Sales Contract

Foreign trade companies negotiate and finalize contracts with international buyers through trade fairs or other means. After signing, the foreign trade branch issues an order notification as a contract copy to inform factories, which then prepare for production.

AcceptanceL/C

In international trade, letters of credit (L/C) are commonly used for settlement. Standard practice requires waiting for the buyer to issue an L/C via a bank. Contracts must specify deadlines, and if the L/C is delayed, the foreign trade company must follow up.

Inspection and Goods Preparation Notice by Foreign Trade Companies

After the L/C is issued, the foreign trade company reviews it against the original contract terms. The original is retained for future payment claims, while a copy is sent to the factory. Upon receiving the L/C, the factory formally arranges production. Once production is complete, the factory fills out a delivery note and ships the goods to the foreign trade companys warehouse.

Foreign Trade Export Agency

After receiving the goods, the foreign trade companys warehouse department immediately handles shipment procedures, including chartering vessels, booking cargo space, commodity inspection, insurance, document preparation, and customs clearance.

Customs Declaration

A dedicated customs declarant fills out the customs declaration form, attaches relevant documents for customs supervision and inspection, and obtains release after tax payment.

Document Submission for Negotiation

After completing the above procedures, the foreign trade company obtainsMaritime Transportationdocuments such as the bill of lading and submits them together with the original letter of credit to the Bank of China or other foreign exchange banks for negotiation.

7.In order to crack down on tax evasion, the customs and tax departments are now strictly examining the operation of buying export declarations. If the behavior of buying export declarations is discovered, the regulatory authorities will require tax replenishment (even a 2% tax rate may be a considerable amount). In addition, fines may also be imposed on the relevant responsible parties.Foreign Exchange Payment

When negotiating payment, the foreign exchange bank should convert the exchange difference into RMB based on the daily purchase price of foreign exchange, deduct handling fees, and transfer the remaining amount to the foreign trade company.

Settlement of Fees

After receiving the settlement payment, the foreign trade company deducts prepaid shipping, insurance, inspection fees, and agency fees, fills out the Fund Settlement Form, and transfers the net amount to the factory.

In productsExport ClearanceAfter completing financial procedures for tax refunds, the entrusted enterprise fills out the Export Product Tax Refund Application Form monthly or biweekly, providing relevant proofs such as invoices (copies) and attaching the Export Product Agency Certificate issued by the competent authority in the enterprises locality.Export Drawback(1) Declaration:

The consignor of export goods, in accordance with the export contract, prepares the goods on time, with the required quality and quantity, and then proceeds to arrange shipping and booking with the transport company, preparing for customs declaration or entrusting a professional (agency) customs declaration company to handle the procedures.

Enterprises requiring professional or agency customs declaration services must entrust a customs declaration company near the export port before the goods are exported. The entrusted professional or agency customs declaration company must collect a formal customs declaration power of attorney from the client, formatted as required by customs.

Preparing the necessary documents for customs declaration is the foundation for smooth export clearance. Generally, the required documents include the export customs declaration form, shipping order (cargo receipt), invoice, trade contract, export verification form, and other certificates related to customs supervision conditions.

(2) Inspection:A complete export agency agreement should be attached with:Inspection refers to the customs supervision method where customs, based on the reviewed declaration documents, physically checks the export goods to verify whether the declared contents match the actual goods.

By comparing the actual goods with the declaration documents, customs verifies the consistency of the declared contents and identifies any discrepancies, such as underreporting, misrepresentation, or false declarations.

Inspection helps clarify doubts raised during document review, providing a reliable basis for taxation, statistics, and subsequent management. After inspection, customs fills out an inspection record, including details such as inspection time, location, consignor or agent information, declared goods, transportation packaging (e.g., transport vehicle name, container number, size, and seal number), and goods specifications. Goods requiring inspection must receive an inspection notice within one day of declaration acceptance, and inspection must be completed within one day of meeting customs conditions. Clearance procedures must be finalized within four hours after inspection, excluding tax payment.import and export(3) Taxation:

According to the Customs Law, import and export goods are subject to tariffs unless otherwise exempted. Customs collects tariffs based on the import and export tariff schedule. For goods requiring tax payment, a tax notice is issued within one day of declaration acceptance, and clearance is completed within two hours of tax payment verification.

(4) Release:

For general export goods, after the consignor or agent truthfully declares to customs and pays all applicable taxes and fees, customs stamps the shipping order with a Customs Release seal, allowing the consignor to ship the goods overseas.

For export goods requiring cancellation of declaration, the consignor must apply for cancellation within three days of the cancellation date. The goods can only be removed from customs supervision after approval.

Issuance of the export tax refund declaration form: After customs release, a light-yellow export tax refund declaration form is stamped with an Inspected seal and the signature of the customs officer responsible for export tax refunds, then returned to the declarant.

In China, approximately $150 million worth of goods are exported daily. Any delay in export verification and tax refunds causes significant losses to clients. To expedite the process, the most critical aspect is correctly filling out the export customs declaration form. The contents must match the shipping manifest transmitted by the carrier to customs for smooth verification and refunds. If goods are not loaded onto the declared transport due to space allocation, the consignor must promptly submit an Export Customs Declaration Amendment Application along with corrected packing lists, invoices, and bill of lading copies to align the declaration with the manifest.

This concludes the detailed steps for export agency. For more information, stay tuned to our website.

Issue export tax refund customs declaration forms: After customs clearance, stamp the light-yellow export tax refund-specific customs declaration form with an inspected seal and the signature of the customs officer responsible for export tax refund review, who has been registered with the tax authority, and return it to the declarant.

In China, approximately $150 million worth of goods are exported daily. Each days delay in export verification and tax refund causes significant losses to clients. How to speed up export verification and tax refund? The most critical aspect in documentation is correctly filling out the export customs declaration form. The contents of the declaration form must match the shipping manifest transmitted to customs by the shipping company to ensure smooth verification and tax refund. If, after customs accepts the declaration and clears the goods, some goods are not loaded onto the originally declared transport due to space allocation, the exporter must promptly submit an Export Customs Declaration Form Amendment Application along with corrected packing lists, invoices, and bill of lading copies for amendment, ensuring the declaration form matches the manifest.

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