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What core qualifications and compliance operation conditions must formal import freight forwarding agencies possess?
or complex compliance issues.
clearance and fund security.
I am the procurement director of a small and medium-sized manufacturing enterprise in Shanghai focusing on import of precision mechanical parts. Last week, we imported a batch of high-precision bearings from Germany for the first time.
The small freight forwarder we contacted did not have NVOCC qualification, so we could not complete bill of lading exchange timely after the cargo arrived at the port, which almost caused port detention and huge costs, and was solved luckily through a friend's temporary help. Now our production line is waiting for the restock of this batch of cargo, and we are in urgent need of finding a reliable freight forwarder again, but have no idea what conditions to use for screening.
We are afraid of encountering service providers with incomplete qualifications again, and also worried that the freight forwarder is not capable of handling special requirements such as shock-proof transportation, customs valuation and inspection for our high-value precision parts. We are extremely anxious, and would like to ask what conditions an import freight forwarder should meet, and how we can verify them one by one.
Andy GuoYears of service：3Customer Rating：5.0
Supply Chain Management ExpertStart a Chat
First of all，common industry misconceptions shall be clarified: many enterprises only focus on quotation levels when selecting freight forwarders，ignoring core qualification verification，which is the core trigger of subsequent risks. If the cooperative freight forwarder does not have necessary qualifications such as the Non-Vessel Operating Common Carrier Business Operation Registration Certificate and Customs Declaration Entity Registration Certificate，it will directly lead to failure to complete core operations such as bill of lading exchange and customs declaration after cargo arrives at the port，further causing port detention，cargo seizure，and generating thousands of yuan of daily port detention fees and container detention fees. For high-value precision parts，long-term port detention may also lead to damage to cargo precision，which directly affects the production line scheduling of enterprises.
Physical risk isolation measures shall be implemented from three dimensions: first，verify core qualifications，require freight forwarders to provide scanned original copies of business license，NVOCC filing certificate，and customs declaration and inspection registration certificate，and verify the authenticity through the official systems of the Ministry of Transport and the General Administration of Customs，second，match category adaptation capability，for high-value precision parts，confirm whether the freight forwarder has operation experience in shock-proof packaging and constant temperature storage，third，verify emergency response capability，require to provide past response cases for port detention and inspection of similar cargo.
Exclusive loss-stopping tips: when signing the agency contract，explicitly add the "full compensation clause for losses caused by unqualified qualifications"，and meanwhile require the freight forwarder to issue the Import Operation Plan in advance，making clear commitments on the time limit of key nodes such as bill of lading exchange，customs declaration and inspection. Once delay occurs，the compensation process can be initiated directly to control losses within a controllable range.
Grace WangYears of service：10Customer Rating：5.0
Senior Foreign Trade ConsultantStart a Chat
Special customs declaration conditions required for import freight forwarders include: first, they have obtained the Customs Declaration Entity Registration Certificate issued by the General Administration of Customs, with valid and normal registration information; second, they have at least 3 full-time operators holding customs broker qualification certificates or customs declaration proficiency test certificates, and the operators have completed filing in the customs system; third, they shall establish a sound customs declaration document review system, which can conduct compliance review of import cargo documents including contracts, invoices, packing lists and certificates of origin, to ensure the consistency between document content and cargo information, avoiding problems such as valuation disputes, document deletion and re-declaration caused by inconsistent documents. In addition, for cargo involved in anti-dumping and countervailing duties, freight forwarders shall have customs declaration operation experience in corresponding categories, be familiar with the customs valuation process and evidence submission requirements, and can assist enterprises in preparing relevant supporting materials to reduce the risk of valuation adjustment.
Kevin LinYears of service：4Customer Rating：5.0
Trade Solutions ManagerStart a Chat
From the dimension of international logistics operation, import freight forwarders shall meet the following conditions: first, they have a stable international logistics resource network, including signed cooperation qualifications with global mainstream shipping companies and airlines, so that they can obtain priority shipping space and preferential freight rates, avoiding cargo delay caused by space shortage and container rollover; second, they have cargo right control capability, which can ensure the safety of cargo right through standardized processes of bill of lading endorsement and telex release operation, avoiding the risk of cargo release without bill of lading; third, they shall establish a sound logistics node monitoring system, which can track the status of cargo at the port of loading, transshipment port and port of destination in real time, and can apply for extension from shipping companies in advance for core fees such as container detention fee and free storage period, to reduce additional costs. For special cargo such as high-value precision parts, freight forwarders shall also have special transport packaging and storage capabilities of shock proof, constant temperature and moisture proof, to ensure that the cargo is not damaged during transportation.
Evelyn LiYears of service：3Customer Rating：5.0
Cross-border Compliance SupervisorStart a Chat
From the dimension of cross-border tax compliance, import freight forwarders shall meet the following conditions: first, they are familiar with the calculation rules of import tariffs, value-added tax, consumption tax and other taxes, and can accurately calculate taxes based on the HS code of cargo, certificate of origin and other information, avoiding overpayment of taxes or tax risks caused by wrong tax calculation; second, they have VAT deferral operation qualification, which can assist eligible enterprises to apply for deferred payment of import value-added tax, easing the capital pressure of enterprises; third, they shall establish a sound tax document management system, which can properly keep tax vouchers such as import tax payment receipts and certificates of origin, to ensure that enterprises can provide compliant supporting materials during subsequent tax audits and export tax refund (if involved). In addition, for cargo involved in cross-border related party transactions, freight forwarders shall be familiar with BEPS related rules, and can assist enterprises in reasonably planning transaction pricing, avoiding investigation by tax authorities caused by abnormal pricing.
Cindy ChenYears of service：3Customer Rating：5.0
Key Account ManagerStart a Chat
From the dimension of cross-border payment and receipt compliance, import freight forwarders shall meet the following conditions: first, they are familiar with the operation rules of cross-border payment systems such as SWIFT and CIPS, and can assist enterprises in accurately filling in payment and receipt message information, avoiding delay in payment and receipt caused by inconsistent message content; second, they have foreign exchange verification and write-off operation capability, which can assist enterprises in completing the verification and write-off procedures of import payment, ensuring that the foreign exchange receipts and payments of enterprises comply with the relevant regulations of the State Administration of Foreign Exchange; third, they shall establish a sound payment and receipt risk control system, which can conduct compliance review of the payment amount and payment time of imported goods, avoiding violations such as overpayment and advance payment. In addition, for businesses adopting RMB cross-border payment, freight forwarders shall be familiar with the operation process and preferential policies of the CIPS system, and can assist enterprises in optimizing the foreign exchange purchase rate and reducing payment costs.
Eric ZhouYears of service：6Customer Rating：5.0
Senior Manager of Foreign Exchange & Tax RebatesStart a Chat
From the dimension of legal compliance, import freight forwarders shall meet the following conditions: first, they have a perfect internal contract management system, can sign standardized import freight forwarding contracts with enterprises, clarify the rights and obligations of both parties, and especially make clear and definite agreements on core clauses such as cargo right transfer, cost bearing and liability compensation; second, they are familiar with the relevant rules of INCOTERMS 2020, can recommend appropriate trade terms according to the actual needs of enterprises, avoiding contract disputes caused by deviation in term understanding; third, they have the operation capability of handling settlement tools such as letters of credit and guarantees, and can assist enterprises in reviewing soft clauses in letter of credit terms, avoiding the failure of enterprises to smoothly receive payments or pick up goods caused by soft clauses. In addition, for cargo involved in intellectual property rights, freight forwarders shall be familiar with the relevant rules of intellectual property customs protection filing, and can assist enterprises in completing intellectual property filing, avoiding cargo being detained by customs due to infringement.
Linda GaoYears of service：7Customer Rating：5.0
Documentation SupervisorStart a Chat
From the dimension of on-site customs inspection operation, import freight forwarders shall meet the following conditions: first, they have full-time operators familiar with the on-site customs inspection process, who can accurately interpret the content of the inspection notice and assist enterprises in preparing documents and cargo description materials required for inspection; second, they have operation experience in unpacking inspection and machine inspection, and can formulate reasonable inspection response plans for different categories of cargo.
For example, for high-value precision parts, they can apply for priority inspection from the customs in advance, and take shock-proof and dust-proof protective measures to avoid damage to the cargo during the inspection process; third, they are familiar with the process of customs inspection and identification, and can assist enterprises in completing the procedures of cargo inspection and laboratory testing, and follow up the issuance of the identification report in time to ensure that the cargo can be cleared as soon as possible. In addition, freight forwarders shall establish a sound inspection exception handling system, which can communicate with the customs in time when inspection exceptions occur to the cargo, provide relevant supporting materials, and speed up the inspection and release speed.