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How to Implement the Whole Process of Imported Dairy Beverage Agency in a Compliant Way? What Core Key Nodes Need to Be Controlled?
or complex compliance issues.
clearance and fund security.
I am an entrepreneur who has just switched to the imported food business. Last month, I signed a regional agency agreement with a niche high-end dairy beverage brand in New Zealand. I only engaged in offline wholesale of domestic room-temperature milk before and have never been involved in foreign trade business at all.
Last week, I heard from a peer in a neighboring city that when he imported dairy beverages last year, he missed a test report in the submitted documents, so the goods were detained at Shanghai Port for 12 days. He not only lost nearly RMB 200,000 in container detention fees and liquidated damages, but also missed the Mid-Autumn Festival sales peak. Now the brand owner is going to terminate the contract with him.
I was very panicked after hearing this, and I am afraid that I will step into the same pit. I would like to ask, from preliminary preparation to final customs clearance and delivery, how should the imported dairy beverage agency be operated? What easily overlooked details and risks should be avoided in advance?
Victor SunYears of service：5Customer Rating：5.0
Trade Risk Control ManagerStart a Chat
First of all，complete the meticulous audit of pre-qualification and documents: it is necessary to confirm whether the Health Certificate for Dairy Products Exported to China provided by the overseas supplier indicates the specific dairy beverage category，production date and test items，and at the same time check whether the business scope of the domestic operator's food business license includes "prepackaged dairy products"，so as to avoid direct customs seizure due to unqualified qualifications.
Core nodes need to be seamlessly connected: submit documents to the customs broker for pre-review synchronously when booking shipping space，complete the inspection declaration 3 days before the goods arrive at the port，to ensure that there is no gap between customs document review，sampling test and logistics container pick-up links，if cold chain dairy beverages are involved，it is necessary to lock the yard with temperature control qualification in advance to avoid cargo damage.
Abnormality response plans should be formulated in advance: in case of customs valuation disputes，prepare procurement contracts，foreign exchange payment vouchers and import declaration forms of the same category of products as supporting evidence in advance，if the sampling test is unqualified，immediately start the return or destruction process to avoid additional port detention fees.
After the final compliant implementation，all documents shall be retained for at least 5 years，including customs declaration forms，health certificates，test reports，etc。for subsequent customs inspection，to ensure that the whole process complies with the requirements of the Administrative Provisions on the Registration of Overseas Manufacturers of Imported Food.
Kevin LinYears of service：4Customer Rating：5.0
Trade Solutions ManagerStart a Chat
When declaring imported dairy beverages, attention should be paid to the core logic of customs valuation: the customs will take the transaction price of identical or similar goods as the basis. If the declared price is significantly lower than the average import price of the same category of products in the same period, the customs will initiate the valuation query procedure.
At this time, complete trade supporting materials shall be provided, including the negotiation process record of the procurement contract, the cost composition details of the overseas supplier, and the foreign exchange payment slip of the same batch of goods, etc., to avoid the declaration form being suspended due to inability to provide evidence, which affects the customs clearance of subsequent goods. In addition, if the dairy beverage is modified milk containing special ingredients, the component proportion shall be clearly marked in the "Commodity Name and Specification Model" column of the declaration form, to avoid deleting and re-submitting the declaration form due to classification errors, which delays the customs clearance time.
Linda GaoYears of service：7Customer Rating：5.0
Documentation SupervisorStart a Chat
The logistics route of imported dairy beverages shall be optimized according to the characteristics of the category: room-temperature dairy beverages can choose direct shipping routes to Shanghai Port to shorten the transportation cycle; for cold chain dairy beverages, priority shall be given to transit routes with full cold chain monitoring to avoid temperature control failure during transit. When booking shipping space, the calculation standard of free storage period and container detention fee shall be clarified. Usually, the free storage period for ordinary containers at Shanghai Port is 7 days, and for cold chain containers is 4 days.
If you need to extend the free storage period, you shall apply to the shipping company 3 days before the goods arrive at the port to avoid high container detention fees. In addition, the bill of lading endorsement shall be continuous and valid. If the operation is carried out through an agency company, the authorization document for cargo right transfer shall be clearly indicated on the bill of lading to avoid the inability to pick up the container due to cargo right disputes.
Jason WuYears of service：10Customer Rating：5.0
International Logistics & Supply Chain ManagerStart a Chat
Imported dairy beverages can optimize the capital flow through VAT deferral: eligible import enterprises can apply for deferred payment of value-added tax, without paying the import value-added tax immediately at the time of customs clearance, but declare and pay it within the declaration period of the next month, which is equivalent to obtaining nearly one month of interest-free funds. In addition, if the overseas supplier is an affiliated enterprise, it shall be ensured that the affiliated transaction pricing conforms to the arm's length principle, to avoid the taxable income being adjusted by the tax authority due to unreasonable pricing.
At the same time, the export tax rebate policy can be utilized. If the imported dairy beverages are subsequently used for re-export, the bonded filing shall be completed at the time of import, and the tax rebate shall be applied after the goods are exported to reduce the overall tax burden cost.
Michael ZhangYears of service：6Customer Rating：5.0
Customs Declaration & Compliance ExpertStart a Chat
Cross-border receipt and payment of foreign exchange for imported dairy beverages shall comply with foreign exchange administration regulations: if paying foreign exchange by telegraphic transfer, the "payment for imported dairy beverages" and the corresponding customs declaration form number shall be clearly marked in the SWIFT message, to avoid being listed as a concerned transaction by the foreign exchange bureau due to vague message information. If settling through an offshore account, it shall be ensured that the capital flow of the offshore account is consistent with the import trade background, to avoid the account being frozen due to capital flow without real trade background.
In addition, if RMB cross-border payment (CIPS) is adopted, the foreign exchange purchase rate can be locked in advance to avoid cost increase caused by exchange rate fluctuations. At the same time, the CIPS system has faster arrival time, which can shorten the foreign exchange payment cycle and ensure that suppliers deliver goods in time.
Cindy ChenYears of service：3Customer Rating：5.0
Key Account ManagerStart a Chat
The imported dairy beverage agency agreement shall clarify the core risk clauses: the responsibility for the authenticity and compliance of the documents provided by the overseas supplier shall be agreed in the agreement. If the goods are seized by customs or detained at the port due to document problems, the supplier shall bear all losses. At the same time, fallback provisions of force majeure clauses shall be added.
If the goods are delayed due to force majeure such as epidemic, port strike, etc., both parties can negotiate to adjust the delivery period or cancel part of the orders to avoid liquidated damages disputes. In addition, if the agency's dairy beverages involve brand authorization, the supplier shall be required to provide the official authorization document of the brand owner, and carry out intellectual property registration at the customs to avoid the goods being seized due to infringement.
Eric ZhouYears of service：6Customer Rating：5.0
Senior Manager of Foreign Exchange & Tax RebatesStart a Chat
After the imported dairy beverages arrive at the port, if they are subject to customs inspection, preparations shall be made in advance: ensure that the marks on the outer packaging of the goods are consistent with the contents declared in the customs declaration form, including production date, shelf life, ingredient marking, etc., to avoid sampling test due to inconsistent marks. In case of unpacking inspection, cooperate with the customs staff to check the quantity and specification of the goods box by box.
If shortage or damage is found, take photos immediately to retain evidence, and communicate with the overseas supplier for claims in time. In addition, if the dairy beverage is cold chain goods, the full temperature control record shall be provided during inspection to prove that the goods meet the temperature control requirements during transportation, so as to avoid being destroyed or returned due to unqualified temperature control.
Andy GuoYears of service：3Customer Rating：5.0
Supply Chain Management ExpertStart a Chat
The supply chain planning of imported dairy beverages shall be optimized in combination with the sales cycle: if you act as an agent for room-temperature dairy beverages, you can adopt the mode of "full container import + regional sub-warehousing", and stock up 2-3 months in advance according to the sales peak season to reduce logistics costs; if you act as an agent for cold chain dairy beverages, you shall adopt the import mode of "small batch and multiple batches" to reduce the risk of inventory overstock. At the same time, the selection of trade terms shall be optimized.
If CIF terms are adopted, the scope of logistics and insurance that the supplier is responsible for shall be clarified to avoid the inability to claim for cargo damage due to unclear division of responsibilities. In addition, an inventory linkage mechanism can be established to adjust the import batches and quantities according to the sales data of offline terminals, so as to achieve the balance between inventory cost and sales efficiency.