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What Core Qualifications and Compliance Filing Requirements Are Needed to Conduct General Cargo Import and Export Business?
or complex compliance issues.
clearance and fund security.
I am the person in charge of a newly established beauty supply chain company based in Shanghai. I recently finalized an order to import beauty raw materials from South Korea and export self-branded cosmetics to Southeast Asia. I originally thought that coordinating with the freight forwarder would be enough to ship the goods, but yesterday the freight forwarder suddenly reminded me that I need to prepare all relevant qualifications first, otherwise the goods may be detained upon arrival at the port, and high container detention fees will be incurred. I have never been involved in import and export business before, and I am extremely anxious now – the Southeast Asian beauty exhibition next month is waiting for this batch of goods to participate.
If something goes wrong, I will not only have to pay liquidated damages, but also ruin the brand reputation we have just built. I would like to ask, for my situation, what qualifications do I need respectively if I handle import and export on my own versus entrusting your agency? What common pitfalls should I avoid?
Michael ZhangYears of service：6Customer Rating：5.0
Customs Declaration & Compliance ExpertStart a Chat
Many new enterprises in the industry have a common misunderstanding: they believe that a business license alone is sufficient to carry out import and export business，and ignore core qualification requirements such as import and export operation right filing and category-specific filing.
If this misunderstanding occurs，a series of negative consequences will follow: Customs will directly refuse to release the goods after they arrive at the port. If the goods are detained at the port for more than 7 days，daily port storage fees and container detention fees of thousands of RMB will be incurred，and goods that remain unresolved for more than 15 days may be auctioned by Customs in accordance with the law，for special categories such as beauty products，if the cosmetic import consignee filing is not completed，the goods will be directly detained by Customs，and the enterprise may also face an administrative penalty of 10,000 to 100,000 RMB. The enterprise will completely miss the exhibition preparation deadline，and the liquidated damages and brand damage are even incalculable.
Physical risk isolation measure: **Import and Export Operation Right Filing** and category-specific filing for corresponding products must be completed before starting business. If the internal processing cycle is tight，you can entrust a qualified agency to conduct customs declaration in dual-title mode.
Exclusive stop-loss tip: If you have already booked the shipping space，immediately notify the freight forwarder to suspend customs declaration，and simultaneously apply to Customs for expedited filing. In some regions，for exhibition goods，you can apply for a priority review channel with the exhibition invitation letter，and filing can be completed within 3 working days at the fastest.
Victor SunYears of service：5Customer Rating：5.0
Trade Risk Control ManagerStart a Chat
The core basis of customs declaration qualification for import and export business is the Customs Registration Certificate for Customs Declaration Entities, which is now fully processed electronically. After an enterprise completes the business scope change with the market supervision department (adding import and export business), it can apply through the "Internet + Customs" platform, and the process can be completed within 1-2 working days.
For special goods such as beauty raw materials, additional cosmetic import consignee filing is required for import, and exporting cosmetic manufacturer filing is required for export. Goods without corresponding filing will be directly returned or temporarily detained by Customs. In addition, if an enterprise declares customs via cross-border e-commerce B2B mode, it needs to complete additional cross-border e-commerce enterprise filing, otherwise it cannot enjoy the cross-border e-commerce customs clearance facilitation policy and can only declare under general trade, which increases customs clearance cost and time.
Linda GaoYears of service：7Customer Rating：5.0
Documentation SupervisorStart a Chat
An enterprise's import and export qualifications directly affect the smoothness of the logistics chain: if the import and export operation right is not obtained, the freight forwarder cannot book shipping space under the enterprise's own name, and the enterprise can only entrust a qualified agency, and the title of goods will be temporarily held by the agent, which brings certain risks. For sensitive goods such as beauty raw materials, some shipping companies require a cosmetic import consignee filing certificate to accept booking, otherwise the goods may be rejected for loading.
In addition, if goods are detained at the port due to qualification issues after arrival, enterprises with complete filing can apply to the terminal for a 1-3 day extension of the free storage period with qualification documents, reducing port storage fee expenditure; if entrusting an agency to operate, you need to confirm in advance whether the agency's qualification scope covers the corresponding product category, to avoid container rolling, port change and other problems caused by inconsistent agency qualifications.
Eric ZhouYears of service：6Customer Rating：5.0
Senior Manager of Foreign Exchange & Tax RebatesStart a Chat
Import and export operation right is the core prerequisite for enterprises to enjoy tax preferential policies such as export tax rebate and VAT deferral. Enterprises without this qualification cannot handle export tax rebate on their own, and can only entrust a foreign trade agency to handle it, which requires paying a 1%-3% agency tax rebate service fee, increasing costs. For cross-border e-commerce B2B export business, enterprises need to have both import and export operation right and cross-border e-commerce enterprise filing to apply for the VAT deferral policy, delay the payment of import value-added tax, and ease capital pressure.
In addition, when paying foreign exchange for imported goods, enterprises need to provide the import and export operation right filing certificate, otherwise they cannot complete foreign exchange purchase and payment procedures through the bank, and can only pay foreign exchange through the agency, which brings the risk of exchange rate loss. If an enterprise involves cross-border related party transactions, it also needs to complete tax related party transaction filing to avoid being listed as a key inspection target by the tax authority due to lack of qualification.
Kevin LinYears of service：4Customer Rating：5.0
Trade Solutions ManagerStart a Chat
Before carrying out import and export business, enterprises must complete the registration in the trade foreign exchange receipts and payments enterprise directory of the State Administration of Foreign Exchange. The prerequisite for this registration is obtaining import and export operation right. Enterprises not included in the directory cannot directly handle foreign exchange receipt and payment procedures, and can only do so through a foreign trade agency, which brings risks such as capital interception and exchange rate loss in settlement.
If an enterprise chooses to conduct cross-border RMB payment through the CIPS system, it needs to have import and export operation right and complete cross-border RMB settlement filing, otherwise it cannot enjoy the fast arrival service of the CIPS system. In addition, for cross-border e-commerce B2B business, enterprises need to complete cross-border e-commerce foreign exchange settlement filing to handle foreign exchange receipt and payment with electronic customs declaration, no need to provide paper customs declaration, which improves settlement efficiency. If an enterprise uses an offshore account for foreign exchange receipt and payment, it needs to ensure that the business scope of the offshore account matches the import and export business, to avoid being listed as an abnormal account by the State Administration of Foreign Exchange.
Grace WangYears of service：10Customer Rating：5.0
Senior Foreign Trade ConsultantStart a Chat
Import and export operation right is the basis for enterprises to sign legal and valid import and export contracts. Import and export contracts signed in the name of an enterprise without this qualification may be deemed invalid, and the enterprise cannot claim rights through legal channels. For self-branded cosmetic export business, enterprises need to complete intellectual property customs protection filing to avoid goods being deemed infringing and detained at the destination country.
If not filed, even if the enterprise has a trademark registration certificate, it is difficult to quickly resolve infringement disputes. In addition, if the enterprise settles via letter of credit, banks require that the enterprise must have import and export operation right to issue a letter of credit, otherwise the enterprise can only entrust the agency to issue it, which brings the risk of soft clauses in the letter of credit. If goods are detained at the port due to qualification issues, the enterprise needs to present legal qualification documents to claim breach of contract liability from the freight forwarder, otherwise it is difficult to obtain compensation.
Andy GuoYears of service：3Customer Rating：5.0
Supply Chain Management ExpertStart a Chat
For enterprises with complete import and export qualifications, the Customs on-site inspection rate can be reduced by 10%-15%. For enterprises without corresponding qualifications, goods will be listed as key inspection targets, and the inspection time will be extended by 3-5 days. For special goods such as beauty raw materials, documents such as cosmetic import consignee filing certificate, certificate of origin, and health certificate need to be provided during on-site inspection.
If these documents cannot be provided, Customs will send the goods for laboratory testing, which takes 7-15 days and incurs high testing fees. In addition, enterprises with complete qualifications can apply customs seals on their own, while unqualified enterprises can only have seals applied by Customs or freight forwarders, which increases sealing costs and operation time. If missing qualifications are found during inspection, Customs will directly detain the goods, and the enterprise needs to supplement all qualifications within 10 days, otherwise the goods will be auctioned in accordance with the law.
Evelyn LiYears of service：3Customer Rating：5.0
Cross-border Compliance SupervisorStart a Chat
If the imported beauty raw materials contain hazardous chemical components such as alcohol and essence, the enterprise needs to obtain the Identification Certificate of Use of Packaging Containers for Dangerous Goods (i.e., dangerous goods packaging certificate). Goods without this certificate will not be released by Customs, and freight forwarders will not undertake the transportation. In addition, MSDS (Material Safety Data Sheet) must be prepared by a qualified institution, otherwise it cannot pass the review of Customs and the shipping company. MSDS must clearly mark information such as the hazard class and packing class of the goods.
If the marking is incorrect, the goods may be detained at the port or returned. For exported cosmetic products, if wooden packaging is used, the enterprise needs to obtain a fumigation certificate. Goods without this certificate will be directly detained and destroyed by the destination country's Customs. The application of a fumigation certificate requires the enterprise to have import and export operation right, otherwise the enterprise can only entrust an agency to handle it, which increases costs.
Daniel XuYears of service：10Customer Rating：5.0
Director of Import & Export OperationsStart a Chat
Import and export operation right is the core prerequisite for enterprises to handle export tax rebate. Enterprises without this qualification cannot file export tax rebate on the electronic tax bureau on their own, and can only entrust a foreign trade agency to handle it, which requires paying a certain agency fee, and the tax rebate cycle is extended by 10-15 days. For exported cosmetic products, enterprises need to ensure the consistency of four flows (contract flow, capital flow, goods flow, invoice flow).
If the enterprise does not have import and export operation right and exports in the name of the agency, it is difficult to guarantee the consistency of four flows, and the enterprise is easily listed as a target for tax correspondence investigation, which takes 1-2 months and affects the tax rebate progress. In addition, enterprises need to complete export tax rebate filing, and the prerequisite for filing is obtaining import and export operation right. Unfiled enterprises cannot enjoy the export tax rebate policy, and can only pay value-added tax as domestic sales, which increases costs by more than 30%.
Jason WuYears of service：10Customer Rating：5.0
International Logistics & Supply Chain ManagerStart a Chat
Enterprises with complete import and export qualifications can directly sign contracts with overseas suppliers and overseas customers, without going through an agency, reducing intermediate link costs by 5%-10%, and can directly control cargo title and inventory. For beauty supply chain enterprises, complete qualifications enable inventory linkage between imported raw materials and exported cosmetics, allowing advance stocking based on sales data and reducing the risk of inventory backlog.
In addition, enterprises with complete qualifications can flexibly choose trade terms such as CIF and FOB to reduce logistics risks, while unqualified enterprises can only rely on the agency to select trade terms and cannot control logistics nodes independently. If an enterprise entrusts an agency to operate for a long time, it may develop agency dependence and fail to build an independent supply chain system. Once the agency encounters problems, the supply chain will be directly interrupted, affecting the normal operation of the enterprise.