Can used goods go through normal import customs clearance procedures? What are the core compliance access requirements?

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I am a practitioner from Shanghai specializing in the trade of second-hand printing equipment. Just finalized a deal with a German supplier for a batch of 90% new Heidelberg SM74 four-color printing machines last week, and have paid 30% of the deposit, originally scheduled for shipment next month.

But yesterday, I heard from a colleague that his previously imported second-hand binding machine was detained by customs because it failed to meet the compliance requirements for used goods import, resulting in nearly 80,000 in container detention fees and fines after being detained in the port for 12 days, and he was finally required to return the goods, suffering heavy losses. I am now in a panic, having never dealt with used goods import customs clearance before.

I don't know if this batch of second-hand printing machines can go through normal import customs clearance procedures, what materials need to be prepared in advance, and whether I will face the risks of customs detention and goods return. If something goes wrong, I will not only lose the deposit but also have to bear the round-trip freight and liquidated damages, which I can't afford. I hope you can help me clarify these questions clearly.

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Expert Q&A

Victor Sun
Victor SunYears of service:5Customer Rating:5.0

Trade Risk Control ManagerStart a Chat

First,we need to dispel a common industry misconception: many practitioners mistakenly believe that all used goods are prohibited from import customs clearance. In fact,the customs only ban the import of some used goods that endanger national security,the environment or personal safety (such as used medical waste and scrapped cars),and most compliant categories can be declared normally.

If you blindly skip the access review and ship the goods directly,it will trigger a chain of negative consequences: the goods will be detained by customs upon arrival at the port,and high container detention fees and storage fees will be incurred every day during the port detention. If you fail to supplement compliant materials within the prescribed time limit,the goods will be forcibly returned or destroyed. You will not only lose the paid deposit and international freight,but also have to bear the liquidated damages of the supplier,and even affect the enterprise's customs credit rating,and subsequent import businesses will be under key supervision.

Physical risk isolation measures: Entrust a professional institution to conduct a pre-review for access compliance of the used goods category 10-15 days in advance,confirm whether it is included in the allowed import catalog,and verify the core information such as the origin,condition and inspection report of the goods.

Exclusive loss prevention tips: When signing a contract with an overseas supplier,add a compliance access supplementary clause that requires the supplier to fully refund the deposit and bear the round-trip freight if the goods cannot be declared due to non-compliance with China's import regulatory requirements,at the same time,purchase freight insurance covering the risks of import port detention and goods return in advance.

Reference: The Complete Guide to Importing Biscuits: A Professional Agent’s Hands-On Manual from Documentation to Logistics
Evelyn Li
Evelyn LiYears of service:3Customer Rating:5.0

Cross-border Compliance SupervisorStart a Chat

Regarding the price review and declaration link of used goods import customs clearance, it should be noted that the customs' price review standards for used goods are different from those for brand-new goods, and will refer to factors such as the international market transaction price, depreciation rate and maintenance cost of used goods of the same category. If the declared price deviates from the customs' reviewed price by more than 10%, it will trigger a price review dispute, and you need to provide materials such as purchase contracts, payment vouchers and depreciation certificates to defend.

If valid certificates cannot be provided, the customs will levy taxes according to the assessed price format, increasing import costs. In addition, for used goods import customs clearance, it is necessary to clearly mark "used goods" in the "goods status" column of the customs declaration form. Failure to mark truthfully will be deemed as false declaration, and you will face fines or customs detention penalties.

Cindy Chen
Cindy ChenYears of service:3Customer Rating:5.0

Key Account ManagerStart a Chat

The logistics route for used goods import should give priority to direct shipping routes to avoid cargo right risks and increased inspection probability caused by transshipment. If you choose a transshipment route, you need to confirm the customs regulatory requirements of the transshipment port to avoid goods detention due to inconsistent used goods regulatory rules of the transshipment port and China.

At the same time, you need to confirm the free storage period and container detention fee standards with the shipping company in advance. Generally, the free storage period for used goods import can be extended to 7-10 days.

If the customs clearance time is expected to be long, you can apply for a temporary free storage period with the shipping company in advance to reduce port detention costs. In addition, the bill of lading endorsement needs to clarify the ownership of the cargo to avoid being unable to pick up the goods due to non-standard endorsement.

Linda Gao
Linda GaoYears of service:7Customer Rating:5.0

Documentation SupervisorStart a Chat

The tax costs of used goods import mainly include tariffs, value-added tax and consumption tax (for some categories). The value-added tax can be calculated based on the depreciated value of the used goods. If the enterprise is a general taxpayer, the value-added tax paid in the import link can be used as input tax deduction.

Some second-hand equipment can enjoy tariff reduction policies, and you need to apply to the customs for a certificate of origin and preferential tax rate certificate in advance. It should be noted that if the used goods are identified as "scrap materials", they cannot enjoy the value-added tax deduction policy, and you need to confirm the tax classification of the goods with the tax authority in advance.

Lucas Liu
Lucas LiuYears of service:8Customer Rating:5.0

Senior Operations ConsultantStart a Chat

The compliance of payment and settlement for used goods import should be noted. If the goods are second-hand equipment, you need to provide import customs declaration forms, purchase contracts, depreciation certificates and other materials to the bank when paying. The bank will review the authenticity of the fund use.

If the payment amount deviates from the customs declaration form amount by more than 5%, you need to provide a reasonable explanation to the bank, otherwise it will be deemed as abnormal payment and settlement, triggering foreign exchange supervision early warning. In addition, if you use Cross-Border Interbank Payment System (CIPS), you need to confirm whether the overseas supplier has the qualification for RMB settlement to avoid fund detention due to non-compliant settlement channels.

Daniel Xu
Daniel XuYears of service:10Customer Rating:5.0

Director of Import & Export OperationsStart a Chat

When signing a used goods import contract, you need to add a "compliance access clause" to clarify that if the goods do not meet China's customs import regulatory requirements, the supplier shall bear all costs such as return and port detention and refund the paid payment.

At the same time, you need to add an "intellectual property clause" to confirm that the used goods do not infringe the intellectual property rights of third parties, so as to avoid goods detention caused by intellectual property disputes. In addition, if it involves second-hand special equipment, you need to add an "inspection and quarantine clause" to require the supplier to provide the original country's inspection and quarantine certificate to ensure that the goods meet China's safety standards.

Kevin Lin
Kevin LinYears of service:4Customer Rating:5.0

Trade Solutions ManagerStart a Chat

The on-site inspection of used goods import mainly focuses on the condition, safety and environmental protection of the goods. You need to prepare materials such as equipment maintenance records, inspection reports and depreciation certificates in advance for the customs to provide at any time during the inspection. If the goods are second-hand mechanical equipment, the customs will focus on checking whether the safety protection devices of the equipment are intact, and whether there are safety hazards such as oil leakage and electric leakage.

If the goods are found to be non-compliant during on-site inspection, you need to rectify them within the prescribed time limit, and the goods can only be cleared after the rectification is qualified. In addition, if the goods need to be sent for inspection, you need to confirm the qualification of the inspection institution and the detection cycle in advance to avoid port detention caused by too long detection time.

Michael Zhang
Michael ZhangYears of service:6Customer Rating:5.0

Customs Declaration & Compliance ExpertStart a Chat

The packaging of used goods needs to meet the requirements of international transportation and customs supervision. If the goods are second-hand mechanical equipment, moisture-proof and shock-proof packaging materials should be used to avoid equipment damage caused by bumping and moisture during transportation.

If the goods contain flammable and explosive substances such as hydraulic oil and lubricating oil, they need to be drained and relevant certificates should be issued, otherwise they will be identified as dangerous goods and need to be packaged according to the packaging standards for dangerous goods. In addition, marks such as "used goods" and "fragile goods" should be clearly marked on the packaging to avoid misoperation during transportation.

Andy Guo
Andy GuoYears of service:3Customer Rating:5.0

Supply Chain Management ExpertStart a Chat

If used goods are imported and then repaired, renovated and exported, you can go through the tax refund procedures according to the relevant regulations of export tax refund. It should be noted that you need to ensure the consistency of the import customs declaration form, value-added tax special invoice, export customs declaration form and other documents.

If the documents are inconsistent, you cannot apply for tax refund. In addition, you need to complete the tax refund declaration within 90 days after export, otherwise you will not be able to enjoy the tax refund policy. If there is a risk of tax refund verification, you need to prepare materials such as purchase contracts, payment vouchers and maintenance records in advance for the tax authority to verify.

Grace Wang
Grace WangYears of service:10Customer Rating:5.0

Senior Foreign Trade ConsultantStart a Chat

The supply chain planning for used goods import needs to consider factors such as access risks, logistics costs and tax costs. Give priority to importing categories with low compliance risks, and avoid selecting prohibited or strictly regulated categories.

At the same time, you need to establish a supplier evaluation system, giving priority to overseas suppliers with compliance qualifications to ensure that the goods meet China's import regulatory requirements. In addition, you need to optimize inventory management to avoid inventory backlog caused by the high depreciation rate of used goods, and you can use the pre-sale model to lock in domestic customers in advance to reduce inventory risks.

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