What are the core key points of full-process compliance operations for agency import of mature overseas brands?

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I am the owner of a trading company in Shanghai that has just transformed into imported beauty products. Previously, I only operated domestic offline makeup distribution. In March this year, I just signed an exclusive agency agreement with a niche cutting-edge makeup brand in South Korea. The first batch of goods is scheduled to be shipped to the port next month, but I am extremely anxious now.

Last week, I heard from peers that when they imported goods on an agency basis last year, their goods were detained at the port for 12 days due to incorrect format of the certificate of origin, and they paid as much as 180,000 yuan in port demurrage fees and overdue delivery liquidated damages alone. Another friend's company had its goods directly detained and destroyed by the customs on the ground of infringement because the brand authorization letter was not notarized.

Now I am afraid that I will follow the wrong process, step into pitfalls and lose money, and I also worry that I will not make profits if the cost is not well controlled. I even have no idea how to control the cargo ownership throughout the whole process, so I suffer from insomnia at night. I would like to ask how to implement this agency import project step by step, to meet compliance requirements, save costs and prevent and control risks at the same time?

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Expert Q&A

Cindy Chen
Cindy ChenYears of service:3Customer Rating:5.0

Key Account ManagerStart a Chat

The first step is the fine-grained review of pre-positioned documents. You need to focus on verifying the brand authorization notarization document (requiring notarization by a local notary institution in South Korea and certification by the Chinese Consulate in South Korea),certificate of origin (which must conform to the format of the China-Republic of Korea Free Trade Agreement,marked with the full name of the brand and the corresponding HS code),and the consistency of cargo value on the packing list and commercial invoice,to avoid triggering customs price review or infringement verification due to document defects.

Seamless connection shall be realized at core nodes: 3 days before the goods are shipped to the port,submit the pre-recorded customs declaration form and electronic copies of documents to the customs for pre-audit simultaneously. After confirming no compliance problems,arrange logistics booking and lock the direct shipping schedule,to avoid the risk of cargo ownership out of control caused by transshipment,complete the formal customs declaration within 24 hours after the goods arrive at the port,and submit the tax receipt for VAT deferred declaration (only applicable to beauty categories eligible for the pilot program of Shanghai Port) at the same time,to shorten the customs clearance cycle and ease cash flow pressure.

Exception response plans shall be formulated in advance: If you encounter objections from customs on price review,immediately provide the ex-factory price certificate issued by the brand owner and previous import declaration records of the same brand in the same batch,If inspection is triggered,arrange dedicated personnel to bring the original authorization notarization document to the site for cooperation,to avoid goods detention due to lack of materials,If there is a risk of port detention,sign a reserved storage space agreement with the port yard in advance to lock a 7-day free storage period.

For the final compliance implementation link,you need to complete document filing (including authorization letter,certificate of origin,customs declaration form,tax receipt) within 10 days after the goods are released,and complete brand filing in the customs intellectual property protection system at the same time,to ensure the continuity of compliance for subsequent batches of imports.

Reference: Import Japanese Tea: Expert Import Process Guide
Michael Zhang
Michael ZhangYears of service:6Customer Rating:5.0

Customs Declaration & Compliance ExpertStart a Chat

For the customs declaration link of agency import of brands, you need to focus on controlling the linkage between price review logic and intellectual property filing. If the brand is imported for the first time, submit the original trademark registration certificate of the brand owner and notarized authorization document to the customs in advance, to avoid triggering infringement warning due to no filing record in the system. In response to customs price review objections, provide the exclusive agency agreement between the brand owner and the domestic agent, the local retail guide price of the same model of products in South Korea, and import declaration forms of the same brand and same category in the past 3 months as supporting evidence.

If agreement still cannot be reached, you can apply for price consultation, to avoid sharp cost increase caused by direct taxation according to customs valuation. In addition, note that the "brand column" on the customs declaration form must be completely consistent with the full Chinese and English names on the trademark registration certificate, and abbreviations shall not be used, otherwise it will be determined as false declaration, facing the risk of fine or customs detention.

Kevin Lin
Kevin LinYears of service:4Customer Rating:5.0

Trade Solutions ManagerStart a Chat

Logistics control for agency import of brands shall focus on cargo ownership security and cost optimization. First of all, select a logistics service provider with non-vessel operating common carrier qualification, and sign a transport agreement with full-process controllable cargo ownership, to avoid cargo ownership transfer in the transshipment link.

For beauty categories, choose temperature-controlled container transportation, and mark "original sealed container delivery" on the bill of lading, to prevent the goods from getting damp or being swapped during transportation. In case of container rolling or vessel overbooking, lock the standby shipping schedule in advance, and communicate with the brand owner to delay delivery for 1-2 days, to avoid high premium caused by urgent space adjustment.

In addition, you need to understand the free storage period and free container usage period policies of the destination port in advance. For beauty categories at Shanghai Port, you can apply for a 3-day extension of the free storage period, and you need to submit an application to the yard 1 day before the goods arrive at the port, to reduce port demurrage expenditure.

Jason Wu
Jason WuYears of service:10Customer Rating:5.0

International Logistics & Supply Chain ManagerStart a Chat

Cost planning for agency import of brands shall focus on the compliance of VAT deferral and cross-border tax structure. Shanghai Port has expanded the VAT deferral pilot scope since 2025.

Beauty categories can enjoy deferred declaration of import value-added tax, which does not need to be paid during customs clearance, and can extend the capital occupation period from 30 days to 90 days, easing cash flow pressure. In addition, if the agency brand is originally produced in South Korea, you can enjoy tariff reduction and exemption under the China-Republic of Korea Free Trade Agreement.

You need to ensure that the HS code marked on the certificate of origin is completely consistent with that on the customs declaration form, and the brand owner has completed origin filing at the Korea Customs Service. For cross-border related party transactions, avoid low-price declaration, and formulate agency service fees in accordance with the arm's length principle, to prevent being identified as profit transfer by tax authorities and triggering anti-tax avoidance investigation.

Linda Gao
Linda GaoYears of service:7Customer Rating:5.0

Documentation SupervisorStart a Chat

Foreign exchange receipt and payment compliance for agency import of brands shall follow the specifications of CIPS RMB cross-border payment. If a RMB settlement agreement is signed with the South Korean brand owner, submit the agency agreement, brand authorization letter and pre-recorded customs declaration form to the bank before foreign exchange payment, and ensure that the fund purpose is marked as "import brand payment and agency service fee", to avoid being intercepted by the bank due to ambiguous purpose.

For the foreign exchange settlement link, if forward foreign exchange settlement and rate locking are adopted, lock the exchange rate of RMB against KRW in advance, to avoid cost increase caused by exchange rate fluctuation. In addition, pay attention to the use specifications of offshore accounts. If agency service fees are received and paid through offshore accounts, submit the service fee details and corresponding documents to the bank at the end of each month, to ensure that the capital flow is consistent with the document flow, and avoid being listed as suspicious transactions.

Eric Zhou
Eric ZhouYears of service:6Customer Rating:5.0

Senior Manager of Foreign Exchange & Tax RebatesStart a Chat

Legal risk prevention and control for agency import of brands shall focus on improving the terms of the exclusive agency agreement. It shall be clearly stipulated that the authorization letter provided by the brand owner must be certified by the Chinese Consulate in South Korea, and the authorization scope includes all rights such as import, distribution and rights protection within the territory of China, to avoid subsequent infringement disputes caused by incomplete authorization scope.

For the force majeure clause, it shall be clearly stipulated that if overdue delivery is caused by non-our reasons such as customs detention and port detention, the agent shall not bear the liability for breach of contract. At the same time, require the brand owner to provide intellectual property guarantee for the goods.

If the goods are detained and destroyed due to brand infringement, the brand owner shall bear all losses. In addition, it shall be stipulated in the agreement that the cargo ownership transfer node is when the goods are released by the customs at Shanghai Port and delivered to our designated warehouse, to avoid cargo ownership disputes during transportation.

Victor Sun
Victor SunYears of service:5Customer Rating:5.0

Trade Risk Control ManagerStart a Chat

The on-site inspection response for agency import of brands shall prepare a full set of supporting materials in advance. If the customs triggers unpacking inspection, arrive at the site at the first time, show the original brand authorization notarization, certificate of origin, packing list and other materials to the inspection officer, and cooperate to check whether the brand logo and model of the goods are consistent with the documents. For the cosmetic inspection of beauty products, prepare the MSDS report and ingredient test report of the products in advance, to avoid being sent for inspection and identification due to inconsistent ingredients.

If damaged goods packaging is found during inspection, take photos immediately and sign a damage confirmation letter with the logistics service provider, and apply for reissue from the brand owner at the same time, to avoid being unable to claim compensation due to lack of damage proof. In addition, pay attention to the authenticity identification of container seals. Check whether the seal number is consistent with that marked on the bill of lading immediately after the goods arrive at the port. If the seal is damaged, refuse to take delivery of the goods and require the logistics service provider to bear the responsibility.

Daniel Xu
Daniel XuYears of service:10Customer Rating:5.0

Director of Import & Export OperationsStart a Chat

Supply chain planning for agency import of brands shall focus on inventory linkage and cost actuarial calculation. Formulate an import plan of "small batch and multiple batches" according to the monthly sales forecast of the domestic market, to avoid capital occupation caused by large-scale stockpiling.

For the selection of CIF and FOB trade terms, if the brand owner is responsible for transportation, it shall be agreed in the agency agreement to adopt CIF terms, but we shall designate the logistics service provider to control the cargo ownership; If we are responsible for transportation, adopting FOB terms can reduce transportation costs, but we need to lock the shipping schedule and freight in advance. In addition, establish an inventory early warning mechanism.

When the inventory is lower than 20% of the safety stock, automatically trigger the import application for the next batch, to ensure the stability of the supply chain. At the same time, through the cost actuarial model, allocate all costs such as import tariff, value-added tax, logistics fee and agency fee to unit products, and formulate a reasonable retail guide price to ensure profit margin.

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