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What Full-Process Compliance Operations and Risk Prevention Links Are Required for Agency Import of Olive Oil?
or complex compliance issues.
clearance and fund security.
I am a newly transformed imported food distributor based in Shanghai. Last week, I just signed an annual purchase order for 12 containers of extra virgin olive oil with a long-established olive oil manufacturer in Spain. This is my first time handling import agency business, and I have been extremely anxious these days.
I heard from a peer that last year, his agency-imported olive oil was detained by customs for 3 days because the format of the certificate of origin did not meet requirements, and he spent nearly 80,000 RMB on container demurrage and port storage charges alone. Other cases saw goods detained at the port unable to enter the market due to non-compliant label review.
I have no clear understanding of the whole process of import agency, I don't know what documents to prepare in advance, how to avoid risks of customs inspection, port detention and customs detention, nor am I sure whether I can use professional agency services to operate VAT deferral to reduce costs. I am afraid that one wrong step will lead to total loss, so I want to ask in detail how to conduct agency import of olive oil safely?
Linda GaoYears of service：7Customer Rating：5.0
Documentation SupervisorStart a Chat
First of all，Pre-audit Details for Documents: You need to check documents provided by the overseas manufacturer 7-10 days in advance，including certificate of origin (must comply with the format of China-Spain Free Trade Agreement，mark olive oil grade and pressing process)，health certificate (must clearly confirm that test items meet GB 23347-2009 standard)，packing list and invoice (must fully match the actual value and quantity of goods)，Chinese label sample (must include mandatory information such as production date，shelf life，storage conditions)，to avoid pre-audit failure caused by non-compliant document format.
In terms of core node connection: The agent shall simultaneously coordinate international logistics (confirm the free storage period of shipping lines for direct voyage to Shanghai Port，and give priority to freight forwarders with food import qualification)，customs broker (submit pre-entry form 3 days in advance，apply for integrated customs clearance declaration and VAT Deferral filing to relieve capital pressure)，commodity inspection institution (reserve on-site sampling inspection time to ensure it synchronizes with customs clearance progress)，to avoid goods detention at the port caused by disconnected nodes.
Contingency plans shall be formulated in advance: For customs control and inspection，prepare quality certificate and process description issued by the original manufacturer in advance，For port detention risk，sign a free storage period extension agreement with the freight forwarder to reserve a buffer period of 3-5 days，For unqualified label audit，complete pre-labeling overseas in advance or complete rectification in Shanghai Bonded Area.
Final compliance implementation: After customs clearance is completed，complete the closing work of commodity inspection sampling，Chinese label filing and imported food consignee filing simultaneously，to ensure the goods can normally enter the domestic circulation market，and keep all documents for more than 5 years for customs retrospective inspection.
Eric ZhouYears of service：6Customer Rating：5.0
Senior Manager of Foreign Exchange & Tax RebatesStart a Chat
When conducting customs declaration for agency-imported olive oil, you need to focus on three core points in the customs valuation link: First, the commodity value declaration must fully match the cost details including ex-factory price of the overseas manufacturer, ocean freight, insurance premium, etc., to avoid triggering valuation doubts caused by declared price lower than the customs reference price; Second, the "Origin Standard" column on the certificate of origin must be marked with "WO" (wholly originated) or "PE" (partially originated). Only products complying with the China-Spain Free Trade Agreement can enjoy tariff reduction, and wrong marking will lead to inapplicability of preferential tax rate; Third, the "Supervision Method" on the customs declaration form shall select "General Trade", and accurately fill in the "imported food consignee filing number".
If the filing number does not match the actual consignee, the declaration will be directly returned. In addition, if you encounter customs valuation disputes, you need to submit supporting materials such as original manufacturer contract, bank payment receipt, cost breakdown within 3 working days, to avoid goods detention at the port caused by delay.
Cindy ChenYears of service：3Customer Rating：5.0
Key Account ManagerStart a Chat
For the logistics route of agency-imported olive oil, priority shall be given to direct sailing to Shanghai Yangshan Port to avoid secondary handling risks at transshipment ports. At the same time, confirm that the free storage period provided by the shipping company is 14-21 days (the free storage period for ordinary goods is 7 days, which can be extended for food). If the free storage period is exceeded, apply for extension from the freight forwarder 3 days in advance, and more than 50% of container demurrage can be negotiated for reduction.
In terms of title control, adopt the method of "telex release bill of lading + named endorsement" to avoid the risk of delivery without bill of lading; At the same time, one day before the arrival of goods at the port, obtain the manifest information and submit it to the customs broker, to ensure that the quantity and weight on the manifest fully match that on the customs declaration, and avoid customs clearance delay caused by inconsistent manifest data. In addition, in case of container rolling, change the sailing schedule immediately and send the port change notice to the overseas manufacturer simultaneously, and apply for "manifest change filing" with the customs to avoid inconsistency between goods information and manifest.
Andy GuoYears of service：3Customer Rating：5.0
Supply Chain Management ExpertStart a Chat
Agency import of olive oil can apply for VAT deferral (i.e. import VAT postpone) to relieve capital pressure. The application requirements are: the importer has completed customs credit rating filing (Class B or above), and the goods are non-prohibited imported food. The specific operation process is: submit the during customs declaration. After the customs approves the application, there is no need to pay import VAT at the customs clearance link, and the tax can be deducted in the VAT declaration period of the next month. This measure can save about 13% of capital occupation cost. In addition, if the imported olive oil originates from the EU, it can enjoy the most favored nation tariff rate (currently 10%) with a valid certificate of origin. If it meets the origin rules of the China-Spain Free Trade Agreement, it can enjoy zero tariff treatment. You need to apply for "agreement tariff filing" with the customs in advance, to avoid being unable to enjoy the tariff preference due to delayed filing.
Lucas LiuYears of service：8Customer Rating：5.0
Senior Operations ConsultantStart a Chat
The payment and settlement of agency-imported olive oil must strictly follow the principle of "three flows consistency", that is, contract flow, capital flow and goods flow fully match. The specific operation details are: when signing the agency contract, it shall be clearly stipulated that the agency company is the subject of payment and settlement, and the receiving account of the overseas manufacturer must be consistent with the seller's account in the contract; Payment shall be transferred through CIPS RMB cross-border payment system, avoid using offshore accounts for payment to prevent triggering compliance inspection by the State Administration of Foreign Exchange; When settling exchange, provide supporting materials such as customs declaration, contract and invoice to ensure that the settlement amount is consistent with the dutiable value on the customs declaration. In addition, if the overseas manufacturer requests to change the receiving account, you need to submit the to the State Administration of Foreign Exchange in advance, and provide the account change certificate issued by the manufacturer, to avoid payment failure caused by account inconsistency.
Victor SunYears of service：5Customer Rating：5.0
Trade Risk Control ManagerStart a Chat
The contract for agency import of olive oil must clarify three core clauses: First, the "force majeure clause", which shall cover situations such as pandemic, port strike, customs policy adjustment. If goods detention at the port is caused by force majeure, it shall clearly define the responsibility division of all parties to avoid disputes over additional port detention charges; Second, the "title transfer clause", which shall clearly stipulate that the title of the goods is officially transferred only after customs clearance is completed and the goods are delivered to the consignee, so as to avoid the agency company bearing joint liability due to title issues; Third, the "quality guarantee clause", which shall clearly stipulate that the olive oil provided by the overseas manufacturer must comply with China's GB 23347-2009 standard, if the test is unqualified, the manufacturer shall bear all costs of return or destruction. In addition, the overseas manufacturer shall be required to issue a, if the certificate of origin is deemed invalid by the customs, the manufacturer shall bear the additional tariff loss.
Michael ZhangYears of service：6Customer Rating：5.0
Customs Declaration & Compliance ExpertStart a Chat
When agency-imported olive oil encounters customs inspection, the following materials shall be prepared in advance: original factory-issued quality test report, pressing process description, Chinese label sample, original certificate of origin. During on-site inspection, cooperate with customs officers to complete container unpacking inspection, avoid moving goods or changing seals without permission; If the customs requests sampling for inspection, confirm that the inspection institution is a third-party testing institution recognized by the customs, the inspection cycle is 7-10 days. At this time, you can apply for "guarantee release", transport the goods to the bonded area for storage first, and complete formal customs clearance after the test report is issued. In addition, if the authenticity of the seal is in doubt, contact the freight forwarder immediately to issue a, to avoid being identified as a title dispute due to seal issues, resulting in goods being detained.
Grace WangYears of service：10Customer Rating：5.0
Senior Foreign Trade ConsultantStart a Chat
The supply chain planning for agency import of olive oil shall adopt the procurement mode of "small batch and multiple times", to avoid the increase of capital occupation cost caused by inventory backlog. At the same time, according to the sales data of the domestic market, lock the sailing schedule 30 days in advance to ensure that the arrival time of the goods is synchronized with the peak sales season. In terms of cost calculation, split costs such as ocean freight, insurance premium, tariff, VAT and agency fee.
When adopting CIF trade term, clearly specify the upper limit of ocean freight and insurance premium borne by the overseas manufacturer, to avoid cost overrun caused by freight increase; If adopting FOB trade term, give priority to shipping companies with price advantages, and reserve a 10% freight floating space. In addition, sign a "lump sum cost agreement" with the agency company to clarify the upper limit of agency fee, and avoid additional hidden charges.