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What full-process compliance operations and risk prevention and control points need to be implemented for agency import of Shell motor oil?
or complex compliance issues.
clearance and fund security.
I am the procurement manager of a mid-to-high-end auto repair chain in Shanghai. Last month, we tried to self-import 2000 barrels of Shell Helix 5W-30 motor oil, but were detained by customs for 7 days due to the incorrect format of the brand authorization document.
We not only paid a 120,000 RMB penalty for breach of contract with our cooperating luxury brand 4S shop, but also missed the replenishment window for the autumn maintenance peak season, leading to a shortage of oil inventory in 3 stores. Now we need to import 3000 barrels of the same oil next month, and the boss has ordered that no more mistakes are allowed.
I plan to cooperate with a professional foreign trade agency company, but I have never touched the agency import mode before, and I am very worried. I am afraid that the agency company is not professional enough to cause port detention or customs detention again, and I am also worried that the agency fee and import cost will eat up the already meager profits. I want to know how to operate to achieve compliance and control the cost within an acceptable range?
Kevin LinYears of service：4Customer Rating：5.0
Trade Solutions ManagerStart a Chat
First，the details of pre-document review: we need to verify the authenticity of the Shell brand authorization document in advance，ensure that the header of the document is exactly the same as the name of the operating unit of the agency company，and accurately match the oil model，quantity and origin on the Automatic Import License to avoid price review objections due to inconsistent model codes. In addition，we need to prepare the Chinese version of the MSDS that complies with China Customs standards，clearly marking the dangerous goods classification and packaging requirements of the motor oil.
For core node connection: we need to ensure that the customs broker and the overseas shipper synchronize the shipping schedule information in real time，complete the customs pre-declaration 3 days before the goods arrive at the port，and must complete the secondary review of documents 1 day before the goods arrive at the port to avoid customs detention due to data errors. At the same time，coordinate the yard with Class III dangerous goods storage qualification in advance to ensure that the goods can be transferred directly after arriving at the port，reducing the risk of port detention.
For emergency plans: if a customs price review dispute occurs，we need to provide the official Shell ex-factory price certificate，brand authorization agreement and similar import customs declarations from the past 3 months as evidence as soon as possible，if documents are temporarily missing，the agency company can assist in applying for customs clearance with temporary document guarantee，and then supplement and improve the materials later.
For final compliance implementation: we need to ensure that all documents are retained for no less than 5 years，the agency company needs to issue a compliant import certificate for subsequent tax deduction and qualification display to cooperating parties，and complete the compliant verification of foreign exchange receipts and payments at the same time.
Cindy ChenYears of service：3Customer Rating：5.0
Key Account ManagerStart a Chat
When agency importing Shell motor oil, the customs declaration link needs to focus on the logical closed loop of customs price review. Customs will use Shell's official global ex-factory guide price and the recent import transaction price of similar products as the basis for price review. If the declared price is lower than 80% of the guide price, a first-level price review warning will be triggered.
At this time, we need to provide the original supply contract, payment receipt and domestic sales contract issued by the brand as supporting evidence to avoid order deletion and re-declaration. In addition, note that the HS code of Shell motor oil is 27101991, which needs to be declared accurately.
If it is incorrectly declared as ordinary lubricating oil, it will lead to inconsistent regulatory documents and trigger customs detention. At the same time, the certificate of origin of the goods needs to be declared synchronously when declaring customs. If the goods are from ASEAN countries, they can enjoy RCEP tariff reduction, and the format of the certificate of origin must comply with customs requirements.
Victor SunYears of service：5Customer Rating：5.0
Trade Risk Control ManagerStart a Chat
When agency importing Shell motor oil, the logistics route should give priority to the special dangerous goods shipping route directly to Shanghai Yangshan Port to avoid the risk of transfer of cargo rights caused by transshipment. We need to confirm the dangerous goods space of the shipping company in advance, and provide the original scan copy of the MSDS report when booking the space to ensure that the space is successfully reserved. After the goods arrive at the port, the free storage period is generally 7 days.
If you need to extend it, you need to apply to the shipping company 3 days before the goods arrive at the port to avoid generating detention fees. In addition, the bill of lading endorsement must ensure that the header of the agency company is exactly the same as the operating unit on the customs declaration form. If it is a telex release bill of lading, you need to provide the scan copy of the telex release guarantee to the shipping company at the same time. If a container shortage occurs, you need to coordinate the shipping company to arrange the next ship on the same route as soon as possible, and notify domestic customers to adjust the replenishment plan.
Linda GaoYears of service：7Customer Rating：5.0
Documentation SupervisorStart a Chat
When agency importing Shell motor oil, you can optimize cash flow through the VAT deferment policy, that is, you do not need to pay VAT on the spot when importing, and declare tax after the goods are sold, which can delay capital occupation for 3-6 months. In addition, if the agency company has the qualification of foreign trade comprehensive service, it can assist in applying for tariff reduction in the import link. It is necessary to ensure that the use of Shell motor oil is lubricating oil for automobile maintenance, which is within the scope of tariff reduction. In addition, pay attention to the related party transaction pricing when cross-border payment, avoid being identified as profit transfer by the tax authority due to too low price, refer to Shell's official global unified supply price to set the payment amount, and retain all payment vouchers and supply contracts for subsequent tax verification.
Evelyn LiYears of service：3Customer Rating：5.0
Cross-border Compliance SupervisorStart a Chat
For the foreign exchange receipts and payments link of agency importing Shell motor oil, cross-border RMB payment should be made through the CIPS system to avoid losses caused by exchange rate fluctuations. When paying, you need to clearly mark "Shell motor oil import payment" and the corresponding customs declaration number in the SWIFT message attachment to ensure that the capital flow is consistent with the trade background.
If you use an offshore account to receive foreign exchange, you need to ensure that the capital source of the offshore account is legal foreign trade payment to avoid triggering the verification of the State Administration of Foreign Exchange (SAFE) due to abnormal funds. In addition, when settling foreign exchange, you need to provide the scan copies of the import customs declaration, supply contract and invoice to ensure the logical closed loop of the settlement materials and avoid settlement failure. If you receive a letter of investigation from the SAFE, you need to submit all relevant documents within 3 working days to ensure compliance.
Daniel XuYears of service：10Customer Rating：5.0
Director of Import & Export OperationsStart a Chat
When agency importing Shell motor oil, you need to sign an agreement with the agency company to clarify the scope of liability. If customs detention or port detention is caused by the agency company's document errors, the agency company shall bear all losses. At the same time, you need to sign a formal supply contract with the Shell brand to clarify the quality standards, delivery time and liability for breach of contract.
If there are quality problems with the goods, you can apply for return or exchange according to the contract. In addition, you need to apply for intellectual property customs protection record to avoid importing counterfeit Shell motor oil. If the customs seizes counterfeit products, you can apply to seize the counterfeit goods according to the record documents and pursue the legal liability of the supplier. In addition, the agreement needs to clarify the transfer time of cargo rights, that is, after the goods arrive at the port and complete customs declaration, the cargo rights are transferred to the purchaser to avoid the agency company from disposing of the goods without authorization.
Andy GuoYears of service：3Customer Rating：5.0
Supply Chain Management ExpertStart a Chat
When agency importing Shell motor oil, the customs on-site inspection mainly focuses on the authenticity of the goods' brand, model and dangerous goods attributes. During the inspection, you need to prepare the Shell brand anti-counterfeit identification comparison card in advance to assist the customs in identifying the authenticity of the goods.
If a container inspection is required, you need to ensure that the goods are stacked in accordance with dangerous goods storage standards to avoid potential safety hazards caused by improper stacking. In addition, the dangerous goods classification in the MSDS report must be consistent with the actual situation of the goods. If it is a Class III flammable liquid, you need to provide the corresponding dangerous goods packaging certificate.
If the customs requires sampling, you need to send the sample to the designated appraisal institution within 3 working days, and submit the release application to the customs after the appraisal report is issued. If it is found during the inspection that the goods model does not match the declaration, you need to submit the brand's model change certificate to the customs as soon as possible to avoid being identified as false declaration.