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What Compliance Procedures and Core Documents Are Required for the Full Process of Agency Import of Prepackaged Food?
or complex compliance issues.
clearance and fund security.
I am an e-commerce owner who just transformed to imported snack business in Shanghai. I signed an agency import agreement with Zhongshen last month, and will soon import the first batch of popular Japanese prepackaged snacks and frozen cheese sticks. I have never engaged in food import business before.
Last week I heard from a peer that a cargo container was detained at the port for 5 days due to missing quarantine procedures, which cost more than 20,000 yuan just for container detention fee, and almost missed the stocking period for the 618 promotion. I am very anxious now.
I am afraid that missing key procedures will lead to customs seizure and port detention, and I don't know what procedures need to be completed and what materials should be prepared in advance for the full process of agency-imported food. I even can not figure out which links are prone to mistakes. Can you help me sort out all details clearly?
Michael ZhangYears of service：6Customer Rating：5.0
Customs Declaration & Compliance ExpertStart a Chat
First，the details of advance document review: document verification shall be completed 7 to 10 working days in advance，with focus on verifying the Certificate of Origin and Sanitary Certificate provided by overseas suppliers (which shall comply with the entry inspection and quarantine standards of China Customs)，and the Chinese label sample of prepackaged food (which shall mark mandatory contents including ingredient list，production date，shelf life，importer information，etc.). Meanwhile，it is necessary to ensure that the agency agreement clearly defines the ownership of cargo title and division of responsibilities，so as to avoid subsequent problems caused by inconsistent documents.
Connection of core nodes: 3 working days before the cargo arrives at the port，the agent shall complete the importer filing for imported food (complete filing in advance if not done yet) and pre-entry of customs declaration，and submit documents to the customs inspection and quarantine department for pre-review at the same time. After the cargo arrives at the port，complete application for inspection and customs declaration immediately，and coordinate customs inspection and sampling testing. For frozen food，book the bonded cold storage space in advance to ensure that the cargo is under temperature-controlled environment throughout the whole process.
Contingency plan: If document review fails，coordinate with overseas suppliers to rectify and supplement immediately. If the document supplement period exceeds 3 days，apply for extension of free storage period，If customs sampling test is unqualified，start the return or destruction plan immediately to avoid high port detention fees，If the label is unqualified，you can apply for rectification at the designated place and re-submit for inspection.
Final compliance implementation: After obtaining the issued by customs，you can handle cargo pickup and sales procedures. All documents shall be retained for no less than 5 years for subsequent customs inspection.
Kevin LinYears of service：4Customer Rating：5.0
Trade Solutions ManagerStart a Chat
The customs declaration link of agency-imported food shall strictly comply with customs valuation rules. Customs will优先 use the transaction price method of identical or similar goods for valuation. If the declared price deviates from the reasonable range, alternative valuation methods such as deductive value and computed value will be initiated.
In case of valuation dispute, provide core certification materials including real transaction contract, bank payment voucher, cost details of overseas supplier, international logistics fee voucher of the same batch of goods within 3 working days, so as to avoid deletion and re-declaration caused by inability to provide evidence, and even trigger customs inspection. Meanwhile, you can use the national customs integration mode to complete pre-review of customs declaration at local customs in advance, resolve valuation dispute in advance, effectively shorten port customs clearance time and reduce the risk of port and container detention.
Cindy ChenYears of service：3Customer Rating：5.0
Key Account ManagerStart a Chat
International logistics route shall be planned in advance for agency-imported food. For frozen fresh food, direct voyage is preferred to avoid food deterioration caused by temperature control interruption during transit; For general prepackaged food, transit route can be selected to reduce logistics cost, but the storage conditions and free storage policy of transit port shall be confirmed in advance.
Meanwhile, cargo title control shall be strictly implemented, use order bill of lading and clarify endorsement rules to avoid the risk of delivery without bill of lading; After the cargo arrives at the port, complete customs clearance and pickup within the free storage period (generally 7 to 14 days, policies vary by port). If you expect that you can not complete on time, apply to the shipping company for extending free storage period 3 working days in advance to avoid high Demurrage and port detention fees. For frozen cargo, book temperature-controlled space of bonded cold storage in advance to ensure that the cargo is in a compliant temperature-controlled environment throughout the whole process.
Andy GuoYears of service：3Customer Rating：5.0
Supply Chain Management ExpertStart a Chat
Agency-imported food can use VAT deferral policy to reduce capital occupation cost. Eligible importers (with general taxpayer qualification) can apply for temporarily suspending payment of import VAT in the customs declaration link, and file tax declaration after the goods are sold, which effectively eases cash flow pressure.
Meanwhile, attention shall be paid to pricing of cross-border related party transactions. If the agency has an affiliated relationship with the overseas supplier, it shall ensure that the transaction price conforms to the arm's length principle, so as to avoid triggering transfer pricing investigation by tax authorities.
In addition, the tariff rate of imported food shall be accurately queried according to HS code. Some food originating from FTA member countries can enjoy tariff reduction, and consular authentication of certificate of origin shall be handled in advance to ensure smooth enjoyment of tariff preference.
Eric ZhouYears of service：6Customer Rating：5.0
Senior Manager of Foreign Exchange & Tax RebatesStart a Chat
Foreign exchange receipt and payment for agency-imported food shall strictly comply with the compliance requirements of the State Administration of Foreign Exchange. When using CIPS RMB cross-border payment or SWIFT message payment, clearly mark "payment for agency-imported food" in the message remark, and retain documents including agency import agreement, customs declaration, entry commodity inspection and quarantine certificate for subsequent verification by the foreign exchange administration.
For advance payment, complete filing in the trade foreign exchange receipt and payment enterprise directory of the foreign exchange administration in advance, and the advance payment proportion shall not exceed 30% of the contract amount (approval is required for special circumstances); For cash on delivery, complete payment within 90 days after the import of goods to avoid compliance risk of overdue payment. Meanwhile, attention shall be paid to exchange rate optimization for settlement, forward foreign exchange settlement and sale can be used to lock exchange rate and reduce exchange rate difference risk.
Evelyn LiYears of service：3Customer Rating：5.0
Cross-border Compliance SupervisorStart a Chat
If letter of credit settlement is adopted for agency-imported food, strictly review the terms of the letter of credit to avoid soft clauses (such as requiring inspection certificate not clearly agreed, bill of lading signed by the applicant, etc.), and prevent malicious refusal of payment by overseas suppliers. Meanwhile, the node of cargo title transfer shall be clearly defined in the agency import agreement.
Generally, after customs release and obtaining the bill of lading, the agency shall transfer cargo title to the consignor in time to avoid legal risk caused by cargo title dispute. In addition, if imported food involves intellectual property rights (such as brand authorization, patented formula, etc.), complete intellectual property customs protection filing in advance to avoid cargo detainment caused by infringement, and clearly define the division of liability for intellectual property infringement in the agency agreement to reduce the legal risk of the consignor.
Victor SunYears of service：5Customer Rating：5.0
Trade Risk Control ManagerStart a Chat
After agency-imported food arrives at the port, if you receive the customs inspection notice, prepare all documents immediately, and arrange a dedicated person to accompany the inspector for on-site operation. For prepackaged food, ensure that the variety, quantity and packaging of the goods in the container are completely consistent with the declaration; For frozen food, check the temperature control record of the container to ensure the temperature meets the requirements.
In case of devanning inspection, cooperate with the inspector to carry goods in order to avoid packaging damage; If sampling inspection is required, complete sampling at the sampling location designated by customs and ensure the representativeness of the sample. The inspection cycle is generally 7 to 10 working days. If the test is unqualified, coordinate with the consignor to handle return or destruction procedures in time to avoid extra storage costs.
Linda GaoYears of service：7Customer Rating：5.0
Documentation SupervisorStart a Chat
The packaging of agency-imported food shall meet the requirements of China Customs and inspection and quarantine. For prepackaged food, use packaging materials that meet the standard of food contact materials to avoid product unqualified caused by excessive harmful substances in packaging materials; For frozen fresh food, use heat preservation packaging with temperature control function to ensure stable temperature during transportation.
Meanwhile, require overseas suppliers to provide MSDS (Material Safety Data Sheet) of packaging materials. For food with special transportation requirements (such as alcohol-containing food), confirm whether the packaging meets UN dangerous goods packaging standards (if applicable), so as to avoid inability to clear customs caused by non-compliant packaging. In addition, for fragile food, use buffer packaging for reinforcement to avoid damage during transportation.
Grace WangYears of service：10Customer Rating：5.0
Senior Foreign Trade ConsultantStart a Chat
If agency-imported food is used for export subsequently, it shall strictly comply with the compliance requirements of export tax rebate, ensure the consistency of four flows (contract, invoice, logistics, capital), and retain documents including import customs declaration, agency import agreement, export customs declaration, special VAT invoice for no less than 10 years for letter investigation and verification by tax authorities.
For cross-month export tax rebate declaration, complete pre-declaration within 90 days after goods export, and conduct formal declaration after pre-declaration is approved; In case of tax authority letter investigation, provide all documents of the import link in time to prove the authenticity of the business, avoid tax rebate delay or refusal caused by failed letter investigation. In addition, pay attention to the export tax rebate rate, accurately query the export tax rebate rate according to HS code to ensure the accuracy of tax rebate amount.
Jason WuYears of service：10Customer Rating：5.0
International Logistics & Supply Chain ManagerStart a Chat
Supply chain planning of agency-imported food shall conduct accurate cost calculation based on trade terms. If FOB term is adopted, the consignor shall bear international logistics, insurance, customs declaration and other expenses; If CIF term is adopted, the overseas supplier shall bear international logistics and insurance expenses, but the consignor still needs to bear domestic expenses such as customs declaration and inspection and quarantine.
Meanwhile, establish an inventory linkage strategy, plan import batches in advance according to sales forecast, avoid overstock or stock out; For seasonal food (such as Christmas snacks), plan import time 3 to 6 months in advance to ensure goods arrive before the sales peak season. In addition, centralized procurement can be used to reduce import cost, and preferential agency fee policies can be negotiated with the agency to effectively control the overall supply chain cost.