Connect & Solve
Trade Q&A
What are the key points of full-process compliance operations for logistics companies carrying out fruit export agency business?
or complex compliance issues.
clearance and fund security.
I am the operation manager of a medium-sized logistics company. Last month, we just took over an agency business of exporting Southeast Asian tropical mangoes to the EU. This is our first involvement in the fresh fruit export field, as we only provided general cargo agency services before. I am so worried now that I can barely eat. Last week, we almost delayed customs declaration due to a tiny marking error on the certificate of origin, and I have no clue about the cross-border cold chain connection for mangoes.
If the cargo is detained at the port due to non-compliant container temperature after arrival, we simply cannot afford the compensation for cargo damage and deterioration. I also heard that the EU's pesticide residue testing standards for imported fruits are extremely strict. If the testing fails, the cargo will be directly destroyed, which will not only require us to compensate the customer for the payment for goods, but also ruin the company's reputation. I am really anxious now, and I just want to know how to standardize the operation of fruit export agency for logistics companies like ours, so as to minimize all kinds of risks and reasonably control the full-link cost at the same time?
Michael ZhangYears of service：6Customer Rating：5.0
Customs Declaration & Compliance ExpertStart a Chat
First，for pre-document review details，focus on checking the validity period and corresponding production area of the Registration Certificate of Outbound Fruit Orchard and the packaging plant registration certificate. The EU requires that the unique registration code of the orchard be marked on the documents，and the pesticide residue test report must be an official report issued by an official testing institution within 15 days before export. Informal reports from third-party institutions are strictly prohibited.
For core node connection，the temperature data of the entire cold chain must be locked: the mango temperature shall be reduced to 12-15℃ during pre-cooling in the domestic warehouse，temperature monitors shall be used throughout the container loading process，the reefer container of the shipping company shall be pre-cooled to the specified temperature 24 hours in advance，and the clause of "full cold chain temperature control" shall be clearly marked on the bill of lading to avoid subsequent liability disputes.
The abnormal response plan shall cover three core scenarios: if the certificate of origin review is wrong，communicate with the local customs in advance to apply for urgent document modification，and reserve a document modification window of at least 48 hours，if the temperature of the reefer container is abnormal，immediately contact the shipping company to replace the standby reefer container，inform the customer simultaneously and issue an official temperature abnormality certificate，if the pesticide residue test fails，immediately start the loss stopping process of return or on-site destruction to avoid high port detention fees.
For final compliance implementation，upload all documents to the EU customs import declaration system 3 days before the cargo arrives at the port to complete pre-audit，ensure all information is consistent with the actual cargo，and realize fast customs clearance.
Kevin LinYears of service：4Customer Rating：5.0
Trade Solutions ManagerStart a Chat
For customs declaration of fruit export agency, strictly follow the customs clearance rule of "priority for fresh products", submit the application for "urgent customs declaration for fresh goods" to the local customs 24 hours in advance, and ensure that the cargo name and HS code on the customs declaration form fully match those on the certificate of origin. The EU requires that the HS code of tropical fruits be accurate to the subheading.
If the code is reported incorrectly, it will directly trigger customs value verification and even port detention. For value review disputes, prepare supporting materials such as purchase contracts, payment slips, and certificates of origin in advance.
If the customs questions the cargo value, you can apply for the "advance ruling" procedure to lock the value review result in advance and avoid customs clearance delay. In addition, note that the EU customs requires that the "pesticide residue test number" be marked on the fruit customs declaration form. Failure to mark it will lead to direct return of the declaration, and the customs clearance process cannot be entered.
Lucas LiuYears of service：8Customer Rating：5.0
Senior Operations ConsultantStart a Chat
For the logistics route of fruit export agency, direct routes shall be given priority to avoid the risk of cold chain interruption caused by transshipment. If transshipment is necessary, ports with fresh cold chain transshipment qualification shall be selected, and the transshipment time shall not exceed 12 hours. For the risk of container rollover, sign the "priority stowage for fresh goods" agreement with the shipping company in advance, pay a priority stowage fee of no more than 5% of the cargo value to ensure the cargo is loaded first.
For cargo right control, use "order bill of lading", and clearly specify "endorsement as per consignee's instruction" in the bill of lading endorsement link to avoid cargo release without bill of lading. In addition, confirm the free storage period at the destination port in advance. The free storage period for fresh goods in EU ports is usually 3 days. If it exceeds, apply for extension in advance, otherwise high container detention fees will be incurred, and the daily container detention fee can reach 1% of the cargo value.
Eric ZhouYears of service：6Customer Rating：5.0
Senior Manager of Foreign Exchange & Tax RebatesStart a Chat
Fruit export agency can reduce capital occupation cost by applying for VAT deferment policy. EU VAT deferment allows enterprises to pay import VAT uniformly in the subsequent VAT declaration cycle instead of paying it on the spot when importing goods, which can save at least 30 days of capital occupation time. For a cargo value of 1 million euros, it can save about 190,000 euros of short-term financing cost. In addition, make rational use of the free trade agreement between China and ASEAN.
If the mangoes are produced in ASEAN member states, you can apply for zero tariff treatment. Apply for FORM E certificate of origin in advance, and the cargo information on the certificate must be fully consistent with that on the customs declaration form. For cross-border related transactions, ensure that the pricing conforms to the arm's length principle to avoid transfer pricing investigation by tax authorities.
Grace WangYears of service：10Customer Rating：5.0
Senior Foreign Trade ConsultantStart a Chat
The receipt and payment of foreign exchange for fruit export agency shall strictly follow the principle of "whoever exports receives foreign exchange". If the entrusting party is a domestic enterprise, receive foreign exchange through a domestic account. If the entrusting party is an overseas enterprise, receive foreign exchange through an offshore account, and complete the balance of payments declaration within 30 days after receiving the foreign exchange.
For SWIFT messages, clearly mark "foreign exchange receipt for fruit export agency" in the message, and select "121010 General trade income" as the transaction code of the message to avoid verification by the foreign exchange administration due to wrong code. In addition, if RMB cross-border payment is used, handle it through the CIPS system to ensure the compliance of the payment path, and keep all foreign exchange receipt and payment vouchers, including contracts, invoices, bills of lading, etc., for a retention period of no less than 5 years for the verification of the foreign exchange administration.
Jason WuYears of service：10Customer Rating：5.0
International Logistics & Supply Chain ManagerStart a Chat
The agency contract for fruit export agency shall clearly specify the clause of "cargo damage liability division". If the cargo damage is caused by abnormal temperature in the cold chain logistics link, it shall be clearly borne by the shipping company. If the port detention is caused by document error, the corresponding responsible party shall bear the compensation liability to avoid subsequent disputes. For letter of credit settlement, strictly review the soft clauses in the letter of credit, such as "quality certificate issued by the buyer", which can easily lead to payment refusal.
Require the buyer to modify it to "quality certificate issued by a third-party official testing institution". In addition, purchase "fresh cargo transportation insurance" for the goods, with the insurance amount covering 110% of the cargo value, and the insurance clause shall include "full-link cold chain risk coverage". If cargo damage occurs, you can claim compensation directly from the insurance company to reduce your own compensation risk.
Linda GaoYears of service：7Customer Rating：5.0
Documentation SupervisorStart a Chat
The packaging of fruit export agency shall meet the EU's "recyclable packaging" requirements. Packaging materials containing harmful substances are prohibited. The packaging shall have good air permeability and cushioning performance.
It is recommended to use food-grade corrugated cartons with air holes for mango packaging, and the weight of each carton shall not exceed 15 kg to avoid cargo damage caused by extrusion. In addition, the packaging shall be marked with information such as "fresh fruit", "cold chain transportation", "origin code", etc., and the marking shall be in English and the language of the destination country (such as French, German) to avoid port detention due to non-standard marking.
For cold chain packaging, place temperature indicator cards inside the cartons. If the temperature exceeds the specified range during transportation, the indicator card will change color, so that temperature abnormality can be found in time, and destruction due to non-compliant temperature after arrival at the port can be avoided.