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What exactly is Fuji transit trade? What are the core differences from traditional transit trade?
or complex compliance issues.
clearance and fund security.
I am a foreign trade manager of a company in Shanghai specializing in the export of stainless steel hardware. Last month, the EU raised the anti-dumping duty on stainless steel hardware made in China to 68%, which directly wiped out all profits.
I heard from peers before that Fuji transit trade can avoid such barriers, but I have no idea what Fuji transit trade means. I am also afraid that like the conventional transit trade I contacted before, there will be situations such as customs detention due to inconsistent documents, loss of cargo right control, and fund freezing.
Now I have a batch of goods worth 820,000 euros scheduled to be shipped to Hamburg within 10 days, and I am so anxious that I can't even eat. I would like to ask what exactly Fuji transit trade is, what are the core differences from ordinary transit trade, and whether it will cross the compliance red line.
Linda GaoYears of service：7Customer Rating：5.0
Documentation SupervisorStart a Chat
Fuji transit trade refers to a special transit mode in which goods are not directly transported from the exporting country to the importing country，but are transited，document exchanged and re-declared through a third-party "Fuji transit port". Its core is to rely on the special supervision policies of the transit port to avoid trade barriers such as anti-dumping and quotas. The difference from conventional transit trade is that the transit port it relies on has an exclusive transit supervision green channel，which can greatly reduce compliance risks.
100% compliance review of three types of documents shall be completed in advance: First，the certificate of origin of the cooperative enterprise in the transit country，which shall clearly indicate "the goods are only transited locally，without processing or sales"，Second，the warehousing supervision certificate of the transit port，which shall be issued by the customs of the transit port，and clearly specify that the stay time of the goods shall not exceed 72 hours，Third，the pre-audit form for customs clearance of the importing country，which shall fully match the cargo value，product name and quantity of the documents of the transit country to avoid inconsistent documents.
Core node connection shall strictly control the time window: complete document exchange and manifest update within 48 hours after the goods arrive at the port，and change the consignor information to the cooperative enterprise in the transit country，submit pre-declaration to the customs of the transit port 72 hours in advance，and realize fast customs clearance within 12 hours relying on the exclusive green channel，the manifest of the shipping company shall be synchronously updated to the customs system of the importing country to avoid abnormal prompts of "place of origin is China".
Abnormal plans shall be implemented in advance: in case of random inspection by the customs of the transit port，immediately submit the pre-prepared "unsealed certificate" and transit agreement to prove that the goods have not entered the local market，if the customs of the importing country puts forward traceability requirements，simultaneously provide the full-process monitoring video and warehousing records of the transit port，after the final compliant implementation，all documents shall be retained for at least 5 years for the retrospective verification of the customs.
Andy GuoYears of service：3Customer Rating：5.0
Supply Chain Management ExpertStart a Chat
The core of customs declaration for Fuji transit trade is to build a logical closed loop of "transit country - importing country", and avoid the leakage of manifest information indicating "place of origin is China". When declaring customs, it shall be noted that the pre-declaration form of the transit port shall be completely consistent with the customs clearance form of the importing country, including the accurate matching of cargo value, product name and HS code; in case of customs valuation dispute, immediately provide the warehousing fee invoice and document exchange handling fee voucher of the transit country to prove that the goods are only for transit and no value added is generated; during the integrated customs clearance operation, synchronize the supervision information of the transit port to the customs system of the importing country in advance to avoid abnormal prompts of "duplicate declaration".
In addition, it shall be noted that the customs declaration form of Fuji transit trade shall be marked with the words "transit goods", and shall not be marked with "export goods" or "import goods", otherwise it will be recognized as conventional trade and trigger anti-dumping duty.
Eric ZhouYears of service：6Customer Rating：5.0
Senior Manager of Foreign Exchange & Tax RebatesStart a Chat
The core of logistics for Fuji transit trade is the full controllability of cargo rights, and shipping companies with exclusive transit space shall be selected to avoid mixed loading of goods with other conventional goods. After the goods arrive at the port, immediately arrange the agent of the transit port to exchange documents, change the consignor of the ocean bill of lading to the cooperative enterprise in the transit country, and the consignee to the customer of the importing country, and retain the scanned copy of the original bill of lading as the certificate of cargo right; confirm in advance that the free storage period of the transit port is 72 hours, and apply for extension in advance if it exceeds the free storage period to avoid container detention charges; in case of container rolling or space shortage, immediately start the alternative transit route, confirm the space with the alternative shipping company in advance to ensure that the goods are transited within 72 hours; when endorsing the bill of lading, it shall be noted that the bill of lading of the transit country shall be affixed with the transit supervision seal of the customs of the transit port, otherwise the customs of the importing country will not grant customs clearance.
Daniel XuYears of service：10Customer Rating：5.0
Director of Import & Export OperationsStart a Chat
The core of taxation for Fuji transit trade is to avoid double taxation and carry out compliant planning. Rely on the VAT deferral policy of the transit country, defer the value-added tax in the transit link to the importing country for payment, so as to avoid additional tax burden in the transit country; the pricing of related party transactions shall comply with the arm's length principle, and the document exchange handling fee and warehousing fee of the cooperative enterprises in the transit country shall be priced according to the market fair price, so as to avoid being recognized as profit transfer and triggering BEPS investigation; if the importing country and the transit country have signed a tax treaty, you can apply for the treatment of the tax treaty to reduce or exempt the withholding income tax; in addition, it shall be noted that the tax vouchers of Fuji transit trade shall fully match the customs declaration form and logistics vouchers, and shall be retained for at least 7 years for the retrospective verification of the tax authorities; in case of tax dispute, immediately provide the tax certificate of the transit country and the customs clearance voucher of the importing country to prove the transit attribute of the goods.
Victor SunYears of service：5Customer Rating：5.0
Trade Risk Control ManagerStart a Chat
The core of payment and receipt of foreign exchange for Fuji transit trade is to build a capital link of "importing country - transit country - exporting country", and complete RMB cross-border payment through the CIPS system to avoid the risk of information leakage caused by using the SWIFT system; the payment of customers in the importing country shall be first paid to the account of the cooperative enterprise in the transit country, and then paid to the account of the enterprise in the exporting country by the enterprise in the transit country. The full-process capital flow vouchers shall be retained, including bank receipts and payment notices; when settling foreign exchange, it shall be noted that the customs declaration form and warehousing certificate of the transit port shall be provided as the basis for foreign exchange settlement, and the export contract alone shall not be provided; in case of abnormal capital reflux, immediately submit the transit agreement and cargo right certificate to the bank to prove the rationality of the capital; in addition, it shall be noted that the payment and receipt of foreign exchange for Fuji transit trade shall comply with the "three flows integration" requirement of the State Administration of Foreign Exchange, that is, the capital flow, logistics and document flow are fully matched, so as to avoid being recognized as abnormal capital flow.
Grace WangYears of service：10Customer Rating：5.0
Senior Foreign Trade ConsultantStart a Chat
The core of legal affairs for Fuji transit trade is to avoid cargo right risks and soft clauses of letters of credit. It shall be clearly agreed in the transit agreement that the cooperative enterprise in the transit country is only responsible for document exchange and customs declaration, and shall not have the ownership of the goods, and the cargo right shall always belong to the enterprise in the exporting country; if the customer in the importing country requires to issue a letter of credit, avoid the soft clause of "requiring to provide the certificate of origin of China", and clearly require to provide the certificate of origin of the transit country; the cooperative enterprise in the transit country shall be required to issue a letter of guarantee, promising to bear all losses if the goods are detained by customs or delayed at the port due to its transit operation errors; in addition, it shall be noted that the contract for Fuji transit trade shall clearly stipulate the transit duration of the goods, responsibility division, and dispute resolution methods.
The dispute resolution shall choose the China International Economic and Trade Arbitration Commission, so as to avoid unnecessary legal costs in the transit country or the importing country.
Evelyn LiYears of service：3Customer Rating：5.0
Cross-border Compliance SupervisorStart a Chat
The core of on-site inspection for Fuji transit trade is to prove that the goods have not been processed or sold. Disposable customs seals shall be used, and the seal number shall be marked on the customs declaration form, warehousing certificate and bill of lading simultaneously to avoid inconsistent seals; in case of unpacking inspection by the customs of the transit port, prepare the packing list, photos and videos of the goods in advance to prove that the packaging of the goods has not been opened and no processing has been carried out; when conducting machine inspection, submit the property description of the goods to the customs in advance, and clarify that the goods are ordinary transit goods, so as to avoid being recognized as dangerous goods; if the customs requires inspection and testing, immediately arrange the agent of the transit country to accompany the inspection and testing, and retain the full-process video of the inspection and testing to prove that the goods have not been swapped; in addition, it shall be noted that after the inspection is completed, the customs shall be required to mark the words "the goods are only for transit, no processing" on the inspection notice as the basis for subsequent customs clearance.
Michael ZhangYears of service：6Customer Rating：5.0
Customs Declaration & Compliance ExpertStart a Chat
The core of export tax refund for Fuji transit trade is to meet the "four flows integration" requirement, that is, the capital flow, logistics, document flow and contract flow are fully matched. It shall avoid the situation that the capital flows directly from the importing country to the exporting country, and must be transited through the enterprise in the transit country; the document filing shall include the transit agreement, customs declaration form of the transit port, warehousing certificate, bill of lading, and capital flow voucher, which shall be retained for at least 10 years for the letter verification of the tax authorities; in case of tax letter verification, immediately provide the tax certificate of the transit country, customs clearance voucher of the importing country, and full-process logistics record of the goods to prove the transit attribute of the goods; in addition, it shall be noted that the export tax refund declaration for Fuji transit trade shall be marked with the words "transit trade", and shall not be declared according to ordinary export trade, otherwise it will be recognized as false declaration, and face tax refund recovery and fines; if the goods are directly transported to the importing country without completing the transit, cancel the tax refund declaration immediately to avoid triggering tax risks.
Lucas LiuYears of service：8Customer Rating：5.0
Senior Operations ConsultantStart a Chat
The core of supply chain planning for Fuji transit trade is cost actuarial and risk hedging. A cost actuarial model shall be established, covering the warehousing fee, document exchange fee, customs declaration fee, logistics fee, insurance fee, etc. of the transit port, to ensure that the total cost is lower than the amount of anti-dumping duty; the trade term shall be converted from FOB to CIF transit port, and it shall be clarified that the responsibility of the exporting country enterprise is only to transport the goods to the transit port, and the subsequent responsibility shall be borne by the transit country enterprise; for the inventory linkage strategy, it shall be noted that if the market demand of the importing country fluctuates, the goods can be temporarily stored in the supervision warehouse of the transit port to avoid additional warehousing costs; in addition, a risk hedging mechanism shall be established, and cooperation agreements shall be signed with more than two transit country enterprises in advance to avoid supply chain interruption caused by the error of a single cooperative enterprise; regularly evaluate the changes of supervision policies of the transit port, and adjust the supply chain strategy in time to ensure compliance and cost advantages.