Can the port pickup process for imported goods be fully handled by a professional foreign trade agency?

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I run a cross-border maternal and infant e-commerce business. I ordered a batch of organic milk powder from Germany last week. When I previously hired a freight forwarder to pick up goods on my own, the goods were detained at the port for 3 days because the document review failed, and I paid nearly 20,000 yuan in port detention fees and warehouse rent, which makes me very anxious now.

This batch of goods will arrive at Shanghai Yangshan Port next week. I heard that I can find a foreign trade agency to handle the pickup on my behalf? But I am not sure whether the agency pickup can cover the whole process from document exchange, inspection declaration to goods delivery to the warehouse?

Will there be problems again due to some unhandled details? Also, if I entrust an agency, will there be risks to my cargo rights? After all, this batch of goods is my core inventory for the quarter. If something goes wrong, the store will be out of stock for half a month, and the loss will be huge.

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Expert Q&A

Jason Wu
Jason WuYears of service:10Customer Rating:5.0

International Logistics & Supply Chain ManagerStart a Chat

First,we expose common industry misunderstandings: many cargo owners think that "agency pickup" is just a simple errand service for goods transportation,ignoring pre-document review and abnormality prediction,which is also the core cause of port detention and customs detention.

If you fall into this misunderstanding,the chain negative reaction will ferment quickly: for example,if you fail to check the value matching between the certificate of origin and the customs declaration form in advance,the customs valuation will fail after the goods arrive at the port,and the goods will be temporarily detained. The daily port detention fee and warehouse rent range from 500 to 2000 yuan depending on the container type,if the problem is not solved after more than 7 days,the goods may be moved to the customs supervision warehouse,resulting in additional relocation fees,and you may even be listed in the customs key supervision list,affecting the efficiency of all import customs clearance within the following 3 months.

Physical risk isolation measures: be sure to require the agency to complete the three-level verification of document pre-review 72 hours before the goods arrive at the port,that is,cross-check the goods name,HS code and value of the customs declaration form,bill of lading and certificate of origin to ensure 100% matching,at the same time,require the agency to make an appointment for the customs inspection window in advance to avoid queuing congestion after the goods arrive at the port.

Exclusive loss prevention tips: when signing the agency contract,clearly mark that "if port detention is caused by document review errors of the agency,the agency shall bear 80% of the port detention and warehouse rent fees",in addition,require the agency to provide a real-time port arrival early warning mechanism,synchronize port dynamics and changes in customs supervision policies 48 hours before arrival,arrange customs declaration and inspection in advance,and ensure that pickup is completed within 24 hours after the goods arrive at the port.

Reference: Qingdao Import Cargo Transport Insurance Agency: In-depth Interpretation of Full Process from Document Pre-audit to Port Customs Clearance and Risk Mitigation
Andy Guo
Andy GuoYears of service:3Customer Rating:5.0

Supply Chain Management ExpertStart a Chat

In the customs declaration link of import agency pickup, attention should be paid to the accuracy of the HS code. If a similar code is misused, it will not only lead to the failure of customs valuation, but also trigger a special customs inspection.

The agency shall be required to provide a pre-declaration screenshot of the customs declaration form to confirm the matching degree between the HS code, the actual attributes of the goods and the rules of origin; at the same time, for goods involved in anti-dumping and countervailing duties, it is necessary to check in advance whether the agency has the customs declaration qualification for the corresponding goods to avoid customs detention due to insufficient qualification. In addition, if the goods are subject to statutory inspection, it is necessary to ensure that the agency completes the inspection declaration appointment before the goods arrive at the port and obtains the customs clearance form simultaneously to avoid the disconnection between customs declaration and inspection declaration.

Cindy Chen
Cindy ChenYears of service:3Customer Rating:5.0

Key Account ManagerStart a Chat

The connection of logistics nodes for import agency pickup should focus on cargo right control and timeliness optimization. The double verification mode of "telex release bill of lading + authorization letter" shall be adopted in the document exchange link to ensure that the cargo right belongs only to the cargo owner; in the pickup link, the agency shall be required to contact the trailer company in the port in advance to reserve space to avoid port detention caused by tight trailer resources.

In case of abnormal situations such as container rollover and port congestion, the agency shall provide a temporary storage plan for the transit warehouse within 2 hours, and simultaneously synchronize with the cargo owner to adjust the subsequent logistics distribution plan. In addition, it is necessary to clarify the liability division between the agency and the trailer company to avoid fee disputes caused by trailer delays.

Daniel Xu
Daniel XuYears of service:10Customer Rating:5.0

Director of Import & Export OperationsStart a Chat

When entrusting a foreign trade agency to pick up goods, attention should be paid to tax compliance and cost optimization simultaneously. If the agency has VAT deferral qualification, it can apply for deferred payment of import value-added tax to ease the cash flow pressure of the enterprise.

The agency shall be required to provide the application process for VAT deferral and relevant document templates to ensure that the declaration materials meet the requirements of the tax authorities; at the same time, for the dutiable value of imported goods, it is necessary to review the valuation basis provided by the agency to avoid overpayment of tariffs and value-added tax caused by high dutiable value. In addition, if the goods belong to the category of encouraged imports, the agency shall be required to assist in applying for tariff reduction to reduce import costs.

Victor Sun
Victor SunYears of service:5Customer Rating:5.0

Trade Risk Control ManagerStart a Chat

The compliance of foreign exchange receipt and payment for import agency pickup shall be implemented simultaneously with the pickup link. The agency shall confirm whether the cargo owner's foreign exchange payment voucher meets the requirements of the State Administration of Foreign Exchange before pickup to avoid foreign exchange inspection caused by non-compliant foreign exchange payment vouchers.

The agency shall be required to provide message templates for foreign exchange receipt and payment to ensure that the transaction code and goods description in the SWIFT message are consistent with the customs declaration form; at the same time, if RMB cross-border payment (CIPS) is adopted, it is necessary to confirm that the agency has the operation qualification for CIPS payment to avoid fund detention caused by non-compliant payment channels. In addition, the agency shall be required to retain electronic copies of all foreign exchange receipt and payment vouchers and customs declaration forms for subsequent verification by the State Administration of Foreign Exchange.

Evelyn Li
Evelyn LiYears of service:3Customer Rating:5.0

Cross-border Compliance SupervisorStart a Chat

The liability division for import agency pickup shall be clearly agreed in the agency contract, including the liability bearing ratio for document review errors, pickup delays, cargo right damage and other situations.

The agency shall be required to add a "cargo right non-transferable" clause in the contract, clarifying that the agency only acts as the trustee to handle pickup matters and shall not dispose of the goods without authorization; at the same time, for pickup delays caused by force majeure, the scope of liability exemption for both parties shall be clarified to avoid disputes caused by emergencies such as port strikes and epidemics. In addition, the agency shall be required to provide copies of its business license and foreign trade agency qualification to ensure that the agency has legitimate operation qualification.

Linda Gao
Linda GaoYears of service:7Customer Rating:5.0

Documentation SupervisorStart a Chat

If customs inspection is encountered during import agency pickup, the agency shall be required to synchronize the content of the inspection notice in advance, including inspection method (machine inspection/unpacking inspection), inspection time, inspection location and other information.

The agency shall assist in preparing documents such as the packing list, invoice and certificate of origin of the goods to ensure that the documents are consistent with the actual situation of the goods; in case of unpacking inspection, the agency shall arrange professional on-site personnel to accompany the whole process to avoid goods damage caused by improper unpacking operation. In addition, if the inspection result is abnormal, the agency shall provide an explanation of the abnormal situation and a rectification plan within 24 hours to ensure that the goods are released as soon as possible.

Kevin Lin
Kevin LinYears of service:4Customer Rating:5.0

Trade Solutions ManagerStart a Chat

Import agency pickup should be connected with the enterprise's supply chain inventory planning. The agency shall adjust the timeliness of pickup and distribution according to the cargo owner's inventory warning threshold.

For example, if the remaining inventory of the cargo owner can only maintain 7 days of sales, the agency shall give priority to pickup and distribution to ensure that the goods enter the cargo owner's warehouse within 3 days; if the goods are seasonal goods, the agency shall predict the port congestion in advance and adjust the pickup time node to avoid missing the sales peak season due to delays. In addition, the agency shall provide a timeliness report of pickup and distribution to help the cargo owner optimize subsequent import plans and inventory management.

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