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What are the key points for full-process compliance operation of Zhenjiang transit trade from document review to logistics implementation?
or complex compliance issues.
clearance and fund security.
I am the head of a foreign trade company in Zhenjiang specializing in hardware and electromechanical product export. I just received a transit trade order to the EU last week, but I have never operated this type of business before.
Yesterday I heard from peers that an enterprise suffered 3 days of cargo detention at Zhenjiang Port due to omissions in document review, which not only incurred nearly 20,000 RMB in container detention fees, but also almost delayed the customer's shipping schedule. Now I am very anxious, as this batch of goods will be released from the warehouse early next month.
I want to know how to standardize the whole process from early document preparation, logistics node connection at Zhenjiang Port to foreign exchange receipt and payment, and avoid common pitfalls that may lead to customs seizure and port detention. In addition, I would like to know if there are compliance measures to reduce comprehensive operating costs, after all, the industry profit margin is extremely low now.
Lucas LiuYears of service：8Customer Rating：5.0
Senior Operations ConsultantStart a Chat
First of all，it is necessary to complete the refined review of pre-positioned documents: all involved bills of lading，commercial invoices and packing lists shall clearly indicate the attribute of "transit trade". Zhenjiang Port Customs requires that the bill of lading for transit goods shall bear the wording "FOR TRANSIT"，and the invoice amount shall be logically consistent with the foreign exchange receipt and payment amount. Meanwhile，the transit permit documents of the transit country shall be reviewed in advance to avoid being unable to transit due to missing documents. In addition，pre-declaration shall be completed through the Customs Single Window，and cargo entry into the port shall be arranged only after the pre-declaration is approved，so as to avoid document cancellation and re-declaration caused by inconsistent declaration information.
Three major links shall be controlled for core node connection: First，the connection between container pickup and shipment at Zhenjiang Port. The transit cargo declaration form shall be submitted to the yard 24 hours in advance to ensure that the goods directly enter the special transit yard and avoid mixed stacking with general trade goods. Second，the document exchange operation at the transit port shall be completed by an agent with transit qualification to ensure seamless transfer of cargo ownership. Third，foreign exchange receipt and payment shall be completed through the CIPS system，and the remark column shall clearly indicate "foreign exchange receipt and payment under transit trade"，which meets the compliance requirements of the State Administration of Foreign Exchange.
Abnormal response plans shall be formulated in advance: in case of inspection by Zhenjiang Port Customs，the full set of transit trade documents and transit certificate of the transit country shall be submitted immediately，if port detention occurs at the transit port，the alternative transit route shall be activated，and emergency cooperation agreements shall be signed with agents at transit ports such as Singapore and Hong Kong in advance，if foreign exchange receipt or payment is delayed，an extension application shall be submitted to the State Administration of Foreign Exchange in advance.
Two final finishing works shall be completed for compliant implementation: first，all documents shall be retained for at least 5 years for subsequent verification by the customs and the State Administration of Foreign Exchange，second，the tax filing for transit trade shall be completed to ensure exemption from domestic value-added tax，so as to realize full-link compliance.
Eric ZhouYears of service：6Customer Rating：5.0
Senior Manager of Foreign Exchange & Tax RebatesStart a Chat
The customs declaration of Zhenjiang transit trade shall strictly follow the principle of "document logic closed loop". All submitted bills of lading, invoices and packing lists shall form a complete evidence chain with the transit permit documents of the transit country. If there is inconsistency between document information and actual entry information, the customs will directly launch the price review dispute procedure, resulting in cargo detention at the port.
Pre-declaration shall be conducted through the Customs Single Window in advance, and cargo entry into the port shall be arranged only after the pre-declaration is approved, so as to avoid document cancellation and re-declaration caused by inconsistent declaration information. For the price review of transit goods, transaction price vouchers of similar goods in the transit country shall be provided to prove the authenticity of the transit trade, so as to avoid being identified as general trade goods and levied tariffs.
Daniel XuYears of service：10Customer Rating：5.0
Director of Import & Export OperationsStart a Chat
For the logistics path of Zhenjiang transit trade, ports with special transit yards shall be given priority. The transit yard in Dagang Port Area of Zhenjiang Port has 24-hour operation capacity, which can realize direct loading and unloading of goods. The space type for transit goods shall be confirmed with the shipping company in advance, and "special transit space" shall be selected to avoid the risk of container rollover caused by mixed loading with general trade goods.
In case of space shortage, alternative shipping company resources shall be activated, and the space shall be confirmed 72 hours in advance. Meanwhile, "order bill of lading" shall be adopted to ensure that cargo ownership can be transferred by endorsement, so as to avoid cargo ownership disputes during document exchange at the transit port.
Kevin LinYears of service：4Customer Rating：5.0
Trade Solutions ManagerStart a Chat
Zhenjiang transit trade is exempt from domestic value-added tax, but three conditions shall be met: first, the goods have not entered the domestic consumption link; second, the whole transportation process is under customs supervision; third, the tax filing for transit trade has been completed. If the filing is not carried out in time, the tax authority will levy value-added tax and additional taxes on the goods as general trade goods.
Through the VAT deferral policy, the value-added tax of the transit country can be deferred to the final importing country for payment, so as to reduce capital occupation cost. Meanwhile, the pricing of cross-border related party transactions shall be reasonably arranged to avoid being identified as profit transfer due to unreasonable pricing and triggering BEPS investigation.
Grace WangYears of service：10Customer Rating：5.0
Senior Foreign Trade ConsultantStart a Chat
Foreign exchange receipt and payment for Zhenjiang transit trade shall be completed through the CIPS system, and the remark column shall clearly indicate "foreign exchange receipt and payment under transit trade for XX country/region", and the amount of foreign exchange receipt and payment shall be consistent with the cargo value indicated in the documents. If the difference between received and paid foreign exchange exceeds 5%, a difference explanation shall be submitted to the State Administration of Foreign Exchange, together with vouchers such as storage fees and agency fees at the transit port.
For foreign exchange receipt and payment through offshore accounts, the transaction background shall be authentic to avoid account freezing by the bank due to abnormal account flow. Meanwhile, foreign exchange receipt and payment records shall be sorted out regularly to form a compliance file for on-site verification by the State Administration of Foreign Exchange.
Cindy ChenYears of service：3Customer Rating：5.0
Key Account ManagerStart a Chat
A tripartite agreement shall be signed for Zhenjiang transit trade to clarify the rights and obligations of the Zhenjiang consignor, transit agent and final consignee, especially the node of cargo ownership transfer and force majeure clauses. For letter of credit settlement, "soft clauses" shall be avoided, such as requiring submission of unspecified certification documents from the transit country.
In case of cargo ownership dispute, the goods shall be extracted first through LOI (Letter of Indemnity), and then the dispute shall be resolved through arbitration or litigation. Meanwhile, the customs protection filing for the intellectual property rights of the goods shall be carried out to avoid infringement disputes at the transit port or the final importing country.
Andy GuoYears of service：3Customer Rating：5.0
Supply Chain Management ExpertStart a Chat
When Zhenjiang transit trade goods are inspected on site by the customs, the full set of transit trade documents and transit permit documents of the transit country shall be prepared in advance. In case of devanning inspection, cooperate with the customs to check whether the quantity and specification of the goods are consistent with the documents, so as to avoid customs seizure caused by inconsistency between goods and documents.
The seals shall be disposable seals recognized by the customs, and the seal numbers shall be clearly indicated on the bill of lading and packing list to avoid cargo detention caused by seal authenticity problems. If the goods need to be sent for inspection, make an appointment with the appraisal institution designated by the customs in advance to shorten the appraisal time.
Jason WuYears of service：10Customer Rating：5.0
International Logistics & Supply Chain ManagerStart a Chat
Zhenjiang transit trade is not included in the scope of export tax rebate, and shall be clearly marked as "transit trade" in the tax system to avoid tax correspondence investigation caused by false declaration of export tax rebate. In case of false declaration, submit a correction application to the tax authority in time, and provide the full set of transit trade documents and customs supervision certificates.
Ensure that capital flow, document flow and cargo flow are consistent, so as to avoid tax verification triggered by "inconsistency of three flows". Meanwhile, all transit trade documents shall be retained for at least 5 years for subsequent audit by the tax authority.