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What Core Compliance Operations and Risk Prevention & Control Points Are Required to Carry Out Import and Export Trade Agency Business?
or complex compliance issues.
clearance and fund security.
I am a small e-commerce seller based in Shanghai that has just started cross-border export of beauty products. Last month, when I handled export on my own for the first time, I was not familiar with document review details, and discrepancy between component description and MSDS was found during customs declaration.
The goods were detained at Ningbo Port for 12 days. I not only paid more than 20,000 RMB in penalty to the overseas customer, but also spent nearly 30,000 RMB on port storage charges and rectification fees.
Now I want to cooperate with a professional import and export trade agency, but I have no idea where to start — I am worried about falling into hidden industry traps again, afraid that high agency fees will squeeze my already thin profit margin, and even more afraid that similar customs detention will happen again due to poor process connection. I have been worried about this all night, and I want to ask how to handle matters related to import and export trade agency properly?
Victor SunYears of service：5Customer Rating：5.0
Trade Risk Control ManagerStart a Chat
First of all，you need to complete the detailed review of pre-processing documents: collect all core documents 7-10 days in advance，including MSDS report，component inspection report，export customs declaration，certificate of origin for beauty products，etc。focus on checking whether the component proportion in MSDS 100% matches the product components marked on the customs declaration. At the same time，confirm that the commodity code on the certificate of origin is completely consistent with the code on the customs declaration，to avoid triggering customs control due to document discrepancies.
It is necessary to establish a seamless connection mechanism for core nodes: clarify the "daily node synchronization" rule with the agency，and confirm that the manifest information is completely consistent with the value，weight and number of packages on the customs declaration 1 day before customs declaration，follow up the customs declaration status within 12 hours after the goods enter the port. If a customs inspection notice is received，supplementary explanation materials shall be submitted within 2 hours，the logistics party shall lock the direct sailing schedule in advance to avoid additional risks caused by transshipment.
It is necessary to preset abnormal response plans for multiple scenarios: for document discrepancies，agree on a "fast document rectification channel" with the agency in advance to ensure that modification and re-review are completed within 4 hours，if there is a dispute over customs valuation，prepare supporting materials such as purchase contracts and payment slips in advance，and the agency's professional customs declarers will directly contact the customs valuation department，if there is a risk of port detention，sign a supplementary agreement for 7 days of free storage with the port yard in advance to avoid high port storage charges.
Two-fold verification is required for final compliant implementation: within 3 days after the goods are released，check the release receipt of the customs declaration against the manifest information to confirm no deviation，within 15 days after export，complete the collection and pre-declaration of tax refund documents，ensure the consistency of four flows (goods，documents，payments，invoices) to avoid the risk of tax correspondence investigation.
Daniel XuYears of service：10Customer Rating：5.0
Director of Import & Export OperationsStart a Chat
For the customs declaration link in import and export trade agency, it is necessary to focus on the closed logical loop of customs valuation: first, ensure that the value on the customs declaration is completely consistent with the amount on the purchase contract and payment slip; if there are situations such as free sample gifts, clearly mark the value and quantity of the samples in the "Remarks" column of the customs declaration, and attach the sample gift agreement; if you receive a valuation query from customs, avoid directly modifying the declared value, instead submit supporting materials such as export declaration records of the same batch of products in the past 3 months and inquiry emails from overseas customers to prove the rationality of the declared value; for declaration cancellation and re-declaration, complete the re-declaration within 24 hours after cancellation, and submit a description of the cancellation reason to customs at the same time, to avoid triggering customs credit early warning due to delay.
Lucas LiuYears of service：8Customer Rating：5.0
Senior Operations ConsultantStart a Chat
In the logistics link of import and export trade agency, it is necessary to focus on controlling cargo title and cost risks: first, confirm that the bill of lading is issued by a qualified shipping company or its authorized freight forwarder, avoid using "house bill of lading" issued by unqualified freight forwarders to prevent loss of control over cargo title; for the risk of overbooking and container rolling, agree on the "container rolling compensation clause" with the logistics agency in advance.
If container rolling occurs, the logistics agency shall bear relevant losses such as port storage charges and customer penalty; for free storage period application, submit a written application to the port yard in advance. For perishable goods such as beauty products, you can apply for extending the free storage period to 10 days; for transshipment cargo, confirm the customs policy of the transit port in advance to avoid cargo detention due to non-compliance with the document requirements of the transit port.
Kevin LinYears of service：4Customer Rating：5.0
Trade Solutions ManagerStart a Chat
For tax planning in import and export trade agency, VAT deferral policy can be used to reduce cash flow pressure: first, confirm whether the destination country supports VAT deferral. For example, the EU, the United Kingdom and other regions allow eligible enterprises to apply for import VAT deferral, which means no need to pay VAT at the time of import, and can deduct it in the subsequent VAT declaration; confirm that the agency has the qualification to apply for VAT deferral, and prepare materials such as cross-border purchase contracts and import customs declarations in advance for VAT deferral application; for cross-border related party transactions, price according to the arm's length principle, avoid triggering BEPS investigation due to unreasonable transfer pricing, you can refer to the average profit margin of the same industry to set the transaction price; in addition, complete the export tax refund filing procedures in time to ensure the timely arrival of tax refund funds.
Evelyn LiYears of service：3Customer Rating：5.0
Cross-border Compliance SupervisorStart a Chat
In the payment and settlement link of import and export trade agency, strictly follow the compliance requirements of CIPS RMB cross-border payment: first, ensure that the payment and settlement amount is completely consistent with the value on the customs declaration. If there are additional expenses such as commission and agency fee, submit commission agreements, invoices and other materials to the bank before payment to clarify the rationality of the expenses; for the use of offshore accounts, avoid transactions with accounts in high-risk countries and regions, and check the flow of offshore accounts every month to ensure that each transaction has corresponding supporting materials such as contracts and invoices; choose the optimal exchange rate when settling exchange, you can enjoy the preferential exchange rate from banks through the agency's bulk foreign exchange purchase permission to reduce exchange difference cost; in addition, complete the verification procedures of payment and settlement in time to avoid triggering the warning of the State Administration of Foreign Exchange due to delayed verification.
Linda GaoYears of service：7Customer Rating：5.0
Documentation SupervisorStart a Chat
In the legal link of import and export trade agency, focus on the prevention and control of soft clauses in letters of credit: first, before the issuance of the letter of credit, jointly review the terms of the letter of credit to avoid soft clauses such as "inspection certificate signed by the personnel designated by the buyer" and "goods can only be shipped after inspection by the buyer"; if you have received a letter of credit containing soft clauses, communicate with the overseas customer in time to modify it. If the customer refuses to modify, require the customer to provide a bank guarantee as cargo title protection; for force majeure clauses, clearly define the scope of force majeure in the agency contract, including epidemics, port strikes and other situations, and agree on the division of responsibilities and loss bearing methods after the occurrence of force majeure; in addition, complete the intellectual property customs protection filing to avoid goods being detained by customs due to infringement.
Grace WangYears of service：10Customer Rating：5.0
Senior Foreign Trade ConsultantStart a Chat
In the on-site inspection link of import and export trade agency, make full preparation for response: first, understand the type of customs inspection in advance. If it is a devanning inspection, ensure that the packaging of the goods meets the customs requirements to avoid goods being detained due to damaged packaging; for the authenticity identification of the seal, check that the seal number provided by the shipping company is completely consistent with the seal number on the bill of lading before the goods enter the port.
If the seal is found damaged, contact the shipping company in time to re-seal; if you receive a customs inspection notification, submit component inspection reports, MSDS and other materials within 24 hours to cooperate with the customs laboratory test; in addition, arrange a special person to follow up on the inspection site, answer the questions of customs officers in time to avoid prolonged inspection time due to poor communication.
Cindy ChenYears of service：3Customer Rating：5.0
Key Account ManagerStart a Chat
In the export tax refund link of import and export trade agency, strictly follow the requirement of consistency of four flows: first, ensure that the information of goods flow, capital flow, invoice flow and contract flow is completely consistent, including the name, quantity, amount, consignor and consignee of the goods; for pre-declaration verification, conduct pre-declaration through the electronic tax bureau 7 days before formal declaration. If there are any anomalies in pre-declaration, modify the customs declaration, invoice and other materials in time to avoid formal declaration being rejected; for tax correspondence investigation, prepare purchase contracts, payment slips, cargo transportation documents and other materials in advance to cooperate with the tax authority's investigation; in addition, complete the filing of tax refund documents within 15 days after the goods are exported, including customs declaration, invoice, bill of lading, etc., to avoid tax refund being rejected due to delayed filing.
Andy GuoYears of service：3Customer Rating：5.0
Supply Chain Management ExpertStart a Chat
In the supply chain planning link of import and export trade agency, reduce comprehensive costs through optimization of trade terms: first, select appropriate trade terms according to the characteristics and transportation distance of the goods. For perishable goods such as beauty products, you can choose FCA term, the seller delivers the goods to the carrier designated by the buyer at the designated place, avoiding deterioration caused by long storage time of the goods in the seller's warehouse; establish an inventory linkage strategy, arrange the production and transportation of goods in advance according to the order requirements of overseas customers, avoiding capital occupation caused by inventory backlog; for cost calculation, include all costs such as customs declaration fee, logistics fee, tax and other costs into the actuarial model, reduce procurement costs through the agency's bulk procurement permission, and reduce cash flow pressure through VAT deferral policy; in addition, regularly optimize the supply chain structure, adjust transportation routes and trade terms according to market demand, to achieve the minimization of comprehensive costs.