Connect & Solve
Trade Q&A
What Qualifications and Compliance Requirements Must Be Met for Import Commodity Agency to Achieve Smooth Customs Clearance and Landing?
or complex compliance issues.
clearance and fund security.
I am the person in charge of a small and micro enterprise in Shanghai that has just switched to the imported snack business. Last month, I hired a small agency firm to import a batch of Korean biscuits, but as they failed to apply for the certificate of origin, the goods were detained at Yangshan Port for 10 days.
This not only incurred nearly RMB 20,000 in port detention fees and warehouse rental fees, but also made me pay RMB 30,000 in liquidated damages to domestic distributors due to delivery delay, which still makes me feel distressed now. This month, I need to act as an agent for importing 500 cases of viral Japanese snacks with a total value of about RMB 200,000, and I really dare to hire an agency casually anymore.
I want to know how to complete the import agency in a compliant and smooth way? For example, what documents need to be prepared in advance, how to control process nodes, how to avoid similar risks of port detention and customs detention, and whether there are ways to optimize import costs?
Andy GuoYears of service：3Customer Rating：5.0
Supply Chain Management ExpertStart a Chat
First is the pre-document review details. Cross-verification of the full set of documents shall be completed 7-10 days in advance: first，confirm that the certificate of origin and health certificate provided by the Japanese supplier are marked with clear commodity HS code and batch number，and are fully consistent with the customs declaration form，second，check whether the cargo value and quantity on the packing list and invoice are consistent with the actual goods，particular attention shall be paid to whether the Chinese label filing certificate for snack products is within the validity period，so as to avoid return of goods due to non-compliant labels.
For core node coordination，the rights and responsibilities of the three parties shall be clarified: the agency company shall complete the pre-entry of customs declaration 3 days before the arrival of the goods，and simultaneously connect with the China International Trade Single Window for pre-audit，the logistics provider shall reserve terminal stacking space in advance to ensure that container pickup is completed within 48 hours after the arrival of the goods，our side shall complete tax payment within 24 hours after the pre-audit is passed，so as to avoid port detention fees caused by delayed tax payment.
The exception response plan shall be formulated in advance: in case of customs valuation query，immediately provide supporting documents such as the supplier's purchase contract and payment slip，if rectification is required due to label problems，coordinate the agency company to connect with the labeling agency designated by the customs to complete rectification in the terminal supervised warehouse，so as to avoid full container return.
After the final compliant clearance，the agency company shall be required to provide a full set of customs clearance vouchers and tax invoices for filing，and simultaneously complete the application for the entry inspection and quarantine certificate of imported food，so as to ensure full compliance of subsequent domestic sales.
Cindy ChenYears of service：3Customer Rating：5.0
Key Account ManagerStart a Chat
When declaring imported snack products, supporting documents shall be submitted in strict accordance with customs valuation rules: first, provide the formal purchase contract signed with the supplier, which shall clearly indicate trade terms, payment methods and delivery time; second, provide the bank-issued payment slip, which shall be fully consistent with the contract value and invoice amount; third, provide the reference price of import declaration forms of similar products of the same model in the past 3 months.
If the declared value deviates from the reasonable range, a price explanation letter shall be prepared in advance to clarify the reasons for the price difference (such as promotional purchase, bulk discount, etc.). At the same time, it shall be ensured that the HS code on the customs declaration form is consistent with the actual attributes of the goods, so as to avoid valuation disputes, customs detention and other problems caused by code classification errors, form a logical closed loop of "documents - declared value - HS code", and ensure that the customs declaration process is passed at one attempt.
Kevin LinYears of service：4Customer Rating：5.0
Trade Solutions ManagerStart a Chat
The optimization of logistics routes for imported snack products shall focus on cargo ownership control and cost control: first, choose the direct route from Japan to Shanghai to avoid the risk of cargo ownership transfer caused by transit, and require the freight forwarder to clearly mark "to order endorsement" when issuing the ocean bill of lading, so as to ensure that our side has absolute ownership of the cargo; second, confirm the free storage period with the terminal in advance.
Generally, the free storage period for food products at Yangshan Port is 7 days. If it is expected that the container cannot be picked up within the free storage period, an extension shall be applied for 3 days in advance, which can reduce the container detention fee by 50%; third, in case of cargo rollover, immediately require the freight forwarder to transfer to the nearest extra voyage ship, and simultaneously inform the supplier to adjust the delivery expectation, so as to avoid domestic order breach caused by cargo delay.
Grace WangYears of service：10Customer Rating：5.0
Senior Foreign Trade ConsultantStart a Chat
In the process of import commodity agency, cash flow can be optimized through the VAT deferral policy: for snack products imported in Shanghai Customs District, eligible enterprises can apply for deferred payment of value-added tax, without paying import VAT in a lump sum at the time of customs clearance, but declare and pay it within the VAT declaration period of the following month. This measure can convert the originally prepaid import VAT (about 13% of the cargo value) into working capital, easing the financial pressure of small and micro enterprises.
At the same time, attention shall be paid to the eligibility conditions for VAT deferral: first, the enterprise shall have import and export operation rights or entrust a qualified agency company; second, it shall complete the VAT deferral filing on the China International Trade Single Window; third, it shall ensure that the imported goods are used for domestic sales or production, and shall not be used for tax-exempt items.
Evelyn LiYears of service：3Customer Rating：5.0
Cross-border Compliance SupervisorStart a Chat
The operation of foreign exchange receipt and payment for imported goods shall strictly comply with cross-border payment compliance requirements: first, choose the Cross-border Interbank Payment System (CIPS) for RMB cross-border payment, which can avoid foreign exchange fluctuation risks and ensure the compliance of the payment path; second, the amount of foreign exchange received and paid shall be fully consistent with the amount on the customs declaration form and invoice.
If there is advance payment, the amount of advance payment shall be indicated in the customs declaration, and the bank payment slip of the advance payment shall be provided; third, if commission payment is involved, it shall be filed with the State Administration of Foreign Exchange (SAFE) in advance, it shall be clarified that the commission rate shall not exceed 5% of the cargo value, and supporting documents such as the commission agreement and payment voucher shall be provided, so as to avoid foreign exchange inspection risks caused by inconsistent amounts of foreign exchange received and paid. At the same time, foreign exchange receipt and payment vouchers and customs declaration forms shall be filed regularly to ensure "four streams consistency" (contract, invoice, customs declaration form, foreign exchange receipt and payment voucher).
Eric ZhouYears of service：6Customer Rating：5.0
Senior Manager of Foreign Exchange & Tax RebatesStart a Chat
The import agency contract shall clarify core clauses to avoid legal risks: first, clearly stipulate the rights and responsibilities for document review in the agency contract. If risks of port detention and customs detention are caused by the agency company missing documents, the agency company shall bear all losses; second, add a force majeure clause, clarifying that neither party shall bear liability for breach of contract for cargo delay caused by force majeure such as epidemics and port strikes; third, for viral snack products, require the supplier to provide intellectual property authorization certificates, so as to avoid customs detention, domestic litigation and other problems caused by infringement; fourth, clarify the cargo ownership transfer node, and agree that the cargo ownership is officially transferred to our side after the goods complete customs clearance and are delivered to the designated warehouse, so as to avoid economic losses caused by cargo ownership disputes.
Victor SunYears of service：5Customer Rating：5.0
Trade Risk Control ManagerStart a Chat
When imported snack products are subject to on-site customs inspection, the following response preparations shall be made: first, check in advance that the seal number of the goods is consistent with the number indicated on the bill of lading. If the seal is found to be damaged, take photos immediately for record, and inform the freight forwarder and shipping company for verification; second, during X-ray inspection, ensure that the goods are placed according to the principle of "heavy items at the bottom, light items on top" when packing, so as to avoid blurred X-ray images caused by uneven stacking of goods, which will increase the probability of manual inspection; third, in case of full container unloading inspection, cooperate with customs staff to check the batch number, expiry date and Chinese label of the goods, and prepare photocopies of documents such as the certificate of origin and health certificate in advance to facilitate on-site verification; fourth, if quality problems are found in the goods, apply for sampling inspection immediately, and carry out follow-up customs clearance operations after the laboratory report is issued.
Lucas LiuYears of service：8Customer Rating：5.0
Senior Operations ConsultantStart a Chat
The packaging of imported snack products shall meet the requirements of cross-border transportation and domestic compliance: first, for fragile snacks (such as biscuits, potato chips), use buffer air column bags as inner packaging, and use reinforced corrugated cartons for the outer layer, so as to ensure that the goods are not damaged during transportation; second, require the supplier to provide the Material Safety Data Sheet (MSDS) of the products, clarifying the ingredients, storage conditions and transportation precautions of the products, so as to avoid customs detention caused by incomplete MSDS information; third, if the goods need refrigerated transportation, use insulated containers, and the temperature of the containers shall be set between 0℃ and 4℃. At the same time, check whether the refrigeration equipment of the container is normal before loading, so as to avoid cargo deterioration caused by abnormal temperature; fourth, the packaging shall be marked with clear information such as batch number, expiry date and port of entry, to facilitate on-site customs inspection.
Jason WuYears of service：10Customer Rating：5.0
International Logistics & Supply Chain ManagerStart a Chat
The input tax deduction for imported goods shall strictly follow tax compliance requirements: first, obtain the special import VAT payment receipt issued by the agency company, and the content of the payment receipt shall be fully consistent with the customs declaration form and invoice; second, the input tax deduction shall be completed within 360 days from the date of issuance of the payment receipt, and cannot be deducted after expiration; third, if the imported goods are used for domestic sales, the input tax shall be filled in the "input tax amount" column of the VAT declaration form, and if they are used for export, the input tax shall be transferred to the "export tax refund" column; fourth, the input tax deduction vouchers shall be filed regularly to ensure the logical consistency of "payment receipt - customs declaration form - invoice", so as to avoid tax inspection risks caused by incomplete vouchers. At the same time, attention shall be paid to the authentication method of the special import VAT payment receipt, which can be authenticated online through the Value-added Tax Invoice Comprehensive Service Platform.
Michael ZhangYears of service：6Customer Rating：5.0
Customs Declaration & Compliance ExpertStart a Chat
The supply chain planning for import commodity agency shall focus on cost actuarial calculation and trade term selection: first, adopt the CIF (Cost, Insurance and Freight) trade term, where the supplier is responsible for transportation and insurance, which can transfer logistics risks to the supplier and facilitate the calculation of total import cost (cargo value + freight + insurance premium + taxes and fees); second, establish an inventory linkage strategy, and arrange import batches reasonably according to the order demand of domestic distributors, so as to avoid capital occupation caused by overstock; third, adopt a cost actuarial model, and include hidden costs such as port detention fees, warehouse rental fees and taxes into the total cost calculation, so as to ensure the rationality of import pricing; fourth, in response to the timeliness demand of viral snacks, choose a weekly fixed liner route to ensure that the goods arrive at the port regularly, meet the sales demand of the domestic market, and optimize the response speed of the supply chain.