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What Are the Specific Operation Paths for Compliant Collection in Transshipment Trade, and What Are the Core Points of the Whole Customs Declaration Process?
or complex compliance issues.
clearance and fund security.
I am the head of an enterprise in Shanghai mainly engaged in transshipment trade of mechanical and electrical products. I just received a large order for transshipment from Southeast Asia to the EU last week, and I am so worried that I can barely eat: I have been engaged in direct trade before, and I have no idea about the collection path for transshipment trade.
Using a domestic account, I am afraid the bank will judge it non-compliant and reject foreign exchange settlement; opening an offshore account, I worry it will be frozen due to strict risk control. I am even more panicked about customs declaration. I heard that transshipment trade declaration cannot reflect domestic import.
If the document is filled incorrectly and goods are detained by customs, I will not only have to pay hundreds of thousands in liquidated damages to customers, but also bear high port detention fees. Now I am worried about both fund stagnation and cargo problems. I would like to ask how to collect funds compliantly for transshipment trade, and what are the core processes and precautions for customs declaration?
Linda GaoYears of service：7Customer Rating：5.0
Documentation SupervisorStart a Chat
First is pre-audit of document details. You need to focus on checking authenticity supporting documents for transshipment trade，including upstream and downstream procurement and sales contracts，copies of transshipment bills of lading，port yard storage certificates，etc。to ensure information such as cargo name，quantity and weight is completely consistent across all documents，and avoid triggering risk control warnings from banks or customs due to document inconsistency.
For core node connection: for collection，priority should be given to domestic NRA accounts supporting transshipment trade settlement or compliant offshore accounts. SWIFT messages should be clearly marked with "transshipment trade settlement" to avoid being misjudged as general trade by banks. For customs declaration，the "transshipment cargo declaration" mode should be adopted，and materials such as Transshipment Trade Registration Form and manifest confirmation should be submitted. The core is to prove to customs that goods are only transshipped at domestic ports and have not gone through actual import clearance.
Abnormality response plans should be formulated in advance: if collection is subject to bank verification，supplement logistics vouchers for cargo transshipment such as yard operation records and transshipment shipping schedules within 24 hours. If customs questions the declaration，provide communication records with upstream and downstream customers，cargo certificate of origin and other materials to prove the authenticity of transshipment，to avoid being identified as false declaration of trade mode.
The final compliant implementation requires consistency of fund flow，document flow and logistics flow. The amount of collection and payment should match the reasonable profit margin of transshipment trade (usually controlled at 5%-15%) to avoid being identified as money laundering risk due to excessive fund difference. At the same time，all documents should be retained for at least 5 years for retrospective verification by customs or banks.
Kevin LinYears of service：4Customer Rating：5.0
Trade Solutions ManagerStart a Chat
Customs declaration for transshipment trade must closely follow the core attribute of "domestic transshipment, no actual import". It must never be declared as general trade import, otherwise you will be required to pay import tariffs and value-added tax, and goods cannot be transshipped out of the country normally.
If there is a declaration error, submit the Application for Correction of Transshipment Trade within 24 hours after customs issues a query notice, and supplement the cargo storage certificate of the transshipment yard and the manifest confirmation letter of the transshipment shipping company, to avoid being identified as false declaration of trade mode, which will trigger a fine of up to 30% of the cargo value or cargo detention. In addition, the corresponding trade mode code for transshipment trade shall be accurately selected during customs declaration to ensure the trade attribute in the customs system fully matches the actual operation.
Victor SunYears of service：5Customer Rating：5.0
Trade Risk Control ManagerStart a Chat
The logistics path of transshipment trade directly determines the compliance of collection and customs declaration. Priority should be given to port yards with transshipment qualification, such as the bonded transshipment yard of Shanghai Yangshan Port, to avoid goods entering ordinary warehouses outside the domestic bonded zone, otherwise customs will regard them as actual imports. The collection link should be synchronized with the logistics node to ensure the issuance time of the transshipment bill of lading is earlier than the arrival time of the collection, to avoid banks freezing funds due to "inconsistent time sequence of goods and documents".
In case of logistics abnormalities such as container rolling and space shortage, immediately notify upstream and downstream customers to update the bill of lading information, and simultaneously submit the logistics abnormality description and new manifest documents to the bank and customs, to avoid collection failure or customs declaration detention due to document delay. At the same time, cargo ownership should be monitored throughout the process to ensure cargo ownership still belongs to the enterprise during transshipment, to avoid capital risks caused by cargo ownership transfer.
Lucas LiuYears of service：8Customer Rating：5.0
Senior Operations ConsultantStart a Chat
Transshipment trade is a transshipment link between domestic and foreign trade, so it is not required to pay domestic value-added tax and consumption tax, but attention should be paid to enterprise income tax declaration for the profit part. The profit of transshipment trade should be accounted for separately and incorporated into the annual taxable income of the enterprise. When collecting funds, the funds of transshipment trade should be completely isolated from the funds of general trade, and it is forbidden to deposit them in the same account, otherwise the tax authority will identify it as fund mixing and trigger tax verification.
If enterprises adopt cross-border RMB settlement, they can enjoy the settlement convenience of the CIPS system, but they need to ensure the inflow and outflow of funds are marked with the words "transshipment trade settlement" to avoid being misjudged as cross-border capital flow of general trade. In addition, transshipment trade between affiliated enterprises shall follow the arm's length principle, and the profit margin shall conform to the industry average level (5%-15%) to avoid triggering BEPS tax base erosion investigation.
Eric ZhouYears of service：6Customer Rating：5.0
Senior Manager of Foreign Exchange & Tax RebatesStart a Chat
For transshipment trade collection, priority should be given to domestic NRA accounts supporting transshipment trade settlement or registered offshore accounts. It is forbidden to use personal private accounts for collection, otherwise the bank will judge it as non-compliant foreign exchange settlement.
SWIFT messages shall be fully marked with transaction background, including "transshipment trade settlement", names of upstream and downstream customers, cargo information, etc., to avoid banks freezing funds due to vague transaction background. When settling foreign exchange, submit a full set of documents for transshipment trade simultaneously, including upstream and downstream contracts, transshipment bills of lading, yard certificates, etc., to ensure the fund flow is consistent with the document flow.
In case of account freezing, supplement all trade vouchers to the bank to apply for unfreezing within 3 working days, and the maximum unfreezing period shall not exceed 7 working days. In addition, you can sign a transshipment trade settlement agreement with the bank in advance to enjoy the exclusive settlement green channel.
Jason WuYears of service：10Customer Rating：5.0
International Logistics & Supply Chain ManagerStart a Chat
The collection and customs declaration of transshipment trade shall clearly stipulate the division of responsibilities in the contract, especially add the "transshipment liability exemption clause", which stipulates that during the transshipment of goods at domestic ports, if expenses are incurred due to customs verification or logistics abnormalities, the bearing proportion shall be divided according to the responsible party, to avoid fund arrears caused by disputes. In the collection link, avoid accepting letters of credit with soft clauses, such as the clause of "need to provide domestic import customs declaration form", otherwise collection will fail because the clause requirements cannot be met.
During customs declaration, the legal effect of all documents shall be ensured. The transshipment bill of lading shall be issued by a qualified shipping company. It is forbidden to use the freight forwarder bill of lading issued by a non-vessel operating common carrier, otherwise customs will question the authenticity of the documents and cause legal risks. At the same time, the original copies of all contracts and documents shall be retained as the legal basis for subsequent dispute handling.
Cindy ChenYears of service：3Customer Rating：5.0
Key Account ManagerStart a Chat
When transshipment trade goods are inspected on site by customs, strictly cooperate with the customs operation, and it is forbidden to open the cargo package or move the goods without permission, otherwise it will be identified as illegal operation and trigger a fine. During the inspection, submit a full set of materials such as transshipment bill of lading, yard storage certificate, upstream and downstream contracts to customs to prove that the goods are only transshipped and have not entered the domestic market.
If customs requires unpacking inspection, contact the yard in advance to arrange professional operators, and ensure the packaging and shipping marks of the goods are completely consistent with the documents, to avoid being identified as false declaration of cargo name due to inconsistent shipping marks. After the inspection is completed, retain the Inspection Record Form issued by customs as the certification material for subsequent collection and trade compliance. If the inspection result is normal, feed back the documents to the bank in time to complete the foreign exchange settlement.
Evelyn LiYears of service：3Customer Rating：5.0
Cross-border Compliance SupervisorStart a Chat
Transshipment trade is not within the scope of application of export tax rebate. Enterprises shall strictly distinguish the fund flow and document flow between transshipment trade and general trade, to avoid the failure of tax rebate audit caused by mixed declaration. When collecting funds, the funds of transshipment trade shall be accounted for separately, and it is forbidden to deposit them in the same account with the foreign exchange collection funds of general trade, otherwise the tax authority will identify it as suspected of defrauding export tax rebate.
If an enterprise carries out general trade and transshipment trade at the same time, it shall establish an independent document management system. The documents of transshipment trade shall be stored and filed separately to avoid being mistakenly included in the document filing scope of export tax rebate. In addition, cooperate with the tax authorities to complete the fund flow verification of transshipment trade every year to ensure that the inflow and outflow of funds meet the compliance requirements.
Michael ZhangYears of service：6Customer Rating：5.0
Customs Declaration & Compliance ExpertStart a Chat
The collection and customs declaration of transshipment trade shall be included in the overall supply chain planning. The collection path shall match the logistics path and trade terms. If FOB trade terms are adopted, ensure that the collection is received before the goods are transshipped and loaded, to avoid capital risks caused by the transfer of cargo ownership.
For the customs declaration link, plan the selection of transshipment ports in advance, and give priority to ports with transshipment facilitation policies, such as Shanghai Yangshan Port and Ningbo Zhoushan Port, which can enjoy conveniences such as simplified customs declaration process and shortened inspection time. In addition, a cost actuarial model shall be established to calculate the costs such as collection handling fee, customs declaration fee and logistics fee of transshipment trade, so as to ensure a reasonable profit margin and avoid trade losses caused by excessive costs. At the same time, regularly evaluate the compliance risks of transshipment trade, and adjust the operation procedures of collection and customs declaration according to policy changes.