Connect & Solve
Trade Q&A
What compliance details and core risk nodes need to be controlled in the whole process of agency import of automobiles?
or complex compliance issues.
clearance and fund security.
I am the head of a trading company in Shanghai specializing in parallel imported vehicles. Last month, I hired a small agency to import the Middle East version of Toyota Land Cruiser, which was detained by customs and stored at the port for 12 days due to inconsistent documents.
I not only paid 80,000 in liquidated damages to end customers, but also spent nearly 150,000 on port storage fees and document amendment fees, which also damaged the company's reputation. Now I want to cooperate with a professional agency again to expand the import business of the same model, but I lack confidence.
I do not know how to select an agency that can control the risks of the whole process, nor do I know the detailed requirements for core nodes such as document review, customs declaration and logistics when importing automobiles on an agency basis. I also want to know if there are legal tax planning methods to reduce the overall cost. I am afraid that another mistake will bring down the company, and I have been unable to sleep for several days due to anxiety.
Eric ZhouYears of service：6Customer Rating：5.0
Senior Manager of Foreign Exchange & Tax RebatesStart a Chat
First，details of pre-document review: you shall ask the agency to check core documents such as vehicle certificate of origin，goods invoice，packing list，automatic import license (O certificate)，vehicle conformity certificate 7-10 days in advance，with focus on verifying that the VIN code on the certificate of origin fully matches that on the actual vehicle and the conformity certificate，to avoid customs detention caused by code inconsistency.
Core node connection link: the agency shall simultaneously control the time difference between overseas container pickup，international transportation and domestic customs clearance，require the overseas logistics side to push the shipment confirmation note 24 hours in advance，and the domestic customs clearance team to complete pre-declaration 1 day in advance，to ensure that customs clearance is completed within 48 hours after arrival at the port and eliminate the risk of port congestion.
Exception plan aspect: you shall agree on the "instant circuit breaker mechanism for inconsistent documents" with the agency. Once document problems are found，immediately start the alternative plan of document amendment or return. Meanwhile，complete the model filing in the General Administration of Customs intellectual property filing system in advance to avoid detention caused by trademark infringement.
Final compliant implementation: after customs clearance is completed，you shall urge the agency to simultaneously provide documents such as special customs import duty payment receipt，inspection and quarantine certificate，etc。to ensure that the vehicle can be licensed normally. Meanwhile，all documents shall be kept for more than 5 years for subsequent customs verification.
Kevin LinYears of service：4Customer Rating：5.0
Trade Solutions ManagerStart a Chat
When declaring customs for agency imported automobiles, you shall focus on the price consultation risk in the customs valuation link. The customs will evaluate the price based on the import transaction price, deducted price, calculated price and other methods of automobiles of the same model in the same period.
If the declared price is lower than the price parameter preset by the customs, a price query will be triggered. At this time, you shall prepare supporting materials such as foreign exchange payment vouchers, overseas procurement contracts, cost composition details in advance, to avoid customs valuation due to failure to provide valid certificates, which will increase import costs.
In addition, for parallel imported vehicles, you shall ensure that the configuration parameters of the vehicles fully match the declared commodity code. It is forbidden to declare high-configuration models as low-configuration ones to reduce tariffs, otherwise it will be deemed as false declaration, facing penalties such as goods detention and fines. In serious cases, it will also affect the customs credit rating of the enterprise.
Daniel XuYears of service：10Customer Rating：5.0
Director of Import & Export OperationsStart a Chat
For the international logistics link of agency imported automobiles, you shall give priority to shipping companies with ro-ro ship transportation qualification, and avoid using container transportation which may cause vehicle paint scratches and parts damage. Meanwhile, you shall clarify the calculation nodes of free storage period and container detention fee.
Generally, the free storage period for automobiles in ports is 7-10 days. You shall confirm with the agency in advance whether it can be extended to 14 days to avoid high container detention fees caused by delayed customs clearance. In addition, the bill of lading endorsement link shall ensure that the endorser is exactly the same as the consignee on the bill of lading.
If third-party pickup is involved, a notarized pickup authorization letter shall be issued in advance to avoid failure to pick up the vehicle due to unclear cargo ownership. In case of container rollover, you shall ask the agency to immediately coordinate with the shipping company to arrange transshipment or port change, and simultaneously notify the overseas supplier to adjust the delivery plan to reduce the risk of port congestion.
Evelyn LiYears of service：3Customer Rating：5.0
Cross-border Compliance SupervisorStart a Chat
For agency imported automobiles, you can reduce capital occupation cost by applying for the VAT deferral policy. Eligible enterprises do not need to pay value-added tax immediately at the time of customs clearance, but declare and pay it within the value-added tax declaration period of the next month, which is equivalent to obtaining free short-term capital lending. In addition, if the enterprise has export business, it can deduct the input value-added tax of imported automobiles from the export tax refund to reduce the overall tax burden.
However, it should be noted that the VAT deferral policy is only applicable to general taxpayer enterprises, and it is necessary to ensure that the purpose of imported automobiles meets the policy requirements. It is forbidden to apply for VAT deferral for imported automobiles used for simple tax calculation items or collective welfare, otherwise the tax authorities will recover the tax and impose late fees. Meanwhile, all import documents and value-added tax deduction vouchers shall be kept for verification by the tax authorities.
Andy GuoYears of service：3Customer Rating：5.0
Supply Chain Management ExpertStart a Chat
For the payment and receipt link of agency imported automobiles, you shall strictly comply with the compliance requirements of cross-border RMB settlement or foreign exchange settlement. If you use SWIFT message for foreign exchange payment, you shall clearly mark "imported automobile payment" and the vehicle VIN code in the message remark column to avoid being listed in the watch list by the foreign exchange administration due to unclear transaction background.
If you use the CIPS system for RMB cross-border payment, you shall confirm with the agency in advance whether the account information of the payee meets the access requirements of the CIPS system to ensure that the funds can arrive in time. In addition, you shall avoid using personal accounts for payment and receipt of foreign exchange.
All capital transactions must be carried out through the corporate public account, and documents such as foreign exchange payment vouchers and procurement contracts shall be kept for subsequent verification by the foreign exchange administration. In case of insufficient foreign exchange payment quota, you can ask the agency to assist in handling the foreign exchange quota adjustment procedure to ensure the smooth payment process.
Michael ZhangYears of service：6Customer Rating：5.0
Customs Declaration & Compliance ExpertStart a Chat
For the contract signing link of agency imported automobiles, you shall clarify the scope of responsibility and exemption clauses of the agency, especially the division of compensation liability for abnormal situations such as inconsistent documents and customs detention. You shall add the clause that "if the customs detention is caused by document errors, the agency shall bear all losses such as port storage fees and liquidated damages" in the contract, and agree on the scope of force majeure at the same time, to avoid loss disputes caused by force majeure factors such as overseas port strikes and epidemics.
In addition, if it involves the intellectual property issues of parallel imported vehicles, you shall ask the agency to assist in completing the model filing in the intellectual property protection filing system of the General Administration of Customs, and require the overseas supplier to provide intellectual property authorization documents in the contract to avoid the vehicle being detained by the customs due to trademark infringement. In case of contract disputes, you shall give priority to arbitration to avoid lengthy litigation procedures affecting business progress.
Cindy ChenYears of service：3Customer Rating：5.0
Key Account ManagerStart a Chat
For the on-site customs inspection link of agency imported automobiles, you shall ask the agency to arrange special personnel to be present to accompany in advance, to avoid prolonged inspection time caused by operators who are not familiar with the inspection process. During inspection, you shall cooperate with the customs staff to check the VIN code, engine number, configuration parameters and other information of the vehicle.
In case of abnormal machine inspection, you shall timely provide supporting materials such as vehicle configuration list and certificate of origin to avoid being required to unpack the container for inspection. In addition, you shall pay attention to the authenticity of the vehicle seal.
If the seal is found to be damaged, you shall immediately ask the agency to contact the overseas logistics side to confirm the situation and submit a written explanation to the customs to avoid being deemed as cargo ownership tampering. If inspection and appraisal are required after inspection, you shall ask the agency to follow up the appraisal process to ensure that the appraisal report is obtained within the specified time, so as to avoid long-term detention of the vehicle at the port.
Grace WangYears of service：10Customer Rating：5.0
Senior Foreign Trade ConsultantStart a Chat
For the transportation and packaging link of agency imported automobiles, you shall select an appropriate packaging scheme according to the vehicle model and transportation mode. If ro-ro ship transportation is adopted, you shall install moisture-proof pads and fixed brackets on the tires, chassis and other parts of the vehicle to avoid vehicle displacement or parts damage caused by ship bumping. If container transportation is adopted, you shall install buffer foam and wooden fixing frames around the vehicle, and paste moisture-proof film on the inner wall of the container to avoid moisture oxidation of the vehicle paint.
In addition, you shall prepare MSDS documents that meet the requirements, especially for dangerous parts such as vehicle batteries and lubricating oil, to ensure that the classification and identification of MSDS meet international transportation standards, so as to avoid the goods being rejected by the shipping company due to non-conforming packaging. If it involves the transportation of dangerous parts, you shall ask the agency to handle the dangerous goods transportation qualification in advance to ensure the compliance of the transportation process.
Linda GaoYears of service：7Customer Rating：5.0
Documentation SupervisorStart a Chat
For the supply chain planning link of agency imported automobiles, you shall formulate a reasonable import plan in combination with market demand and inventory status to avoid inventory overstock caused by blind import. You can match the import cycle with the terminal sales cycle by establishing an inventory linkage model. Generally, the import cycle is 30-45 days, and you shall ensure that the terminal inventory can be digested within 15 days after the imported vehicles arrive at the port. In addition, you can reduce costs by changing trade terms.
If you previously adopted CIF terms, you can switch to FOB terms, choose the shipping company and insurance institution by yourself, and obtain more favorable freight and premium rates. Meanwhile, you can establish a long-term cooperative relationship with the agency to strive for more favorable agency fees and logistics prices, so as to reduce the overall supply chain cost. In case of market demand fluctuation, you shall adjust the import plan in time to avoid capital occupation caused by inventory overstock.