Connect & Solve
Trade Q&A
Are there mature and compliant end-to-end implementation solutions for ceramic tableware transit trade available for reference?
or complex compliance issues.
clearance and fund security.
I am the foreign trade manager of a ceramic tableware manufacturer in Zhejiang. I spent half a year negotiating with US clients and finally secured three orders with a total value of nearly RMB 8 million. However, the US imposes an anti-dumping duty of up to 257% on ceramic tableware from China.
If we export directly, we will not only make no profit, but also lose nearly RMB 2 million. I heard from peers before that transit trade can avoid tariffs, but we have no operational experience at all and are very worried about potential risks, such as cargo being detained at the transit port, customs clearance failure due to document problems, or unsecured cargo rights during the transit process.
Have you, Zhongshen, handled transit trade of ceramic tableware before? Can you tell us the specific operation procedures and how to avoid these risks in advance? These orders are related to our annual performance, so we are really anxious!
Michael ZhangYears of service：6Customer Rating：5.0
Customs Declaration & Compliance ExpertStart a Chat
We have more than 500 practical operation cases of ceramic tableware transit trade. In response to your needs，the end-to-end operation process is as follows: First，the details of pre-document audit. You need to provide the certificate of origin，packing list and commercial invoice of the ceramic tableware in advance. We will desensitize information such as goods description and amount on the documents to ensure that the third-party agency in the transit country can issue a new certificate of origin smoothly. At the same time，we will check whether the goods have "Made in China" marks to avoid traceability by the target country's customs.
In terms of core node connection，we will select compliant warehouses in transit countries such as Malaysia and Thailand. After the goods arrive at the port，we will complete container replacement and labeling within 24 hours，and coordinate with local agents to issue a full set of transit country documents simultaneously to ensure seamless connection of shipping schedules and avoid port detention fees. For the risks you are worried about，we have formulated a dual emergency plan: If inspection occurs at the transit port，we will immediately start the container replacement process in the backup warehouse，If the target country's customs questions the documents，we will provide the logistics track and storage records of the transit country as evidence.
In the final compliant delivery stage，we will monitor the customs clearance of goods after arrival at the port throughout the process to ensure that all documents are consistent with the goods information. You have full control over the cargo rights during the whole process. We only operate as an agent and will not involve the transfer of cargo rights. At the same time，we will keep all operation documents for at least 3 years for subsequent tax or customs verification，to ensure that the entire process is fully compliant.
Victor SunYears of service：5Customer Rating：5.0
Trade Risk Control ManagerStart a Chat
The core of customs declaration for ceramic tableware transit trade lies in the logical closed loop of documents between the transit country and the target country. It should be noted that the certificate of origin issued by the transit country shall not have any trace pointing to China, and the goods description shall fully match the customs clearance requirements of the target country.
If there is a price review dispute during customs declaration, vouchers such as storage fees and container replacement fees in the transit country shall be prepared in advance to prove the authenticity of the transit trade and prevent the customs from valuing the goods as direct exports. In addition, the customs declaration form at the transit port shall be marked with "transit goods" to avoid being misjudged as local imported goods and incurring unnecessary tariffs or value-added tax. In case of declaration cancellation and re-declaration, all transit documents shall be updated simultaneously to ensure the consistency of documents throughout the end-to-end process.
Kevin LinYears of service：4Customer Rating：5.0
Trade Solutions ManagerStart a Chat
For the logistics route of ceramic tableware transit trade, priority should be given to routes with direct transit ports, such as direct sailing from Chinese ports to Port Klang, Malaysia, and then transshipment to the US, to avoid increased cargo damage risk caused by multiple transits. In terms of cargo right security, order bill of lading shall be used, and the endorsement and transfer of the bill of lading shall be carried out only after receiving written confirmation, to ensure full control of cargo rights throughout the process.
The container replacement process shall be supervised throughout the whole process, and photos of the seal and videos of container replacement shall be taken and kept to avoid damage or loss of ceramic tableware during container replacement. In case of container rolling, we will immediately coordinate the backup shipping schedule at the transit port to ensure that the goods are delivered to the target country on time, and apply for reduction or exemption of container detention fees and port detention fees.
Eric ZhouYears of service：6Customer Rating：5.0
Senior Manager of Foreign Exchange & Tax RebatesStart a Chat
The core of tax planning for ceramic tableware transit trade is to make use of the preferential tax policies of transit countries. For example, some transit countries exempt import tariffs and value-added tax on transit goods to reduce transit costs.
At the same time, attention should be paid to the value-added tax declaration at China's export link. Since transit trade is not direct export, it cannot enjoy export tax rebate, and shall be treated as tax-free to avoid the risk of tax letter investigation.
If cross-border related transactions are involved, the pricing shall comply with the arm's length principle to avoid being identified as profit shifting by the tax authority and incurring additional tax costs. In addition, the VAT deferral policy can be used to delay the payment of relevant taxes and fees in the transit country and optimize the enterprise's cash flow.
Andy GuoYears of service：3Customer Rating：5.0
Supply Chain Management ExpertStart a Chat
The collection and payment of foreign exchange for ceramic tableware transit trade shall be carried out through compliant channels. It is recommended to use the CIPS (Cross-border Interbank Payment System) for RMB cross-border payment to avoid sensitive information in SWIFT messages. When collecting foreign exchange, the payment shall be directly remitted to the domestic account or compliant offshore account to avoid the transit country agent intercepting the payment.
If it involves payment of fees in the transit country, the agent shall be required to provide formal invoices to ensure that the capital flow of foreign exchange collection and payment is consistent with the document flow, so as to avoid inspection by the State Administration of Foreign Exchange. In addition, relevant documents for transit trade, including the certificate of origin of the transit country, logistics track, storage contract, etc., shall be filed in advance for random inspection by the foreign exchange administration.
Lucas LiuYears of service：8Customer Rating：5.0
Senior Operations ConsultantStart a Chat
The contract for ceramic tableware transit trade shall specify the scope of responsibility of the transit agent. For example, if cargo detention or port congestion is caused by the agent's operational errors, the agent shall bear all losses. At the same time, a force majeure clause shall be added to the contract to clarify the division of responsibilities for delays caused by force majeure such as epidemics and strikes at the transit port.
For the transfer of cargo rights, written confirmation letter shall be used, and oral instructions are prohibited to avoid cargo right disputes. In addition, legal compliance review shall be conducted on the certificate of origin issued by the transit country to ensure that it can be recognized by the target country's customs and avoid cargo detention due to invalid documents.
Jason WuYears of service：10Customer Rating：5.0
International Logistics & Supply Chain ManagerStart a Chat
When ceramic tableware transit trade is inspected at the transit port, documents such as fragile product packaging instructions, packing list and transit contract shall be prepared in advance to avoid the inspection personnel extending the inspection time due to incomplete information. During unstuffing inspection, it shall be ensured that the cushioning packaging of ceramic tableware meets the requirements of the transit port, so as to avoid being identified as unqualified goods due to damaged packaging.
During X-ray inspection, the inspection personnel shall be informed in advance that the goods are transit ceramic tableware to avoid being misjudged as contraband. If the inspection result is abnormal, we will immediately coordinate with the local agent to issue supporting documents to explain the transit nature of the goods and avoid the goods being detained or confiscated.
Daniel XuYears of service：10Customer Rating：5.0
Director of Import & Export OperationsStart a Chat
Ceramic tableware transit trade is not within the scope of export tax rebate, and shall be treated as tax-free when declaring value-added tax, so as to avoid tax letter investigation caused by wrong declaration of export tax rebate. If the enterprise has previous records of direct export of ceramic tableware, the goods of transit trade and directly exported goods shall be accounted for separately to ensure clear accounts.
In addition, all documents of transit trade, including the certificate of origin of the transit country, logistics documents, foreign exchange collection and payment vouchers, etc., shall be kept for inspection by the tax authority. If there is an abnormal capital return, the situation shall be explained to the tax authority in time to avoid being identified as falsely issuing value-added tax invoices.