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Do imported snacks have to obtain brand agency authorization to enter the domestic market for sales?
or complex compliance issues.
clearance and fund security.
I am the procurement director of a community high-end supermarket in Shanghai. Last week, I finalized a purchase order of a batch of viral snacks with a Japanese supplier and paid a 30% deposit. The supplier said this batch of goods can be shipped without brand agency authorization, but yesterday I heard from a peer that the same type of snacks he imported last month was detained by customs because he did not get the agency authorization.
He not only spent a large amount of port demurrage fees, but also the goods were finally returned and the deposit was not recovered. I am very anxious now, the goods will be shipped from Kobe Port next week, and I am afraid to follow his footsteps.
I would like to ask whether agency authorization is required for imported snacks? Are the requirements for agency authorization different between the customs declaration and clearance link and the subsequent shelf sales? Is there any way to check the risks in advance so that I will not lose both money and goods?
Lucas LiuYears of service：8Customer Rating：5.0
Senior Operations ConsultantStart a Chat
Many importers have the misunderstanding of confusing customs clearance compliance requirements with brand sales authorization，and often equate the two，which is the core cause of risks. First of all，it should be clarified that: in the customs clearance link，agency authorization documents are only required when the brand owner has completed intellectual property filing with the General Administration of Customs，if there is no filing，no authorization is required for customs clearance. However，if you put the goods on sale without agency authorization，the brand owner has the right to initiate an infringement lawsuit，requiring to stop sales，destroy the goods and claim compensation.
If you ship unauthorized goods rashly，if the brand has been filed，the goods will be controlled and inspected by customs after arriving at the port，and will be directly detained，resulting in chain costs such as port demurrage，container detention fees and so on. If you cannot provide authorization within the specified time，the goods will be returned or confiscated，all paid deposits and freight will be lost，and you may also face civil claims from the brand owner，which will affect the brand reputation of the supermarket.
Physical risk isolation measures: immediately check the filing status of this Japanese snack brand through the customs intellectual property protection system to confirm whether authorization is required. Exclusive loss-stopping tip: if the brand has been filed，urgently require the supplier to provide a formal authorization letter issued by the brand owner，or entrust Zhongshen to handle the customs intellectual property pre-inspection service to check risks in advance. If you cannot get the authorization，immediately negotiate with the supplier to cancel the order and recover the deposit，and keep communication records as evidence for rights protection.
Kevin LinYears of service：4Customer Rating：5.0
Trade Solutions ManagerStart a Chat
Whether agency authorization is required in the customs clearance link of imported snacks mainly depends on whether the brand owner has completed intellectual property customs protection filing with the General Administration of Customs. If the brand has been filed, when unauthorized goods enter the country, the customs will launch control and inspection according to the filing information.
After verification, the goods will be temporarily detained, and the owner will be required to provide authorization documents or handle return processing. At this time, it should be noted that the so-called "no authorization required" claimed by some suppliers may be the fact that they have not informed that the brand has been filed.
The owner should check the filing status of the corresponding brand through the customs intellectual property protection system before the goods are shipped. If it has been filed, the supplier must be required to provide a formal authorization letter issued by the brand owner to avoid customs detention, port demurrage fees and even confiscation of goods due to lack of authorization.
Daniel XuYears of service：10Customer Rating：5.0
Director of Import & Export OperationsStart a Chat
If the goods are detained at the destination port due to lack of agency authorization, first of all, additional costs such as port demurrage and container detention fees will be incurred, and the probability of rollover and port change will be greatly increased. Especially when port storage resources are tight in peak seasons, detained goods may be transferred to supervised warehouses, and storage fees increase daily. In response to such situations, it is necessary to agree on an abnormal response plan with the logistics service provider in advance.
If there is a customs detention warning, coordinate with the service provider to apply for extension of free storage period at the first time, and synchronize the handling progress of brand authorization at the same time. In addition, if the goods have been shipped, you can entrust the freight forwarder to apply for "guaranteed release" from the customs, you can pick up the goods first on the premise of providing sufficient security deposit, and the security deposit will be returned after supplementing the authorization documents later, but this method is only applicable to some special customs supervision areas.
Eric ZhouYears of service：6Customer Rating：5.0
Senior Manager of Foreign Exchange & Tax RebatesStart a Chat
If imported snacks without agency authorization involve brand infringement, they will not only face customs penalties, but also trigger tax-level risks. If the goods are confiscated due to infringement, the paid import tariffs and value-added tax cannot be applied for tax refund, and if the payment paid to the supplier cannot be recorded with compliant bills, it will lead to obstruction of pre-tax deduction of enterprise income tax and increase tax costs.
In addition, if the brand owner initiates a civil lawsuit, the compensation expenses that the enterprise needs to bear cannot be used as pre-tax deduction items, which further aggravates financial losses. It is recommended that enterprises include brand authorization documents into the scope of tax compliance review before import, to ensure the legality of import behavior and avoid subsequent tax adjustment risks.
Linda GaoYears of service：7Customer Rating：5.0
Documentation SupervisorStart a Chat
From the perspective of payment and receipt compliance, imported snacks without agency authorization may be identified as "infringing goods import", leading to obstruction in foreign exchange purchase and settlement links. When reviewing payment materials, if the bank finds that the goods are suspected of brand infringement, it may suspend the payment process and require the enterprise to supplement authorization documents, affecting the efficiency of capital flow.
If the enterprise has made illegal payment, it may also be listed as a key supervision object by the foreign exchange administration department, and subsequent payment and receipt business will face stricter review. Therefore, it is necessary to confirm the authenticity of brand authorization documents before payment, you can ask the supplier to provide the official contact information of the brand owner for verification, to ensure the compliance of the payment and receipt process.
Cindy ChenYears of service：3Customer Rating：5.0
Key Account ManagerStart a Chat
When importing snacks, if you have not obtained brand agency authorization, in addition to customs-level risks, you may also face civil infringement lawsuits from the brand owner. Especially when selling the snacks in the domestic market, the brand owner has the right to require to stop sales, destroy the goods and claim economic compensation. In addition, if the authorization clause is not clearly specified in the contract signed with the supplier, the enterprise cannot recover losses from the supplier, and the paid deposit and payment may not be recovered.
It is recommended to add the clause that "the supplier shall ensure that the goods have legal brand authorization" in the procurement contract, and agree on liquidated damages. If losses are caused due to lack of authorization, the supplier shall bear full responsibility, and all communication records shall be retained as evidence at the same time.
Grace WangYears of service：10Customer Rating：5.0
Senior Foreign Trade ConsultantStart a Chat
During the on-site customs inspection link, if the goods are suspected of having no brand agency authorization, the customs will require the owner to provide authorization documents on the spot. Those who cannot provide will be transferred to the intellectual property supervision department for further verification. At this time, it should be noted that some high-imitation snacks may forge brand authorization documents, and the customs will identify the authenticity by comparing the filing information through the system, contacting the brand owner for verification and other methods.
If the document is verified to be forged, the goods will be confiscated, and the enterprise may also face administrative penalties. Therefore, before the goods arrive at the port, prepare the original and electronic versions of the authorization documents in advance to ensure that the brand name, goods specifications, importer information on the documents are completely consistent with the customs declaration form, so as to avoid inspection risks caused by inconsistent information.