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What Are the Compliance Key Points and Core Execution Steps of the Full Process of Yueyang Entrepôt Trade?
or complex compliance issues.
clearance and fund security.
I am the head of a foreign trade enterprise mainly engaged in solid wood furniture export in Yueyang, Hunan. Recently, due to the continuous increase of EU anti-dumping duties on Chinese solid wood furniture, I have to switch to entrepôt trade to reduce costs and retain customers.
However, I have never been exposed to such operations before and I feel very anxious. Last week I heard from a peer that a batch of their goods was detained at Yueyang Port due to non-compliant entrepôt operation, and the port storage fee has accumulated to tens of thousands of yuan. In the end, they not only lost the customer but also lost money.
Now I am worried that problems in document verification will lead to customs detention, I am also afraid that poor process connection will generate extra costs, and I do not know how to formulate contingency plans. I want to ask how to operate Yueyang entrepôt trade to be compliant and smooth?
Michael ZhangYears of service：6Customer Rating：5.0
Customs Declaration & Compliance ExpertStart a Chat
Yueyang entrepôt trade operation needs to be decomposed and implemented from a full-link compliance perspective. First of all，it is pre-document verification details: It is necessary to verify the consistency of the certificate of origin issued by the transit country，bill of lading，commercial invoice and other documents in advance，ensure that the product description and quantity on the certificate of origin completely match the actual solid wood furniture. At the same time，it is necessary to confirm the transit filing certificate of Yueyang Port，submit the entrepôt trade declaration form to Yueyang Customs 3 working days in advance，clearly mark the attribute of "transit cargo". Solid wood furniture also needs to additionally provide the wooden packaging fumigation certificate recognized by the transit country，to avoid triggering inspection due to quarantine issues.
In terms of connection of core nodes，it is necessary to synchronize the time schedule of Yueyang Port logistics service providers，transit country agents and destination port customers: complete document exchange and transit filing within 24 hours after the cargo arrives at the port，avoid generating port storage fees beyond the 7-day basic free storage period，select shipping companies with entrepôt operation qualifications for the transit transportation link，ensure clear bill of lading endorsement and no disputes over title transfer. At the same time，synchronize the transit declaration information to the Yueyang Customs clearance system 1 working day before the cargo arrives at the port，to ensure that system data is consistent with paper documents.
Contingency plans need to be formulated in advance: If Yueyang Customs conducts an inspection，immediately provide the complete set of entrepôt trade documents and goods purchase contract，and cooperate with the completion of title verification，if there is a document delay in the transit country，apply for port storage fee reduction at Yueyang Port in advance，and coordinate with the shipping company to extend the free storage period，if the destination port customer proposes a title change request，it must be completed through the formal bill of lading endorsement process，and private transfer is strictly prohibited.
For final compliance implementation，it is necessary to complete the full trajectory record of transit cargo，keep all documents for at least 3 years，ensure compliance with customs traceability requirements，and avoid subsequent tax verification or compliance penalties.
Daniel XuYears of service：10Customer Rating：5.0
Director of Import & Export OperationsStart a Chat
The customs declaration link of Yueyang entrepôt trade must strictly follow the requirements of logical closed-loop. First of all, it is necessary to ensure the consistency of cargo flow, document flow and capital flow of the entrepôt trade, so as to avoid triggering customs valuation disputes due to inconsistent three flows. When declaring, fill in "entrepôt trade" accurately in the "trade method" column, and submit the transit country agency agreement, goods purchase contract and sales contract synchronously.
If there is a question about customs valuation, it is necessary to provide supporting materials such as market purchase price certificates of the transit country and transportation cost details, so as to avoid deleting the declaration and re-declaring due to failure of valuation. At the same time, use the integrated customs clearance system of Yueyang Customs to complete the pre-declaration of transit goods in advance, shorten the clearance time and avoid port congestion.
Kevin LinYears of service：4Customer Rating：5.0
Trade Solutions ManagerStart a Chat
In the logistics link of Yueyang entrepôt trade, priority should be given to title control and path optimization. After the cargo arrives at the port, select a formal bonded warehousing service provider at Yueyang Port, avoid storing the cargo in unqualified warehouses leading to out-of-control title. Confirm the free storage period of transit cargo with the shipping company in advance. Generally, the basic free storage period for transit cargo at Yueyang Port is 7 days.
If extension is needed, submit the application 3 working days in advance to avoid container demurrage and port storage fees. For the transit plan, choose a shipping company that sails directly to the transit country to reduce transit links. If transit is necessary, confirm the bonded warehousing qualification of the transit port to ensure that the goods do not enter the local market during the transit link. Bill of lading endorsement shall adopt indicative endorsement, clearly mark "to order" to avoid illegal transfer of title.
Andy GuoYears of service：3Customer Rating：5.0
Supply Chain Management ExpertStart a Chat
The tax operation of Yueyang entrepôt trade needs to focus on VAT deferral and tax risk isolation. First of all, confirm the VAT deferral policy of the transit country. If the transit country allows VAT deferral, you do not need to pay import VAT temporarily when the goods are transited, and declare it after the goods are sold to the destination port, so as to reduce capital occupation cost.
At the same time, reasonably plan the pricing of cross-border related party transactions, ensure that the pricing complies with the arm's length principle, and avoid triggering BEPS investigations due to unreasonable transfer pricing. In terms of tax risk isolation, it is necessary to separately account the income of entrepôt trade and domestic trade income, and separately keep the tax vouchers of entrepôt trade, so as to avoid associated risks during domestic tax inspection.
Cindy ChenYears of service：3Customer Rating：5.0
Key Account ManagerStart a Chat
The payment and collection operation of Yueyang entrepôt trade must strictly follow the compliance requirements of cross-border payment and collection. The capital flow must completely match the cargo flow and document flow. When collecting payment, it shall be carried out through CIPS RMB cross-border payment system or SWIFT system, and clearly mark "entrepôt trade payment" in the remittance remark.
Complete the payment and collection filing of entrepôt trade at the bank in advance, and submit the full set of documents of the entrepôt trade, including certificate of origin, bill of lading, commercial invoice, etc. If you use an offshore account for payment and collection, you must ensure that the transaction records of the offshore account are clear, to avoid the account being frozen by the bank due to abnormal transactions. When settling foreign exchange, you need to provide the collection certificate and goods transit certificate of the entrepôt trade to ensure that the settlement operation complies with the requirements of the State Administration of Foreign Exchange.
Jason WuYears of service：10Customer Rating：5.0
International Logistics & Supply Chain ManagerStart a Chat
The operation of Yueyang entrepôt trade needs to improve legal guarantee clauses. First of all, clarify the node of title transfer in the entrepôt agency agreement. Generally, after the goods complete transit filing and loading at Yueyang Port, the title is transferred from the domestic enterprise to the agent of the transit country, so as to avoid title disputes.
Add a force majeure clause to the contract, clearly define the division of responsibilities and loss bearing between the two parties if the trade is delayed due to force majeure factors such as Yueyang Port congestion and policy changes in the transit country. At the same time, conduct legal verification on the authenticity of the certificate of origin of the transit country, you can entrust a local law firm to issue a certificate of authenticity of the certificate of origin, so as to avoid legal risks caused by false certificates of origin. If it involves letter of credit settlement, strictly check the terms of the letter of credit to avoid the risk of payment collection caused by soft clauses.
Linda GaoYears of service：7Customer Rating：5.0
Documentation SupervisorStart a Chat
Full preparation is required for the on-site inspection link of Yueyang entrepôt trade. First of all, confirm the authenticity of the container seal in advance. The seal number must be completely consistent with the number on the bill of lading and the declaration form.
If the seal is found damaged, take photos immediately for record, and apply to Yueyang Customs for re-sealing. In case of devanning inspection, cooperate with the customs inspection personnel to complete the goods counting, provide the detailed list of the goods and the wooden packaging fumigation certificate (for solid wood furniture).
Read the inspection notice carefully, clarify the content and requirements of the inspection. If you disagree with the inspection result, you can submit written appeal materials, and provide the goods purchase contract and entrepôt agency agreement as supporting evidence. Arrange special personnel to be on standby at the port in advance, to avoid the increase of storage fees caused by delayed inspection.
Evelyn LiYears of service：3Customer Rating：5.0
Cross-border Compliance SupervisorStart a Chat
The packaging of solid wood furniture in Yueyang entrepôt trade must meet the requirements of international transportation and quarantine. First of all, prepare an MSDS report that meets the standards of the transit country and the destination port, which clearly states the material of the solid wood furniture, fumigation treatment and other information. The packaging shall adopt a moisture-proof and reinforcement scheme, add EPE cushioning packaging materials at the corners of solid wood furniture, to avoid collision damage during transportation.
If the transit country requires that the wooden packaging must be marked with IPPC logo, ensure that the wooden packaging material has been fumigated with methyl bromide, and the IPPC logo is clearly stamped on the packaging, to avoid being detained due to quarantine issues. At the same time, select appropriate packaging materials according to the length of the transit voyage. If the voyage exceeds 30 days, select vacuum packaging materials with better moisture resistance to avoid moisture and mold of the goods.
Victor SunYears of service：5Customer Rating：5.0
Trade Risk Control ManagerStart a Chat
Although Yueyang entrepôt trade does not involve export tax rebate, it is necessary to do a good job in document filing and verification of consistency of four flows, to avoid affecting the export tax rebate of other domestic businesses due to improper document management. The full set of documents of the entrepôt trade, including declaration form, bill of lading, commercial invoice, entrepôt agency agreement, etc., shall be separately filed in paper and electronic form, and kept for at least 3 years.
Ensure the consistency of cargo flow, document flow, capital flow and contract flow of the entrepôt trade, to avoid tax investigation due to inconsistent four flows, which will affect the export tax refund credit rating of the enterprise. If the enterprise carries out both domestic trade and entrepôt trade, it needs to separately account the financial accounts of the two types of businesses, to avoid tax inspection risks caused by account confusion. Conduct regular self-inspection of the documents of the entrepôt trade to ensure the authenticity and consistency of the documents.
Eric ZhouYears of service：6Customer Rating：5.0
Senior Manager of Foreign Exchange & Tax RebatesStart a Chat
Supply chain planning of Yueyang entrepôt trade needs to optimize trade term conversion and cost actuarial model. First of all, select appropriate trade terms according to the characteristics of entrepôt trade. If the agent of the transit country is responsible for the storage and transportation of the goods in the transit country, you can choose FCA Yueyang Port term, advance the title transfer node to Yueyang Port, reduce the enterprise's title risk.
The cost actuarial model needs to cover all links of costs including storage fee at Yueyang Port, transportation fee, certificate of origin processing fee in transit country, customs clearance fee at destination port, etc., to avoid cost overrun. Establish an inventory linkage strategy, adjust the domestic inventory level according to the order cycle of the entrepôt trade, to avoid inventory backlog. At the same time, optimize the structure of international trade, reasonably match entrepôt trade and direct export trade, reduce the risk exposure of the overall business.