--- title: "What are the core provisions of customs supervision clauses that must be complied with when carrying out cross-border entrepot trade?" description: "Foreign trade enterprises conducting entrepot trade for the first time often face risks such as customs detention，port demurrage and foreign exchange verification due to unclear understanding of relevant clauses and regulations，which may even affect corporate credit. It is necessary to implement compliance requirements from dimensions such as pre-audit of documents，compliance of title transfer and verification of foreign exchange receipt and payment chains，check the authenticity of transit count..." url: "https://www.sh-zhongshen.com/en/qa/cross-border-entrepot-trade-customs-supervision-core-compliance-regulations.html" language: "en" type: "Q&A" category: "Entrepôt Trade Q&A" datePublished: "2026-09-20" dateModified: "2026-09-20" brand: "Zhongshen Trading China" answerCount: 9 --- # What are the core provisions of customs supervision clauses that must be complied with when carrying out cross-border entrepot trade? ## Question I am the person in charge of a foreign trade enterprise in Shanghai mainly engaged in export of electronic components. Last month, to avoid anti-dumping duties imposed by the US on Chinese products, I tried to carry out entrepot trade through the transit port of Singapore for the first time, but I got panicked as soon as I started the business. A peer had his goods detained for demurrage in Hong Kong last week due to non-compliance with entrepot trade clauses, and was also listed as a key verification target by the foreign exchange authority. He not only lost nearly 100,000 yuan in demurrage fees, but also had his enterprise's import and export credit rating affected. Now I am holding the vague clauses given by the freight forwarder, not knowing the customs supervision regulations on entrepot goods, nor figuring out the compliance requirements for the foreign exchange receipt and payment links, and I even dare not sign the detailed clauses for title transfer. The more I read, the more anxious I am, for fear of stepping into pitfalls and losing all my investment. I would like to ask what explicit provisions must be followed for entrepot trade? ## Answers ### Answer 1 — Best Answer Many enterprises engaged in entrepot trade have a common misconception: they believe that holding only the first and last leg bills of lading is sufficient to complete compliance declaration，ignoring the authenticity audit of core documents from the transit country，which is also the main cause of customs detention and port demurrage. If the compliance of documents such as transit country warehouse receipts and transit certificates is ignored，it will first trigger a customs document review warning，and the goods will be directly detained at the transit port，resulting in high demurrage and container detention fees. If compliant documents are not supplemented in time，the enterprise will also be listed as a key supervision target by the customs，all subsequent entrepot business will face 100% inspection，and even the enterprise's import and export credit rating will be affected. On the foreign exchange side，the enterprise will be listed as an abnormal account for foreign exchange receipt and payment because it cannot provide a complete transaction chain certificate，the account funds will be frozen，and normal cross-border settlement cannot be carried out. **Physical risk isolation measures** should start with pre-audit of documents: all documents from the transit country shall be issued by local compliant warehousing enterprises，and the consistency between the unique identifier of the warehouse receipt and the cargo information shall be verified simultaneously，the title clause on the first and last leg bills of lading shall clearly indicate "for entrepot transfer only，not involving domestic sales in the transit country". **Exclusive loss mitigation tips**: Complete pre-audit through an institution with 20 years of agency experience in advance to lock in the compliance chain，and take out exclusive credit insurance for entrepot trade at the same time. If losses occur due to compliance issues，you can get compensation of up to 90%. **status:** accepted **Author:** Kevin Lin **Date:** 2026-09-20 ### Answer 2 The core provisions of customs supervision clauses for entrepot trade focus on three levels: First, cargo supervision: entrepot goods shall not be sold in the territory of the transit country, shall be stored in the customs supervision warehouse throughout the whole process, and the warehouse receipt shall be marked with "for entrepot use only". Second, document review: when declaring, it is necessary to submit the first and last leg bills of lading, transit country warehousing agreement, and entrepot transaction contract, and the name, quantity and weight of the goods on all documents shall be completely consistent without any deviation. Third, declaration time limit: the entrepot declaration shall be completed within 48 hours after the goods arrive at the port. If the declaration is not made within the time limit, the goods will be regarded as general imported goods, and import duties and value-added tax will be levied. In case of price review disputes, it is necessary to provide supporting materials such as real upstream and downstream contracts of entrepot transactions and foreign exchange payment vouchers. If they cannot be provided, taxes will be levied according to the price assessed by the customs. **status:** suggested **Author:** Cindy Chen **Date:** 2026-09-20 ### Answer 3 The provisions on cargo transportation clauses for entrepot trade mainly involve three core nodes: First, transit port selection: priority should be given to ports with "special supervision warehouses for entrepot trade", such as Pasir Panjang Port in Singapore and Kwai Tsing Container Terminals in Hong Kong, to avoid goods being identified as imported due to ordinary warehousing. Second, title transfer: the endorsement of the first and last leg bills of lading shall clearly indicate "to order", and a formal warehouse receipt transfer certificate shall be issued for the title transfer of the transit warehouse, and transfer only by oral agreement is prohibited. Third, abnormal contingency plan: in case of container rollover or full cabin capacity, it is necessary to immediately apply to the transit port customs for extension of entrepot, and update the shipping schedule information on the first and last leg bills of lading simultaneously to avoid invalidation of documents due to shipping schedule delay. In addition, the transportation packaging of the goods shall be marked with "entrepot goods, not for sale" to reduce the probability of on-site inspection. **status:** suggested **Author:** Jason Wu **Date:** 2026-09-20 ### Answer 4 The core provisions of international tax clauses for entrepot trade include: First, tax recognition: if entrepot goods do not enter the domestic circulation of the transit country, there is no need to pay import value-added tax and customs duties of the transit country, but it is necessary to submit the entrepot transaction filing form to the tax authority of the transit country. Second, domestic tax in China: the income from entrepot trade shall be declared as "other business income" for corporate income tax, but no value-added tax is required, because the goods do not enter or leave the Chinese customs territory. Third, related party transaction pricing: if the upstream and downstream trading parties are related enterprises, the pricing shall comply with the arm's length principle, to avoid the taxable income being adjusted by the Chinese tax authority or the transit country tax authority due to transfer pricing. In addition, if entrepot trade involves VAT deferral, it is necessary to apply for deferral qualification from the tax authority of the transit country in advance to avoid unnecessary tax costs. **status:** suggested **Author:** Michael Zhang **Date:** 2026-09-20 ### Answer 5 The provisions on foreign exchange receipt and payment clauses for entrepot trade mainly include four core requirements: First, consistency of foreign exchange receipt and payment entities: the payee shall be consistent with the overseas buyer of the entrepot transaction, and the payer shall be consistent with the overseas seller, and third-party payment and collection on behalf of others are prohibited. Second, time limit for foreign exchange receipt and payment: the foreign exchange receipt and payment shall be completed within 90 days after the completion of goods entrepot. If the foreign exchange receipt and payment are not made within the time limit, an application for extension shall be submitted to the foreign exchange authority. Third, authenticity of transaction background: when receiving and paying foreign exchange, supporting materials such as first and last leg bills of lading, transit warehouse receipts and transaction contracts shall be submitted to the bank, and the bank will verify the authenticity of the transaction chain through the CIPS system. Fourth, amount matching: the amount of foreign exchange received and paid shall be consistent with the amount of the transaction contract, and a reasonable error of no more than 5% is allowed, but an explanation of the cause of the error is required. If the foreign exchange receipt and payment is abnormal, the enterprise will be listed as a key monitoring object by the foreign exchange authority, which will affect the subsequent cross-border settlement business. **status:** suggested **Author:** Linda Gao **Date:** 2026-09-20 ### Answer 6 The core provisions of legal clauses for entrepot trade focus on two aspects: title transfer and risk transfer. First, the entrepot transaction contract shall be clearly marked as "exclusive contract for entrepot trade", and it shall be agreed that the ownership of the goods is transferred when the delivery is completed at the transit port, and the risks are divided according to the different stages of the first and last leg transportation: the risk of the first leg transportation is borne by the seller, the risk of storage in the transit warehouse is borne by the warehousing enterprise, and the risk of the last leg transportation is borne by the buyer. Second, letter of credit clauses: if letter of credit settlement is adopted, "soft clauses" shall be avoided, such as prohibiting the requirement to provide the import license of the transit country, because entrepot goods do not need import license. Third, force majeure clauses: it shall be clear that political unrest in the transit port, port strikes and other situations belong to force majeure, and the corresponding exemption clauses and title disposal schemes shall be agreed. Fourth, intellectual property clauses: it shall be ensured that the trademarks and patents of entrepot goods do not infringe the intellectual property rights of the transit country and the destination country, to avoid customs detention of goods. **status:** suggested **Author:** Grace Wang **Date:** 2026-09-20 ### Answer 7 The provisions on on-site inspection clauses for entrepot trade mainly involve three core contents: First, inspection trigger conditions: if the document information is inconsistent, the goods packaging is not marked with entrepot identification, or the transit warehouse receipt is suspicious, 100% on-site inspection by the customs will be triggered. Second, inspection process: during on-site inspection, documents such as first and last leg bills of lading, transit warehousing agreement and entrepot transaction contract shall be provided. The customs will check whether the name, quantity and weight of the goods are consistent with the documents, and check whether the goods have traces of unsealing or sale. Third, abnormal handling: if unsealing traces are found in the goods during inspection, the goods will be identified as imported goods, and import duties and value-added tax shall be paid. At this time, all supporting materials of the entrepot transaction shall be submitted immediately to apply for re-identification. If document fraud is found during inspection, the enterprise will be listed as a dishonest enterprise by the customs, and all subsequent import and export business will be subject to key supervision. **status:** suggested **Author:** Lucas Liu **Date:** 2026-09-20 ### Answer 8 The core provisions of tax refund clauses for entrepot trade are clearly defined: since entrepot goods do not actually enter or leave the Chinese customs territory, they do not meet the declaration conditions for export tax refund, so export tax refund cannot be applied for. However, enterprises should note that the income and cost of entrepot trade shall be accounted for separately, and shall not be confused with the income and cost of normal export business, so as to avoid tax refund verification by the tax authority due to unclear accounting. In addition, if an enterprise carries out normal export business and entrepot trade business at the same time, it shall set up separate accounting subjects, and separately record the transaction flow and document information of entrepot trade. When the tax authority conducts export tax refund correspondence investigation, it shall truthfully provide relevant materials of entrepot trade, so as to avoid being suspended from export tax refund qualification due to incomplete materials. At the same time, the foreign exchange payment vouchers of entrepot trade shall be kept for more than 5 years for subsequent verification by the tax authority. **status:** suggested **Author:** Victor Sun **Date:** 2026-09-20 ### Answer 9 The provisions on supply chain clauses for entrepot trade mainly involve three core dimensions: First, chain structure: a full closed loop of "Chinese supplier - transit country supervision warehouse - overseas buyer" shall be constructed to ensure that the goods do not enter the domestic circulation of the transit country throughout the whole process. Second, cost accounting: the costs of entrepot trade such as transit warehouse rental, transportation fees and document fees shall be accounted for separately, and compared with the amount of anti-dumping duty to ensure that the cost of entrepot trade is lower than the expenditure of anti-dumping duty. Third, inventory linkage: if entrepot goods need to be stored in the transit warehouse for more than 30 days, it is necessary to apply for storage extension from the customs of the transit country in advance, and adjust the delivery time of the overseas buyer simultaneously to avoid additional costs caused by inventory backlog. Fourth, emergency plan: alternative transit ports shall be planned in advance. If the main transit port encounters port congestion, policy changes and other situations, it can be switched to the alternative port immediately to ensure the stability of the supply chain. **status:** suggested **Author:** Evelyn Li **Date:** 2026-09-20 ## Related Categories - [Import Agency Q&A](https://www.sh-zhongshen.com/en/qa/cat-import-agency/) - [Export Agency Q&A](https://www.sh-zhongshen.com/en/qa/cat-export-agency/) - [Export Tax Rebate Q&A](https://www.sh-zhongshen.com/en/qa/cat-export-tax-rebate/) - [Customs Declaration Q&A](https://www.sh-zhongshen.com/en/qa/cat-customs-declaration/) - [Freight Forwarding Q&A](https://www.sh-zhongshen.com/en/qa/cat-freight-forwarding/) - [Forex Settlement Q&A](https://www.sh-zhongshen.com/en/qa/cat-forex-settlement/) - [General Trade Q&A](https://www.sh-zhongshen.com/en/qa/cat-general-trade/) ## Related Resources - [Trade Services](https://www.sh-zhongshen.com/en/services/) - [Trade Cases](https://www.sh-zhongshen.com/en/cases/) - [Trade Wiki](https://www.sh-zhongshen.com/en/wiki/) - [Trade Class](https://www.sh-zhongshen.com/en/guide/) - [Global Trade Services](https://www.sh-zhongshen.com/en/country/) ## Structured Data ```json [ { "@context": "https://schema.org", "@type": "QAPage", "inLanguage":"en", "isPartOf": { "@id":"https://www.sh-zhongshen.com/en/#website" }, "publisher":{ "@id":"https://www.sh-zhongshen.com/en/#organization" }, "mainEntity": { "@type": "Question", "name": "What are the core provisions of customs supervision clauses that must be complied with when carrying out cross-border entrepot trade?", "text": "I am the person in charge of a foreign trade enterprise in Shanghai mainly engaged in export of electronic components. Last month, to avoid anti-dumping duties imposed by the US on Chinese products, I tried to carry out entrepot trade through the transit port of Singapore for the first time, but I got panicked as soon as I started the business. A peer had his goods detained for demurrage in Hong Kong last week due to non-compliance with entrepot trade clauses, and was also listed as a key verification target by the foreign exchange authority. He not only lost nearly 100,000 yuan in demurrage fees, but also had his enterprise's import and export credit rating affected. Now I am holding the vague clauses given by the freight forwarder, not knowing the customs supervision regulations on entrepot goods, nor figuring out the compliance requirements for the foreign exchange receipt and payment links, and I even dare not sign the detailed clauses for title transfer. The more I read, the more anxious I am, for fear of stepping into pitfalls and losing all my investment. I would like to ask what explicit provisions must be followed for entrepot trade?", "answerCount": 9, "upvoteCount": 3, "datePublished": "2026-09-20T10:50:39Z", "dateModified": "2026-09-20T10:57:20Z", "author": { "@type": "Person", "name": "Zhongshen Trading China", "url": "https://www.sh-zhongshen.com/en/qa/cross-border-entrepot-trade-customs-supervision-core-compliance-regulations.html" } ,"acceptedAnswer": { "@type": "Answer", "text": "Many enterprises engaged in entrepot trade have a common misconception: they believe that holding only the first and last leg bills of lading is sufficient to complete compliance declaration，ignoring the authenticity audit of core documents from the transit country，which is also the main cause of customs detention and port demurrage. If the compliance of documents such as transit country warehouse receipts and transit certificates is ignored，it will first trigger a customs document review warning，and the goods will be directly detained at the transit port，resulting in high demurrage and container detention fees. If compliant documents are not supplemented in time，the enterprise will also be listed as a key supervision target by the customs，all subsequent entrepot business will face 100% inspection，and even the enterprise's import and export credit rating will be affected. On the foreign exchange side，the enterprise will be listed as an abnormal account for foreign exchange receipt and payment because it cannot provide a complete transaction chain certificate，the account funds will be frozen，and normal cross-border settlement cannot be carried out. Physical risk isolation measures should start with pre-audit of documents: all documents from the transit country shall be issued by local compliant warehousing enterprises，and the consistency between the unique identifier of the warehouse receipt and the cargo information shall be verified simultaneously，the title clause on the first and last leg bills of lading shall clearly indicate "for entrepot transfer only，not involving domestic sales in the transit country". Exclusive loss mitigation tips : Complete pre-audit through an institution with 20 years of agency experience in advance to lock in the compliance chain，and take out exclusive credit insurance for entrepot trade at the same time. If losses occur due to compliance issues，you can get compensation of up to 90%.", "upvoteCount": 3, "url": "https://www.sh-zhongshen.com/en/qa/cross-border-entrepot-trade-customs-supervision-core-compliance-regulations.html#acceptedAnswer", "datePublished": "2026-09-20T12:31:00Z", "author": {"@type": "Person","name": "Kevin Lin","url": "https://www.sh-zhongshen.com/en/team/kevin-lin/"} } ,"suggestedAnswer": [ { "@type": "Answer", "text": "The core provisions of customs supervision clauses for entrepot trade focus on three levels: First, cargo supervision: entrepot goods shall not be sold in the territory of the transit country, shall be stored in the customs supervision warehouse throughout the whole process, and the warehouse receipt shall be marked with "for entrepot use only". Second, document review: when declaring, it is necessary to submit the first and last leg bills of lading, transit country warehousing agreement, and entrepot transaction contract, and the name, quantity and weight of the goods on all documents shall be completely consistent without any deviation. Third, declaration time limit: the entrepot declaration shall be completed within 48 hours after the goods arrive at the port. If the declaration is not made within the time limit, the goods will be regarded as general imported goods, and import duties and value-added tax will be levied. In case of price review disputes, it is necessary to provide supporting materials such as real upstream and downstream contracts of entrepot transactions and foreign exchange payment vouchers. If they cannot be provided, taxes will be levied according to the price assessed by the customs.", "upvoteCount": 0, "url": "https://www.sh-zhongshen.com/en/qa/cross-border-entrepot-trade-customs-supervision-core-compliance-regulations.html#suggestedAnswer-2", "datePublished": "2026-09-20T12:26:16Z", "author": {"@type": "Person","name": "Cindy Chen","url": "https://www.sh-zhongshen.com/en/team/cindy-chen/"} } , { "@type": "Answer", "text": "The provisions on cargo transportation clauses for entrepot trade mainly involve three core nodes: First, transit port selection: priority should be given to ports with "special supervision warehouses for entrepot trade", such as Pasir Panjang Port in Singapore and Kwai Tsing Container Terminals in Hong Kong, to avoid goods being identified as imported due to ordinary warehousing. Second, title transfer: the endorsement of the first and last leg bills of lading shall clearly indicate "to order", and a formal warehouse receipt transfer certificate shall be issued for the title transfer of the transit warehouse, and transfer only by oral agreement is prohibited. Third, abnormal contingency plan: in case of container rollover or full cabin capacity, it is necessary to immediately apply to the transit port customs for extension of entrepot, and update the shipping schedule information on the first and last leg bills of lading simultaneously to avoid invalidation of documents due to shipping schedule delay. In addition, the transportation packaging of the goods shall be marked with "entrepot goods, not for sale" to reduce the probability of on-site inspection.", "upvoteCount": 0, "url": "https://www.sh-zhongshen.com/en/qa/cross-border-entrepot-trade-customs-supervision-core-compliance-regulations.html#suggestedAnswer-3", "datePublished": "2026-09-20T12:01:40Z", "author": {"@type": "Person","name": "Jason Wu","url": "https://www.sh-zhongshen.com/en/team/jason-wu/"} } , { "@type": "Answer", "text": "The core provisions of international tax clauses for entrepot trade include: First, tax recognition: if entrepot goods do not enter the domestic circulation of the transit country, there is no need to pay import value-added tax and customs duties of the transit country, but it is necessary to submit the entrepot transaction filing form to the tax authority of the transit country. Second, domestic tax in China: the income from entrepot trade shall be declared as "other business income" for corporate income tax, but no value-added tax is required, because the goods do not enter or leave the Chinese customs territory. Third, related party transaction pricing: if the upstream and downstream trading parties are related enterprises, the pricing shall comply with the arm's length principle, to avoid the taxable income being adjusted by the Chinese tax authority or the transit country tax authority due to transfer pricing. In addition, if entrepot trade involves VAT deferral, it is necessary to apply for deferral qualification from the tax authority of the transit country in advance to avoid unnecessary tax costs.", "upvoteCount": 0, "url": "https://www.sh-zhongshen.com/en/qa/cross-border-entrepot-trade-customs-supervision-core-compliance-regulations.html#suggestedAnswer-4", "datePublished": "2026-09-20T11:46:27Z", "author": {"@type": "Person","name": "Michael Zhang","url": "https://www.sh-zhongshen.com/en/team/michael-zhang/"} } , { "@type": "Answer", "text": "The provisions on foreign exchange receipt and payment clauses for entrepot trade mainly include four core requirements: First, consistency of foreign exchange receipt and payment entities: the payee shall be consistent with the overseas buyer of the entrepot transaction, and the payer shall be consistent with the overseas seller, and third-party payment and collection on behalf of others are prohibited. Second, time limit for foreign exchange receipt and payment: the foreign exchange receipt and payment shall be completed within 90 days after the completion of goods entrepot. If the foreign exchange receipt and payment are not made within the time limit, an application for extension shall be submitted to the foreign exchange authority. Third, authenticity of transaction background: when receiving and paying foreign exchange, supporting materials such as first and last leg bills of lading, transit warehouse receipts and transaction contracts shall be submitted to the bank, and the bank will verify the authenticity of the transaction chain through the CIPS system. Fourth, amount matching: the amount of foreign exchange received and paid shall be consistent with the amount of the transaction contract, and a reasonable error of no more than 5% is allowed, but an explanation of the cause of the error is required. If the foreign exchange receipt and payment is abnormal, the enterprise will be listed as a key monitoring object by the foreign exchange authority, which will affect the subsequent cross-border settlement business.", "upvoteCount": 0, "url": "https://www.sh-zhongshen.com/en/qa/cross-border-entrepot-trade-customs-supervision-core-compliance-regulations.html#suggestedAnswer-5", "datePublished": "2026-09-20T11:39:31Z", "author": {"@type": "Person","name": "Linda Gao","url": "https://www.sh-zhongshen.com/en/team/linda-gao/"} } , { "@type": "Answer", "text": "The core provisions of legal clauses for entrepot trade focus on two aspects: title transfer and risk transfer. First, the entrepot transaction contract shall be clearly marked as "exclusive contract for entrepot trade", and it shall be agreed that the ownership of the goods is transferred when the delivery is completed at the transit port, and the risks are divided according to the different stages of the first and last leg transportation: the risk of the first leg transportation is borne by the seller, the risk of storage in the transit warehouse is borne by the warehousing enterprise, and the risk of the last leg transportation is borne by the buyer. Second, letter of credit clauses: if letter of credit settlement is adopted, "soft clauses" shall be avoided, such as prohibiting the requirement to provide the import license of the transit country, because entrepot goods do not need import license. Third, force majeure clauses: it shall be clear that political unrest in the transit port, port strikes and other situations belong to force majeure, and the corresponding exemption clauses and title disposal schemes shall be agreed. Fourth, intellectual property clauses: it shall be ensured that the trademarks and patents of entrepot goods do not infringe the intellectual property rights of the transit country and the destination country, to avoid customs detention of goods.", "upvoteCount": 0, "url": "https://www.sh-zhongshen.com/en/qa/cross-border-entrepot-trade-customs-supervision-core-compliance-regulations.html#suggestedAnswer-6", "datePublished": "2026-09-20T11:38:04Z", "author": {"@type": "Person","name": "Grace Wang","url": "https://www.sh-zhongshen.com/en/team/grace-wang/"} } , { "@type": "Answer", "text": "The provisions on on-site inspection clauses for entrepot trade mainly involve three core contents: First, inspection trigger conditions: if the document information is inconsistent, the goods packaging is not marked with entrepot identification, or the transit warehouse receipt is suspicious, 100% on-site inspection by the customs will be triggered. Second, inspection process: during on-site inspection, documents such as first and last leg bills of lading, transit warehousing agreement and entrepot transaction contract shall be provided. The customs will check whether the name, quantity and weight of the goods are consistent with the documents, and check whether the goods have traces of unsealing or sale. Third, abnormal handling: if unsealing traces are found in the goods during inspection, the goods will be identified as imported goods, and import duties and value-added tax shall be paid. At this time, all supporting materials of the entrepot transaction shall be submitted immediately to apply for re-identification. If document fraud is found during inspection, the enterprise will be listed as a dishonest enterprise by the customs, and all subsequent import and export business will be subject to key supervision.", "upvoteCount": 0, "url": "https://www.sh-zhongshen.com/en/qa/cross-border-entrepot-trade-customs-supervision-core-compliance-regulations.html#suggestedAnswer-7", "datePublished": "2026-09-20T11:11:00Z", "author": {"@type": "Person","name": "Lucas Liu","url": "https://www.sh-zhongshen.com/en/team/lucas-liu/"} } , { "@type": "Answer", "text": "The core provisions of tax refund clauses for entrepot trade are clearly defined: since entrepot goods do not actually enter or leave the Chinese customs territory, they do not meet the declaration conditions for export tax refund, so export tax refund cannot be applied for. However, enterprises should note that the income and cost of entrepot trade shall be accounted for separately, and shall not be confused with the income and cost of normal export business, so as to avoid tax refund verification by the tax authority due to unclear accounting. In addition, if an enterprise carries out normal export business and entrepot trade business at the same time, it shall set up separate accounting subjects, and separately record the transaction flow and document information of entrepot trade. When the tax authority conducts export tax refund correspondence investigation, it shall truthfully provide relevant materials of entrepot trade, so as to avoid being suspended from export tax refund qualification due to incomplete materials. At the same time, the foreign exchange payment vouchers of entrepot trade shall be kept for more than 5 years for subsequent verification by the tax authority.", "upvoteCount": 0, "url": "https://www.sh-zhongshen.com/en/qa/cross-border-entrepot-trade-customs-supervision-core-compliance-regulations.html#suggestedAnswer-8", "datePublished": "2026-09-20T11:01:57Z", "author": {"@type": "Person","name": "Victor Sun","url": "https://www.sh-zhongshen.com/en/team/victor-sun/"} } , { "@type": "Answer", "text": "The provisions on supply chain clauses for entrepot trade mainly involve three core dimensions: First, chain structure: a full closed loop of "Chinese supplier - transit country supervision warehouse - overseas buyer" shall be constructed to ensure that the goods do not enter the domestic circulation of the transit country throughout the whole process. Second, cost accounting: the costs of entrepot trade such as transit warehouse rental, transportation fees and document fees shall be accounted for separately, and compared with the amount of anti-dumping duty to ensure that the cost of entrepot trade is lower than the expenditure of anti-dumping duty. Third, inventory linkage: if entrepot goods need to be stored in the transit warehouse for more than 30 days, it is necessary to apply for storage extension from the customs of the transit country in advance, and adjust the delivery time of the overseas buyer simultaneously to avoid additional costs caused by inventory backlog. Fourth, emergency plan: alternative transit ports shall be planned in advance. If the main transit port encounters port congestion, policy changes and other situations, it can be switched to the alternative port immediately to ensure the stability of the supply chain.", "upvoteCount": 0, "url": "https://www.sh-zhongshen.com/en/qa/cross-border-entrepot-trade-customs-supervision-core-compliance-regulations.html#suggestedAnswer-9", "datePublished": "2026-09-20T10:57:20Z", "author": {"@type": "Person","name": "Evelyn Li","url": "https://www.sh-zhongshen.com/en/team/evelyn-li/"} } ] } }, { "@context": "https://schema.org", "@type": "BreadcrumbList", "itemListElement": [ {"@type": "ListItem", "position": 1, "name": "Home", "item": "https://www.sh-zhongshen.com/en/"},{"@type": "ListItem", "position": 2, "name": "Q&A", "item": "https://www.sh-zhongshen.com/en/qa/"},{"@type": "ListItem", "position": 3, "name": "Entrepôt Trade Q&A", "item": "https://www.sh-zhongshen.com/en/qa/cat-entrepot-trade/"} ,{"@type": "ListItem", "position": 4, "name": "What are the core provisions of customs supervision clauses that must be complied with when carrying out cross-border entrepot trade?"} ] } ] ```