How to Operate the Full Process of Rubber Powder Import Customs Brokerage? What Core Compliance Points Should Be Controlled?

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I am the Purchasing Manager of a rubber products factory in Zhejiang. Last month, I ordered 20 containers of recycled rubber powder from Thailand, and this is my first time handling import independently. The small freight forwarder I hired before caused customs detention of the goods due to incorrect classification of rubber powder, which not only cost me more than RMB 120,000 in demurrage and rectification fees, but also almost missed the delivery deadline for downstream automobile OEMs.

Now the whole workshop is urging for raw materials, and I am extremely anxious! This time I want to find a professional import customs brokerage agency, but I have no idea how to coordinate with them, nor do I know how to cooperate in the whole process, such as what core documents need to be prepared in advance?

What previous pitfalls can the agency help me avoid? Also, can they help me optimize the cost, for example, are there any legal cost reduction policies available? I am really afraid of more troubles, please give me a detailed explanation!

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Expert Q&A

Grace Wang
Grace WangYears of service:10Customer Rating:5.0

Senior Foreign Trade ConsultantStart a Chat

First,for the details of pre-document review,it is necessary to focus on verifying the authenticity and standardization of the Certificate of Origin,and confirm whether the HS Code of the rubber powder is accurate (the classification difference between recycled rubber powder and virgin rubber powder directly affects the tax rate and supervision conditions). At the same time,prepare the MSDS,Packing List,Commercial Invoice and Automatic Import License (if applicable) in advance. The agency will conduct cross-verification of the documents to avoid customs detention caused by discrepant documents.

In terms of core node connection,the agency will coordinate with the overseas shipper,domestic port customs broker and inspection department in advance,complete the pre-declaration 3 days before the goods arrive at the port,ensure that the manifest information is fully consistent with the customs declaration data,and simultaneously follow up the cargo circulation status,to realize the seamless connection of "manifest confirmation - pre-declaration - on-site customs declaration - inspection (if any) - release" and shorten the customs clearance time.

Abnormal contingency plans need to be formulated in advance: in case of customs classification query,the agency will immediately retrieve the component test report and Certificate of Origin of the rubber powder for appeal,in case of inspection,it will arrange special personnel to be present for cooperation,and prepare cargo samples and compliance instructions in advance,to avoid extending the inspection cycle due to poor communication.

After the final compliance implementation,the agency will assist in completing follow-up work such as tax receipt deduction and document archiving,to ensure that the entire import process meets the customs supervision requirements. At the same time,it can assist in applying for the VAT deferment policy to ease the capital pressure of enterprises.

Reference: A Step-by-Step Guide to Japanese Cake Import Agency: Professional Control of Documentation & Logistics plus Trade-Situation Analysis
Andy Guo
Andy GuoYears of service:3Customer Rating:5.0

Supply Chain Management ExpertStart a Chat

During rubber powder import customs declaration, the customs valuation link is prone to disputes due to non-standard declaration of transaction value. It is necessary to ensure that the transaction value on the Commercial Invoice, payment voucher and trade contract is consistent. If the customs questions the transaction value, a third-party price assessment report or previous import declaration forms of the same type of rubber powder shall be provided as evidence. In case of incorrect HS Code classification, do not modify the declaration data without authorization. The agency shall submit an application for pre-ruling on classification to the customs to avoid triggering customs audit due to unauthorized modification of declaration forms. For rubber powder involving renewable resources, an additional import approval from the environmental protection authority shall be provided to ensure compliance with the regulatory requirements of the Administrative Measures for the Recycling of Renewable Resources. If it is necessary to delete the declaration form and re-declare, the application shall be submitted within 3 working days as specified by the customs to avoid delayed declaration fee.

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

Trade Solutions ManagerStart a Chat

The logistics route for rubber powder import shall be selected according to the route resources of the port of shipment and the port of destination. Direct shipping routes shall be preferred to shorten the transportation cycle. If transshipment is required, the storage cost and free storage period of the transshipment port shall be confirmed to avoid high container detention fees. After the goods arrive at the port, the agency will assist in handling the bill of lading exchange procedures to ensure the standardization of the bill of lading endorsement, so as to avoid the failure to pick up the goods due to inconsistent endorsement.

For full-container imported rubber powder, the free storage period and free detention period of the destination port shall be confirmed before the goods arrive at the port. If timely customs clearance is expected to be impossible, an application for extending the free storage period can be submitted to the shipping line in advance to reduce the container detention cost. At the same time, the agency will synchronize the cargo location through the real-time logistics tracking system to ensure that the cargo right is controllable throughout the process, so as to avoid cargo loss or wrong delivery.

Lucas Liu
Lucas LiuYears of service:8Customer Rating:5.0

Senior Operations ConsultantStart a Chat

For rubber powder import customs declaration, you can apply for the VAT deferment policy, which does not require payment of import value-added tax at the time of customs clearance, but deducts it in the subsequent VAT declaration period of the enterprise, effectively easing the pressure of capital occupation. For rubber powder imported from ASEAN countries, if it meets the origin rules of the China-ASEAN Free Trade Agreement, you can apply for zero tariff or preferential tariff treatment. You need to prepare the FORM E Certificate of Origin in advance and ensure that the cargo information on the certificate is fully consistent with the customs declaration data. In addition, enterprises can include logistics costs into the deduction scope of the dutiable value by optimizing trade terms (such as changing FOB to CIF), so as to further reduce tax costs. It should be noted that all tax planning operations must meet the regulatory requirements of the customs and tax authorities to avoid triggering tax audits due to illegal operations.

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

Senior Manager of Foreign Exchange & Tax RebatesStart a Chat

The payment and receipt of foreign exchange for rubber powder import must meet the regulatory requirements of the State Administration of Foreign Exchange (SAFE). It is necessary to ensure that the payment amount is consistent with the dutiable value on the customs declaration form. In case of more or less shipment, a description of the more or less shipment shall be submitted to the SAFE before payment.

For enterprises adopting RMB cross-border payment, the payment can be completed through the CIPS system, which can not only reduce the risk of exchange rate fluctuation, but also shorten the payment cycle. The agency will assist enterprises in completing the compliance review of foreign exchange receipt and payment, ensure the authenticity of the trade background, and avoid triggering the verification of the SAFE due to abnormal foreign exchange receipt and payment. In addition, enterprises shall properly keep the foreign exchange receipt and payment vouchers, trade contracts, customs declaration forms and other materials for a retention period of no less than 5 years for the follow-up inspection of the foreign exchange administration department.

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

Documentation SupervisorStart a Chat

If letter of credit (L/C) settlement is adopted for rubber powder import, the L/C terms shall be strictly reviewed to avoid "soft clauses" (such as requiring submission of unavailable documents). If soft clauses are found, the issuing bank shall be immediately required to modify them. For the transfer of cargo right, it is necessary to ensure that the endorsement of the bill of lading complies with legal provisions.

If telex release bill of lading is adopted, the shipper shall issue a telex release letter of indemnity to avoid disputes over cargo right. In addition, if the rubber powder involves intellectual property rights (such as modified rubber powder with a specific formula), an application for intellectual property right protection filing shall be submitted to the customs in advance to avoid customs detention of goods due to infringement. The agency will assist enterprises in reviewing the compliance of trade contracts, ensuring that the contracts include force majeure clauses, dispute resolution clauses, etc., to reduce trade risks.

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

International Logistics & Supply Chain ManagerStart a Chat

If the rubber powder import triggers customs inspection, the component test report, Certificate of Origin, Packing List and other materials of the goods shall be prepared in advance, and special personnel shall be arranged to be present to cooperate with the customs inspection. If the customs requires full container inspection, it is necessary to ensure that the goods are stacked in a standard manner to facilitate customs sampling, so as to avoid extending the inspection time due to messy goods. If the customs questions the composition of the rubber powder, it is necessary to cooperate with the customs to complete the inspection and testing process.

The agency will assist in contacting a qualified third-party testing institution to ensure that the test report meets the requirements of the customs. In addition, attention should be paid to the integrity of the container seal. If the seal is damaged, the situation shall be immediately reported to the customs to avoid being identified as cargo loss, which affects the customs clearance efficiency.

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

Director of Import & Export OperationsStart a Chat

The packaging of imported rubber powder must meet the compliance requirements of international transportation. For recycled rubber powder, it is necessary to ensure that the packaging has moisture-proof and leak-proof functions to avoid the goods from being damp and deteriorated during transportation. The agency will assist enterprises in preparing or reviewing the MSDS report to ensure that the report contains information such as the composition, hazardous characteristics, emergency treatment measures of the rubber powder, and meets the regulatory requirements of the Regulations on the Safety Administration of Hazardous Chemicals. For rubber powder transported by container, the container shall be pre-inspected to ensure that the container is free of damage and peculiar smell, so as to avoid cargo pollution or failure of customs inspection due to container problems. In addition, clear information such as cargo name, weight and destination shall be marked on the packaging to facilitate customs identification and inspection.

Evelyn Li
Evelyn LiYears of service:3Customer Rating:5.0

Cross-border Compliance SupervisorStart a Chat

The supply chain planning for rubber powder import shall be combined with the production plan and inventory level of the enterprise, and the import cycle shall be reasonably arranged to avoid the situation of raw material backlog or supply shortage. The agency will assist enterprises in cost actuarial calculation, including the full-link costs such as transportation fee, customs declaration fee, tax and storage fee. By optimizing trade terms (such as changing EXW to FOB), part of the logistics cost will be transferred to the shipper to reduce the import cost of the enterprise.

In addition, rubber powder can be stocked in advance by establishing overseas warehouses or bonded warehouses to shorten the delivery cycle and cope with the risk of raw material price fluctuations. At the same time, the agency will assist enterprises in optimizing the supply chain process, realizing the seamless connection of "procurement - transportation - customs declaration - warehousing - production", and improving the overall efficiency of the supply chain.

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