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What Full Compliance Steps Are Required to Establish an Import and Export Company?
or complex compliance issues.
clearance and fund security.
I am the owner of a small high-end handcrafted ceramics factory in Shanghai. I received three custom orders from European and American clients last month, with a total value of nearly 800,000 RMB, which really worried me -- I only did domestic trade before and had no experience in foreign trade.
I am eager to register an import and export company but have no idea where to start. I have checked a lot of information recently, but the more I read, the more anxious I get: some people say that registration is easy but the follow-up compliance process is extremely complicated, and mistakes may lead to fines; any error in links such as tax refund and customs declaration will cause the order to be detained at the port.
My clients are pushing hard for delivery, I can't even sleep well at night, fearing that one wrong step will ruin this hard-won order. I want to ask how to properly register an import and export company, including what needs to be prepared in the early stage, what the full process is, what pitfalls must be avoided, and is there a way to get the registration done quickly?
Lucas LiuYears of service：8Customer Rating：5.0
Senior Operations ConsultantStart a Chat
The establishment of an import and export company must proceed in accordance with the full-link compliance process. First，the details of pre-document review: the business scope on the business license must clearly add "Import and export of goods，import and export of technology". If the original business scope does not include relevant descriptions，you need to prepare the factory product catalog and order contract as supplementary materials in advance to avoid the rejection of industrial and commercial change，at the same time，you need to confirm that the legal representative has no bad credit records，otherwise it will affect the subsequent customs filing.
Connection of core nodes needs to be accurately controlled: First complete the foreign trade operator filing (certificate issued within 3 working days)，then handle the Registration Certificate of Consignee and Consignor of Import and Export Goods (1 working day)，and engrave the special customs declaration seal and apply for the electronic port IC card at the same time. These three nodes need to be connected and completed within 5 working days to avoid delaying the customs declaration of the order.
Contingency plans for abnormal situations need to be prepared in advance: If the change of industrial and commercial business scope is rejected，you can entrust an agent to handle the temporary import and export right first，but you need to sign a formal agency agreement to clarify the cargo ownership and responsibilities，if there are price verification questions in customs registration，you need to prepare the product cost accounting statement and raw material purchase invoices in advance.
When the final compliance implementation，you need to complete the export tax refund filing at the same time，submit the basic deposit account opening permit，official seal and other materials，to ensure that you can apply for tax refund normally after the order is completed，and avoid capital occupation.
Kevin LinYears of service：4Customer Rating：5.0
Trade Solutions ManagerStart a Chat
After the registration of the import and export company is completed, you need to complete the customs declarer registration in the customs system, and focus on reviewing the qualification of the "customs declaration person in charge" in the "Application for Registration of Customs Declaration Entity". The person in charge needs to have a customs declarer certificate or relevant foreign trade operation experience, otherwise you may be required to complete supplementary training; at the same time, you need to file the customs code of the product in advance.
If there is a classification dispute, you need to submit the detailed product description and material test report to avoid detention or price adjustment due to incorrect classification during subsequent customs declaration. In addition, after registration, you need to update the initial information of customs credit rating in time. If the initial rating is Class B, you can upgrade to Class A after completing more than 3 compliant customs declaration records within 3 months, and enjoy the priority customs clearance treatment.
Michael ZhangYears of service：6Customer Rating：5.0
Customs Declaration & Compliance ExpertStart a Chat
After the registration of the import and export company is completed, you need to connect with international logistics service providers in advance, and plan the logistics route according to the order destination. For high-end ceramic orders to Europe and America, it is recommended to give priority to direct routes to avoid cargo damage caused by transshipment; at the same time, you need to complete the bill of lading title filing during registration, ensure that the bill of lading title is completely consistent with the full name of the company, to avoid cargo ownership disputes caused by inconsistent titles; in addition, you need to understand the free storage period policy of the destination port in advance.
If the order is a customized product, you can apply for an extension of the free storage period for 3-5 days in advance to avoid the generation of storage fees. If there is container rolling, you need to sign a container rolling compensation agreement with the logistics provider in advance to clarify the division of responsibilities.
Evelyn LiYears of service：3Customer Rating：5.0
Cross-border Compliance SupervisorStart a Chat
When registering an import and export company, you need to plan the tax structure in advance. If the factory is a small-scale taxpayer, you can apply to convert to a general taxpayer after registering the import and export company to enjoy the export tax refund policy; at the same time, you can apply for VAT deferral, that is, you do not need to pay import VAT immediately when importing goods, and file tax declaration after the goods are sold, which eases the capital pressure; in addition, you need to pay attention to the pricing of cross-border related party transactions, avoid being identified as profit transfer by tax authorities due to unreasonable pricing, you need to prepare product cost accounting statements and industry pricing standards as supporting materials in advance to ensure tax compliance.
Linda GaoYears of service：7Customer Rating：5.0
Documentation SupervisorStart a Chat
After the registration of the import and export company is completed, you need to open a foreign currency settlement account in time.
It is recommended to choose a bank that supports CIPS cross-border RMB payment to reduce the risk of exchange rate fluctuation; at the same time, you need to complete the account filing in the SWIFT system to ensure that the message information is completely consistent with the company registration information when overseas clients remit money, so as to avoid the fund being returned; in addition, you need to establish a payment and receipt ledger, each payment and receipt must correspond to the real trade contract and customs declaration, avoid being identified as abnormal payment and receipt by the bank and affect the subsequent use of the account. If the settlement exchange rate is not ideal, you can apply for forward foreign exchange settlement to lock the exchange rate.
Grace WangYears of service：10Customer Rating：5.0
Senior Foreign Trade ConsultantStart a Chat
When registering an import and export company, you need to sort out the compliance clauses of the order contract in advance, especially the "force majeure clause" in the international sales contract of goods, which must clearly cover the division of responsibilities for extreme situations such as epidemics and port strikes; at the same time, you need to complete the intellectual property customs protection filing. If your ceramic products have original designs, you need to file the patents or trademarks with the customs to avoid infringement by overseas clients or counterfeiting of your goods; in addition, if the payment is made by letter of credit, you need to review the letter of credit terms in advance to avoid being unable to receive payment due to soft clauses, you can entrust professional legal personnel to review the letter of credit item by item.
Daniel XuYears of service：10Customer Rating：5.0
Director of Import & Export OperationsStart a Chat
After the registration of the import and export company is completed, you need to understand the requirements of customs on-site inspection in advance. For handcrafted ceramic products, you need to prepare the product material test report and firing process description to avoid being opened for inspection as "suspected dangerous goods"; at the same time, you need to ensure that the shipping mark on the cargo packaging is completely consistent with the information on the customs declaration, the shipping mark must include the full name of the company, the destination and the order number; in addition, if the customs conducts unpacking inspection, you need to arrange a special person to be present to cooperate in advance, avoid cargo damage caused by improper operation, and keep the photos and records of the inspection site as supporting materials for subsequent abnormal handling.
Andy GuoYears of service：3Customer Rating：5.0
Supply Chain Management ExpertStart a Chat
When registering an import and export company, you need to complete the compliance preparation of product packaging at the same time. Handcrafted ceramics are fragile products, so you need to adopt the UN buffered packaging standard, use buffer materials such as foam padding and honeycomb cardboard, and prepare an MSDS report that clarifies the product material and transportation precautions; if transported by air, you need to meet the IATA packaging requirements to avoid being rejected by the airline due to unqualified packaging; in addition, you need to mark internationally recognized signs such as "Fragile" and "This Side Up" on the packaging, and ensure that the packaging size meets the container loading requirements to avoid being unable to load the container due to incorrect size and delay the shipment.
Cindy ChenYears of service：3Customer Rating：5.0
Key Account ManagerStart a Chat
After the registration of the import and export company is completed, you need to complete the export tax refund filing in time, submit materials such as business license, foreign trade operator filing form, customs registration certificate, and basic deposit account opening permit, and clearly specify the tax refund type and tax refund method during filing; at the same time, you need to establish a complete document management system, retain documents such as customs declaration, export invoice, bill of lading, and exchange receipt to ensure the "four flows consistency" (contract flow, capital flow, goods flow, invoice flow), so as to avoid being unable to provide valid vouchers during the subsequent tax correspondence inspection; in addition, you need to complete the pre-declaration of tax refund within 30 days after export, if there is any abnormality in the pre-declaration, you need to adjust the document information in time to avoid affecting the progress of formal tax refund.