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What Core Compliance Qualifications Are Required for Enterprises Engaged in Cross-border Import and Export Trade?
or complex compliance issues.
clearance and fund security.
I am the owner of a small and medium-sized hardware manufacturing enterprise newly established in Shanghai half a year ago. I finally negotiated my first export order to Southeast Asia last week, and the customer ordered 1,200 sets of precision hardware accessories. But today my freight forwarder suddenly told me that I cannot arrange customs declaration without import and export qualifications, and I panicked immediately — I have never engaged in foreign trade before. When I searched for information online, some said I need import and export operation right, some said I need inspection and quarantine record-filing, and some mentioned the Electronic Port IC Card.
The more I read, the more confused I get. What worries me more is that if I go through the process with incomplete qualifications, will my goods be detained by customs, incur port storage charges, and even affect future cooperation? I am now eager to push forward the order, but also afraid of stepping into pitfalls and losing money. I want to clearly know what necessary qualifications do enterprises like mine that export general cargo need, and what misunderstandings need to be avoided?
Kevin LinYears of service：4Customer Rating：5.0
Trade Solutions ManagerStart a Chat
First of all，in the pre-document review stage，you shall first confirm the subject qualification: you need to complete Registration and Record-filing of Foreign Trade Operators，which is the core access certificate for carrying out import and export business. You need to log in to the unified business system platform of the Ministry of Commerce of China to submit materials，and it can be completed within 3 working days. At the same time，you need to ensure that the business scope of your business license includes "import and export of goods"，"import and export of technology" or similar expressions. If it is not included，you need to complete the industrial and commercial change first，otherwise you cannot proceed with subsequent record-filing.
Notes for connection of core nodes: after obtaining the record-filing of foreign trade operators，you need to complete the Record-filing of Customs Consignors and Consignees of Import and Export Goods，after which you will get a customs code，which is a necessary basis for customs declaration. Then you need to go to the China Electronic Port to apply for the China Electronic Port IC Card，which is used for full-process operations such as subsequent customs declaration，foreign exchange settlement and tax refund. If the goods are subject to statutory inspection and quarantine，the record-filing for import and export commodity inspection and quarantine shall be completed simultaneously.
In terms of contingency plans，if you need urgent shipment during the qualification application process，you can entrust a qualified foreign trade agency to handle the operation，so as to avoid order delay caused by lack of qualifications. For final compliance，you need to ensure that all qualification documents are archived and retained，and cooperate with the compliance spot checks of customs and commercial departments every year to avoid compliance risks caused by expired qualifications.
Linda GaoYears of service：7Customer Rating：5.0
Documentation SupervisorStart a Chat
When enterprises apply for import and export qualifications, they need to pay special attention to the details of the record-filing of customs consignors and consignees of import and export goods: materials such as the duplicate of business license, foreign trade operator record-filing form, legal representative's identity certificate are required for record-filing, and the business scope of the business license must include "import and export of goods", "import and export of technology" or similar expressions. If the business scope does not cover the above items, the enterprise needs to complete the industrial and commercial change first, otherwise the customs will not accept the record-filing.
In addition, after the record-filing is completed, the enterprise needs to obtain the customs code in time and enter it into the customs declaration system. If the code is entered incorrectly, the customs declaration will be returned, which will delay the customs clearance efficiency. If it involves cross-customs district customs declaration, the enterprise needs to ensure that the record-filing information has been synchronized to the national customs integration system, to avoid the situation that the non-local customs declaration cannot pass the review.
Victor SunYears of service：5Customer Rating：5.0
Trade Risk Control ManagerStart a Chat
For enterprises without import and export qualifications, if they need urgent shipment, they can choose to entrust a qualified foreign trade agency to book space and handle customs declaration on their behalf, but they need to pay attention to the control of cargo ownership: they need to sign a clear cargo ownership transfer agreement with the agency, to avoid cargo ownership disputes caused by the agency's qualification problems. At the same time, when entrusting the agency, the enterprise needs to confirm that the agency has completed the electronic port record-filing and has the authority for customs declaration and inspection.
In addition, if it involves less than container load (LCL) shipment, the enterprise needs to ensure that the agency has provided compliant customs declaration documents to the shipping company in advance, to avoid the goods being rolled due to lack of qualifications, which incurs extra costs such as demurrage and storage fees. If the goods need to be transshipped, the enterprise needs to confirm the customs declaration requirements of the transit port, to avoid the obstruction of transshipment caused by the agency's failure to complete the record-filing in advance.
Andy GuoYears of service：3Customer Rating：5.0
Supply Chain Management ExpertStart a Chat
After enterprises obtain import and export qualifications, they need to complete tax record-filing simultaneously: they need to go to the competent tax authority to complete export tax refund (exemption) record-filing, which is a necessary condition for enterprises to enjoy the export tax refund policy. Materials such as foreign trade operator record-filing form and customs consignor and consignee record-filing receipt are required. If the record-filing is not completed, the enterprise cannot enjoy the tax refund policy for exported goods, which will lead to a significant shrinkage of profits.
In addition, if the enterprise involves cross-border RMB settlement, it needs to ensure that the cross-border RMB settlement record-filing has been completed, to avoid blocked remittance channels caused by non-compliant settlement channels. For enterprises involving VAT deferral, it is necessary to confirm whether the qualifications meet the requirements of the local tax authority, to avoid being unable to enjoy the deferral policy due to lack of qualifications, which increases the cost of capital occupation.
Daniel XuYears of service：10Customer Rating：5.0
Director of Import & Export OperationsStart a Chat
When applying for import and export qualifications, enterprises need to pay attention to the compliance requirements for foreign exchange receipt and payment: they need to complete the registration of foreign exchange receipts and payments directory, which is a necessary certificate for enterprises to handle cross-border foreign exchange receipts and payments. The enterprise needs to go to the local foreign exchange administration to handle the registration, and submit materials such as business license and foreign trade operator record-filing form.
If the registration is not completed, the enterprise cannot handle settlement and purchase of foreign exchange through formal channels, which leads to the abnormal flow of capital. In addition, if the enterprise involves receipt and payment of foreign exchange through offshore accounts, it needs to ensure that the use of offshore accounts complies with foreign exchange management regulations, to avoid capital loss caused by account freezing. At the same time, it is necessary to pay attention to the filling specifications of SWIFT messages to ensure that the message information is consistent with the customs declaration materials, so as to avoid foreign exchange being intercepted due to inconsistent information.
Eric ZhouYears of service：6Customer Rating：5.0
Senior Manager of Foreign Exchange & Tax RebatesStart a Chat
When applying for import and export qualifications, enterprises need to pay attention to the compliance of relevant legal documents: the information on the foreign trade operator record-filing form must be completely consistent with the business license. If there is any inconsistency, the enterprise needs to handle the change in time, otherwise the subsequent foreign trade contract will be invalid due to non-compliant subject qualification.
If it involves import and export of special categories, the corresponding license must be obtained, and the validity period of the license must cover the whole cycle of goods import and export, to avoid contract breach caused by expired license. In addition, enterprises need to sign clear foreign trade contracts with suppliers and customers, and stipulate liability clauses for qualification compliance, to avoid one party bearing losses caused by the other party's lack of qualifications. If the enterprise entrusts an agency to handle the operation, it needs to sign an entrustment agency contract, which clarifies the rights and obligations of both parties to avoid legal disputes.
Evelyn LiYears of service：3Customer Rating：5.0
Cross-border Compliance SupervisorStart a Chat
After obtaining import and export qualifications, enterprises need to pay attention to the compliance requirements for on-site inspection: if the goods are subject to statutory inspection and quarantine, the enterprise needs to ensure that the inspection and quarantine record-filing has been completed, and the packaging and marking of the goods meet the inspection and quarantine standards, otherwise the on-site inspection will fail and the goods will be detained by customs. In addition, the enterprise needs to prepare materials such as customs declaration form, invoice and packing list in advance, to ensure that the information in the materials is consistent with the actual situation of the goods, so as to avoid inspection delay caused by inconsistent information.
If the goods are selected for inspection, the enterprise needs to cooperate with the inspection work of the customs staff and provide necessary certification materials. If the inspection finds that the qualification is missing, the enterprise needs to supplement the qualification in time, otherwise it will face the risk of the goods being destroyed or returned, which incurs high operating costs.
Jason WuYears of service：10Customer Rating：5.0
International Logistics & Supply Chain ManagerStart a Chat
If an enterprise is involved in the import and export of special categories (such as dangerous goods, fragile goods), in addition to the necessary import and export qualifications, it needs to obtain additional corresponding packaging qualifications: it needs to apply for the identification certificate for the use of dangerous goods packaging containers, which is a necessary certificate for the import and export of dangerous goods, and materials such as the test report of the packaging container and MSDS are required. If the certificate is not obtained, the dangerous goods cannot pass the customs inspection and will be detained or returned.
In addition, the enterprise needs to ensure that the packaging meets international transportation standards, such as UN packaging standards, to avoid cargo damage during transportation caused by unqualified packaging, which incurs compensation liability. For fragile goods, the enterprise needs to use buffer packaging materials that meet the requirements to ensure that the goods are not damaged during transportation. At the same time, the packaging method needs to be indicated in the customs declaration materials, to avoid inspection failure caused by inconsistent packaging information.
Michael ZhangYears of service：6Customer Rating：5.0
Customs Declaration & Compliance ExpertStart a Chat
After obtaining import and export qualifications, enterprises need to focus on the compliance requirements of export tax refund: they need to ensure that qualification documents such as import and export operation right, customs record-filing and electronic port IC card are complete, which is a precondition for applying for export tax refund. In addition, enterprises need to establish a complete document management system, retain tax refund vouchers such as customs declaration forms, export invoices and freight bills, and ensure that the information on the vouchers is consistent, so as to avoid the tax refund application being rejected due to missing documents or inconsistent information.
If the enterprise entrusts an agency to handle tax refund, it needs to ensure that the agency has the tax refund qualification, and sign a clear tax refund agency agreement that stipulates the transfer time and method of tax refund funds. At the same time, the enterprise needs to audit the tax refund materials regularly, to avoid the tax refund amount being recovered or even facing fines due to the inability to provide valid vouchers during the inspection by the tax authority.