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What Compliance Procedures and Supporting Documents Are Required for Exporting Fresh Edible Fruits to the EU?
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I am the head of a citrus planting cooperative in Zhejiang Province, China. I cooperated with a fruit purchaser from Malaysia for the first time this year. 1000 boxes of honey tangerines have been packed in the orchard, and container loading will be arranged next week. I have never done export business before, and I am totally confused by the document list provided by the freight forwarder. I also heard that Southeast Asia has very strict quarantine requirements for imported fruits.
If I miss any procedure and get the goods detained by customs, not only will the fruits rot at the port, but I also have to pay penalty to the purchaser. I am so worried that I can't sleep now. I would like to ask what procedures are required for the whole process of fruit export? Are there any common pitfalls and contingency plans?
Linda GaoYears of service：7Customer Rating：5.0
Documentation SupervisorStart a Chat
First，conduct pre-document review. You need to apply for the Customs Clearance Form for Exit Goods to the local customs 7-10 days in advance. Note that **the orchard registration number and packaging plant number on the document must exactly match the actual supplier entity**，and the fruit variety and quantity must be consistent with the customs declaration form，to avoid declaration rejection due to inconsistent information. In addition，when exporting to Malaysia，you need to additionally provide the Phytosanitary Certificate required by the buyer，which is only valid for 14 days，so you need to schedule the application accurately according to the container loading time.
In terms of core node connection，you need to contact the quarantine officer designated by customs for on-site inspection before loading，confirm that the fruits are free of diseases and pests，and the packaging meets specifications (wooden packaging free of quarantine pests must be used and affixed with IPPC mark)，and seal the container after passing the inspection，so as to avoid cargo damage caused by opening the container for inspection after loading. When declaring to customs，you need to submit electronic customs declaration，contract，invoice and packing list simultaneously，and declare through the customs integrated clearance system to ensure real-time data synchronization.
Contingency plans for abnormalities need to be prepared in advance: if customs questions the fruit quarantine qualification，you need to immediately provide the annual quarantine qualification report of the orchard，if port delay is caused by document delay，you can entrust an agency to apply for **temporary warehousing and fresh-keeping qualification** to extend the shelf life of fruits. After all compliance procedures are completed，all documents must be retained for at least 3 years for subsequent customs verification.
Eric ZhouYears of service：6Customer Rating：5.0
Senior Manager of Foreign Exchange & Tax RebatesStart a Chat
When doing customs declaration for fruit export, you need to pay attention to the compliance of the customs price verification link. If the deviation between the declared price and the average export price of fruits of the same category in the customs database exceeds 15%, the system will automatically trigger a price verification query, and you need to provide purchase contracts, orchard purchase invoices, payment slips and other vouchers to prove the authenticity of the price.
If you need to delete the declaration and re-declare due to incorrect document information, you need to submit the application 24 hours before cargo loading. If the cargo has already been loaded, you need to go through the declaration amendment procedure, which takes about 3-5 working days and will incur additional manifest amendment fees. In addition, when declaring under the integrated clearance mode, you need to ensure that electronic data of the local customs and the exit customs are synchronized, so as to avoid the disconnection of "released by local customs but no data at exit customs" which leads to cargo delay at the port.
Daniel XuYears of service：10Customer Rating：5.0
Director of Import & Export OperationsStart a Chat
For the logistics route of exported fruits, direct voyage should be preferred. If it is a transit route, you need to ensure that the free storage period at the transit port does not exceed the shelf life of the fruit.
For example, the cold storage shelf life of honey tangerine is about 20 days, so the free storage period at the transit port should be controlled within 3 days to avoid fruit deterioration caused by too long storage. Refrigerated containers shall be used for loading, and the set temperature shall meet the requirements of the destination country (Malaysia requires the temperature for citrus fruits to be 10-12℃), and the refrigeration system shall be started within 2 hours after loading.
In addition, you should choose "order bill of lading" and mark "delivery against consignee's endorsement" to avoid trade risks caused by early transfer of cargo title. In case of container rolling, you need to immediately contact the freight forwarder to apply for allocation on the next available vessel, and notify the purchaser in the destination country to extend the pickup time simultaneously, so as to reduce the loss of port detention fees.
Kevin LinYears of service：4Customer Rating：5.0
Trade Solutions ManagerStart a Chat
Exported fruits can enjoy the VAT exemption, deduction and refund policy. It should be noted that the export tax refund declaration should be completed within 90 days after the goods leave the territory. If the declaration cannot be made on time due to document delay, you can apply for extended declaration, with a maximum extension of 6 months. If exporting to ASEAN countries, you can enjoy the zero-tariff policy of the China-ASEAN Free Trade Area, and you need to apply for the Certificate of Origin in advance.
The certificate must be obtained 3 days before the goods are exported, and the fruit variety and quantity on the certificate must be exactly consistent with those on the customs declaration form. In addition, if you export through the foreign trade agency mode, you can use the VAT deferral policy to reduce capital occupation, that is, you do not pay domestic VAT temporarily, and go through the tax refund procedure after the goods leave the territory, which effectively reduces capital cost. It should be noted that VAT deferral is only applicable to general taxpayer enterprises, and small-scale taxpayers need to pay VAT according to the simple taxation method.
Evelyn LiYears of service：3Customer Rating：5.0
Cross-border Compliance SupervisorStart a Chat
The collection and payment of foreign exchange for fruit export must comply with cross-border payment compliance requirements. If you collect payment via SWIFT message, you must mark "fruit export payment" in the message, and ensure that the transaction counterparty is the purchaser specified in the contract, so as to avoid being inspected by the State Administration of Foreign Exchange (SAFE) due to unknown capital source.
If you use RMB cross-border payment via CIPS system, you can enjoy exchange rate preferences, and there is no need to go through foreign exchange purchase procedures, which reduces the risk of exchange rate fluctuation. In addition, you need to complete foreign exchange collection verification within 30 days after the goods are exported.
If you cannot complete the verification on time due to delayed payment by the purchaser, you need to submit a delayed payment explanation to SAFE and provide the purchaser's delayed payment letter, so as to avoid being listed as an enterprise with abnormal foreign exchange. It should be noted that if the export amount exceeds 50,000 US dollars, you need to report the large-value transaction to SAFE in advance.
Jason WuYears of service：10Customer Rating：5.0
International Logistics & Supply Chain ManagerStart a Chat
If you use letter of credit for settlement of exported fruits, you need to carefully review the L/C clauses to avoid "soft clauses". For example, the clause that "the quality certificate issued by the inspection agency of the importing country is used as negotiation document" may lead to failure of negotiation due to deliberate delay of the importing country's agency.
You need to stipulate a force majeure clause in the contract, which clearly clarifies that if the goods cannot be exported on time due to force majeure such as pandemic and changes in quarantine policies, the liability for breach of contract can be exempted. In addition, you need to complete the recordal of intellectual property customs protection.
If you use your own brand on the fruit packaging, you need to file with the customs in advance to avoid being accused of infringement and the goods being detained. If the purchaser breaches the contract and refuses to pay, you can apply for arbitration to the China International Economic and Trade Arbitration Commission with the contract, customs declaration, bill of lading and other documents, and the arbitration award can be enforced globally.
Lucas LiuYears of service：8Customer Rating：5.0
Senior Operations ConsultantStart a Chat
When exported fruits are subject to on-site customs inspection, you need to cooperate with inspectors to complete devanning inspection. During devanning, you need to avoid damaging the cold storage packaging of fruits. If it is a refrigerated container, you need to keep the refrigeration system operating normally. If the inspector suspects that fruits carry diseases and pests, you need to cooperate with sample submission for inspection, which takes about 5-7 working days.
During the inspection period, the goods need to be stored in the cold storage designated by customs, and you need to apply for an extension of the free storage period in advance to avoid container detention fees. In addition, you need to prepare the Phytosanitary Certificate of the orchard and the Registration Certificate of Exit Fruit Packaging Plant in advance. If you cannot provide them during inspection, the goods will be temporarily detained. It should be noted that the container needs to be re-sealed after devanning inspection, and the seal number must be checked to match the number on the customs declaration, so as to avoid being suspected of container swapping due to inconsistent seal number.
Michael ZhangYears of service：6Customer Rating：5.0
Customs Declaration & Compliance ExpertStart a Chat
When handling tax refund for exported fruits, you must ensure the "consistency of four flows", that is, contract flow, capital flow, invoice flow and goods flow are completely matched. If capital reflux occurs, it will trigger tax correspondence verification, which takes about 15-30 working days and will delay the arrival time of tax refund.
You need to complete document filing within 10 days after the goods are exported. The filing documents include contract, invoice, packing list, bill of lading and Customs Clearance Form for Exit Goods, and the filing documents must be kept for at least 10 years for subsequent inspection by the tax authority.
If you cannot apply for tax refund due to document loss, you need to apply to the customs for reissuing the Customs Clearance Form for Exit Goods, and the reissue takes about 3-5 working days. In addition, if the exported fruits are self-produced and self-sold, you need to provide the planting filing certificate of the orchard; if the fruits are purchased, you need to provide the purchase invoice and payment voucher to prove the authenticity of the goods source.