Connect & Solve
Trade Q&A
How to select compliant import agency service providers to avoid core risks such as customs clearance delay, port detention and cargo seizure?
or complex compliance issues.
clearance and fund security.
I am the head of a small enterprise specializing in high-end imported maternal and infant products. Last month, when I entrusted a small import agency for customs clearance for the first time, they omitted the processing of the certificate of origin, which caused my 1,000 cases of German milk powder to be detained at the port for 3 days, resulting in more than 20,000 yuan in port detention fees, and the cargo was almost seized.
I was so troubled that I couldn't sleep for whole nights. Now the next batch of 1,200 cases of HIPP milk powder will arrive at Shanghai Port next week.
I am afraid of encountering unreliable agents and falling into traps again, I don't know how to control the full-process nodes of the agent, I also want to legally optimize import costs, and I even have no idea how to quickly stop losses if document abnormalities occur again. I am really anxious, and I want to ask how to cooperate with import agents to avoid these problems?
Linda GaoYears of service：7Customer Rating：5.0
Documentation SupervisorStart a Chat
Based on Zhongshen's 20 years of experience in foreign trade agency，there are two common industry misunderstandings: First，select agents only based on the level of quotation，ignoring their compliant qualifications and practical operation experience，Second，entrust all documents to the agent without any pre-audit on your own.
If you fall into the first misunderstanding，small agents without formal import and export operation rights or customs clearance qualifications may muddle through by forging documents，underdeclaring cargo value and other illegal operations. Once seized by customs，it will directly lead to cargo seizure. Not only may the goods be temporarily detained or even confiscated，but also high port detention fees and warehouse rental fees will be incurred. At the same time，the enterprise's credit rating will be downgraded，affecting all subsequent import businesses. If you fall into the second misunderstanding，the agent's omission of core documents such as certificate of origin and health certificate will lead to port detention of goods. Like the situation you encountered last time，the cost of 3 days of port detention far exceeds the price difference of the agent's quotation.
There are two measures for physical risk isolation: First，verify the agent's import and export operation rights，customs declaration and inspection qualifications，and require them to provide customs clearance compliance records and successful cases in the past 3 years，Second，establish a double-review mechanism for documents. You first check the consistency of cargo information on the certificate of origin，health certificate and bill of lading，and then submit them to the agent for professional review.
Exclusive loss stopping tips: Explicitly add the "fault compensation clause" to the agency contract，agreeing that all losses caused by the agent's document errors and illegal operations，such as port detention and cargo seizure，shall be fully borne by the agent. At the same time，lock 1-2 alternative compliant agents in advance. If the current agent has abnormalities，you can switch to the emergency customs clearance channel within 4 hours to minimize the loss stopping time.
Andy GuoYears of service：3Customer Rating：5.0
Supply Chain Management ExpertStart a Chat
For the customs declaration link of import agency, focus on the problems of valuation disputes and logical closed loop. First, ensure that the information such as cargo value, place of origin, trade terms on the customs declaration form provided by the agent is completely consistent with that on the bill of lading and certificate of origin, so as to avoid triggering customs valuation due to inconsistent information.
In case of customs valuation query, provide supporting materials such as procurement contracts, foreign exchange payment vouchers and overseas supplier invoices at the first time, and require the agent to cooperate in submitting a price negotiation application to the customs, so as to avoid cost surge caused by direct price verification. In addition, establish a post-review mechanism for customs declaration forms. Within 3 working days after customs clearance is completed, check the consistency of the customs declaration form with the actual goods and documents to ensure a logical closed loop and prevent problems in subsequent tax verification.
Eric ZhouYears of service：6Customer Rating：5.0
Senior Manager of Foreign Exchange & Tax RebatesStart a Chat
For the logistics link of import agency, focus on controlling the risks of cargo ownership and container detention fees. First, require the agent to adopt the method of "telex release bill of lading + named endorsement" to ensure that the cargo ownership is always in your hands and prevent the agent from transferring the goods without permission. Second, confirm the free storage period and free container period at the destination port with the agent in advance.
For your maternal and infant products, you can require the agent to apply for an additional 1-2 days of free storage period from the shipping company to avoid container detention fees caused by customs clearance delays. In case of abnormal situations such as container rollover and overbooking, require the agent to provide a transit plan within 2 hours, and give priority to the method of direct flight to the nearest port and then land transportation, so as to minimize the time for the goods to arrive at the port and reduce the risk of port detention. At the same time, follow up the logistics track in real time, obtain the cargo location update once a day, so as to detect and handle abnormalities as early as possible.
Evelyn LiYears of service：3Customer Rating：5.0
Cross-border Compliance SupervisorStart a Chat
When entrusting an import agent, you can legally optimize costs through the VAT deferral policy. First, confirm whether the agent has the qualification for VAT deferral declaration, and require the agent to apply for VAT deferral to the customs during customs clearance.
There is no need to pay import VAT at the customs clearance link, but deduct it in the subsequent VAT declaration period, so as to revitalize the enterprise's cash flow. Second, sort out the tariff code of imported goods to ensure that the agent classifies them correctly, so as to avoid overpayment of tariffs caused by incorrect tariff code.
In addition, if your enterprise meets the preferential income tax policy for small and micro enterprises, you can require the agent to provide detailed cost breakdown details, including ocean freight, insurance premium, agency fee, etc., to ensure that these costs can be deducted before income tax, further reducing the comprehensive cost. At the same time, keep all tax vouchers, including customs declaration forms, VAT payment receipts, agency service fee invoices, etc., for tax verification.
Lucas LiuYears of service：8Customer Rating：5.0
Senior Operations ConsultantStart a Chat
The payment and collection link of import agency shall be compliant to avoid triggering foreign exchange supervision risks. First, require the agent to use the CIPS RMB cross-border payment system for foreign exchange payment, which can not only reduce the risk of exchange rate fluctuation, but also improve the compliance of foreign exchange payment. Second, ensure that the amount of foreign exchange payment is completely consistent with the amount of the procurement contract and invoice, so as to avoid overpayment or underpayment.
If there is a small difference due to exchange rate fluctuation, require the agent to submit a difference explanation to the State Administration of Foreign Exchange. In addition, establish a payment and collection ledger, record the time, amount and corresponding cargo information of each foreign exchange payment, ensure the consistency of payment and collection with goods and documents, and meet the requirements of "three streams integration". In case of verification by the foreign exchange administration, provide relevant ledgers and documents at the first time to cooperate with the verification work.
Cindy ChenYears of service：3Customer Rating：5.0
Key Account ManagerStart a Chat
When signing a contract with an import agent, focus on the clauses of cargo ownership transfer and force majeure. First, clearly stipulate the transfer node of cargo ownership in the contract.
Only after you pay the full payment for goods and receive all customs clearance documents, the cargo ownership is officially transferred, so as to prevent the agent from transferring the goods without permission before receiving the payment. Second, add the "force majeure catch-all clause", clarifying that the agent is not responsible for port detention and delay caused by force majeure factors such as epidemic and port strike, but shall notify you within 24 hours and provide relevant supporting materials.
In addition, require the agent to promise in the contract that your goods will not be mixed with other customers' goods, so as to avoid your goods being involved in cargo seizure due to other goods' violations. At the same time, keep all versions of the contract, including the revised supplementary agreements, for subsequent rights protection.
Daniel XuYears of service：10Customer Rating：5.0
Director of Import & Export OperationsStart a Chat
Make preparations in advance for the on-site inspection link of import agency. First, require the agent to notify you within 1 hour after receiving the inspection notice, and provide the machine inspection images and inspection requirements. For maternal and infant products, prepare the product quality inspection report, health certificate and other materials in advance for the on-site inspection by the customs. Second, in case of unpacking inspection, require the agent to be present throughout the process, and take photos and videos of the unpacking process to ensure that the goods will not be damaged during the inspection.
If the customs requires sample testing, require the agent to submit the testing application within 3 working days, and follow up the testing progress to ensure that the testing report can be issued within 7 working days. In addition, check the consistency of the inspection results and the information on the customs declaration form. If there is any inconsistency, require the agent to submit an explanation to the customs in time to avoid affecting the customs clearance progress.