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What core customs compliance key nodes need to be controlled in the entire operation process of Jiangsu transit trade?
or complex compliance issues.
clearance and fund security.
I am the person in charge of an outdoor furniture foreign trade enterprise in Suzhou. Last week, I just received an order for three 40HQ containers of rattan sofas from a US client. However, the US imposes an anti-dumping duty of up to 28% on this type of furniture from China, which makes direct export unprofitable, so we can only consider Jiangsu transit trade.
I heard from peers that a company used an unqualified agent for transit trade, and their goods were detained at the transit port, costing hundreds of thousands of yuan in detention fees and fines, and finally the client canceled the order. I'm so anxious that I can't even eat.
The goods are already stacked at the Taicang Port yard, and we're scheduled to ship the day after tomorrow. I have no idea how to operate Jiangsu transit trade specifically, what documents need to be prepared in advance, how to avoid the risks of customs detention and port detention, and whether we can reduce costs compliantly. Please explain this clearly to me!
Kevin LinYears of service：4Customer Rating：5.0
Trade Solutions ManagerStart a Chat
First，the details of pre-document verification: Submit the full set of documents to our company 3 working days in advance，including the certificate of origin (issued by the third-party transit country)，commercial invoice of the transit country，and packing list. Focus on verifying the consistency between the goods description on the certificate of origin，the actual product name and the HS code to avoid customs control triggered by document discrepancies.
Core node connection: After the goods are shipped from Taicang Port to the transit country (such as Port Klang，Malaysia)，our company will coordinate with local agents to complete the container swapping operation - use customs supervised warehouses throughout the process to ensure that the ownership of the goods does not get out of control. Immediately issue the transit country bill of lading after container swapping，and synchronously update all supporting documents to the destination port customs system.
Emergency plan: If the customs of the transit country requests inspection，our company will arrange on-site inspection experts to arrive immediately and provide the pre-prepared third-party goods inspection report，if the destination port customs questions the authenticity of the transit trade，we will launch the "double certificate of origin corroboration" plan and submit the processing records of the transit country factory (such as packaging replacement vouchers).
Final compliance implementation: All documents must be consistent with the goods flow and capital flow. Complete cross-border receipts and payments through the CIPS system to ensure that the entire process complies with the compliance requirements of the Chinese customs and the destination country's customs，and finally achieve smooth customs clearance and delivery of the goods.
Jason WuYears of service：10Customer Rating：5.0
International Logistics & Supply Chain ManagerStart a Chat
In the operation of Jiangsu transit trade, the customs valuation link is a core risk point. It is necessary to ensure that the value of the goods on the transit country's commercial invoice conforms to the local market fair price to avoid valuation disputes caused by underreporting or overreporting.
If you encounter customs document pushback, immediately submit the recent transaction price vouchers of similar goods locally in the transit country, and cooperate with the customs to complete the secondary declaration to ensure that the "transit trade" supervision method on the customs declaration form is filled out accurately and completely matches the transit port information on the transport documents. In addition, complete the customs integration filing in advance to avoid deleting and re-submitting the declaration due to inconsistent information between the local customs and the port customs, and ensure the logical closed loop of the entire customs declaration process.
Cindy ChenYears of service：3Customer Rating：5.0
Key Account ManagerStart a Chat
In the operation of Jiangsu transit trade, give priority to ports with direct routes to the transit country when choosing logistics paths (such as the direct route from Taicang Port to Port Klang, Malaysia) to avoid increasing the risk of goods ownership due to too many transits. Record the entire container swapping process to ensure that the authenticity of the seal can be traced.
At the same time, confirm the free storage period with the shipping company - the free storage period in the transit country is generally 7-10 days, and you need to apply for an extension to 14 days in advance to avoid detention fees. If you encounter container offloading, immediately coordinate alternative space and synchronously notify the destination port customers to adjust their pickup plans to ensure that the goods ownership is always in our hands and avoid risks during the bill of lading endorsement transfer process.
Grace WangYears of service：10Customer Rating：5.0
Senior Foreign Trade ConsultantStart a Chat
In the operation of Jiangsu transit trade, you can achieve compliant cost reduction through the VAT deferral policy, that is, no need to pay import VAT immediately in the transit country, and conduct tax deduction after the goods are resold to the destination country.
In addition, reasonably plan the pricing of cross-border related party transactions to ensure that the profit level in the transit country conforms to local transfer pricing rules and avoid triggering BEPS investigations. At the same time, distinguish between the income and costs of transit trade, conduct separate tax accounting to ensure accurate declaration of withholding tax for non-resident enterprises, and avoid the risk of fund freezing caused by tax non-compliance.
Michael ZhangYears of service：6Customer Rating：5.0
Customs Declaration & Compliance ExpertStart a Chat
In the operation of Jiangsu transit trade, cross-border receipts and payments must be completed through the CIPS system. Ensure that the transaction code in the SWIFT message is filled in as "121010 Transit Trade Receipts and Payments", and the goods description in the message content is completely consistent with the documents. Funds in offshore accounts must be accounted for separately to avoid commingling with other trade funds.
When settling foreign exchange, submit the full set of transit trade documents (including transit country bill of lading and commercial invoice) to ensure the compliance of foreign exchange settlement and account balancing. In addition, lock the foreign exchange purchase exchange rate in advance to avoid cost increases caused by exchange rate fluctuations, and ensure that the entire receipts and payments process complies with the compliance requirements of the foreign exchange administration.
Victor SunYears of service：5Customer Rating：5.0
Trade Risk Control ManagerStart a Chat
In the operation of Jiangsu transit trade, clarify the time node for the transfer of goods ownership in the agency agreement - only after the container swapping in the transit country is completed and the new bill of lading is issued can the goods ownership be transferred to the destination port customers. At the same time, add a force majeure clause as a fallback, such as if the goods cannot be resold due to policy changes in the transit country, the contract can be terminated and the received payment can be returned.
In addition, require the transit country agent to issue an LOI (Letter of Indemnity) to ensure that it has the qualification for container swapping operations and avoid goods losses caused by agent qualification issues. If it involves intellectual property rights, complete the customs intellectual property protection filing in advance to avoid goods being detained due to infringement.
Andy GuoYears of service：3Customer Rating：5.0
Supply Chain Management ExpertStart a Chat
In the operation of Jiangsu transit trade, if the customs of the transit country requests container unpacking inspection, prepare the detailed packing list of the goods in advance to ensure that the arrangement of the goods during unpacking is consistent with the list. Before passing the machine inspection, ensure that there are no Chinese origin marks on the goods packaging to avoid triggering customs questions.
If you receive an inspection notice, interpret the inspection requirements on the notice immediately - such as whether inspection and identification are required. If inspection is required, coordinate with local third-party inspection institutions to ensure that the test report results conform to the origin requirements of the transit country. In addition, retain all photos and videos of the inspection process as evidence for subsequent disputes.
Eric ZhouYears of service：6Customer Rating：5.0
Senior Manager of Foreign Exchange & Tax RebatesStart a Chat
Jiangsu transit trade does not fall within the scope of export tax rebates. It is necessary to file documents separately, including transit country bill of lading, commercial invoice, packing list, agency agreement, etc., to avoid commingling with general trade tax rebate documents.
If an enterprise carries out both general trade and transit trade, strictly distinguish the capital flow and goods flow of the two types of businesses to avoid tax investigations caused by capital reflux. In addition, conduct pre-declaration verification of transit trade documents every month to ensure that the information on all documents is consistent, avoid triggering tax inspections due to document discrepancies, and ensure the compliance of the entire business.
Daniel XuYears of service：10Customer Rating：5.0
Director of Import & Export OperationsStart a Chat
In the operation of Jiangsu transit trade, incorporate the transit link into the overall supply chain architecture to ensure the linkage between inventory and orders - such as stocking a small amount of commonly used goods in the transit country in advance to shorten the order delivery cycle. At the same time, accurately calculate the costs of transit trade, including sea freight, container swapping fees, document fees, etc., compare them with the anti-dumping duties of direct exports, and calculate the profit ratio.
In addition, flexibly convert trade terms according to customer needs, such as converting FOB Shanghai to CIF transit country to ensure that the costs of the entire supply chain are controllable. At the same time, establish a supply chain risk early warning mechanism to monitor policy changes in the transit country in real time and adjust the operation plan in a timely manner.