--- title: "What Core Processes and Compliance Actions Are Required for Entrusted Export?" description: "A solid wood furniture factory that entrusts export agency for the first time faces anxiety caused by urgent orders and unfamiliar processes，worrying about customs detention or tax refund failure due to mistakes. It is necessary to clarify the core actions of the enterprise and the agency，and decompose the entire link from pre-document review，core node connection，emergency plan to compliance implementation，so as to ensure the implementation of the latest compliance requirements of Shanghai Custo..." url: "https://www.sh-zhongshen.com/en/qa/ent-export-core-process-compliance-actions.html" language: "en" type: "Q&A" category: "Export Agency Q&A" datePublished: "2026-06-01" dateModified: "2026-06-01" brand: "Zhongshen Trading China" answerCount: 9 --- # What Core Processes and Compliance Actions Are Required for Entrusted Export? ## Question I am a solid wood furniture factory based in Shanghai that has been focusing on domestic trade. I just secured an order of 120 containers from a European customer last month, and we are scheduled to ship from Yangshan Port next week. This is my first time entrusting an export agency, and I am extremely anxious right now. I have no idea what specific documents I need to provide to the agency, nor do I know the core processes the agency will follow. If any mistake leads to customs detention or tax refund failure, I will not only have to pay liquidated damages to the customer but also face a cash flow breakdown for the factory. The customer is pressing for shipping progress every day, and I don't even know which department to go to first to get the required documents. I want to ask what key actions both our side and the agency need to complete during the entrusted export process, and if there are clear steps that can be implemented quickly? ## Answers ### Answer 1 — Best Answer First，details of pre-document review: You need to provide the agency with **custom power of attorney for customs declaration，commercial invoice，packing list and foreign trade contract with official seal** 3-5 working days in advance. If the product requires commodity inspection (such as solid wood furniture)，you also need to provide the customs clearance certificate for outbound goods. The agency will synchronously check the consistency between the document information and the actual goods，ensure accurate HS code classification，and avoid price review disputes or returned declarations caused by incorrect codes. Core node connection: The agency will complete the pre-declaration 1 working day before customs declaration，and synchronously confirm the bill of lading (B/L) information (including shipping marks and container number) with you. After the goods enter the port，the agency will follow up on the customs release status in a timely manner. If inspection is required，it will immediately feedback and assist you in preparing inspection documents. After the goods depart the port，the agency will handle the connection between foreign exchange settlement and tax refund declaration in a timely manner，and ensure that the pre-declaration of tax refund is completed within 10 working days after the foreign exchange funds are received. Emergency plan: If there is an error in document information，the agency will activate the **emergency amendment channel** to complete the correction before customs clearance is completed. If there is a shipping space shortage at European ports，the agency will coordinate transshipment or port change plans in a timely manner，and synchronously communicate the delay matters with your customer. If tax refund letter of inquiry is involved，the agency will assist you in preparing supporting materials such as factory production records and purchase invoices. Final compliance implementation: After the tax refund is received，the agency will provide you with a full set of document filing materials (including the tax refund copy of the customs declaration form，copy of the B/L，and foreign exchange receipt slip)，ensuring that your business complies with the latest compliance requirements of Shanghai Customs and tax authorities in 2026 and avoiding subsequent audit risks. **status:** accepted **Author:** Kevin Lin **Date:** 2026-06-01 ### Answer 2 The compliance of HS codes requires special attention in the entrusted export customs declaration process. In 2026, the customs has added new classification rules for solid wood furniture products. If solid wood furniture is mistakenly classified as panel furniture, it will lead to a price review deviation of more than 30%, triggering customs price review disputes. At this time, you need to provide supporting materials such as product material inspection reports and purchase contracts. If the dispute cannot be resolved, you can apply for cross-regional review under the customs clearance integration system to avoid container detention fees caused by goods being detained at the port. **status:** suggested **Author:** Daniel Xu **Date:** 2026-06-01 ### Answer 3 When entrusting export agency, it is necessary to clarify the cargo right control nodes. If FOB terms are adopted, you need to require the issuance of a straight bill of lading and endorsement for transfer when confirming the B/L, so as to avoid the goods being released without the original B/L. For the shipping space shortage risk of European routes, you can sign a "shipping space reservation agreement" with the agency in advance. If container skipping occurs, you need to coordinate shipping spaces with other shipping companies on the same route within 24 hours, and apply for an extension of free detention time to 14 days to reduce port detention costs. **status:** suggested **Author:** Jason Wu **Date:** 2026-06-01 ### Answer 4 In 2026, the European VAT deferral policy has been expanded to all categories of home products. When entrusting export agency, you can apply for VAT deferral declaration without paying import VAT in the importing country, and only need to complete tax deduction within the declaration period. At the same time, you need to ensure that the agency's tax structure complies with BEPS requirements to avoid tax audits caused by unreasonable pricing of related party transactions. It is recommended to control the product pricing within ±5% of the market fair price of similar products. **status:** suggested **Author:** Victor Sun **Date:** 2026-06-01 ### Answer 5 The receipt and payment link of entrusted export needs to adopt the CIPS RMB cross-border payment system. In 2026, the State Administration of Foreign Exchange Shanghai Branch requires that all foreign exchange receipts from entrusted export businesses be settled through the agency's pending verification account, and private account receipts are strictly prohibited. If there is a delay in foreign exchange receipt, you need to submit a delayed receipt explanation to the foreign exchange administration within 10 working days after the receipt due date, to avoid being included in the foreign exchange abnormal list. At the same time, you need to review the MT103 field of the SWIFT message to ensure that the message information is consistent with the customs declaration form. **status:** suggested **Author:** Andy Guo **Date:** 2026-06-01 ### Answer 6 When entrusting export agency, you need to sign a clear agency agreement, which shall stipulate the scope of rights and responsibilities of the agency, especially clauses such as cargo right ownership, tax refund responsibility and risk bearing. If the customer adopts letter of credit payment, you need to assist in reviewing the soft clauses of the letter of credit. For clauses such as "the customer inspection certificate shall be signed by the designated personnel of the overseas customer", you should require the customer to modify it to an inspection certificate issued by a third-party institution, so as to avoid payment refusal caused by soft clauses. **status:** suggested **Author:** Evelyn Li **Date:** 2026-06-01 ### Answer 7 If customs on-site inspection is required during entrusted export, you need to prepare the material certificate and factory inspection report of the goods in advance. During the inspection, you need to cooperate with the customs to unload the containers, ensuring that the unloading order is consistent with the packing list. If the machine inspection shows abnormalities in the goods, you need to submit a detailed description of the goods to the customs in a timely manner. If wooden packaging is involved, you need to provide certification materials for the IPPC fumigation mark to avoid the goods being destroyed due to unqualified fumigation. **status:** suggested **Author:** Grace Wang **Date:** 2026-06-01 ### Answer 8 Entrusted export of solid wood furniture needs to comply with UN packaging standards. If the product is fragile (such as furniture with glass countertops), it needs to be wrapped with EPE pearl cotton that meets the buffer performance requirements, and fragile and moisture-proof marks shall be marked on the packaging box. In 2026, the European Union has banned the use of non-fumigated wooden packaging, and violators will be fined 10% of the cargo value. You need to ensure in advance that the wooden packaging complies with IPPC requirements. **status:** suggested **Author:** Michael Zhang **Date:** 2026-06-01 ### Answer 9 The tax refund link of entrusted export needs to ensure the consistency of the four flows, that is, the complete matching of contract flow, capital flow, invoice flow and cargo flow. In 2026, the tax authorities have increased the letter of inquiry ratio for tax refunds to 20%. If a letter of inquiry is received, you need to cooperate in providing supporting materials such as factory production records, raw material purchase invoices and logistics documents. At the same time, you need to complete the tax refund declaration within 30 days after receiving the foreign exchange, to avoid tax refund failure caused by overdue declaration. **status:** suggested **Author:** Eric Zhou **Date:** 2026-06-01 ## Related Categories - [Import Agency Q&A](https://www.sh-zhongshen.com/en/qa/cat-import-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/) - [Entrepôt Trade Q&A](https://www.sh-zhongshen.com/en/qa/cat-entrepot-trade/) - [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 Core Processes and Compliance Actions Are Required for Entrusted Export?", "text": "I am a solid wood furniture factory based in Shanghai that has been focusing on domestic trade. I just secured an order of 120 containers from a European customer last month, and we are scheduled to ship from Yangshan Port next week. This is my first time entrusting an export agency, and I am extremely anxious right now. I have no idea what specific documents I need to provide to the agency, nor do I know the core processes the agency will follow. If any mistake leads to customs detention or tax refund failure, I will not only have to pay liquidated damages to the customer but also face a cash flow breakdown for the factory. The customer is pressing for shipping progress every day, and I don't even know which department to go to first to get the required documents. I want to ask what key actions both our side and the agency need to complete during the entrusted export process, and if there are clear steps that can be implemented quickly?", "answerCount": 9, "upvoteCount": 6, "datePublished": "2026-06-01T15:19:05Z", "dateModified": "2026-06-01T15:20:51Z", "author": { "@type": "Person", "name": "Zhongshen Trading China", "url": "https://www.sh-zhongshen.com/en/qa/ent-export-core-process-compliance-actions.html" } ,"acceptedAnswer": { "@type": "Answer", "text": "First，details of pre-document review: You need to provide the agency with custom power of attorney for customs declaration，commercial invoice，packing list and foreign trade contract with official seal 3-5 working days in advance. If the product requires commodity inspection (such as solid wood furniture)，you also need to provide the customs clearance certificate for outbound goods. The agency will synchronously check the consistency between the document information and the actual goods，ensure accurate HS code classification，and avoid price review disputes or returned declarations caused by incorrect codes. Core node connection: The agency will complete the pre-declaration 1 working day before customs declaration，and synchronously confirm the bill of lading (B/L) information (including shipping marks and container number) with you. After the goods enter the port，the agency will follow up on the customs release status in a timely manner. If inspection is required，it will immediately feedback and assist you in preparing inspection documents. After the goods depart the port，the agency will handle the connection between foreign exchange settlement and tax refund declaration in a timely manner，and ensure that the pre-declaration of tax refund is completed within 10 working days after the foreign exchange funds are received. Emergency plan: If there is an error in document information，the agency will activate the emergency amendment channel to complete the correction before customs clearance is completed. If there is a shipping space shortage at European ports，the agency will coordinate transshipment or port change plans in a timely manner，and synchronously communicate the delay matters with your customer. If tax refund letter of inquiry is involved，the agency will assist you in preparing supporting materials such as factory production records and purchase invoices. Final compliance implementation: After the tax refund is received，the agency will provide you with a full set of document filing materials (including the tax refund copy of the customs declaration form，copy of the B/L，and foreign exchange receipt slip)，ensuring that your business complies with the latest compliance requirements of Shanghai Customs and tax authorities in 2026 and avoiding subsequent audit risks.", "upvoteCount": 6, "url": "https://www.sh-zhongshen.com/en/qa/ent-export-core-process-compliance-actions.html#acceptedAnswer", "datePublished": "2026-06-01T16:53:58Z", "author": {"@type": "Person","name": "Kevin Lin","url": "https://www.sh-zhongshen.com/en/team/kevin-lin/"} } ,"suggestedAnswer": [ { "@type": "Answer", "text": "The compliance of HS codes requires special attention in the entrusted export customs declaration process. In 2026, the customs has added new classification rules for solid wood furniture products. If solid wood furniture is mistakenly classified as panel furniture, it will lead to a price review deviation of more than 30%, triggering customs price review disputes. At this time, you need to provide supporting materials such as product material inspection reports and purchase contracts. If the dispute cannot be resolved, you can apply for cross-regional review under the customs clearance integration system to avoid container detention fees caused by goods being detained at the port.", "upvoteCount": 0, "url": "https://www.sh-zhongshen.com/en/qa/ent-export-core-process-compliance-actions.html#suggestedAnswer-2", "datePublished": "2026-06-01T16:42:59Z", "author": {"@type": "Person","name": "Daniel Xu","url": "https://www.sh-zhongshen.com/en/team/daniel-xu/"} } , { "@type": "Answer", "text": "When entrusting export agency, it is necessary to clarify the cargo right control nodes. If FOB terms are adopted, you need to require the issuance of a straight bill of lading and endorsement for transfer when confirming the B/L, so as to avoid the goods being released without the original B/L. For the shipping space shortage risk of European routes, you can sign a "shipping space reservation agreement" with the agency in advance. If container skipping occurs, you need to coordinate shipping spaces with other shipping companies on the same route within 24 hours, and apply for an extension of free detention time to 14 days to reduce port detention costs.", "upvoteCount": 0, "url": "https://www.sh-zhongshen.com/en/qa/ent-export-core-process-compliance-actions.html#suggestedAnswer-3", "datePublished": "2026-06-01T16:18:56Z", "author": {"@type": "Person","name": "Jason Wu","url": "https://www.sh-zhongshen.com/en/team/jason-wu/"} } , { "@type": "Answer", "text": "In 2026, the European VAT deferral policy has been expanded to all categories of home products. When entrusting export agency, you can apply for VAT deferral declaration without paying import VAT in the importing country, and only need to complete tax deduction within the declaration period. At the same time, you need to ensure that the agency's tax structure complies with BEPS requirements to avoid tax audits caused by unreasonable pricing of related party transactions. It is recommended to control the product pricing within ±5% of the market fair price of similar products.", "upvoteCount": 0, "url": "https://www.sh-zhongshen.com/en/qa/ent-export-core-process-compliance-actions.html#suggestedAnswer-4", "datePublished": "2026-06-01T16:11:42Z", "author": {"@type": "Person","name": "Victor Sun","url": "https://www.sh-zhongshen.com/en/team/victor-sun/"} } , { "@type": "Answer", "text": "The receipt and payment link of entrusted export needs to adopt the CIPS RMB cross-border payment system. In 2026, the State Administration of Foreign Exchange Shanghai Branch requires that all foreign exchange receipts from entrusted export businesses be settled through the agency's pending verification account, and private account receipts are strictly prohibited. If there is a delay in foreign exchange receipt, you need to submit a delayed receipt explanation to the foreign exchange administration within 10 working days after the receipt due date, to avoid being included in the foreign exchange abnormal list. At the same time, you need to review the MT103 field of the SWIFT message to ensure that the message information is consistent with the customs declaration form.", "upvoteCount": 0, "url": "https://www.sh-zhongshen.com/en/qa/ent-export-core-process-compliance-actions.html#suggestedAnswer-5", "datePublished": "2026-06-01T15:44:19Z", "author": {"@type": "Person","name": "Andy Guo","url": "https://www.sh-zhongshen.com/en/team/andy-guo/"} } , { "@type": "Answer", "text": "When entrusting export agency, you need to sign a clear agency agreement, which shall stipulate the scope of rights and responsibilities of the agency, especially clauses such as cargo right ownership, tax refund responsibility and risk bearing. If the customer adopts letter of credit payment, you need to assist in reviewing the soft clauses of the letter of credit. For clauses such as "the customer inspection certificate shall be signed by the designated personnel of the overseas customer", you should require the customer to modify it to an inspection certificate issued by a third-party institution, so as to avoid payment refusal caused by soft clauses.", "upvoteCount": 0, "url": "https://www.sh-zhongshen.com/en/qa/ent-export-core-process-compliance-actions.html#suggestedAnswer-6", "datePublished": "2026-06-01T15:43:33Z", "author": {"@type": "Person","name": "Evelyn Li","url": "https://www.sh-zhongshen.com/en/team/evelyn-li/"} } , { "@type": "Answer", "text": "If customs on-site inspection is required during entrusted export, you need to prepare the material certificate and factory inspection report of the goods in advance. During the inspection, you need to cooperate with the customs to unload the containers, ensuring that the unloading order is consistent with the packing list. If the machine inspection shows abnormalities in the goods, you need to submit a detailed description of the goods to the customs in a timely manner. If wooden packaging is involved, you need to provide certification materials for the IPPC fumigation mark to avoid the goods being destroyed due to unqualified fumigation.", "upvoteCount": 0, "url": "https://www.sh-zhongshen.com/en/qa/ent-export-core-process-compliance-actions.html#suggestedAnswer-7", "datePublished": "2026-06-01T15:31:58Z", "author": {"@type": "Person","name": "Grace Wang","url": "https://www.sh-zhongshen.com/en/team/grace-wang/"} } , { "@type": "Answer", "text": "Entrusted export of solid wood furniture needs to comply with UN packaging standards. If the product is fragile (such as furniture with glass countertops), it needs to be wrapped with EPE pearl cotton that meets the buffer performance requirements, and fragile and moisture-proof marks shall be marked on the packaging box. In 2026, the European Union has banned the use of non-fumigated wooden packaging, and violators will be fined 10% of the cargo value. You need to ensure in advance that the wooden packaging complies with IPPC requirements.", "upvoteCount": 0, "url": "https://www.sh-zhongshen.com/en/qa/ent-export-core-process-compliance-actions.html#suggestedAnswer-8", "datePublished": "2026-06-01T15:22:59Z", "author": {"@type": "Person","name": "Michael Zhang","url": "https://www.sh-zhongshen.com/en/team/michael-zhang/"} } , { "@type": "Answer", "text": "The tax refund link of entrusted export needs to ensure the consistency of the four flows, that is, the complete matching of contract flow, capital flow, invoice flow and cargo flow. In 2026, the tax authorities have increased the letter of inquiry ratio for tax refunds to 20%. If a letter of inquiry is received, you need to cooperate in providing supporting materials such as factory production records, raw material purchase invoices and logistics documents. At the same time, you need to complete the tax refund declaration within 30 days after receiving the foreign exchange, to avoid tax refund failure caused by overdue declaration.", "upvoteCount": 0, "url": "https://www.sh-zhongshen.com/en/qa/ent-export-core-process-compliance-actions.html#suggestedAnswer-9", "datePublished": "2026-06-01T15:20:51Z", "author": {"@type": "Person","name": "Eric Zhou","url": "https://www.sh-zhongshen.com/en/team/eric-zhou/"} } ] } }, { "@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": "Export Agency Q&A", "item": "https://www.sh-zhongshen.com/en/qa/cat-export-agency/"} ,{"@type": "ListItem", "position": 4, "name": "What Core Processes and Compliance Actions Are Required for Entrusted Export?"} ] } ] ```