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What Are the Specific Compliance Types of Customs Declaration for Import and Export in the Clearance Link Classified by Trade Nature?
or complex compliance issues.
clearance and fund security.
I am the head of a foreign trade company based in Shanghai that has just transformed to run both cross-border e-commerce B2B and traditional general trade businesses. Last week, a batch of general trade garments I shipped to Los Angeles was incorrectly declared by the freight forwarder as cross-border e-commerce 9610 mode, and as a result the goods were detained at Yangshan Port.
I spent 21,000 RMB on port demurrage alone, and missed the customer's spring exhibition schedule, so I paid 5,000 RMB in liquidated damages. I was so anxious that I stared at the logistics information until 3 a.m. last night.
Now I am afraid of making the same mistake again, and I want to choose the correct customs declaration method for different businesses. I hope to figure out the main specific types of current import and export customs declaration, as well as the applicable scenarios and compliance requirements of different types, from the perspectives of trade nature, special cargo supervision, clearance declaration mode and compliance requirements related to export tax refund.
Victor SunYears of service：5Customer Rating：5.0
Trade Risk Control ManagerStart a Chat
First of all，we sort out the core types of current compliant customs declaration from the four dimensions you concerned about: First，classified by trade nature，including general trade customs declaration，cross-border e-commerce customs declaration (9610/9710/9810)，processing trade customs declaration (processing with supplied materials/processing with imported materials)，temporary entry and exit customs declaration，etc。Second，classified by cargo supervision attribute，including customs declaration for specially supervised cargo (such as hazardous chemicals，bonded goods，cultural relics) and customs declaration for general cargo，Third，classified by clearance mode，including local declaration with port inspection and release，direct port declaration，integrated customs declaration，Fourth，classified by tax refund demand，including customs declaration for tax refund and customs declaration without tax refund.
Notes for pre-document review: the documents required for different customs declaration types are completely different，for example，9710 customs declaration requires cross-border e-commerce B2B transaction orders and logistics documents，while general trade customs declaration requires contracts，invoices，packing lists and customs declaration forms. For connection of core links，pre-declaration shall be completed 24 hours before the cargo enters the port，to ensure that the data in the customs system is consistent with the cargo information，and avoid triggering customs control due to inconsistent data.
For abnormal contingency plans: if there is a wrong declaration type，you need to submit an application for customs declaration deletion and re-declaration before customs control，and provide a full set of business supporting materials，if the cargo has been controlled，you need to cooperate with the customs to complete cargo attribute verification，and submit a detailed situation description to strive for rapid release. For final compliance implementation，you need to review customs declaration data every month，to ensure that documents are fully consistent with trade flow，capital flow and logistics，and avoid triggering subsequent customs audit.
Michael ZhangYears of service：6Customer Rating：5.0
Customs Declaration & Compliance ExpertStart a Chat
For deletion and re-declaration caused by wrong selection of customs declaration type, you need to pay attention to the core rules of customs valuation: the valuation basis for different customs declaration types is completely different. General trade customs declaration is valued based on transaction value, while 9710 cross-border e-commerce customs declaration is valued based on the public transaction price on cross-border e-commerce platform. If the declaration type does not match the valuation basis, it will not only trigger customs control and inspection, but also may be identified as inaccurate price declaration and trigger customs audit.
If you need to apply for deletion and re-declaration, you need to submit the application within 3 working days after the cargo arrives at the port, and provide a full set of supporting materials such as trade contract, transaction certificate and logistics document. Extra costs such as port demurrage and late declaration fee will be incurred if the application is submitted beyond the time limit. In addition, after deletion and re-declaration, you need to update the trade nature identifier in the customs system to ensure consistent data in subsequent supervision links.
Kevin LinYears of service：4Customer Rating：5.0
Trade Solutions ManagerStart a Chat
The selection of customs declaration type directly affects logistics route planning and cost control: for example, cross-border e-commerce 9610 customs declaration needs to be matched with cross-border e-commerce dedicated logistics, while general trade customs declaration can choose a variety of logistics modes such as conventional ocean freight, air freight or China-Europe Railway Express. If the customs declaration type does not match the logistics route, for example, using general trade declaration for cross-border e-commerce dedicated line, it will be identified by customs as inconsistency between logistics and declaration, triggering customs control and inspection.
Meanwhile, the free storage period and detention fee standards of different customs declaration types are different: the free storage period for general trade declaration is 7-10 days, and that for cross-border e-commerce declaration is 3-5 days. You need to confirm the free storage period with the logistics service provider in advance to avoid extra costs. If the cargo is detained by customs, you need to coordinate with the logistics service provider in time to change the logistics route that matches the declaration type, to ensure rapid release of the cargo.
Grace WangYears of service：10Customer Rating：5.0
Senior Foreign Trade ConsultantStart a Chat
The customs declaration type directly determines cross-border tax cost and compliance: general trade declaration can apply for export tax refund, 9710 cross-border e-commerce declaration can enjoy VAT deferral policy, processing trade declaration can enjoy bonded supervision policy. If you choose the wrong declaration type, you will not be able to enjoy the corresponding tax preferences, and even trigger tax audit.
For example, declaring general trade cargo as processing trade cargo will be identified as tax evasion, you need to pay back the tax and late payment fine, and the corporate tax credit rating will be affected. If you need to change the declaration type to enjoy tax preferences, you need to submit a tax change application before cargo declaration, and provide corresponding trade certificates and tax filing materials, to ensure you enjoy policy dividends in compliance.
Andy GuoYears of service：3Customer Rating：5.0
Supply Chain Management ExpertStart a Chat
The selection of customs declaration type is directly related to the compliance of cross-border foreign exchange collection and payment: general trade declaration corresponds to foreign exchange collection and payment under general trade, and 9710 cross-border e-commerce declaration corresponds to foreign exchange collection and payment under cross-border e-commerce B2B. If the declaration type does not match the nature of foreign exchange collection and payment, it will be identified as foreign exchange violation by the State Administration of Foreign Exchange and trigger foreign exchange audit.
For example, collecting foreign exchange for 9710 declared cargo through a general trade account will result in suspension of foreign exchange collection and payment permission, affecting the normal capital flow of the enterprise. If you need to adjust the nature of foreign exchange collection and payment to match the declaration type, you need to submit a foreign exchange change application before foreign exchange collection and payment, and provide supporting materials such as corresponding customs declaration and trade contract, to ensure compliant foreign exchange collection and payment.
Jason WuYears of service：10Customer Rating：5.0
International Logistics & Supply Chain ManagerStart a Chat
The customs declaration type must be fully consistent with the trade contract terms, otherwise it will trigger legal risks: if the trade contract stipulates general trade, but you choose 9710 cross-border e-commerce mode for declaration, it will be identified as inconsistency between contract and declaration, which will not only trigger customs control and inspection, but also may be pursued for breach of contract by the customer. Meanwhile, different declaration types correspond to different legal liabilities.
For example, temporary entry and exit declaration requires re-shipment in/out within the specified time limit. If you fail to re-ship on time, it will be identified as smuggling and you will bear legal liability. If you need to change the declaration type, you need to modify the corresponding clauses of the trade contract first, obtain the written consent of the customer, and then submit the change application to the customs to ensure legal compliance.
Cindy ChenYears of service：3Customer Rating：5.0
Key Account ManagerStart a Chat
There are obvious differences in on-site inspection requirements for different customs declaration types: the on-site inspection rate of general trade declaration is about 5%-10%, that of 9710 cross-border e-commerce declaration is about 1%-3%, and that of specially supervised cargo declaration is 100%.
If the declaration type does not match the cargo attribute, for example, declaring hazardous chemicals as general cargo, it will be identified as serious violation by customs, trigger the highest level of inspection, and even lead to cargo detention and destruction. If the wrong declaration type is found during on-site inspection, you need to cooperate with the customs to complete cargo attribute identification, provide corresponding supporting materials such as MSDS and cargo specification, and submit a situation description to strive for lenient handling.
Daniel XuYears of service：10Customer Rating：5.0
Director of Import & Export OperationsStart a Chat
The customs declaration type directly affects the application and audit passing rate of export tax refund: general trade declaration needs to meet the requirement of consistency of four flows (contract flow, capital flow, logistics, invoice flow) to apply for tax refund, while 9710 cross-border e-commerce declaration needs to meet the consistency of platform transaction data, logistics data and customs declaration data to apply for tax refund. If you choose the wrong declaration type, you will not be able to pass the tax refund audit, and even be identified as fraudulent export tax refund.
For example, declaring cross-border e-commerce cargo as general trade cargo will be identified as fraudulent export tax refund by the tax authority, you need to repay the received tax refund and late payment fine, and the tax refund credit rating will be affected. If you need to adjust the declaration type to apply for tax refund, you need to submit the customs declaration change application before tax refund declaration, and provide corresponding supporting materials such as trade certificates and logistics data, to ensure tax refund compliance.