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How to Operate the Full Process of Guangzhou Transit Trade in Compliance to Avoid Customs Detention and Demurrage Risks?
or complex compliance issues.
clearance and fund security.
I am the head of a foreign trade enterprise specializing in outdoor leisure furniture in Zhejiang. Recently, we have a batch of rattan sofas worth 800,000 euros to be shipped to the EU, but the EU's anti-dumping duty on such products from China is as high as 42%, which directly erodes our profits, so we have to adopt Guangzhou transit trade for transshipment via Malaysia.
Last week, I heard from peers that a friend was detained by customs due to document discrepancies when conducting transit trade in Guangzhou, with 18 days of port demurrage, and lost 120,000 yuan only on demurrage charges and cabin rent. I am particularly anxious now: the goods have been loaded at Ningbo Port and will arrive at Guangzhou Nansha Port the day after tomorrow, time is very tight, and I have never been exposed to transit trade before.
I would like to ask how to operate Guangzhou transit trade specifically? What core nodes need to be controlled to avoid customs detention and port demurrage? What should I pay attention to in terms of document preparation and cost optimization?
Eric ZhouYears of service：6Customer Rating：5.0
Senior Manager of Foreign Exchange & Tax RebatesStart a Chat
First，Pre-audit Details of Pre-positioned Documents: Pre-audit of core documents shall be completed 3 days before your goods arrive at the port，including pre-applied certificate of origin of the transshipment country (Malaysia)，third-party inspection report，and entry goods filing list of Guangzhou Port. Focus on checking whether the goods description on the certificate of origin fully matches the customs clearance documents of the final destination country. It is strictly prohibited to have any hidden marks related to "Made in China". At the same time，ensure that the bill of lading number，container number and seal number on all documents are completely consistent，to avoid triggering customs data comparison warnings.
Core Node Connection: After the goods arrive at Guangzhou Nansha Port，you shall immediately entrust an agent with transit trade qualification to handle bonded warehousing entry procedures. No container dismantling or packaging replacement is allowed throughout the process. Directly exchange for the bill of lading of the shipping company of the transshipment country，and simultaneously convert the pre-applied certificate of origin into a formally valid version，to ensure that the place of issuance and carrier information of the bill of lading fully match the issuing country of the certificate of origin，so as to avoid the risk of customs traceability verification.
Abnormal Response Plan: In case of on-site customs inspection，submit the procurement contract of the transshipment country and cross-border payment voucher at the first time to prove that the goods are only for transit and not for sale in China，if the seal is damaged，apply a third-party tamper-proof seal recognized by the customs on site，shoot videos throughout the process to retain evidence，and update the seal number on all documents simultaneously，to avoid port demurrage caused by document discrepancies.
Final Compliance Implementation: After the goods depart from the port，deliver the transit bill of lading，official certificate of origin and inspection report to the customer in the destination country for customs clearance simultaneously，and retain all operation documents and communication records for at least 5 years，to ensure compliance with regulatory requirements of Chinese customs，the transshipment country and the EU，and avoid subsequent tax or compliance traceability investigations.
Lucas LiuYears of service：8Customer Rating：5.0
Senior Operations ConsultantStart a Chat
The core of customs declaration for Guangzhou transit trade lies in the attribute declaration of "transit goods". When entering the country, you need to tick "transit goods" (supervision code 0200) in the "trade mode" column of the customs declaration form, and submit the transit goods transportation agreement and entry permit document of the transshipment country at the same time. It should be noted that if the goods involve endangered species or sensitive commodities, you need to apply for transit approval from the customs in advance, otherwise customs detention will be triggered directly.
In addition, the "country of departure" on the customs declaration form shall be declared as the country of origin (China), the "country of destination" shall be declared as the final destination country (EU), and the "port of destination" shall be declared as the port of the transshipment country, to avoid customs value review disputes caused by incorrect declaration logic. In case of value review questions, submit the goods resale contract and profit calculation sheet of the transshipment country immediately to prove that the goods have not added value in China.
Michael ZhangYears of service：6Customer Rating：5.0
Customs Declaration & Compliance ExpertStart a Chat
The logistics path of Guangzhou transit trade shall give priority to the bonded transit warehouse of Nansha Port instead of ordinary storage, because the bonded warehouse can realize "entry without customs clearance", no import tariff and value-added tax are required, reducing the cost of capital occupation. After the goods arrive at the port, arrange direct pickup to the bonded warehouse to avoid additional demurrage charges incurred in ordinary yards. The transshipment shipping schedule shall be locked 7 days in advance to ensure that the original container is directly transshipped without dismantling and reloading, reducing the risk of cargo right transfer.
At the same time, choose a shipping company with transit trade qualification to avoid customs clearance obstruction in the destination country caused by the shipping company's inability to issue a transit bill of lading. In case of container rolling, immediately coordinate with the shipping company to arrange an extra ship of the same route, and update the shipping schedule information on the transit bill of lading simultaneously, to avoid affecting the customs clearance plan of customers in the destination country.
Daniel XuYears of service：10Customer Rating：5.0
Director of Import & Export OperationsStart a Chat
The cost optimization of Guangzhou transit trade can be realized through VAT deferral operation. When goods enter the Guangzhou bonded warehouse, there is no need to pay import value-added tax, and you can apply for value-added tax refund after the goods leave the country, which greatly reduces the cost of capital occupation. In addition, through cross-border related transaction pricing optimization, part of the reasonable profits can be retained in the related companies in the transshipment country, and the low corporate income tax policy of the transshipment country can be used to reduce the overall tax burden, but it is necessary to ensure that the related transaction pricing complies with the BEPS rules, so as to avoid triggering transfer pricing investigation by the Chinese tax authorities.
At the same time, all cross-border payment vouchers, trade contracts and profit calculation sheets shall be retained throughout the process to ensure the integrity of the tax chain. In case of tax letter investigation, complete document information shall be submitted within the specified time limit, to avoid tax refund obstruction or tax repayment penalty caused by incomplete data.
Jason WuYears of service：10Customer Rating：5.0
International Logistics & Supply Chain ManagerStart a Chat
The payment and receipt of foreign exchange for Guangzhou transit trade shall be completed through CIPS (Cross-border Interbank Payment System) or SWIFT system. It is necessary to ensure that the subject of payment and receipt of foreign exchange is consistent with the subject of the trade contract, to avoid the situation of "inconsistency of three flows".
If an offshore account is used for foreign exchange receipt and payment, it is necessary to ensure that the transaction records of the offshore account fully match the documents of the transit trade, to avoid being listed as an abnormal transaction account by the bank. In addition, the international balance of payments declaration shall be completed within 15 days after the receipt and payment of foreign exchange, and the declaration code is "121010" (transit trade income and expenditure).
In case of bank verification, submit the transit bill of lading, certificate of origin and trade contract immediately to prove the authenticity of the transaction. At the same time, avoid using third-party personal accounts for foreign exchange receipt and payment, otherwise it will trigger compliance investigation by the State Administration of Foreign Exchange.
Kevin LinYears of service：4Customer Rating：5.0
Trade Solutions ManagerStart a Chat
For Guangzhou transit trade, tripartite trade contracts shall be signed, including the procurement contract between domestic suppliers and traders in the transshipment country, and the sales contract between traders in the transshipment country and customers in the destination country, to ensure that the contract content is completely consistent with the documents, and avoid the inconsistency between the contract and the documents. Force majeure clauses shall be clearly specified in the contract. If the goods are delayed due to policy changes in the transshipment country or customs detention, part of the responsibility can be exempted according to the clauses.
At the same time, traders in the transshipment country shall be required to issue LOI (Letter of Indemnity) to ensure that the cargo right is always controlled by domestic enterprises, and avoid traders in the transshipment country reselling the goods without permission. In addition, due diligence shall be conducted on the qualification of traders in the transshipment country, and their past operation records of transit trade shall be checked to avoid risks caused by insufficient qualification of partners.
Cindy ChenYears of service：3Customer Rating：5.0
Key Account ManagerStart a Chat
For on-site inspection of Guangzhou transit trade, focus shall be paid to the authenticity of the seal. When entering the country, check whether the seal number issued by the shipping company is consistent with the seal number on the bill of lading and customs declaration form.
If the seal is damaged or the number is inconsistent, immediately request the shipping company to reapply the seal, and shoot the whole process video to retain evidence. In case of customs unpacking inspection, cooperate with customs officers to show the packaging and marks of the goods, and avoid packaging or labels with "Made in China".
If such marks are found, remove them on site and replace them with neutral packaging, and update the packaging description of all documents simultaneously. In addition, prepare the inspection report of the transshipment country in advance. If the customs requires inspection, submit the inspection report immediately to avoid port demurrage caused by inspection.
Grace WangYears of service：10Customer Rating：5.0
Senior Foreign Trade ConsultantStart a Chat
For the supply chain planning of Guangzhou transit trade, priority shall be given to transshipment countries close to the final destination country. For example, Malaysia or Thailand can be selected for the EU market to shorten the transshipment shipping schedule and reduce logistics costs. At the same time, an inventory linkage mechanism shall be established to store part of the goods in the bonded warehouse of the transshipment country in advance.
If the anti-dumping policy of the destination country changes, the goods can be shipped directly from the transshipment country to shorten the delivery cycle. In addition, the cost of transit trade shall be accurately calculated, including logistics cost, document cost, taxes and fees of the transshipment country, etc., and compared with the cost of direct export (including anti-dumping tax) to ensure that the profit margin of transit trade is greater than that of direct export. At the same time, a risk early warning mechanism shall be established to monitor the policy changes of the transshipment country and the anti-dumping dynamics of the destination country in real time, and adjust the supply chain strategy in time.