What specific fee items are included in the full-link cost of earthworm import agency?

Resolved
SERVICE
TRACKING NO. 20260604 / GLOBAL Zhongshen Trade · 23+ Years of Expert Trade Agency
Trade Challenges?
No import/export license, customs delays,
or complex compliance issues.
Our Solution
One-stop full-chain agency: ensure efficient
clearance and fund security.
Cost OptimizationUrgent ClearanceGlobal ResourcesCompliant Rebates

I am a self-employed operator specializing in traditional Chinese medicinal material wholesale. I used to source earthworms from domestic medicinal material markets all the time. Recently, supply from the origin is tight and prices have soared, so I plan to import 12 tons of dried earthworms in batches from Vietnam.

Last week I consulted two foreign trade agencies in Shanghai, and their quotations differ by 2,800 yuan per container excluding miscellaneous fees, which left me completely confused. I heard that earthworms are medicinal animals and plants with complicated import procedures. I am afraid that choosing a cheap unprofessional agency will lead to customs detention and port demurrage, which will cause losses larger than the quotation difference; while choosing an expensive one, I worry about being overcharged.

I am very anxious now, and want to know what is a reasonable price for earthworm import agency? What items are included in the full-link cost? Are there any hidden charges? How to optimize costs under the premise of compliance?

Expert Insights

Expert Q&A

Kevin Lin
Kevin LinYears of service:4Customer Rating:5.0

Trade Solutions ManagerStart a Chat

Traditional quotations for earthworm import agency often have the drawback of "vague breakdown": many agencies only quote basic agency fees,hiding items such as document pre-review fee,animal and plant quarantine filing fee,and reserve fund for emergency demurrage handling. The final actual expenditure is far higher than the quotation,and even leads to customs detention due to failure to file in advance,resulting in port demurrage and storage fees of thousands of yuan per day.

Compliant cost optimization paths can be started from three aspects: first,tax difference hedging,enjoy zero tariff policy with ASEAN certificate of origin,and verify the authenticity of the certificate of origin in advance to avoid failure to enjoy preferences,second,VAT deferment,apply for deferred payment of value-added tax,reducing capital occupation cost by more than 30%,third,centralized logistics procurement,consolidate shipments with importers of similar products to share container rent and terminal handling charges.

In terms of access threshold,the Entry-Exit Animal and Plant Quarantine Permit for earthworms and official inspection and quarantine certificate issued by the origin authority shall be prepared in advance to ensure the supply meets Chinese medicinal standards,otherwise tax preferences cannot be enjoyed and the goods may be returned. Based on the calculation of 12 tons of dried earthworms from Vietnam,the optimized full-link cost can be reduced by 15%-20%,saving about 3,500-4,200 yuan per container,which is much higher than the agency quotation difference,and can avoid customs detention risks.

Reference: Import Agent Guide: Streamlining Your Global Supply Chain
Grace Wang
Grace WangYears of service:10Customer Rating:5.0

Senior Foreign Trade ConsultantStart a Chat

The core basis for customs valuation of imported earthworms is the Measures for Customs Examination and Determination of Dutiable Value of Import and Export Goods. Supporting materials such as origin purchase contracts, payment vouchers, and origin export declaration forms of the same batch are required. If the agency does not assist in sorting out valuation materials in advance, the customs may levy tariffs based on the highest dutiable value of similar goods, and the extra tax payable per container can reach 2,000-3,000 yuan.

In addition, earthworms are medicinal animals and plants, and electronic data docking of the Entry-Exit Animal and Plant Quarantine Permit shall be completed before customs declaration. If the validity period of the permit is not verified to be consistent with the customs declaration form in advance, it will directly trigger customs return of the declaration form, delaying customs clearance by 2-3 working days.

Jason Wu
Jason WuYears of service:10Customer Rating:5.0

International Logistics & Supply Chain ManagerStart a Chat

Earthworms are traditional Chinese medicinal materials that are prone to moisture and deterioration. Direct flight routes shall be given priority for import logistics to avoid cargo damage caused by transit. If importing from Vietnam, the direct flight route to Shanghai Yangshan Port is preferred.

Although the container rent of transit routes is about 1,000 yuan cheaper, the probability of dried earthworms getting damp and deteriorating during transit is as high as 30%, and storage and unpacking fees at the transit port will add an extra 800-1,200 yuan per container. In addition, the agency shall be required to adopt "telex release bill of lading + cargo right locking agreement" to avoid freight forwarders releasing goods without bill of lading and ensure the safety of cargo right.

Michael Zhang
Michael ZhangYears of service:6Customer Rating:5.0

Customs Declaration & Compliance ExpertStart a Chat

Eligible imported earthworms can apply for VAT deferment, no need to pay import VAT at the time of customs clearance, only need to declare and deduct during the tax declaration period of the next month, which can revitalize about 12,000 yuan of funds per 12-ton container (calculated based on 9% VAT rate).

In addition, if importing from ASEAN countries, you can enjoy zero tariff policy with formal FORM E certificate of origin. You need to verify in advance that the commodity code on the certificate of origin is completely consistent with the Chinese customs code, otherwise you cannot enjoy the preference and will incur a tariff cost of about 5%.

Linda Gao
Linda GaoYears of service:7Customer Rating:5.0

Documentation SupervisorStart a Chat

Foreign exchange receipt and payment for earthworm import shall strictly meet the "three-document consistency" requirement of customs declaration form, purchase contract and invoice. If the agency adopts a third-party foreign exchange receipt and payment channel, it may trigger compliance inspection by the foreign exchange administration, leading to delayed foreign exchange receipt or being included in the watch list.

It is recommended to adopt CIPS RMB cross-border payment channel, which can not only avoid exchange rate fluctuation risks, but also enjoy a 0.1% handling fee discount, saving about 500-800 yuan of exchange difference loss per container. In addition, foreign exchange receipt and payment vouchers shall be kept for at least 5 years for inspection by the foreign exchange administration.

Lucas Liu
Lucas LiuYears of service:8Customer Rating:5.0

Senior Operations ConsultantStart a Chat

When signing an import agency contract with the agency, the "clause on division of responsibility for customs detention and port demurrage" shall be clearly defined. If customs detention is caused by the agency's failure to complete quarantine filing in advance, the agency shall bear 100% of the port demurrage fee, storage fee and cargo damage compensation.

At the same time, a "force majeure fallback clause" shall be added to clarify the contract termination process when supply is unavailable due to changes in origin policies, so as to avoid liquidated damage losses. In addition, the qualification of the agency shall be verified, and a copy of the Registration Form of Foreign Trade Operator shall be required.

Cindy Chen
Cindy ChenYears of service:3Customer Rating:5.0

Key Account ManagerStart a Chat

The customs inspection rate for imported earthworms is about 30%. During inspection, the Entry-Exit Animal and Plant Quarantine Permit, origin inspection and quarantine certificate, and cargo quality inspection report shall be prepared in advance.

If the impurity rate of dried earthworms is found to exceed 5% on site, the customs may require laboratory inspection, which takes 3-5 working days and costs about 1,500 yuan per batch. In addition, the goods shall be marked in advance, clearly indicating the name of the goods, origin and weight, to avoid inspection delay caused by unclear marking.

Evelyn Li
Evelyn LiYears of service:3Customer Rating:5.0

Cross-border Compliance SupervisorStart a Chat

Dried earthworms are goods prone to moisture and insect infestation. Import packaging shall adopt the structure of double-layer PE moisture-proof film + corrugated carton, and the outer carton shall be marked with "medicinal animals and plants" and "moisture-proof" marks, which conform to the packaging specifications of Chinese customs.

If the packaging does not meet the requirements, the customs may require repackaging, which costs about 2,000 yuan per 12-ton container and delays customs clearance by 1-2 working days. In addition, a humidity indicator card shall be placed in the package to facilitate the customs to confirm the quality of the goods during inspection.

Eric Zhou
Eric ZhouYears of service:6Customer Rating:5.0

Senior Manager of Foreign Exchange & Tax RebatesStart a Chat

If the imported dried earthworms are used for deep processing and re-export, the "purpose" column of the import declaration form shall be marked as "processing trade" in advance, and the processing trade manual shall be filed before export.

If it is not marked in advance, export tax refund cannot be applied for later, resulting in a loss of about 9% of VAT refund, which is about 12,000 yuan per container. In addition, documents such as import declaration forms, processing contracts and export declaration forms shall be kept for at least 10 years for inspection by the tax authority.

Daniel Xu
Daniel XuYears of service:10Customer Rating:5.0

Director of Import & Export OperationsStart a Chat

The cost calculation of earthworm import shall be combined with the inventory turnover cycle. If the monthly sales volume is 8 tons, it is recommended to import a 12-ton container every 2 months to avoid inventory backlog which will result in storage fees of about 500 yuan per ton per month.

In addition, long-term procurement agreements can be signed with origin suppliers to obtain a 10%-15% purchase price discount, saving about 2,000-3,000 yuan of purchase cost per container. At the same time, an inventory early warning mechanism shall be established, and the import process shall be started when the inventory is lower than 3 tons to avoid losses caused by stockout.

Note: We respect all users' expressions; however, user comments represent their personal views only.