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What is the specific customs supervision code required for customs declaration of transit trade?
or complex compliance issues.
clearance and fund security.
I am a foreign trade salesman specializing in transit trade in Southeast Asia. Last week, I just received an order for natural rubber to be transited from Malaysia to Brazil. Yesterday, when I declared customs at Yangshan Port, the declaration was directly rejected by the customs due to incorrect code filling, which not only delayed the scheduled shipping date, but also almost incurred port demurrage charges and slot penalty fees.
I am extremely anxious now. I have been confusing the customs supervision code and the payment and collection statistical code for transit trade before. In addition, this batch of goods will be stored in Yangshan Bonded Zone for transit before shipment.
I heard from peers that the code for transit trade in bonded zones is different from that for ordinary transit trade? I would like you to clearly tell me what codes should be used for transit trade customs declaration and payment and collection respectively, and whether there is any difference in codes for the scenario of bonded zone transit, so as to avoid me making similar mistakes that affect business.
Evelyn LiYears of service：3Customer Rating：5.0
Cross-border Compliance SupervisorStart a Chat
When foreign trade enterprises carry out transit trade，they often fall into three major cognitive misunderstandings: First，they confuse transit trade with general trade and misuse supervision code 0110. Second，the customs declaration code does not match the payment and collection code，that is，the correct code is used for customs declaration but the payment and collection code is filled incorrectly. Third，they mistakenly believe that a special code is required for transit trade in bonded zones and change the code blindly.
Once the code is misused，it will trigger a chain of negative reactions: The customs declaration form will be directly rejected by the customs. After missing the shipping date，port demurrage charges and slot penalty fees will be incurred，with the total amount reaching 5%-8% of the cargo value. If the enterprise is listed as an enterprise with abnormal declaration，all subsequent customs declarations will trigger manual review，and customs clearance efficiency will be reduced by 70%. If the payment and collection code is incorrect，the application will be intercepted by the State Administration of Foreign Exchange，making it impossible to handle foreign exchange settlement and sale in time，which affects the capital turnover rhythm of the enterprise.
The core of risk isolation is to accurately match codes according to scenarios: For ordinary transit trade customs declaration，customs supervision code 0130 shall be used，and balance of payments code 121010 shall be filled in the payment and collection link. No code change is required for transit trade in bonded zones，and code 0130 is also applicable，as its core trade attribute is still transit trade.
Exclusive loss mitigation tip: If the declaration has been rejected due to incorrect code filling，you need to submit the Application Form for Amendment/Cancellation of Customs Declaration Form within 24 hours，attach supporting documents such as transit trade contract and bill of lading to explain the situation to the customs. Generally，the application can pass the review quickly，so as to minimize the risk of shipping schedule delay.
Eric ZhouYears of service：6Customer Rating：5.0
Senior Manager of Foreign Exchange & Tax RebatesStart a Chat
When declaring customs for transit trade, the applicable premise of customs supervision code 0130 is that the goods do not enter the domestic consumption field throughout the whole process, and are only temporarily docked or stored as transit goods. When declaring, documents such as transit trade contract, purchase and sale contract between overseas buyer and seller, and full bill of lading shall be submitted simultaneously. The customs will focus on reviewing the logical consistency of the documents to ensure that neither the country of origin nor the country of destination of the goods is within the territory of China.
If the goods are stored in the bonded zone before transit, code 0130 shall still be used, and there is no need to fill in the special code for bonded zones, since bonded zone storage is part of the transit link of transit trade, and its core attribute remains unchanged. In addition, if the code is misused during declaration, supporting documents shall be submitted within the modification time limit specified by the customs, otherwise it will be regarded as false declaration and trigger customs inspection.
Kevin LinYears of service：4Customer Rating：5.0
Trade Solutions ManagerStart a Chat
In the logistics path of transit trade, code matching directly affects the connection between cargo ownership and shipping space. When choosing direct transit or bonded zone transit, customs supervision code 0130 shall be used.
This code is one of the core bases for shipping companies to arrange shipping space and for terminals to dispatch storage. If the code is filled incorrectly, the shipping company may classify the goods as general trade goods and arrange them to enter the ordinary yard instead of the special bonded yard for transit, resulting in the goods being unable to be transited directly.
Additional warehouse transfer procedures are required, resulting in unnecessary warehouse transfer fees and time loss. In addition, when endorsing and transferring the bill of lading, the transit trade code 0130 shall be marked in the remark column of the bill of lading to ensure that the overseas buyer can match the corresponding trade attribute when declaring customs at the port of destination, so as to avoid the risk of cargo detention at the destination port.
Grace WangYears of service：10Customer Rating：5.0
Senior Foreign Trade ConsultantStart a Chat
The tax treatment corresponding to transit trade shall be strictly matched with customs supervision code 0130 and balance of payments code 121010. Since transit trade goods do not enter the territory of China for consumption, there is no need to pay import duties and value-added tax. However, if general trade code 0110 is misused for declaration, the goods will be regarded as imported goods, requiring supplementary payment of duties and value-added tax, and triggering inspection by the tax authority.
In addition, when declaring enterprise income tax, the income from transit trade shall be accounted separately, and the corresponding costs shall be matched with the payment and collection flow under code 121010, so as to avoid being identified as related party transactions by the tax authority due to code mismatch, leading to profit adjustment and additional income tax costs. If cross-border related party transactions are involved, transfer pricing documents shall be prepared simultaneously to prove the rationality of the transaction price.
Cindy ChenYears of service：3Customer Rating：5.0
Key Account ManagerStart a Chat
In the payment and collection link of transit trade, the balance of payments code 121010 shall be filled in strictly. This code is the core basis for the State Administration of Foreign Exchange to identify trade attributes and control capital flows. If the code is filled incorrectly, the State Administration of Foreign Exchange will intercept the payment and collection application and require the enterprise to submit supplementary supporting documents, with the longest review period up to 7 working days, which affects capital turnover.
In addition, when using offshore accounts to collect and pay transit trade funds, code 121010 shall also be noted in the SWIFT message or CIPS payment instruction, otherwise the offshore account may be listed as an abnormal transaction account by the bank, triggering the risk of account freezing. Enterprises shall establish a verification mechanism for payment and collection codes, and check the consistency between the customs declaration code and the payment and collection code before each transaction payment to ensure compliance.
Linda GaoYears of service：7Customer Rating：5.0
Documentation SupervisorStart a Chat
The customs supervision code 0130 and balance of payments code 121010 used shall be clearly marked in the transit trade contract as the core compliance basis for contract performance. If the code is not marked in the contract, subsequent abnormal customs declaration or payment and collection caused by code misuse may be identified as a defect in contract performance, leading to disputes over liability for breach of contract between the buyer and the seller.
In addition, the transit trade code shall be marked simultaneously in documents such as bills of lading and letters of credit to ensure the consistency of the document chain and avoid bank refusal of payment due to document mismatch. If the goods are detained or delayed at the port due to code misuse, the enterprise can claim compensation from the responsible parties (such as customs brokers and shipping companies) with the contract and documents marked with the correct code, so as to reduce its own economic losses.
Lucas LiuYears of service：8Customer Rating：5.0
Senior Operations ConsultantStart a Chat
During on-site inspection of transit trade goods, customs supervision code 0130 is one of the core bases for inspectors to judge the attributes of goods. Inspectors will check the country of origin, country of destination and storage location of the goods according to the code to ensure that the goods do not enter the domestic consumption field. If the code is filled incorrectly, inspectors will launch a full inspection procedure, including unpacking inspection, checking cargo labels, sampling and testing, etc. The inspection time will be extended from the conventional 4 hours to more than 24 hours, increasing the risk of port demurrage.
In addition, if the goods are transited in the bonded zone, inspectors will check the consistency between the code and the bonded zone storage ledger to ensure that the goods are not taken out of the bonded zone and enter the territory without permission. Enterprises shall prepare supporting documents such as transit trade contracts and bills of lading in advance to cooperate with the inspection.
Daniel XuYears of service：10Customer Rating：5.0
Director of Import & Export OperationsStart a Chat
The packaging labels of transit trade goods shall be consistent with customs supervision code 0130, especially for transit trade of dangerous goods. For dangerous goods declared with code 0130, the packaging shall comply with the transit transport packaging standards of the International Maritime Organization (IMO), and the words "TRANSIT TRADE" shall be marked on the packaging label, consistent with the trade attribute corresponding to the code.
If the packaging label is inconsistent with the code, the customs will identify it as packaging violation and refuse to release the goods, requiring repackaging, resulting in additional packaging costs and time loss. In addition, for dangerous goods transited in bonded zones, the packaging shall comply with the safety standards for bonded zone storage and meet the regulatory requirements of code 0130, so as to avoid customs penalties due to mismatch between packaging and code.
Michael ZhangYears of service：6Customer Rating：5.0
Customs Declaration & Compliance ExpertStart a Chat
Transit trade is not included in the scope of export tax rebate. For goods declared with customs supervision code 0130, enterprises do not need to declare export tax rebate. If general trade code 0110 is misused for declaration, the goods will be regarded as export goods, and enterprises may incorrectly declare export tax rebate, triggering tax rebate inspection by the tax authority.
The tax authority will compare the code with the payment and collection flow and cargo logistics information. If abnormality is found, it will require the enterprise to return the rebated tax and charge late fee. In serious cases, the enterprise will be disqualified from export tax rebate. Enterprises shall establish a code verification mechanism before tax rebate declaration, clearly distinguish the codes of transit trade and general trade, and avoid incorrect tax rebate declaration.
Jason WuYears of service：10Customer Rating：5.0
International Logistics & Supply Chain ManagerStart a Chat
In the supply chain planning of transit trade, customs supervision code 0130 is the core basis for optimizing logistics costs. Transit goods declared with code 0130 can be stored in bonded zones for free, with a maximum free storage period of 60 days. Compared with the 7-day free storage period for general trade goods, the storage cost can be greatly reduced.
In addition, according to the trade attribute matched by the code, enterprises can choose the special transit yard at the transit port, reduce the number of warehouse transfers, and lower logistics costs. In the supply chain cost actuarial model, the compliance cost and logistics cost corresponding to the code shall be included in the accounting to optimize the profit margin of transit trade.
At the same time, a dynamic code adjustment mechanism shall be established. If the trade attribute changes (such as transit trade changed to domestic sale), the corresponding supervision code shall be replaced in time to ensure supply chain compliance.