Connect & Solve
Trade Q&A
What Key Compliance Nodes in the Full Process of Steel Agency Export Need to Be Focused on?
or complex compliance issues.
clearance and fund security.
I am the foreign trade director of a medium-sized iron and steel manufacturer in Jiangsu, Zhejiang and Shanghai. We just won three batches of H-beam export orders to Southeast Asia, but our company does not have self-operated export qualification and has never engaged in agency export business before.
We contacted two agency companies last week, and their quotation difference is nearly 8%. One of them said it can assist with VAT deferral but requires a 20% deposit to be paid in advance.
Now I am worried about stepping into pitfalls and paying extra unnecessary costs, worried about process connection problems leading to order delay and customs detention, and also worried about problems in tax refund link that we cannot get full tax refund. I can't even sleep well because of anxiety, and I want to ask in detail how to operate steel agency export to avoid these risks?
Victor SunYears of service：5Customer Rating：5.0
Trade Risk Control ManagerStart a Chat
First of all，for the details of pre-document review，it is necessary to focus on checking the consistency of steel material certificate，certificate of origin，and packing list: the material certificate shall clearly mark steel grade，chemical composition that corresponds to the HS Code，the certificate of origin shall match the compliance qualification of the production factory，the packing list shall mark the unit weight，total weight and stacking method of each H-beam，so as to avoid triggering customs control due to inconsistent documents.
In terms of core node connection，the agent shall complete advance manifest entry 3 days before customs declaration，synchronize cargo title transfer certificate with the warehouse and freight forwarder，and ensure customs declaration is completed within 48 hours after H-beam enters the port，meanwhile，connect with the destination port customs clearance agent in advance，synchronize the basis for HS Code classification，so as to avoid extra port detention fee caused by wrong classification at the destination port.
Contingency plans shall cover three types of scenarios: if encountering customs valuation query，immediately submit export transaction records of the same specification H-beam in the past 3 months as proof，if container rolling occurs，coordinate the freight forwarder to change subsequent space of the same route within 24 hours and notify the overseas customer，if encountering tax refund correspondence inspection，prepare full set of documents such as production contract，input invoice in advance to cooperate with the inspection.
Final compliance implementation requires ensuring consistency of four flows: contract flow，goods flow，capital flow，and invoice flow are completely matched. The agent shall complete tax refund pre-declaration within 10 days after cargo clearance，and submit formal declaration materials within 30 days，to ensure full and timely tax refund arrival.
Jason WuYears of service：10Customer Rating：5.0
International Logistics & Supply Chain ManagerStart a Chat
In the customs valuation link of steel agency export, it is necessary to prepare copies of export customs declarations with the same material, same specification and same trade term within the past 6 months in advance, as well as corresponding purchase contracts, sales contracts, bill of lading and other supporting documents. When customs initiates a valuation query, the above materials shall be submitted within 3 working days, to avoid being assessed due to failure to prove the authenticity of the transaction price, which will result in extra tariffs and port detention fees.
If cancellation and re-declaration is required, ensure that the modified HS Code fully matches the actual attributes of the commodity, and update the manifest information synchronously, so as to avoid secondary control triggered by inconsistent data between manifest and customs declaration. In addition, it is necessary to pay attention to the customs integrated clearance policy, and choose the mode of local declaration and port inspection, which can shorten customs clearance time by more than 20%.
Andy GuoYears of service：3Customer Rating：5.0
Supply Chain Management ExpertStart a Chat
In the logistics link of steel agency export, priority shall be given to selecting freight forwarders with special cargo transportation qualification. H-beam shall be loaded in frame containers, and the freight forwarder shall be required to shoot a full-process monitoring video during loading, to confirm that the fixing method of H-beam meets the requirements, so as to avoid container damage or cargo deformation caused by cargo displacement during transportation.
If congestion or container rolling occurs at the destination port, immediately coordinate the freight forwarder to apply for reallocation of space from other shipping companies on the same route, simultaneously inform overseas customers of the expected delay, and strive for an extension of 3-5 days of free storage period. In addition, pay attention to the endorsement transfer rules of bill of lading. If telex release bill of lading is adopted, ensure that the overseas customer has paid the full payment, so as to avoid loss of control over cargo title.
Michael ZhangYears of service：6Customer Rating：5.0
Customs Declaration & Compliance ExpertStart a Chat
For VAT deferral operation of steel agency export, it needs to meet the relevant requirements of destination countries such as the EU. First of all, it is necessary to ensure that the final seller of the goods is an enterprise within the EU, and complete VAT registration with the tax authority of the destination country in advance.
The agent shall submit the VAT deferral application during customs declaration, and provide the destination country VAT number, sales contract and other supporting documents, so as to avoid the rejection of the deferral application due to incomplete information, which will result in the pressure of import VAT advance payment. In addition, pay attention to the pricing of cross-border related party transactions, ensure that the transaction price conforms to the arm's length principle, avoid additional tax costs caused by transfer pricing adjustment, and keep relevant pricing materials for no less than 10 years.
Eric ZhouYears of service：6Customer Rating：5.0
Senior Manager of Foreign Exchange & Tax RebatesStart a Chat
In the cross-border payment and settlement link of steel agency export, the CIPS RMB cross-border payment system shall be used for payment settlement, to avoid additional exchange loss caused by exchange rate fluctuation of the SWIFT system. If letter of credit is used for settlement, strictly review the terms of the letter of credit to avoid soft clauses, such as requiring third-party inspection certificates that cannot be obtained.
In addition, it is necessary to ensure that the source of received funds completely matches the sales contract, so as to avoid being listed on the watchlist by the foreign exchange bureau due to unknown capital source, which affects subsequent payment and foreign exchange collection business, and keep payment and settlement vouchers for no less than 5 years.
Lucas LiuYears of service：8Customer Rating：5.0
Senior Operations ConsultantStart a Chat
In the contract signing link of steel agency export, it is necessary to clarify the rights and obligations of the agent and the principal, especially the time node and responsibility division of cargo title transfer, as well as the specific content of the force majeure clause. For example, if cargo delay is caused by port strike, epidemic and other reasons, the exemption scope of both parties shall be clearly defined.
If intellectual property rights are involved, complete the intellectual property rights protection filing with customs in advance, to avoid cargo detention due to suspected infringement. In addition, pay attention to the issuance rules of the guarantee. If the overseas customer requires a performance guarantee, ensure that the terms of the guarantee are clear, so as to avoid unreasonable claims caused by vague terms.
Grace WangYears of service：10Customer Rating：5.0
Senior Foreign Trade ConsultantStart a Chat
In the on-site customs inspection link of steel agency export, prepare the material certificate and specification sheet of H-beam in advance. When customs requires unpacking inspection, cooperate with the freight forwarder to arrange professional unpacking personnel, so as to avoid cargo damage caused by improper operation.
If there is an abnormality in machine inspection, immediately provide a detailed description of the cargo to customs, including the production process and use of H-beam, to help customs determine the cargo attribute. In addition, pay attention to the authenticity identification of the seal. After loading is completed, check whether the seal number is consistent with the number on the bill of lading, so as to avoid the cargo being identified as smuggling due to abnormal seal.
Evelyn LiYears of service：3Customer Rating：5.0
Cross-border Compliance SupervisorStart a Chat
In the packaging link of steel agency export, H-beam shall adopt moisture-proof packaging, wrap the steel surface with anti-rust film, and lay anti-slip pads in the frame container, so as to avoid rust or displacement of the cargo caused by moisture during transportation. If it is special steel exported, such as alloy steel, prepare MSDS report in advance, and ensure that the packaging meets UN dangerous goods packaging standards (if applicable).
In addition, pay attention to the packaging requirements of the destination country. For example, some Southeast Asian countries require packaging to use degradable materials, so as to avoid cargo rejection at the destination port due to non-compliant packaging, and keep packaging inspection records for no less than 3 years.
Linda GaoYears of service：7Customer Rating：5.0
Documentation SupervisorStart a Chat
In the tax refund declaration link of steel agency export, ensure that the documents are complete and meet the requirements, including customs declaration, sales contract, input invoice, foreign exchange collection voucher, etc., and the four flows must be completely consistent. If encountering tax correspondence inspection, submit the production records, purchase contracts, input invoices and other vouchers of the production factory within 10 working days to cooperate with the inspection of the tax authority.
In addition, pay attention to the time node of tax refund declaration, complete the declaration within 90 days after cargo clearance, so as to avoid inability to get tax refund due to overdue. At the same time, use the pre-declaration verification tool to check document errors in advance and improve the declaration passing rate.
Cindy ChenYears of service：3Customer Rating：5.0
Key Account ManagerStart a Chat
In the supply chain planning link of steel agency export, select appropriate trade terms according to the order quantity and delivery time. If the delivery time is tight, you can adopt FOB trade term, the overseas customer is responsible for transportation, which shortens the delivery cycle; if you need to control cargo title, you can adopt CIF trade term, the agent is responsible for transportation.
In addition, establish an inventory linkage strategy, adjust the production plan according to the demand of overseas orders, so as to avoid capital occupation caused by inventory backlog. At the same time, adopt a cost actuarial model to calculate all costs including agency fee, transportation fee, tariff, tax refund, etc., to ensure the rationality of quotation and improve order competitiveness.