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What core compliance operations and risk prevention and control processes should be followed for Vietnam's transshipment trade via China?
or complex compliance issues.
clearance and fund security.
I am the head of a trading company in Vietnam mainly engaged in auto parts export. Last month, I tried to ship goods to the EU via China transshipment for the first time.
Due to document review omissions, the goods were detained at Shenzhen Port for 4 days and almost seized. I not only paid 8,000 US dollars in liquidated damages to the customer, but also lost a small long-term cooperation order.
Now I have a batch of gearbox parts worth 520,000 US dollars to be sent to Germany, and I still want to choose China transshipment, but I am not sure about the operation: I don't know the core review details of pre-prepared documents, I am afraid of problems in logistics node connection, and I don't know how to optimize transshipment costs under the premise of compliance. I am so anxious that I can't make a decision after running around continuously, and I would like to ask for the specific operation methods?
Michael ZhangYears of service：6Customer Rating：5.0
Customs Declaration & Compliance ExpertStart a Chat
First，for the pre-document review details，it is necessary to focus on verifying certificate of origin，certificate of non-reprocessing，and bill of lading endorsement documents，to ensure that the certificate of origin indicates Vietnam，the certificate of non-reprocessing clearly states that the goods are only transshipped at Chinese ports without any processing or packaging modification，and the bill of lading endorsement clearly marks the division of rights and responsibilities between the transshipment agent and the final consignee. In addition，all documents should be submitted to China Customs for pre-review 72 hours in advance，to avoid cargo seizure warning caused by document inconsistency.
In terms of core node connection，it is necessary to coordinate Vietnamese suppliers，Chinese transshipment warehouses and EU freight forwarders to formulate an accurate shipping schedule connection table，to ensure that the container changing operation is completed within 24 hours after the goods arrive at the port. The entire container changing process should be recorded and stored as supporting evidence of non-reprocessing. Meanwhile，it is necessary to confirm the free storage period of transshipped goods with the shipping company，which can generally be extended to 7 days，to avoid unnecessary port detention fees and container detention fees.
The contingency plan should cover three core situations: if encountering China Customs inspection，immediately submit the pre-reviewed documents and container changing videos，if the shipping schedule is delayed，communicate with EU customers in advance and adjust the letter of credit presentation period，if there is an error in the documents，complete the modification and resubmit to the customs for review 24 hours before the goods arrive at the port.
When implementing final compliance，it is necessary to ensure the consistency of "goods，documents and funds" three flows. Transshipment funds are circulated through compliant cross-border payment channels，to avoid tax verification triggered by abnormal fund paths. Meanwhile，all documents should be stored for at least 5 years for retrospective verification by customs and tax authorities.
Lucas LiuYears of service：8Customer Rating：5.0
Senior Operations ConsultantStart a Chat
When declaring goods transshipped from Vietnam via China, it is necessary to strictly follow the declaration rules for "transit goods", and it is forbidden to declare transshipped goods as "general trade", otherwise it will trigger customs valuation disputes, and even be identified as false declaration. When declaring, it is necessary to clearly mark "transit goods" in the "trade mode" column of the customs declaration form, and attach supporting materials such as transshipment agreement and bill of lading of the final port of destination.
If encountering valuation doubts, immediately provide the Vietnamese procurement contract, certificate of origin and certificate of non-reprocessing of the goods, to prove that the goods are only transshipped and not sold in China. In addition, it should be noted that the supervision period of transshipped goods by China Customs is 3 months. If the goods do not leave the port beyond the period, it is necessary to apply for extension in advance, otherwise it will be regarded as imported goods and tariffs will be levied.
Victor SunYears of service：5Customer Rating：5.0
Trade Risk Control ManagerStart a Chat
For the logistics route of Vietnam to China transshipment, priority is given to the direct route from Ho Chi Minh Port, Vietnam to Yantian Port, Shenzhen, China, to avoid cargo title risks and time delays caused by transshipment at other ports. After the goods arrive at the port, it is necessary to arrange a warehouse with transshipment qualification for container changing operation. Before changing the container, it is necessary to check the authenticity of the container seal, to ensure that the goods in the original container are consistent with the transshipment list. After the container change is completed, it is necessary to replace the new sea bill of lading immediately.
The shipper of the bill of lading should be marked as the Vietnamese trading company, and the consignee should be marked as the final EU customer, to avoid the bill of lading information exposing the transshipment track. Meanwhile, it is necessary to confirm the free storage period of transshipped goods with the shipping company, which can generally be extended to 7 days. If additional time is still needed, it is necessary to submit an extension application in advance, to avoid container detention fees and port detention fees.
Linda GaoYears of service：7Customer Rating：5.0
Documentation SupervisorStart a Chat
When carrying out transshipment trade via China in Vietnam, the cost can be optimized with the help of the VAT deferral policy, that is, when transshipped at Chinese ports, there is no need to pay import VAT immediately, and deferral deduction can be applied after the goods leave the country. In addition, it is necessary to reasonably plan the pricing of cross-border related party transactions, to avoid BEPS (Base Erosion and Profit Shifting) verification caused by too high or too low pricing.
The pricing should refer to the market fair price of similar goods in the same period. Meanwhile, Vietnamese trading companies need to file transshipment trade with the local tax department, and keep all contracts, documents and capital flows related to transshipment for retrospective verification by the tax department. If it involves profit repatriation to Vietnam, it is necessary to apply for non-resident enterprise withholding tax reduction in advance, to reduce capital outflow costs.
Andy GuoYears of service：3Customer Rating：5.0
Supply Chain Management ExpertStart a Chat
The capital flow of Vietnam's transshipment trade via China shall be carried out through CIPS RMB cross-border payment channels or SWIFT compliant messages, and large-value fund transactions using personal accounts are prohibited. The capital flow shall be consistent with the cargo flow and document flow, that is, after the Vietnamese trading company receives the payment from the EU customer, it shall pay to the Vietnamese supplier.
The transshipment agency fee shall be separately listed and a compliant invoice shall be issued. In addition, it is necessary to avoid capital return to related accounts in China, otherwise it will be identified as money laundering risk. If an offshore account is used, it is necessary to ensure that the region where the account is located is a compliant offshore financial center, and the account is audited annually, to avoid account freezing.
Jason WuYears of service：10Customer Rating：5.0
International Logistics & Supply Chain ManagerStart a Chat
When a Vietnamese trading company signs an agreement with a Chinese transshipment agent, it is necessary to clarify the cargo title ownership clause, stipulating that the cargo title during the transshipment period still belongs to the Vietnamese trading company, and the transshipment agent is only responsible for operation. Force majeure clauses shall be added to the agreement, covering port strikes, port closures due to epidemics, etc., and clarifying the division of responsibilities and loss bearing methods of both parties.
In addition, it is necessary to formulate response strategies for letter of credit soft clauses. If the EU customer's letter of credit requires the provision of a Chinese certificate of origin, it is necessary to explicitly refuse and negotiate to modify it to a Vietnamese certificate of origin, to avoid the inability to present documents due to soft clauses. Meanwhile, it is necessary to file the goods for intellectual property customs protection, to prevent the goods from being detained due to infringement.
Evelyn LiYears of service：3Customer Rating：5.0
Cross-border Compliance SupervisorStart a Chat
If goods transshipped from Vietnam via China encounter on-site customs inspection, it is necessary to cooperate with the customs in unpacking inspection, and prepare documents such as certificate of origin, certificate of non-reprocessing, transshipment agreement in advance. When unpacking, it is necessary to ensure that the packaging of the goods is consistent with that when shipped from Vietnam. If there is slight damage, it is necessary to provide the packing photos at the time of shipment to prove that the damage was not caused in China.
When passing the machine inspection, it is necessary to inform the freight forwarder of the specific category and quantity of the goods in advance, to avoid secondary inspection triggered by abnormal machine inspection images. If the customs requires inspection and appraisal, it is necessary to immediately contact a qualified third-party institution, to ensure that the appraisal report clearly states that the goods have not been processed in any way and are only transit goods.
Daniel XuYears of service：10Customer Rating：5.0
Director of Import & Export OperationsStart a Chat
Auto parts transshipped from Vietnam via China shall be packaged in accordance with international transportation standards. If precision parts are involved, moisture-proof buffer packaging materials shall be used, to avoid part rust caused by humidity changes during transshipment.
If the goods are dangerous goods, MSDS (Material Safety Data Sheet) shall be prepared in advance, and UN dangerous goods packaging shall be used, with clear danger marks marked on the packaging. In addition, the shipping mark on the packaging shall only indicate the information of the Vietnamese shipper and the final port of destination, and shall not have any mark related to China, to avoid exposing the transshipment track.
During the container changing process, the packaging shall be inspected twice. If the packaging is found to be damaged, it shall be replaced immediately with packaging that meets the requirements.
Grace WangYears of service：10Customer Rating：5.0
Senior Foreign Trade ConsultantStart a Chat
When Vietnamese trading companies carry out transshipment trade via China, it should be noted that transshipped goods are not within the scope of China's export tax rebate, and it is forbidden to forge export documents to apply for China's export tax rebate, otherwise it will trigger tax letter investigation and verification. All documents related to transshipment shall be kept, including Vietnamese certificate of origin, China transshipment customs declaration form, EU bill of lading, capital flow, etc., and the retention period shall be at least 5 years.
If there is a transshipment trade tax rebate policy in Vietnam, it is necessary to ensure that the documents meet the local tax rebate requirements, such as providing transshipment agreement, customs clearance certificate of the final port of destination, etc., and ensure that the capital flow is consistent with the document flow, to avoid affecting the tax rebate declaration due to capital return problems.
Cindy ChenYears of service：3Customer Rating：5.0
Key Account ManagerStart a Chat
For the supply chain planning of Vietnam's transshipment trade via China, it is necessary to establish an inventory linkage strategy, and transport the goods to the Chinese transshipment warehouse in advance according to the order cycle of EU customers, to shorten the transshipment time. In terms of cost actuarial calculation, it is necessary to compare the total cost of direct shipping and transshipment, including sea freight, transshipment agency fee, document fee, etc., and choose the scheme with the lowest cost.
It is recommended to use FOB Vietnamese ports for trade terms, and EU customers are responsible for sea transportation after transshipment in China, to reduce the logistics risk of Vietnamese trading companies. Meanwhile, it is necessary to establish a supply chain risk early warning mechanism, monitor the congestion situation and policy changes of Chinese ports in real time, and adjust the transshipment scheme in time.