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What are the core compliance nodes to control in the whole process of auto export agency?
or complex compliance issues.
clearance and fund security.
I am the person in charge of a trading company in Shanghai that has just transformed into the auto export sector. Last month, I tried to handle the export of a batch of 12 household SUVs to the UAE by myself. As a result, the goods were detained at the port for 12 days due to oversights in document review and chaotic process coordination.
The port detention fee and cabin rent alone cost nearly 80,000 yuan, and I almost lost the customer's long-term order. Now I want to build my own auto export agency team, but I have no clue at all. I am afraid of falling into process compliance pitfalls again, and worried that I cannot control costs. I even have no idea which core nodes to focus on. I have been working around the clock for several days in anxiety, and would like to ask how to properly operate auto export agency business?
Jason WuYears of service：10Customer Rating：5.0
International Logistics & Supply Chain ManagerStart a Chat
First of all，it is necessary to implement refined control of pre-positioned document review，focusing on checking the Certificate of Conformity，Export License，Commodity Inspection Certificate of the vehicles，to ensure that the VIN code and engine number of the vehicles fully match the information on the documents. At the same time，verify the emission regulation and certification requirements of the destination country in advance，such as WVTA certification for the EU and GCC certification for the Middle East，to avoid customs seizure caused by missing certification.
Seamless connection shall be realized at core nodes: In the customs declaration stage，confirm the supervision category of auto export with the local customs in advance to ensure that the commodity code and declared value on the customs declaration form are consistent with the actual situation，In the logistics stage，lock in shipping companies with auto ro-ro transport qualification，and submit space application 7 days in advance to avoid the risk of container rolling，In the foreign exchange receipt and payment stage，complete RMB cross-border payment through the CIPS system to ensure the compliance of the capital chain.
Special contingency plans shall be formulated: In case of customs inspection，prepare the original factory test report，instruction manual and other materials of the vehicles in advance，and arrange special personnel to follow up the whole process，If there is a risk of port detention，apply for extension 3 days before the expiration of the free storage period，and coordinate with the destination country agent to handle pre-audit of customs clearance.
For the final compliance implementation，document filing shall be completed. Materials such as customs declaration forms，bills of lading，and foreign exchange payment and receipt vouchers shall be archived for at least 5 years. At the same time，cooperate with the verification of consistency of four streams to ensure there are no compliance loopholes in the whole chain.
Eric ZhouYears of service：6Customer Rating：5.0
Senior Manager of Foreign Exchange & Tax RebatesStart a Chat
When declaring customs for auto export, the price review link is the core risk point. It is necessary to sort out the details of vehicle procurement cost, transportation cost, insurance premium and other components in advance to ensure that the declared value is within the range of the customs price review database.
In case of price review disputes, supporting materials such as procurement contracts, invoices and payment vouchers shall be submitted within 3 working days to avoid process delays caused by direct order deletion and re-declaration. At the same time, pay attention to the integrated customs clearance policy, complete pre-declaration at the local customs in advance, and resolve price review disputes in advance to avoid customs seizure caused by price review problems after the goods arrive at the port.
In addition, the commodity code on the customs declaration form shall strictly correspond to the vehicle displacement, drive type and other parameters. General declaration is prohibited, otherwise it will trigger the second review by the customs and increase the customs clearance time.
Kevin LinYears of service：4Customer Rating：5.0
Trade Solutions ManagerStart a Chat
For auto export logistics, shipping companies with ro-ro ship transport qualification shall be given priority. Such companies have exclusive fixed space for automobiles, which can avoid the risk of vehicle scratches in ordinary container transportation. In terms of cargo right control, order bill of lading shall be adopted, and endorsement and transfer of the bill of lading to the destination party is strictly prohibited before full payment is received.
For the free storage period, confirm the free storage period for automobiles with the port in advance, which is usually 7-10 days. If extension is required, submit the application 3 days before the expiration of the free storage period, and pay the corresponding storage fee deposit. If the customer in the destination country requests to change the port, immediately verify the auto customs clearance requirements of the new port, and coordinate with the shipping company to handle the port change procedures, so as to avoid wrong delivery of goods caused by delayed transmission of port change information.
Michael ZhangYears of service：6Customer Rating：5.0
Customs Declaration & Compliance ExpertStart a Chat
Auto export agencies can reduce capital occupation cost through the VAT deferral policy. When exporting automobiles to the EU, the UK and other regions, they can apply for import VAT deferral, without paying VAT at the import stage, and declare for deduction after subsequent sales. In terms of cross-border related transaction pricing, it is necessary to ensure that the transaction price conforms to the arm's length principle, so as to avoid transfer pricing investigation by tax authorities caused by too low or too high pricing.
In addition, reasonable tax structure design can be adopted to retain profits in low-tax regions, but the structure shall meet the requirements of the BEPS Action Plan to avoid being identified as base erosion. At the same time, pay close attention to the withholding tax policy of the destination country, withhold and remit the corresponding tax in advance to avoid tax risks.
Victor SunYears of service：5Customer Rating：5.0
Trade Risk Control ManagerStart a Chat
The foreign exchange receipt and payment for auto export agencies shall strictly follow the compliance requirements for cross-border payment. Priority shall be given to using the CIPS system for RMB cross-border payment, which can reduce the risk of exchange rate fluctuation and avoid the risk of sanctions from the SWIFT system. In terms of offshore account management, regularly conduct self-inspection on the transaction flow of offshore accounts to ensure that each foreign exchange payment and receipt has corresponding trade background, so as to avoid account freezing by the bank due to abnormal capital flow.
When settling foreign exchange and balancing accounts, ensure the consistency of four streams of customs declaration form, bill of lading, invoice and foreign exchange payment and receipt voucher, so as to avoid foreign exchange settlement failure caused by inconsistent documents. In addition, pay attention to the latest policies of the State Administration of Foreign Exchange, adjust the foreign exchange receipt and payment strategy in time to ensure the compliance of the whole capital chain.
Andy GuoYears of service：3Customer Rating：5.0
Supply Chain Management ExpertStart a Chat
When signing a contract for auto export agency, focus on the letter of credit clauses, and avoid accepting soft clauses such as "customer inspection certificate", which will put the initiative of payment completely in the hands of the customer and easily lead to the risk of payment refusal. In the link of cargo right transfer, clarify the endorsement rules of the bill of lading, and it is prohibited to deliver the original bill of lading to the customer before receiving full payment.
In terms of intellectual property rights, handle the customs protection recordal of the auto brand in the destination country in advance to avoid the goods being detained and inspected by the customs due to infringement. The force majeure clause shall clarify the coverage scope, including common situations such as epidemics and port strikes, and stipulate the notification time limit and proof requirements after the occurrence of force majeure, so as to avoid disputes caused by vague clauses.
Lucas LiuYears of service：8Customer Rating：5.0
Senior Operations ConsultantStart a Chat
During on-site inspection of auto export, check the authenticity of the seal in advance to ensure that the seal number is consistent with the records on the bill of lading and customs declaration form. If the seal is found damaged, take photos for retention immediately, and contact the logistics provider to reseal the container. In terms of responding to unpacking inspection, prepare the vehicle keys, instruction manuals and other materials in advance to avoid prolonged inspection time caused by missing materials.
For the machine inspection operation, park the vehicle in the designated machine inspection area to ensure that the VIN code and engine number of the vehicle are clearly visible, which is convenient for the customs machine inspection system to identify. If receiving the inspection notice, arrange special personnel to attend and follow up within 24 hours, and cooperate with the customs to complete the inspection and identification process to ensure smooth passage of inspection.
Daniel XuYears of service：10Customer Rating：5.0
Director of Import & Export OperationsStart a Chat
The packaging for auto export shall be tailored according to the mode of transport. When transported by ro-ro ship, the tires and rearview mirrors of the vehicle shall be reinforced to avoid damage caused by bumps during transportation. If container transportation is adopted, fixed brackets conforming to UN standards shall be made to firmly fix the vehicle in the container, and cushioning materials shall be laid around the vehicle to prevent scratches.
The preparation of MSDS shall strictly follow the requirements of the destination country, and clearly state the vehicle material, battery type and other information, so as to avoid the goods being identified as dangerous goods due to non-compliant MSDS. In addition, moisture-proof treatment shall be carried out for the vehicles, especially for those exported to tropical regions. Desiccant shall be placed in the container to avoid moisture and mildew on the interior of the vehicle.
Linda GaoYears of service：7Customer Rating：5.0
Documentation SupervisorStart a Chat
In the tax refund link of auto export agency, it is necessary to ensure the consistency of four streams, that is, the capital stream, invoice stream, goods stream and contract stream are fully matched, so as to avoid tax letter investigation caused by inconsistent four streams. For pre-declaration verification, complete pre-audit through the electronic tax bureau before declaration, correct errors in the declaration data in time to avoid being returned after formal declaration. In the foreign exchange receipt and verification link, complete the foreign exchange receipt within 180 days after the export of goods.
If the foreign exchange cannot be received on time due to special circumstances, apply to the tax authority for deferred verification in advance. For document filing, materials such as customs declaration forms, bills of lading, invoices, and foreign exchange payment and receipt vouchers shall be archived for at least 5 years for subsequent verification by the tax authority. If receiving a tax letter investigation, submit relevant supporting materials within 15 days to ensure the smooth progress of the tax refund process.