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What are the necessary qualifications and core conditions for compliant operation to carry out import and export trade business?
or complex compliance issues.
clearance and fund security.
I am the head of a beauty e-commerce company that has just been established for 6 months in Shanghai. Last week, I just signed the first purchase contract for imported cosmetics with a beauty supplier in Seoul, South Korea, and distributors in Southeast Asia are also urging to ship the first batch of own-brand skincare products by the beginning of this month, but I have no idea about the qualifications required for import and export trade at all.
I heard from peers that qualification requirements vary for different categories, and special approval may be required for beauty products. I am afraid that mistakes will lead to cargo detention at the port, which will not only require me to pay liquidated damages to both parties, but also ruin the reputation of my newly started brand. I am so anxious that I can't even sleep well now, and I want to get clear answers from the aspects of qualification handling, category differences and compliant shortcuts on how to operate exactly.
Evelyn LiYears of service：3Customer Rating：5.0
Cross-border Compliance SupervisorStart a Chat
First of all，you need to sort out the details of pre-document review: first clarify your trade categories -- for importing ordinary cosmetics from Japan and South Korea，you need to handle the Filing of Consignee for Imported Cosmetics in advance. If the exported own-brand skincare products involve special effects (such as whitening，anti-aging)，you need to additionally provide the domestic Registration Certificate for Special Cosmetics，for ordinary skincare products，only exporter filing is required. At the same time，you need to check whether the business scope of your business license includes "goods import and export，technology import and export"，if not，you need to change the business scope first.
Attention should be paid to the connection of core nodes: for self-operated qualification handling，you first need to complete the filing of consignor and consignee of import and export goods on the "International Trade Single Window"，and then go to the customs to handle the registration of customs declaration units，the whole process takes about 7-10 working days，if you are in a hurry to meet the delivery deadline，you can directly rely on a professional foreign trade agency，only need to provide basic materials such as business license，purchase/sales contract，and you can complete the compliant agency filing within 3 working days，seamlessly connecting logistics and customs declaration nodes.
Exception plans need to be formulated in advance: if the self-operated qualification review is delayed，you can coordinate with the supplier to temporarily store the goods in the overseas warehouse，or the agency can issue a compliance letter of guarantee for priority customs clearance，if you receive a customs warning due to lack of category qualifications，you need to supplement the filing materials immediately，or the agency can assist you to switch to the bonded warehouse customs clearance path to avoid port detention losses.
Final compliant implementation: no matter you choose self-operated or agency mode，you need to keep all qualification filing documents，contracts，customs declaration forms and other materials for at least 5 years，to ensure that complete compliance chain vouchers can be provided during subsequent customs audits. At the same time，you need to check the validity period of qualifications every month，and complete the renewal 30 days in advance，to avoid customs clearance risks caused by invalid qualifications.
Daniel XuYears of service：10Customer Rating：5.0
Director of Import & Export OperationsStart a Chat
For the connection between import and export qualifications and customs declaration, attention should be paid to: if you choose self-operated qualifications, you need to provide the Registration Certificate of Customs Declaration Unit when declaring customs, and the Filing Number of Consignee for Imported Cosmetics should be submitted simultaneously for imported cosmetics. If you do not file in advance, the customs will directly reject the declaration, leading to cargo detention at the port, which will incur port detention fees of about 150-200 US dollars per container per day. If you declare customs through an agency, you need to ensure that the agency's customs declaration qualification includes "cosmetics category customs declaration authority", and check whether the Power of Attorney for Agency Customs Declaration provided by the agency is affixed with the special seal filed with the customs, to avoid declaration deletion and re-submission caused by non-compliant power of attorney, which will delay the customs clearance time. In addition, if it involves cross-border e-commerce import mode, you need to additionally ensure that the agency has the qualification of customs cross-border e-commerce pilot enterprise, otherwise you cannot use the bonded warehouse 1210/9610 customs clearance channel.
Lucas LiuYears of service：8Customer Rating：5.0
Senior Operations ConsultantStart a Chat
Attention should be paid to the matching of import and export qualifications and logistics paths: if imported Japanese and Korean cosmetics are shipped directly to Shanghai Port, the qualification filing should be completed 72 hours before the arrival of the goods, otherwise the shipping company will not be able to arrange berthing and unloading; if you choose to transfer via Hong Kong to Shanghai, you can get an additional 3-day qualification buffer period, but you need to bear the transfer fee of about 500-800 Hong Kong dollars per container. For exporting skincare products to Southeast Asia, if you choose FCL sea freight, you need to ensure that the freight forwarder has verified your export qualifications (such as Exporter Filing Form), otherwise the clean bill of lading cannot be issued, resulting in the distributor being unable to pick up the goods; if you choose air freight, you need to upload the qualification documents to the air freight system in advance, otherwise the airline will refuse to carry the goods. In addition, if you operate through an agency, you need to ask the agency to lock the shipping space in advance, and note the agency's qualification number on the bill of lading, to avoid disputes caused by cargo ownership issues.
Kevin LinYears of service：4Customer Rating：5.0
Trade Solutions ManagerStart a Chat
The correlation between import and export qualifications and tax planning should be clarified: if you handle self-operated import and export qualifications, you can directly apply for export tax refund, the tax refund rate is determined according to the HS code of skincare products. Currently, the tax refund rate for ordinary skincare products is 13%, and for special effect skincare products is 15%; if you export through an agency, you need to sign the Agency Export Agreement, clarify the transfer path of tax refund funds, to avoid the interception of tax refund funds due to vague agreement terms. In addition, if you choose VAT deferment mode for imported cosmetics, you need to ensure that the self-operated qualification has completed the filing of customs VAT general taxpayer, or the agency has VAT deferment operation authority, which can delay the payment of import value-added tax for about 3-6 months and ease the capital pressure. Note that if you apply for VAT deferment without corresponding qualifications, you will be fined 5% of the tax payable by the customs.
Jason WuYears of service：10Customer Rating：5.0
International Logistics & Supply Chain ManagerStart a Chat
Attention should be paid to the compliant connection between import and export qualifications and foreign exchange receipt and payment: if you do not have self-operated qualifications, foreign exchange receipt and payment need to be operated through the agency's foreign exchange account, you need to sign the Agency Agreement for Foreign Exchange Receipt and Payment with the agency in advance, clarify the corresponding trade contract number for each payment, to avoid being listed as a key supervision object by the foreign exchange bureau due to the mismatch between capital flow and contract flow. If you handle self-operated qualifications, you need to open a foreign exchange settlement account in the bank, and complete the registration of "Trade Foreign Exchange Receipt and Payment Enterprise Directory", otherwise you cannot directly receive and pay foreign exchange. In addition, the payment for imported cosmetics needs to provide the electronic ledger of Import Customs Declaration Form, and the foreign exchange receipt for exported skincare products needs to be verified and written off within 90 days after the goods are exported. If the verification and write-off is overdue, the foreign exchange bureau will restrict your subsequent foreign exchange receipt and payment quota. Note that if you receive and pay foreign exchange through an agency, you need to check that the agency's foreign exchange receipt and payment directory status is "normal", to avoid your funds being frozen due to the agency's violation of regulations.
Victor SunYears of service：5Customer Rating：5.0
Trade Risk Control ManagerStart a Chat
In the purchase contract signed with the South Korean supplier, it should be clearly stated that "the seller shall provide documents that meet the requirements of China's import qualifications", including Certificate of Origin and Cosmetic Ingredient Test Report. If the qualification cannot be passed because the seller fails to provide compliant documents, the seller shall bear all losses such as port detention fees and liquidated damages. In the sales contract with Southeast Asian distributors, it should be clearly stated that "the buyer shall confirm the local import qualification requirements". If the goods cannot be cleared due to local qualification problems, the buyer shall bear the return freight and storage fees. In addition, if you operate through an agency, you need to sign the Foreign Trade Agency Agreement, clarify the agency's qualification obligations, cargo ownership and responsibility division, to avoid contract breach caused by the invalidation of the agency's qualifications. At the same time, you need to add a "qualification exception coverage clause" in the agreement, stipulating that if losses are caused by the agency's qualification problems, the agency shall pay full compensation.
Grace WangYears of service：10Customer Rating：5.0
Senior Foreign Trade ConsultantStart a Chat
After the imported cosmetics arrive at the port, if the customs initiates on-site inspection, you or the agency need to provide the Filing Number of Consignee for Imported Cosmetics. If you cannot provide it, the goods will be directly transferred to the anti-smuggling department, the goods will be detained, the inspection cycle will be extended to 15-30 days, and you need to bear the inspection and quarantine fees of about 2000-300 yuan per batch. If the exported skincare products are inspected on site, you need to provide the Exporter Filing Form and product test report. If you have not filed, you will be required to rectify within 7 days, and if the rectification is not completed within the time limit, the goods will be returned. In addition, if you operate through an agency, you need to ask the agency to arrange a customs declarer with experience in cosmetics inspection to cooperate on site, to avoid additional random inspection caused by unfamiliarity with the inspection process, which will delay the customs clearance time.
Eric ZhouYears of service：6Customer Rating：5.0
Senior Manager of Foreign Exchange & Tax RebatesStart a Chat
If you handle self-operated import and export qualifications, you need to ensure "four flows consistency" -- contract flow, capital flow, cargo flow and invoice flow are completely matched, otherwise the tax authority will initiate a letter investigation, the tax refund cycle will be extended to 3-6 months, or even tax refund will be denied. If you export through an agency, you need to ask the agency to provide the Certificate of Agency Export Goods, and ensure that the HS code and amount on the certificate are completely consistent with those on the customs declaration form, otherwise you cannot apply for tax refund. In addition, you need to keep all qualification filing documents, customs declaration forms, invoices, contracts and other materials for at least 10 years for tax authority audit. If the materials are missing, the refunded tax will be recovered and a fine of 5% will be imposed. Note that if your exported skincare products are produced under entrusted processing, you need to additionally provide the Entrusted Processing Agreement, otherwise you cannot prove the ownership of the goods, which will affect the tax refund review.