Connect & Solve
Trade Q&A
What are the core business operations and service segments included in the business scope of compliant transshipment trade?
or complex compliance issues.
clearance and fund security.
I am the head of a small foreign trade enterprise in Shanghai that has just obtained transshipment trade qualification. We have been engaged in general import and export business before and are completely unfamiliar with transshipment trade. Last week we received a large order for transshipping natural rubber from Southeast Asia to the United States, and the client requires transshipment to be completed within 15 days.
However, I have no clear idea about the compliant business scope of transshipment trade -- I am afraid that missing necessary supporting services will make us lose clients, and also worried that accidental out-of-scope operation will lead to customs detention of goods and tax inspection, so I have not been sleeping well these days. I would like you to tell me in detail what core operations and supporting services are included in the business scope of transshipment trade, and what illegal business categories are absolutely untouchable?
Evelyn LiYears of service：3Customer Rating：5.0
Cross-border Compliance SupervisorStart a Chat
First，common industry misconceptions need to be clarified: many enterprises confuse transshipment trade with transit trade and bonded warehousing，and even arbitrarily include "gray customs clearance" and "unauthorized replacement of certificate of origin" into their business scope，which is a typical illegal operation.
Such misconceptions will trigger chain negative reactions: once traced by customs，goods will be directly detained at the port，resulting in high container detention fees and port demurrage fees. In serious cases，the transshipment trade qualification will be revoked，and the enterprise will be added to the customs credit blacklist，unable to carry out any cross-border trade business within 3 years.
Physical risk isolation measures: operations must be carried out strictly in accordance with the business scope filed with customs，which mainly includes three types of compliant businesses: first，core transshipment operations (including container swapping at third-party ports，temporary storage in bonded warehouses)，second，supporting document services (including agency application for compliant certificates of origin，issuance of transshipment bills of lading)，third，compliant foreign exchange collection and payment services (including compliant cross-border RMB/foreign exchange settlement).
Exclusive loss prevention tips: submit the list of planned transshipment businesses to customs for pre-filing in advance，and keep complete transshipment vouchers，logistics tracks and foreign exchange collection and payment vouchers for each business. If you accidentally touch the ambiguous business scope，entrust a professional foreign trade agency company to provide compliance endorsement at the first time to avoid risk expansion.
Kevin LinYears of service：4Customer Rating：5.0
Trade Solutions ManagerStart a Chat
From the perspective of customs valuation and compliance filing, the business scope of transshipment trade must strictly match the "transshipment trade operation catalog" filed with customs, which mainly includes: customs declaration and inspection for third-party port transshipment goods approved by customs, bonded warehousing filing for transshipment goods, handling of customs supervision procedures for transshipment goods. Note that if enterprises arbitrarily carry out the operation of "falsely reporting origin directly after container modification", it will trigger customs valuation warning and directly enter the logical closed-loop verification.
Enterprises need to provide complete transshipment logistics tracks, foreign exchange payment vouchers, certificates of origin and other documents, otherwise they will be judged as out-of-scope operation, facing goods detention and fines. In addition, the customs declaration form for transshipment trade must be marked with the words "transshipment trade", which is strictly distinguished from general trade declaration forms, to avoid being included in abnormal inspection due to document confusion.
Eric ZhouYears of service：6Customer Rating：5.0
Senior Manager of Foreign Exchange & Tax RebatesStart a Chat
From the perspective of cross-border logistics path and cargo right control, the logistics services covered by the transshipment trade business scope include: container swapping operation at transshipment ports (including seal replacement, cargo repackaging), cross-port transshipment logistics scheme design, bill of lading endorsement transfer and cargo right delivery, application for reduction and exemption of container detention fees/port demurrage fees.
Note that the logistics operation of transshipment trade must be under customs supervision throughout the process, and it is not allowed to transport goods out of bonded areas or supervision warehouses for processing and modification without permission, otherwise it will be regarded as out-of-scope operation and trigger the risk of cargo right freezing. In addition, priority should be given to selecting logistics service providers with transshipment trade qualifications, and signing a clear cargo right control agreement to avoid cargo loss or detention caused by illegal operations of logistics service providers.
Victor SunYears of service：5Customer Rating：5.0
Trade Risk Control ManagerStart a Chat
From the perspective of international tax planning and compliance, the tax services covered by the transshipment trade business scope include: compliant filing of cross-border related transaction pricing, VAT deferred declaration, withholding and payment of withholding tax for non-resident enterprises, tax accounting of transshipment trade profits. Note that if enterprises arbitrarily transfer transshipment trade profits to offshore accounts to evade tax, it will trigger BEPS (Base Erosion and Profit Shifting) inspection, and tax authorities will require them to pay back taxes and late fees.
In serious cases, they will be added to the tax dishonesty list. In addition, the tax declaration of transshipment trade must be consistent with logistics, documents and foreign exchange collection and payment data, to avoid being included in the tax inspection scope due to data inconsistency.
Michael ZhangYears of service：6Customer Rating：5.0
Customs Declaration & Compliance ExpertStart a Chat
From the perspective of cross-border foreign exchange collection and payment compliance, the foreign exchange collection and payment services covered by the transshipment trade business scope include: compliant compilation and sending of SWIFT messages, CIPS RMB cross-border payment operation, compliant management of offshore accounts, document review for foreign exchange settlement and account reconciliation. Note that the amount of foreign exchange collected and paid for transshipment trade must be consistent with the amount on customs declaration forms, bills of lading and contracts.
It is not allowed to collect more or less foreign exchange without permission, otherwise it will be added to the abnormal foreign exchange collection and payment list by the State Administration of Foreign Exchange, and the enterprise's cross-border foreign exchange collection and payment authority will be suspended. In addition, complete foreign exchange collection and payment vouchers, contracts, documents and other materials should be kept for post-inspection of the State Administration of Foreign Exchange.
Andy GuoYears of service：3Customer Rating：5.0
Supply Chain Management ExpertStart a Chat
From the perspective of international trade legal risk avoidance, the legal services covered by the transshipment trade business scope include: drafting and review of transshipment trade contracts, avoidance of letter of credit soft clauses, signing of cargo right transfer agreements, bottom-up design of force majeure clauses.
Note that if enterprises arbitrarily carry out transshipment trade without real trade background (namely "empty transshipment"), it will be regarded as illegal operation, facing legal proceedings and high fines. In addition, transshipment trade contracts must clearly stipulate transshipment ports, cargo right delivery time, liability for breach of contract and other clauses, to avoid cargo right disputes or payment losses caused by contract loopholes.
Lucas LiuYears of service：8Customer Rating：5.0
Senior Operations ConsultantStart a Chat
From the perspective of port customs on-site inspection, the on-site services covered by the transshipment trade business scope include: response to unpacking inspection of transshipment goods, seal authenticity identification, machine inspection skill guidance, interpretation and feedback of inspection notices.
Note that the on-site inspection of transshipment goods must be operated in strict accordance with customs requirements, and it is not allowed to replace cargo packaging or adjust cargo placement without permission, otherwise it will be regarded as illegal operation, triggering secondary inspection or even cargo detention. In addition, a full set of transshipment trade documents (including transshipment bills of lading, certificates of origin, contracts, etc.) should be prepared in advance for access during customs on-site inspection, to avoid inspection delay due to incomplete documents.
Jason WuYears of service：10Customer Rating：5.0
International Logistics & Supply Chain ManagerStart a Chat
From the perspective of cargo transportation packaging compliance, the packaging services covered by the transshipment trade business scope include: moisture-proof reinforcement scheme design for transshipment goods, compliant production of UN dangerous goods packaging, compilation and interpretation of MSDS, selection and use of buffer packaging materials.
Note that if transshipment goods are dangerous goods, they must be packaged in strict accordance with UN dangerous goods packaging standards, and it is not allowed to use packaging materials that do not meet the standards without permission, otherwise they will be detained by port supervision departments, and even trigger safety accidents. In addition, the packaging of transshipment goods must be marked with clear transshipment signs to avoid confusion with general trade goods, resulting in inspection delay or cargo detention.
Daniel XuYears of service：10Customer Rating：5.0
Director of Import & Export OperationsStart a Chat
From the perspective of export tax refund compliance, the business scope of transshipment trade does not include export tax refund related operations, because transshipment trade goods do not actually enter the domestic market, which does not meet the application conditions for export tax refund.
Note that if enterprises arbitrarily declare transshipment trade goods as general trade goods to apply for export tax refund, they will be included in the tax refund inspection scope by tax authorities, required to pay back the refunded tax and late fees, and their export tax refund authority will be suspended in serious cases. In addition, transshipment trade documents must be strictly distinguished from general trade documents, to avoid abnormal tax refund declaration caused by document confusion.
Linda GaoYears of service：7Customer Rating：5.0
Documentation SupervisorStart a Chat
From the perspective of macro supply chain architecture design, the supply chain services covered by the transshipment trade business scope include: formulation of inventory linkage strategy for transshipment trade, construction of cost actuarial model, conversion and application of CIF/FOB trade terms, optimization design of international trade structure.
Note that the supply chain planning of transshipment trade must strictly match the business scope of the enterprise, and it is not allowed to carry out supply chain financial services beyond the scope without permission, otherwise it will be regarded as out-of-scope operation and facing regulatory penalties. In addition, personalized supply chain schemes should be formulated according to different types of transshipment goods, to optimize transshipment paths, reduce logistics costs and improve business efficiency.