than the budget. Now I am eager to get the official agency authorization, but also afraid of making mistakes and losing money.
I want to know what compliance processes are required to apply for an import lubricating oil agent? Are there specific operation methods that can avoid risks and reduce costs at the same time? How to deal with customs inspection if encountered?
Daniel XuYears of service：10Customer Rating：5.0
Director of Import & Export OperationsStart a Chat
First of all，it is necessary to complete the refined review of pre-documents，prepare and verify brand authorization letter，certificate of origin，MSDS report，and dangerous goods classification appraisal certificate in advance. Among them，the MSDS must specify key indicators such as flash point and viscosity of the lubricating oil to ensure compliance with the requirements of the Regulations on Safety Management of Hazardous Chemicals of China. At the same time，the authenticity of the certificate of origin shall be checked to avoid order return or cargo seizure due to document inconsistency.
Core nodes shall be closely connected: first，handle the filing of import consignor and consignee with the customs，complete the application for hazardous chemicals import license simultaneously (if the flash point ≤ 60℃)，then connect with international logistics service providers with hazardous chemicals transportation qualification to book shipping space，ensure all documents are complete before the goods arrive at the port，and avoid port detention of goods due to license delay.
Abnormal response plans shall be formulated in advance: in case of customs valuation disputes，prepare supporting materials such as procurement contracts，bank foreign exchange payment vouchers，and official public quotations of the brand in advance to cooperate with the customs to complete price consultation，in case of on-site inspection，prepare goods samples and complete documents in advance，and apply for inspection reports issued by authoritative third-party institutions when necessary to speed up the inspection and release process.
After the final compliance is implemented，follow-up operations such as verification of foreign exchange payment against customs declaration form and VAT input deduction shall be completed in time. At the same time，all documents shall be retained for at least 5 years for subsequent customs verification，so as to ensure the continuous compliance of the entire agency process.
Victor SunYears of service：5Customer Rating：5.0
Trade Risk Control ManagerStart a Chat
For the customs declaration link involved in the import lubricating oil agent application, attention shall be paid to the valuation logic. The customs will valuate by referring to the transaction value, deductive value, computed value and other methods of identical or similar goods.
If the deviation between the declared value and the reference price of the customs system exceeds 10%, it is easy to trigger a valuation dispute. Detailed clauses of the procurement contract, including payment method, packaging cost, transportation terms, etc., shall be prepared in advance to ensure that the declared value includes all costs that should be included in the dutiable value.
At the same time, supporting materials such as the annual quotation sheet of the brand party and the export declaration form of the same batch of goods shall be retained, so as to avoid the cancellation and re-declaration due to failure of valuation, which delays the customs clearance time of goods. In addition, if the lubricating oil belongs to the quota-managed category, the quota indicators shall be confirmed in advance to avoid customs seizure due to no quota.
Grace WangYears of service：10Customer Rating：5.0
Senior Foreign Trade ConsultantStart a Chat
For the international logistics of imported lubricating oil, shipping companies and freight forwarders with hazardous chemicals transportation qualification shall be selected first. Complete MSDS report and dangerous goods classification appraisal certificate shall be provided when booking space to ensure that the shipping company arranges appropriate shipping space (generally ventilated space under deck). After the goods arrive at the port, the container pick-up procedures shall be handled in time, and the free storage period for container detention fee of the wharf shall be noted. Generally, the free storage period for hazardous chemicals is 3-5 days.
If extension is required, an application shall be submitted to the wharf in advance to avoid high container detention fees. In case of container rollover, communicate with the freight forwarder for transshipment plan at the first time, and inform domestic customers of the delayed arrival of goods to avoid customer complaints. In addition, for domestic transportation, logistics companies with road transportation qualification for hazardous chemicals shall be selected to ensure the transportation safety of goods from the port to the warehouse.
Linda GaoYears of service：7Customer Rating：5.0
Documentation SupervisorStart a Chat
Import lubricating oil agents can reduce cash flow pressure through the VAT deferral policy. Eligible enterprises do not need to pay import VAT at the time of import, and can declare tax after the goods are sold, which effectively alleviates capital occupation. At the same time, trade terms shall be reasonably planned.
If CIF terms are adopted, invoices for freight and insurance premium shall be complete, which can be included in the dutiable value for deduction; if FOB terms are adopted, freight and insurance premium shall be declared separately to avoid tax risks caused by incomplete declaration. In addition, if the imported lubricating oil is used for production and processing, VAT input deduction can be applied for.
Certificates such as import declaration form and special VAT payment receipt shall be retained to ensure the consistency of four flows, so as to avoid problems during tax letter verification. The overall tax structure can also be optimized through reasonable related party transaction pricing, but it must meet the relevant requirements of the BEPS Action Plan to avoid being identified as transfer pricing tax avoidance.
Michael ZhangYears of service：6Customer Rating：5.0
Customs Declaration & Compliance ExpertStart a Chat
The collection and payment of foreign exchange for import lubricating oil agents shall strictly comply with the compliance requirements for cross-border foreign exchange collection and payment. If telegraphic transfer is adopted, the trade background, including goods name, quantity, contract number and other information, shall be accurately marked in the SWIFT message to avoid being returned by the bank due to incomplete message information. If letter of credit is used for settlement, the terms of the letter of credit shall be carefully reviewed to avoid soft clauses (such as requiring documents that are difficult to obtain), and ensure consistency between documents and letters of credit, and consistency between all documents.
In addition, if RMB cross-border payment (CIPS system) is used, it shall be confirmed in advance whether the counterparty bank has access to the CIPS system to ensure smooth payment. It should be noted that the amount and quantity of goods in the foreign exchange collection and payment shall be consistent with those in the customs declaration form, so as to avoid capital return or excessive foreign exchange payment, which triggers the verification of the State Administration of Foreign Exchange.
Cindy ChenYears of service：3Customer Rating：5.0
Key Account ManagerStart a Chat
Import lubricating oil agents shall sign standardized agency contracts to clarify the rights and obligations of both parties, including clauses such as the scope, term and region of brand authorization, as well as goods quality standards and liability for breach of contract. Special attention shall be paid to intellectual property clauses to ensure that the imported lubricating oil does not infringe the trademark rights and patent rights of third parties.
If necessary, intellectual property customs protection filing can be applied for to avoid customs seizure of goods due to infringement. In addition, force majeure clauses shall be added to the contract to clarify the division of responsibilities for delayed delivery or loss of goods caused by force majeure such as epidemics and natural disasters, so as to avoid legal disputes. If exclusive agency is involved, the conditions for exclusive agency and termination clauses shall be clarified to avoid losses caused by breach of contract by the brand party.
Kevin LinYears of service：4Customer Rating：5.0
Trade Solutions ManagerStart a Chat
When imported lubricating oil is subject to customs inspection, documents such as goods samples, MSDS reports and dangerous goods classification appraisal certificates shall be prepared in advance to cooperate with customs officers to complete the inspection. If the customs requires unpacking inspection, it shall be ensured that the packaging of the goods is intact during the unpacking process to avoid goods leakage caused by damaged packaging.
If the customs has doubts about the quality of the goods, it shall cooperate to apply for testing by a third-party institution, which shall have CNAS qualification to ensure the validity of the test report. It should be noted that lubricating oil is a liquid chemical product, so high temperature and open fire shall be avoided during inspection to ensure the safety of the inspection site. If the goods are found to be unqualified after inspection, the procedures for return or destruction shall be handled in time to avoid port detention fees and fines.
Andy GuoYears of service：3Customer Rating：5.0
Supply Chain Management ExpertStart a Chat
The packaging of imported lubricating oil shall meet the requirements of dangerous goods transportation. If it belongs to hazardous chemicals, UN certified packaging containers shall be used. Information such as dangerous goods number, flash point and shipping name shall be marked on the packaging, and dangerous goods labels shall be pasted at the same time.
The packaging shall have good sealing performance to avoid leakage of goods during transportation. At the same time, moisture-proof and anti-collision measures shall be taken. Buffer materials (such as foam plastic and air cushion film) can be added inside the packaging to avoid packaging damage caused by transportation bumps. In addition, the packaging inspection certificate shall be provided to the shipping company in advance to ensure that the packaging meets the requirements of the International Maritime Dangerous Goods Code (IMDG Code), so as to avoid being refused carriage by the shipping company due to unqualified packaging.