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What are the key compliance operation points for the whole process of exporting liquid goods through freight forwarders?
or complex compliance issues.
clearance and fund security.
I am the foreign trade manager of a beauty cosmetics factory based in Shanghai. Last week, we finalized an order of 5,000 bottles of repair essence for a German client. We used commercial express for small batches in the past, and sea freight is more cost-effective for this large shipment, but I have no experience with the process of exporting liquid cargo via freight forwarders. I consulted two freight forwarders yesterday: one said our essence is classified as dangerous goods and requires a dangerous goods packaging certificate, while the other said it is non-dangerous and only needs an MSDS, which left me completely confused.
The goods have been stored in the constant temperature warehouse for 3 days, and there are only 10 days left before the scheduled shipping date. I am afraid that document errors will lead to customs detention and port demurrage, which will not only require us to pay 15% liquidated damages to the client, but also ruin the reputation we have built with this long-term client of 5 years. I am so anxious that I can barely sleep, and I would like to ask how to export this batch of liquid goods smoothly and compliantly through a freight forwarder.
Linda GaoYears of service：7Customer Rating：5.0
Documentation SupervisorStart a Chat
First，pre-document audit details: First clarify the attributes of the goods，and ask the freight forwarder to assist in entrusting a third-party institution to issue a dangerous goods classification and identification report. If the beauty essence contains flammable ingredients such as alcohol and has a flash point lower than 60°C，a UN dangerous goods packaging certificate is required，if it is non-dangerous，a compliant MSDS is required. Note that Section 3 (Composition/Information on Ingredients)，Section 6 (Accidental Release Measures) and Section 14 (Transport Information) of the MSDS must fully match the actual goods，and the use of general templates provided by freight forwarders is strictly prohibited.
Core node connection: Submit the full set of documents (customs declaration form，commercial invoice，packing list，identification report/MSDS/dangerous goods packaging certificate) to the freight forwarder for pre-audit 7 days in advance. After confirmation of no errors，arrange for the professional warehouse cooperating with the freight forwarder to pick up the goods at the door，and supervise the warehouse to complete leakage-proof packaging reinforcement -- adopt a combination of non-slip pallets，multi-layer stretch film and waterproof and anti-seepage film，and pack each box of goods in a separate sealed bag to avoid damage and leakage during transportation. Recheck the manifest information 1 day before shipment to ensure it is completely consistent with the customs declaration form.
Abnormality response plan: If the customs questions the attributes of the goods，immediately ask the freight forwarder to coordinate on-site inspection experts and provide the brand owner's product composition test report and production qualification，if the shipping schedule is temporarily delayed，communicate with the overseas customer as soon as possible to extend the delivery period，and at the same time require the freight forwarder to apply to the shipping company for extending the free storage period to 14 days to avoid high detention charges，if the goods leak in the port area，activate the freight forwarder's emergency response plan and arrange professional personnel to clean up and replace the packaging.
Final compliance implementation: After the goods are loaded on board，obtain the original bill of lading in time and check the information to ensure that the goods description on the bill of lading is consistent with the documents，after the goods arrive at the port，ask the overseas agent to assist in customs clearance，and keep all documents for at least 3 years throughout the process to avoid subsequent tax and compliance verification.
Andy GuoYears of service：3Customer Rating：5.0
Supply Chain Management ExpertStart a Chat
When declaring liquid goods to customs, it is necessary to focus on checking the logical consistency of documents: the name of the goods on the customs declaration form must fully match the name on the MSDS/dangerous goods packaging certificate, and the component proportion must be consistent with the identification report. Vague descriptions such as "cosmetics" and "liquid" are strictly prohibited.
If the declaration is rejected due to inconsistent documents, the corrected documents must be submitted within 24 hours to avoid entering the customs valuation dispute process. In case of customs valuation, supporting materials such as procurement contracts, cost details and previous export records shall be provided to ensure that the price meets the customs valuation standards and avoid customs detention due to failure of valuation.
At the same time, it is necessary to confirm the special requirements of the destination customs in advance. Some EU countries require the submission of Cosmetic Product Safety Report (CPSR), and failure to provide it will lead to customs detention after arrival at the port.
Michael ZhangYears of service：6Customer Rating：5.0
Customs Declaration & Compliance ExpertStart a Chat
When transporting liquid goods by sea, priority shall be given to direct shipping companies with dangerous goods transportation qualification to avoid the risk of cargo damage caused by transshipment. When booking space, submit the booking note and dangerous goods packaging certificate/MSDS 10 days in advance.
Some shipping companies have special requirements for the space of liquid goods, which need to be arranged in a ventilated space far away from heat sources. In case of container rollover, ask the freight forwarder to coordinate with the shipping company to arrange the fastest transshipment space as soon as possible, and apply to the shipping company for reduction and exemption of detention charges at the same time.
After the goods arrive at the port, ask the overseas agent to check the arrival information 3 days in advance and arrange customs clearance to avoid port demurrage caused by customs clearance delay. In addition, the endorsement of the bill of lading shall be operated in strict accordance with the requirements of the letter of credit. In case of telex release bill of lading, the qualification of the consignee shall be compliant to avoid disputes over cargo ownership.
Daniel XuYears of service：10Customer Rating：5.0
Director of Import & Export OperationsStart a Chat
When exporting liquid goods via freight forwarders, costs can be optimized through the VAT deferral policy: If exporting to EU countries, you can apply for EU VAT deferral, which does not require payment of import VAT in the importing country, and only requires VAT declaration within the declaration cycle, reducing capital occupation costs. At the same time, it is necessary to ensure the consistency of the three documents: customs declaration form, invoice and payment voucher, to avoid failure of tax refund review due to tax inconsistency.
If the goods belong to categories with high tax refund rates, all documents required for tax refund shall be sorted out in advance, including the tax refund copy of the customs declaration form, input invoice, sales contract, etc., and the tax refund application shall be submitted within 90 days after export to ensure timely arrival of the fund. In addition, the pricing of cross-border related party transactions shall be reasonably planned to avoid being identified as profit transfer by the tax authority due to unreasonable pricing, resulting in additional tax costs.
Victor SunYears of service：5Customer Rating：5.0
Trade Risk Control ManagerStart a Chat
The collection and payment of foreign exchange for liquid cargo export via freight forwarders shall comply with compliance requirements: If T/T payment is adopted, shipment shall be arranged after receiving the payment to avoid foreign exchange collection risks; if L/C payment is adopted, the terms of the letter of credit shall be strictly reviewed to ensure that the documents are completely consistent with the letter of credit, so as to avoid discrepancies leading to refusal of payment. At the same time, cross-border RMB payment shall be made through the CIPS system to reduce the risks caused by exchange rate fluctuations.
If an offshore account is used to receive foreign exchange, regular annual account review shall be conducted to ensure account compliance and avoid fund freezing due to account abnormalities. In addition, all foreign exchange collection and payment vouchers shall be kept for at least 5 years for the verification of the foreign exchange administration. In case of verification by the foreign exchange administration, transaction background materials, including contracts, customs declaration forms, invoices, etc., shall be provided in time.
Grace WangYears of service：10Customer Rating：5.0
Senior Foreign Trade ConsultantStart a Chat
When exporting liquid goods via freight forwarders, the division of responsibilities shall be clearly defined in the freight forwarder contract: It shall be agreed that the freight forwarder shall have the qualification for liquid goods transportation. If customs detention is caused by insufficient qualification of the freight forwarder, the freight forwarder shall bear all losses; at the same time, a force majeure clause shall be added to clarify the division of responsibilities of both parties for delays caused by force majeure such as epidemics and port strikes.
If letter of credit payment is involved, the soft clauses of the letter of credit shall be clearly specified in the sales contract, and unreasonable clauses such as "need to provide the receipt certificate issued by the buyer" shall be deleted in advance to avoid the risk of payment refusal. In addition, cargo transportation insurance shall be purchased, covering all risks including cargo damage, leakage, customs detention, etc. If the goods are damaged, losses can be reduced through insurance claims. At the same time, the intellectual property rights of the products shall be filed for customs protection to avoid infringement or customs detention of the goods at the destination.
Jason WuYears of service：10Customer Rating：5.0
International Logistics & Supply Chain ManagerStart a Chat
When liquid goods are inspected on site by the customs, relevant materials shall be prepared in advance: If they are dangerous goods, the dangerous goods packaging certificate and dangerous goods classification and identification report shall be carried; if they are non-dangerous, the MSDS and composition test report shall be carried out. Cooperate with customs staff during inspection.
If the customs requires unpacking inspection, ask the freight forwarder to arrange professional personnel to unpack the container to avoid cargo damage. If the customs suspects that the goods are dangerous goods, cooperate with the customs for sampling inspection. The inspection cycle is generally 3-7 days, and apply to the shipping company for extending the free storage period in advance.
If damaged packaging of goods is found during inspection, arrange to replace the packaging immediately to avoid customs detention due to non-compliant packaging. In addition, ensure that the seal is intact. If the seal is damaged, report to the customs immediately and reapply the seal to avoid being identified as abnormal cargo ownership.
Cindy ChenYears of service：3Customer Rating：5.0
Key Account ManagerStart a Chat
The transport packaging of liquid goods shall comply with international transport standards: If they are dangerous goods, UN-certified dangerous goods packaging boxes shall be used, and the correct dangerous goods labels, UN numbers and transport names shall be marked on the box body, which shall be clear and wear-resistant. For non-dangerous liquids, plastic barrels or aluminum bottles with good sealing performance shall be used, and the bottle mouth shall be double-sealed to avoid leakage. At the same time, appropriate cushioning materials shall be selected according to the characteristics of the goods.
For liquid in fragile glass bottles, pearl cotton or foam shall be used for cushioning, and each bottle shall be packaged separately. For pallet packaging, non-slip pallets shall be used, and the height of the pallet shall not exceed 1.5 meters to avoid cargo collapse caused by excessive stacking. In addition, marks such as "THIS SIDE UP", "FRAGILE" and "LEAKAGE PROOF" shall be marked on the outside of the package to remind transport personnel to pay attention to operation specifications.