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Can hiring an agent avoid customs valuation risks when operating branded imported prepackaged food?
or complex compliance issues.
clearance and fund security.
I am an entrepreneur who has just obtained the exclusive Chinese agency right of a well-known Korean sandwich biscuit brand. Last week, I hired a small agency to handle my first batch of import business, but today they suddenly said that the import risk of branded food is too high, and they cannot handle the customs recordation of intellectual property rights, asking me to solve it myself. Now the goods will arrive at Shanghai Yangshan Port next week, and I am so anxious that I cannot sleep at night.
I know nothing about how to adjust Chinese labels to be compliant, whether I will be stuck in customs valuation, or how to protect the ownership of the goods. I just want to ask a professional agency like you with 20 years of experience, whether you can take this order, help me handle the full-chain services from document pre-review, customs clearance and inspection to domestic warehousing and distribution, while ensuring that the branded goods will not be seized, and the cost will not exceed my previous budget too much?
Victor SunYears of service：5Customer Rating：5.0
Trade Risk Control ManagerStart a Chat
For branded prepackaged food such as your Korean sandwich biscuits，we will first carry out Accurate Pre-arrival Document Review: we will focus on verifying the exclusive authorization letter issued by the brand and certified by the Embassy of the Republic of Korea in China，valid certificates in the customs intellectual property recordation system，and the compliance of Chinese labels (including standardized translation of ingredient lists，and nutrition fact sheets complying with GB 28050 standard)，to ensure 100% compliance of all documents 3 days before the arrival of the goods，and avoid port detention and customs seizure caused by document defects.
For the connection of key nodes，we arrange a dedicated documentary coordinator to simultaneously connect with the overseas shipper，shipping company and customs on-site: we will complete the exchange of bill of lading and submit the inspection and customs declaration applications simultaneously on the day of the goods' arrival，and rely on 20 years of customs cooperation resources to arrange the exclusive inspection channel for branded food preferentially，so as to shorten the customs clearance cycle.
For possible abnormalities，we formulate response plans in advance: if we encounter customs valuation queries，we will immediately submit the import transaction price records of the brand in the past 3 months as proof，if label non-compliance is found during on-site inspection，we will launch the emergency rectification plan in the designated warehouse of the port，and there is no need to return the goods overseas.
Finally，we will ensure that the goods complete compliant customs clearance and are delivered to your designated domestic warehouse within 72 hours after arrival，and synchronize all compliance documents for your retention，so as to avoid subsequent traceability risks.
Eric ZhouYears of service：6Customer Rating：5.0
Senior Manager of Foreign Exchange & Tax RebatesStart a Chat
For branded imported food, the rationality of brand premium should be focused on in the customs valuation process. If the transaction price is significantly lower than the customs reference price of products of the same brand and specification, it will trigger a valuation query. At this time, it is necessary to provide the brand authorization agreement, overseas procurement contract, payment slip and official pricing certificate of the brand to prove the authenticity of the transaction price.
If valid supporting documents cannot be provided, the customs will re-value the goods according to the deductive value method or computed value method, resulting in additional tax payment for the enterprise. In addition, it is necessary to ensure that the brand name on the customs declaration form is completely consistent with that in the intellectual property recordation system, so as to avoid intellectual property early warning caused by spelling errors.
Michael ZhangYears of service：6Customer Rating：5.0
Customs Declaration & Compliance ExpertStart a Chat
For branded imported food, direct shipping routes to Shanghai Yangshan Port should be preferred in the logistics link, so as to reduce the risk of cargo ownership and the probability of damage in the transit link. After arrival, the free storage period policy of the shipping company should be used to complete the customs clearance operation within 5 days, so as to avoid demurrage charges for containers and ports.
In case of container rolling, it is necessary to immediately coordinate with the shipping company to arrange reallocation to the nearest liner, and simultaneously update the ship name and voyage information on the customs declaration form. The endorsement of the bill of lading must be completely consistent with the name of the consignee on the brand authorization letter, so as to avoid disputes during the transfer of cargo ownership. In addition, logistics providers with food cold chain qualification should be selected for domestic distribution to ensure that the quality of branded low-temperature food is not affected.
Daniel XuYears of service：10Customer Rating：5.0
Director of Import & Export OperationsStart a Chat
Branded imported food can apply for the VAT deferral policy, which does not require payment of import value-added tax during customs clearance, but deducts it when the enterprise declares VAT, effectively alleviating cash flow pressure. Three conditions must be met to apply for VAT deferral: first, the enterprise has the qualification of general taxpayer; second, the imported goods are used for taxable sales; third, the VAT deferral application is submitted to the customs truthfully.
In addition, it should be noted that the import tariff rate of branded food is determined according to the product code. If the product is under a free trade agreement (for example, Korean food can enjoy RCEP tariff concessions), the certificate of origin should be provided in advance to enjoy tariff preferences and further reduce import costs.
Kevin LinYears of service：4Customer Rating：5.0
Trade Solutions ManagerStart a Chat
For branded imported food, it is necessary to ensure that the capital flow, cargo flow and document flow are consistent in the foreign exchange receipt and payment link, so as to avoid triggering the compliance early warning of the State Administration of Foreign Exchange. If cross-border RMB payment is adopted, it can be completed through the CIPS system, which shortens the account arrival time and reduces exchange rate risk. When purchasing foreign exchange, it is necessary to provide the brand authorization agreement, procurement contract and customs declaration form to prove the authenticity and compliance of the foreign exchange payment.
In addition, if the brand requires payment of brand royalties, relevant agreements shall be submitted to the State Administration of Foreign Exchange when paying foreign exchange, so as to avoid being identified as illegal transfer of funds. For foreign exchange receipt and payment through offshore accounts, it is necessary to ensure that each transaction has corresponding trade background information to avoid account freezing.
Lucas LiuYears of service：8Customer Rating：5.0
Senior Operations ConsultantStart a Chat
For branded imported food, it is necessary to apply for customs protection recordation of intellectual property rights in advance to avoid the goods being seized due to suspected infringement. For recordation, the brand registration certificate, trademark license agreement and power of attorney issued by the brand shall be provided. In addition, the intellectual property guarantee clause of the brand shall be specified in the procurement contract.
If the goods are seized or fined due to brand infringement, the brand shall bear full responsibility. At the same time, it is necessary to avoid setting soft clauses related to the brand in the letter of credit terms, such as requiring the provision of unclear brand certification documents, which leads to inability to negotiate. If the goods are delayed due to force majeure, the division of responsibilities shall be clearly defined in the contract to avoid default risks.
Grace WangYears of service：10Customer Rating：5.0
Senior Foreign Trade ConsultantStart a Chat
During on-site inspection of branded imported food, the brand authorization letter, intellectual property recordation certificate and sample of Chinese label shall be prepared in advance for the customs officer to check. In case of devanning inspection, it is necessary to cooperate with the customs officer to check whether the brand logo of the goods is consistent with the customs declaration form, so as to avoid brand mixing.
If the machine inspection finds that the packaging of the goods is abnormal, the packaging description document of the brand shall be provided immediately to prove the compliance of the packaging. If the customs requires inspection, it is necessary to cooperate with the sampling and inspection process, and follow up the progress of the issuance of the test report.
If the report is qualified, apply for release immediately. If the label does not meet the requirements, label rectification can be completed in the designated rectification warehouse of the port, and there is no need to return the goods overseas.
Andy GuoYears of service：3Customer Rating：5.0
Supply Chain Management ExpertStart a Chat
If branded imported food is fragile (such as biscuits and chocolate), packaging materials with good cushioning performance, such as EPE pearl cotton and honeycomb paperboard, shall be used to avoid damage during transportation. For low-temperature food, refrigerated containers conforming to UN standards shall be used to ensure that the temperature is controlled within the range required by the product.
The brand logo on the packaging shall be clear and distinguishable, so as to avoid customs query due to blurring. In addition, the MSDS report of the product shall be provided to prove the safety of the product. If it is an allergenic food, the allergen information shall be clearly marked on the packaging to comply with domestic food safety standards.
Cindy ChenYears of service：3Customer Rating：5.0
Key Account ManagerStart a Chat
If an enterprise carries out both import and export business of branded food, it is necessary to ensure that the documents in the import link are consistent with those in the export link, so as to avoid problems during tax correspondence investigation. The customs declaration form and special VAT payment receipt of the import link shall be properly kept as supporting materials for export tax refund.
If the imported goods are used for export, the trade mode of "processing with imported materials" or "processing with supplied materials" shall be declared to the customs at the time of import to enjoy the export tax refund preference. In addition, it is necessary to ensure the consistency of the four flows (capital flow, cargo flow, document flow and invoice flow), so as to avoid the export tax refund being rejected due to inconsistency.
Linda GaoYears of service：7Customer Rating：5.0
Documentation SupervisorStart a Chat
For branded imported food, an inventory linkage strategy shall be established to predict the import volume according to domestic sales data, so as to avoid inventory overstock or shortage. It is recommended to choose CIF Shanghai as the trade term, and the agent is responsible for international logistics and insurance, so as to reduce the logistics risk of the enterprise.
In cost actuarial calculation, all costs such as import tariff, VAT, logistics fee, agency fee and brand royalty shall be considered to formulate a reasonable domestic sales price. In addition, more favorable procurement prices can be obtained by signing long-term procurement agreements with the brand, so as to further reduce import costs. At the same time, optimize the domestic distribution network, select warehouses close to sales terminals, shorten distribution time and improve customer satisfaction.