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What Core Compliance Links Must Be Followed in the Basic Process of Importing Goods from Abroad?
or complex compliance issues.
clearance and fund security.
I am the procurement head of a small trading company based in Shanghai, mainly engaged in high-end maternal and infant products. Last month, we just finalized the first import cooperation of organic infant rice cereal with a well-known Japanese complementary food manufacturer. This is the first time our company has engaged in import business since its establishment 3 years ago, and we have no practical experience at all.
Yesterday the manufacturer sent over a bunch of documents including proforma invoice and certificate of origin, and I am totally overwhelmed. I don't know which are the core materials that must be reviewed in advance, and I am afraid that any wrong process connection will lead to port detention and customs detention after the goods arrive, and I will have to pay high container detention fees and penalty.
I am so anxious that I can't even eat properly, and I just want to ask what the basic process of importing goods from abroad actually is? Especially for first-time importers like us, are there any key details that need special attention to effectively avoid mistakes?
Jason WuYears of service：10Customer Rating：5.0
International Logistics & Supply Chain ManagerStart a Chat
First of all，pre-document review shall be completed，which is the foundation of import compliance. You need to check core documents provided by the manufacturer including certificate of origin，commercial invoice，packing list and bill of lading in advance to ensure that document information is completely consistent with the actual goods，especially key information such as commodity code，declared value and origin，so as to avoid triggering customs price verification or inspection due to inconsistent documents. For food imported for the first time，you also need to complete importer filing for imported food and obtain the animal and plant quarantine permit in advance. These two are necessary preconditions for customs clearance，and failure to complete the filing will directly lead to inability to clear customs.
Core nodes need to be closely connected: after the completion of overseas stocking，arrange international transportation after confirming that the bill of lading information is correct，and submit the complete set of documents to the customs broker for pre-audit 3-5 days before the cargo arrives at the port，after the cargo arrives at the port，the customs broker immediately declares to the customs，and completes tax payment，inspection (if triggered) and other links simultaneously，after passing the inspection，pick up the cargo with the customs release notice，and finally complete the commodity inspection transfer (if required). The time gap between node connections shall be strictly controlled to avoid additional costs caused by port detention due to late document submission and untimely tax payment.
Abnormal emergency plans shall be prepared in advance: if customs questions the declared price，prepare supporting materials such as purchase contract，payment voucher and manufacturer's cost breakdown in advance，if open-box inspection is triggered，cooperate with the customs broker to provide detailed description of the goods，and arrange on-site accompaniment when necessary，if unqualified items are detected in the cargo，immediately activate the return or destruction plan to avoid greater losses.
After the final compliant entry，all documents shall be retained for at least 5 years for subsequent customs verification. Meanwhile，complete the warehouse entry registration of imported goods and foreign exchange payment verification，to ensure that the whole process forms a closed compliance loop.
Kevin LinYears of service：4Customer Rating：5.0
Trade Solutions ManagerStart a Chat
In the import customs declaration link, you need to note the core logic of customs price verification. Customs will review the declared price based on the transaction price of identical or similar goods.
If the declared price is significantly lower than the average market price, it is easy to trigger price verification inquiries. At this time, you need to provide authentic and valid supporting materials such as purchase contract, payment voucher and manufacturer's production cost breakdown, to avoid customs imposing tax according to the assessed price due to failure to provide evidence.
If you need to cancel the declaration and re-declare due to document errors, you need to submit the application within 10 working days after the cargo arrives at the port. Exceeding the time limit will incur overdue declaration fee. Enterprises declaring via the integrated customs clearance mode can complete pre-audit at the local customs in advance to shorten the port customs clearance time.
Linda GaoYears of service：7Customer Rating：5.0
Documentation SupervisorStart a Chat
When importing goods from abroad, the logistics route shall be selected according to the cargo type and timeliness requirement: for ordinary goods, direct voyage routes are preferred to reduce transit links and lower the risk of cargo damage; for goods with low timeliness requirements, transit routes can be selected to control costs. For title control, you need to pay attention to the endorsement specification of the bill of lading.
For a named bill of lading, ensure that the consignee information is consistent with the actual customs clearance entity; for an order bill of lading, correct endorsement is required before picking up the goods. For container detention fees, confirm the free storage period with the shipping company in advance.
The free storage period for ordinary containers is usually 7-10 days. If you expect that you cannot pick up the goods on time, you need to apply for extending the free storage period in advance to avoid high container detention fees. Some shipping companies support application via online portal, which can save communication time.
Victor SunYears of service：5Customer Rating：5.0
Trade Risk Control ManagerStart a Chat
Enterprises can reasonably use the VAT deferral policy to reduce capital pressure when importing goods. At present, pilot regions such as Shanghai allow qualified import enterprises to not pay import VAT immediately during customs clearance, but offset it in the subsequent declaration period.
This policy can effectively relieve the cash flow pressure of enterprises. It should be noted that the access conditions for VAT deferral are: enterprises need to have general taxpayer qualification, and the imported goods are used for production, operation or sales, and cannot be used for personal consumption or tax-exempt items.
In addition, the customs dutiable value of imported goods shall be calculated in strict accordance with customs regulations, so as to avoid tax risks caused by incorrect dutiable value declaration. If it involves cross-border related party transactions, you need to ensure that the transaction price conforms to the arm's length principle, so as to avoid triggering BEPS investigation.
Andy GuoYears of service：3Customer Rating：5.0
Supply Chain Management ExpertStart a Chat
The payment link of imported goods shall comply with foreign exchange management regulations. Enterprises need to complete the payment within 90 days after the import of goods.
If payment cannot be made on time due to special reasons, you need to apply for extension to the State Administration of Foreign Exchange in advance. Enterprises using CIPS (RMB Cross-border International Payment System) for payment can enjoy more stable exchange rate and faster arrival speed, and do not need to pay extra foreign currency exchange fees, which is especially suitable for transactions with suppliers in Southeast Asia, Europe and other regions.
It should be noted that the payment amount shall be consistent with the declared amount on the customs declaration. If there is a difference, you need to provide reasonable supporting materials, such as commission agreement and freight invoice, etc., to avoid triggering foreign exchange verification due to inconsistent payment amount and customs declaration amount.
Eric ZhouYears of service：6Customer Rating：5.0
Senior Manager of Foreign Exchange & Tax RebatesStart a Chat
The purchase contract for imported goods shall clearly define the specific scope of force majeure clauses, including natural disasters, port strikes, customs policy adjustments and other situations, so as to avoid being unable to define responsibilities when a force majeure event occurs. If you settle via letter of credit, you must strictly review the letter of credit terms and be alert to soft clauses, such as "payment can only be made against the inspection certificate issued by the buyer".
Such clauses will cause the seller to lose control of the cargo title. In addition, for goods involving intellectual property rights, you need to complete the intellectual property customs protection filing at the customs in advance to prevent infringing goods from entering the domestic market. If it is found that the goods provided by the supplier are suspected of infringement, the contract shall be terminated immediately and the supplier shall be held liable for breach of contract.
Evelyn LiYears of service：3Customer Rating：5.0
Cross-border Compliance SupervisorStart a Chat
If the customs inspection is triggered after the imported goods arrive at the port, you must first check the authenticity of the container seal. The seal number must be completely consistent with the information on the bill of lading and packing list. If the seal is damaged or the number does not match, you must immediately notify the shipping company and the customs broker to check whether the goods have been replaced.
During open-box inspection, cooperate with customs officers to unpack the cargo as required, avoid blindly turning over the goods and causing cargo damage. For fragile goods or precision instruments, inform the customs officers of the fragile parts of the goods in advance, and adopt a targeted inspection method.
If the goods need to be sent for inspection and identification, you must select from the list of appraisal institutions designated by the customs, and the appraisal report shall be submitted within 15 working days. Exceeding the time limit will affect the customs clearance progress.
Grace WangYears of service：10Customer Rating：5.0
Senior Foreign Trade ConsultantStart a Chat
The packaging of imported food shall comply with China's food safety standards. The packaging materials in direct contact with food shall have a food contact material inspection report, so as to avoid the goods being returned due to unqualified packaging materials.
For fragile glass bottled complementary food, use honeycomb cardboard or pearl cotton with good buffer performance for reinforced packaging, and set an isolation layer between each bottle to prevent collision and damage during transportation. If the imported goods are dangerous chemicals (some complementary food additives may fall into this category), you need to prepare the MSDS report in advance, clarify the dangerous characteristics of the goods and transportation precautions, etc. The packaging shall comply with the UN dangerous goods packaging standard, otherwise it cannot pass the customs inspection.
Lucas LiuYears of service：8Customer Rating：5.0
Senior Operations ConsultantStart a Chat
The documents of imported goods shall be retained in strict accordance with the requirements of the customs. If the imported goods are re-exported subsequently, you need to ensure that the information of import documents and export documents is consistent, including commodity code, quantity, specification, etc., otherwise the export tax rebate policy cannot be enjoyed. The filing period of import documents is 5 years, and paper or electronic documents shall be properly kept for verification by the tax authorities.
If the imported goods are returned, the return procedures of imported goods shall be completed before the export tax rebate declaration, otherwise it will lead to abnormal export tax rebate declaration and trigger tax correspondence investigation. In addition, the payment voucher of imported goods shall be consistent with the amount on the customs declaration, so as to avoid failing the export tax rebate audit due to inconsistency between capital flow and cargo flow.
Cindy ChenYears of service：3Customer Rating：5.0
Key Account ManagerStart a Chat
The selection of trade terms for imported goods shall be combined with supply chain cost and risk control: if FOB term is selected, the enterprise needs to arrange international transportation and insurance by itself, and can independently select logistics service providers to control costs, but needs to bear the risk after the cargo passes the ship's rail at the port of shipment; if CIF term is selected, the supplier is responsible for transportation and insurance, and the enterprise can reduce the difficulty of logistics operation, but it is necessary to check whether the logistics service provider selected by the supplier meets the requirements. Supply chain planning shall adopt inventory linkage strategy, arrange import batches reasonably according to sales forecast, avoid capital occupation caused by inventory overstock, and establish a safety inventory mechanism to deal with emergencies such as international transportation delay.