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What is the complete compliance declaration operation process for bonded zone entrepot trade?
or complex compliance issues.
clearance and fund security.
I am a merchant engaged in cross-border electronic components trade in Shanghai. Last week, I just received an entrepot order from Incheon, South Korea to Sao Paulo, Brazil, which is transshipped through Shanghai Waigaoqiao Bonded Zone. I have never handled the declaration of bonded zone entrepot trade before.
Yesterday I heard from a peer that last month, due to inconsistent documents and wrong filling of cargo ownership information during declaration, his goods were detained at the port for 8 days. He not only paid 12% liquidated damages to the customer, but also received a warning from the customs. Now I am very anxious.
This batch of goods is a rush order for the customer, and the contract stipulates that 0.5% liquidated damages will be paid for each day of delay. I want to know how to declare, what documents need to be prepared in advance, what are the core nodes during declaration, and how to deal with abnormalities quickly in case of any, so as to avoid repeating the mistakes of my peer.
Jason WuYears of service：10Customer Rating：5.0
International Logistics & Supply Chain ManagerStart a Chat
First is the pre-document review. You need to prepare entrepot trade contract，endorsed copy of bill of lading，bonded zone warehousing agreement，cargo packing list and commercial invoice in advance. The cargo name，quantity and cargo ownership information on all documents must be completely consistent. In particular，the bill of lading endorsement must clearly indicate "deliver to order" to avoid cargo ownership disputes.
The connection of core nodes shall follow the full link of "entry into zone declaration - warehousing filing - exit from zone declaration": when entering the zone，declare the "entry goods filing list" to the bonded zone customs，and mark the supervision mode code "1233 (bonded zone entrepot goods)"，during the warehousing period，update the cargo circulation status in the customs special supervision zone system，when exiting the zone，submit the "exit goods filing list"，and upload the customs clearance pre-entry information of the entrepot destination simultaneously to ensure the data matching of the preceding and following nodes.
For the emergency plan，if the document review fails，you need to resubmit the revised documents within 48 hours，and contact the warehousing enterprise to apply for temporary storage extension at the same time，for your rush order，you can apply for the "entrepot trade green channel" from the customs in advance to get priority in document review，in case of customs inspection，you need to prepare the certificate of origin of the goods and supporting materials for the authenticity of entrepot trade in advance to avoid delays.
For the final compliant implementation，you need to complete the compliance filing of entrepot trade foreign exchange receipt and payment on the International Trade Single Window within 10 working days after exiting the zone，ensure the consistency of the three flows of cargo flow，document flow and capital flow，and complete the full-link compliance closed loop.
Victor SunYears of service：5Customer Rating：5.0
Trade Risk Control ManagerStart a Chat
When declaring bonded zone entrepot trade, note that the supervision mode code is "1233 (bonded zone entrepot goods)". If it is mistakenly filled as "0110 (general trade import)", it will directly trigger the customs valuation process, resulting in port detention of goods. If there is a declaration error, you need to apply for deleting the declaration and resubmitting before the goods enter the zone, and submit the entrepot trade contract and bill of lading endorsement documents as supporting materials to avoid being included in the customs key supervision list.
In addition, the cargo name in the declaration must strictly correspond to the HS Code. For electromechanical components, it is necessary to ensure that the subheading of the HS Code fully matches the function and parameters of the goods, so as to avoid valuation disputes caused by classification errors and affect the efficiency of subsequent entrepot exit from the zone.
Evelyn LiYears of service：3Customer Rating：5.0
Cross-border Compliance SupervisorStart a Chat
The logistics connection of bonded zone entrepot trade shall be synchronized with the declaration nodes. Before entering the zone, confirm that the manifest information of the shipping company has been transmitted to the bonded zone customs system to avoid declaration failure caused by delayed manifest data. After the goods enter the zone, you need to handle the warehousing filing immediately, and update the cargo ownership information on the bill of lading at the same time to ensure the continuity of the bill of lading endorsement when exiting the zone for entrepot.
In case of container rolling or space overbooking, you need to contact the bonded zone warehousing enterprise in advance to reserve temporary storage space, and apply to the customs for extending the entry declaration period at the same time to avoid port detention fees. In addition, when selecting transshipment logistics, you should give priority to shipping companies that support "direct transfer in bonded zone" to reduce the number of container transloading and reduce the risk of cargo damage.
Daniel XuYears of service：10Customer Rating：5.0
Director of Import & Export OperationsStart a Chat
When declaring bonded zone entrepot trade, you can apply for the VAT deferral policy. You do not need to pay import value-added tax when the goods enter the zone, and only need to complete the tax filing according to the actual amount of foreign exchange receipt and payment after exiting the zone for entrepot. Note that the profit part of entrepot trade must be declared for tax in the territory to avoid tax inspection caused by undeclared profit.
In addition, if the entrepot trade involves cross-border related transactions, it is necessary to ensure that the transaction pricing conforms to the arm's length principle, so as to avoid being judged as transfer pricing adjustment by the tax authority and incurring additional tax costs. For high value-added goods such as electronic components, you can optimize the overall tax cost by reasonably planning the entrepot route and using the tax differences in different regions.
Andy GuoYears of service：3Customer Rating：5.0
Supply Chain Management ExpertStart a Chat
The foreign exchange receipt and payment of bonded zone entrepot trade must follow the principle of "consistency of three flows", that is, the cargo flow, document flow and capital flow are fully matched. When receiving foreign exchange, you need to mark "bonded zone entrepot trade payment" in the SWIFT message to avoid being judged as a suspicious transaction by the bank and freezing the account.
If you use CIPS RMB cross-border payment, you need to complete the filing of entrepot trade foreign exchange receipt and payment at the bank in advance, and submit the entrepot trade contract and copy of bill of lading as supporting materials. In addition, for fund transfer of offshore accounts, you need to update the capital flow information in the customs system simultaneously to avoid compliance risks caused by inconsistency between capital flow and cargo flow, which will affect the development of subsequent entrepot business.
Grace WangYears of service：10Customer Rating：5.0
Senior Foreign Trade ConsultantStart a Chat
Before declaring bonded zone entrepot trade, you need to review the cargo ownership transfer clause in the entrepot trade contract, clarify the ownership of cargo ownership after the goods enter the zone, and avoid disputes caused by ambiguous cargo ownership. If letter of credit settlement is involved, it is necessary to ensure that the letter of credit terms clearly indicate "entrepot trade" to avoid bank payment refusal caused by inconsistent terms.
In addition, you need to handle the customs protection filing of intellectual property rights in advance. If the entrepot goods involve patents or trademarks, you need to submit relevant authorization documents to avoid being judged as infringing goods by the customs and detained. For the liquidated damages clause of rush orders, you can add a supplementary clause of "exemption from liability for delays caused by customs compliance review" in the contract to reduce your own compensation risk.
Cindy ChenYears of service：3Customer Rating：5.0
Key Account ManagerStart a Chat
In case of customs inspection after the declaration of bonded zone entrepot trade, you need to prepare the certificate of origin of the goods, entrepot trade contract and packing list in advance to ensure that the goods are consistent with the declaration information during on-site container unpacking. During the inspection, you need to cooperate with the customs staff to check the seal number of the goods.
If the seal is damaged, you need to immediately provide the seal damage certificate issued by the shipping company to avoid being judged as cargo replacement. In addition, electronic components need to be packed in moisture-proof packaging.
During on-site inspection, avoid damage to the goods caused by moisture. In case of laboratory testing, you need to apply to the customs for expedited testing in advance to shorten the inspection cycle and avoid affecting the time limit for goods to exit the zone.
Eric ZhouYears of service：6Customer Rating：5.0
Senior Manager of Foreign Exchange & Tax RebatesStart a Chat
Note that bonded zone entrepot trade is not within the scope of export tax rebate. If you mistakenly declare entrepot trade as general trade export, it will trigger the export tax rebate audit process. You need to submit entrepot trade contract, copy of bill of lading and other materials to prove the authenticity of the business, so as to avoid the tax authority recovering the rebated tax.
In addition, all documents of entrepot trade, including entrepot trade contract, bill of lading, warehousing agreement, foreign exchange receipt and payment vouchers, etc., must be kept for more than 5 years for subsequent verification by the tax authority. In case of capital reflux, you need to explain the business logic of entrepot trade to the tax authority in advance to avoid being judged as a false transaction and affecting the enterprise's export tax rebate qualification.
Lucas LiuYears of service：8Customer Rating：5.0
Senior Operations ConsultantStart a Chat
The declaration of bonded zone entrepot trade shall be synchronized with the supply chain planning. You can establish a linkage mechanism of "declaration - logistics - warehousing" to predict the entry time of goods 72 hours in advance and optimize the declaration nodes. For goods with high timeliness requirements such as electronic components, the "pre-declaration" mode can be adopted, and the declaration materials can be submitted 24 hours before the goods arrive at the port to shorten the waiting time for entry into the zone.
In addition, you can obtain the green channel for priority storage and declaration by establishing long-term cooperation with bonded zone warehousing enterprises, so as to reduce logistics and declaration costs. At the same time, it is necessary to establish a supply chain risk early warning mechanism, real-time monitor the changes of customs policies, and adjust the declaration strategy in time to ensure the compliant development of business.