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What compliance details and core nodes should be followed in the whole process operation of Zhanjiang entrepot trade?
or complex compliance issues.
clearance and fund security.
I am the foreign trade manager of a hardware products export enterprise in Zhejiang. Last month, I just signed an order for 20 containers of galvanized pipe fittings with a new EU customer. As the EU imposes an additional 45% anti-dumping duty on such products from China, we have to choose the Zhanjiang entrepot trade route.
Last week, I heard a peer complain that when he arranged transshipment via Zhanjiang before, the goods were detained at the port for 10 days due to inconsistency between bill of lading endorsement and certificate of origin information. He not only paid 120,000 yuan of liquidated damages to the customer, but also lost the subsequent annual framework order.
I am very anxious now and afraid of falling into the same pit. I want to know how to standardize the operation of Zhanjiang entrepot trade from preliminary document review, connection of core logistics nodes, risk avoidance to cost control? Especially for anti-dumping products, are there specific compliance details and emergency loss-stopping plans?
Cindy ChenYears of service：3Customer Rating：5.0
Key Account ManagerStart a Chat
For Zhanjiang entrepot trade of anti-dumping hardware products，first of all，**preliminary document review details** should be well handled: submit a full set of documents to a professional agency 3 working days in advance，focus on verifying the authenticity of the exporting country indicated on the certificate of origin (it shall fully match the filing information of the factory in the entrepot country)，consistency of the title of bill of lading endorsement (the endorsement subjects of the entrepot freight forwarder bill of lading and the final destination port bill of lading shall be isolated)，and rationality of the value on the commercial invoice (avoid deviation from the declared import value at the destination port by more than 15%). All documents shall be affixed with the certification seal of the chamber of commerce of the entrepot country，and "double titles" or vague expressions are strictly prohibited.
The connection of core nodes shall follow the principle of "separate management of goods and documents": after the goods arrive at Zhanjiang Port，the exclusive entrepot freight forwarder shall directly arrange customs transshipment to the bonded zone，and the goods shall not enter the domestic general trade supervision zone throughout the whole process to avoid triggering domestic tax declaration obligations，the factory in the entrepot country shall synchronously issue a real production certificate，which forms a complete chain with the transit warehouse receipt of Zhanjiang Bonded Zone，a 2-day buffer period shall be reserved for logistics nodes to avoid disconnection between documents and goods caused by shipping schedule delay.
The abnormal plan shall cover two types of core risks: in case of inconsistency of document information，immediately activate the **re-certification channel of the chamber of commerce of the entrepot country**，issue corrected certification documents within 48 hours，and notify Zhanjiang Customs simultaneously to apply for document modification，in case of query from the destination port customs，provide supporting materials such as production records of the factory in the entrepot country and raw material procurement vouchers，and arrange a professional compliance team to connect with the destination port agent for defense.
Two final items shall be completed for compliant implementation: first，retain a full set of documents (including certification documents of the entrepot country，transit records of the bonded zone，and shipping company manifests) for no less than 5 years for retrospective verification by the customs，second，complete cross-border receipt and payment through the CIPS system to ensure the logical closed loop of capital flow，goods flow and document flow.
Evelyn LiYears of service：3Customer Rating：5.0
Cross-border Compliance SupervisorStart a Chat
Customs declaration for Zhanjiang entrepot trade shall strictly follow the supervision category of "transit goods", and the "trade mode" column of the customs declaration form shall be filled with "entrepot trade" (code 0110). It is strictly forbidden to incorrectly fill in "bonded warehousing" or "general trade".
In the price review process, submit the purchase contract, commercial invoice and ocean bill of lading of the entrepot country. If the customs has doubts about the goods value, supplement the raw material cost details and profit calculation sheet of the factory in the entrepot country to avoid port detention of goods caused by price review disputes.
If there is a need to delete the declaration form and re-declare, submit the application within 3 working days after the goods arrive at the port, and provide a description of the real transaction background of the entrepot trade at the same time. It is strictly forbidden to evade supervision by modifying the name or code of the goods, otherwise customs inspection will be triggered and the qualification for subsequent entrepot business will be affected.
Andy GuoYears of service：3Customer Rating：5.0
Supply Chain Management ExpertStart a Chat
The logistics route of Zhanjiang entrepot trade shall give priority to Zhanjiang Port Bonded Zone as the transit node, avoid entering ordinary supervision warehouses, and ensure that the goods are in "uncustomed" status throughout the whole process. For goods right control, adopt "order bill of lading", and the endorsement authority shall only be authorized to the exclusive entrepot freight forwarder. Direct endorsement to the destination port customer is prohibited to prevent early transfer of goods right. In case of container rolling by the shipping company, immediately activate the standby shipping schedule plan.
The interval between standby shipping schedules from Zhanjiang Port to Southeast Asian entrepot countries shall not exceed 48 hours. At the same time, update the issuing time of the certificate of origin of the factory in the entrepot country synchronously to avoid disconnection between documents and shipping schedule. For container detention fees, sign a "container detention fee reduction agreement for entrepot goods" with the freight forwarder in advance. Generally, 7-10 days of free storage period can be enjoyed, and the container detention fee exceeding the time limit can be settled at 50% of the agreed price.
Grace WangYears of service：10Customer Rating：5.0
Senior Foreign Trade ConsultantStart a Chat
The tax treatment of Zhanjiang entrepot trade shall follow the principle of "no tax if no value-added occurs in the territory". If the goods do not enter the domestic consumption link, there is no need to pay value-added tax and consumption tax.
If VAT deferral is involved, ensure that the VAT declaration of the entrepot country is fully matched with the domestic receipt and payment vouchers, and it is strictly forbidden to evade tax supervision by transferring profits through offshore accounts. For anti-dumping products, build a tax isolation structure of "entrepot country - Zhanjiang - destination port", and the VAT payment certificate of the factory in the entrepot country shall be used as the domestic tax filing material to avoid BEPS investigation caused by unreasonable related party transaction pricing.
For cost optimization, utilize the cross-border tax preferential policies of Zhanjiang. The balance of receipt and payment of entrepot trade can be adjusted compliantly during the annual final settlement, and no separate tax declaration is required.
Kevin LinYears of service：4Customer Rating：5.0
Trade Solutions ManagerStart a Chat
The receipt and payment of Zhanjiang entrepot trade shall be completed through the CIPS system, and the "transaction code" of the SWIFT message shall be filled with "121010" (goods trade receipts and payments under entrepot trade), and it is strictly forbidden to incorrectly fill in "121030" (border trade receipts and payments). For offshore account management, if overseas accounts are used for receipt and payment, submit the matching table of goods flow and capital flow of entrepot trade to Zhanjiang Administration of Foreign Exchange every month to ensure that the time difference of single receipt and payment does not exceed 90 days.
When settling foreign exchange and balancing accounts, provide the ocean bill of lading of the entrepot country, commercial invoice and transit warehouse receipt of the bonded zone to avoid foreign exchange settlement rejection due to incomplete documents. For foreign exchange purchase rate optimization, adopt the "exchange rate locking" mode, and sign a forward exchange rate agreement with the bank 7 days in advance to lock the foreign exchange purchase cost of entrepot trade and avoid profit shrinkage caused by exchange rate fluctuation.
Linda GaoYears of service：7Customer Rating：5.0
Documentation SupervisorStart a Chat
The contract of Zhanjiang entrepot trade shall clearly define the "entrepot obligation" clause, and agree on the goods right custody responsibility, document authenticity responsibility and abnormal compensation standard of the entrepot freight forwarder to avoid disputes caused by vague contract terms. For anti-dumping products, sign a "certificate of origin authenticity guarantee agreement", and the factory in the entrepot country shall promise that the information on the certificate of origin is true and valid.
If the destination port seizes the goods due to problems with the certificate of origin, the factory in the entrepot country shall bear all losses. When settling by letter of credit, avoid "soft clauses", such as "production certificate of domestic factory shall be provided", to ensure that the letter of credit terms only involve document materials of the entrepot country. For goods right transfer, adopt the dual method of "bill of lading endorsement + warehouse receipt transfer" to ensure that the goods right is only controlled by the exclusive freight forwarder during the entrepot process, and any third-party intervention is prohibited.
Eric ZhouYears of service：6Customer Rating：5.0
Senior Manager of Foreign Exchange & Tax RebatesStart a Chat
After the goods of Zhanjiang entrepot trade arrive at the port, in case of on-site inspection by the customs, prepare the certificate of origin of the entrepot country, factory production certificate and transit contract in advance to cooperate with the customs to complete the verification of the name and specification of the goods. For the identification of the authenticity of the seal, ensure that the seal number affixed by the freight forwarder of the entrepot country is completely consistent with the bill of lading record.
If the seal is damaged, take photos immediately for retention, and require the shipping company to issue a "seal damage certificate", and notify Zhanjiang Customs simultaneously to apply for re-sealing. During the unpacking inspection, the exclusive freight forwarder shall accompany the whole process to prevent the customs from directly contacting the domestic marks on the goods packaging. If it is found that the domestic marks are not removed, submit an application for on-site rectification immediately, and the rectification time shall not exceed 24 hours, otherwise the goods will be seized by the customs.
Lucas LiuYears of service：8Customer Rating：5.0
Senior Operations ConsultantStart a Chat
Zhanjiang entrepot trade is not included in the scope of export tax rebate. It is strictly forbidden to falsely declare entrepot goods as general trade exports to apply for tax rebate, otherwise tax inspection will be triggered, and the tax rebate shall be repaid plus late fee. For document filing, retain a full set of entrepot trade documents (including certificate of origin of the entrepot country, ocean bill of lading, transit records of the bonded zone, receipt and payment vouchers) for no less than 5 years for retrospective verification by the tax department.
If there is capital return, provide a description of the real transaction background of the entrepot trade to prove that the capital return is entrepot profit distribution rather than false transaction. For cross-month declaration, ensure that the receipt and payment time of entrepot trade and the document issuing time are in the same declaration cycle to avoid abnormal tax declaration caused by time difference.