Is the process of applying for the right to engage in import and export operations too complicated? Please keep this guide to avoid pitfalls.

Mr. Zhang has been very distressed recently. His cultural and creative company designed a set of popular Chinese style ornaments. Overseas customers took the initiative to inquire about the price through social media. However, when the other party asked to sign a contract, he found that: The company didn't have the right to engage in import and export operations at all. Watching the cooked duck about to fly away, looking for an agent temporarily would face a 15% commission deduction - this is actually an "invisible pit" that many small and medium-sized enterprises have stepped on.

1. What exactly is the right to engage in import and export operations?

Simply put, it is the "business license" for enterprises to conduct international trade. Having the right to engage in import and export operations means:

• Being able to directly sign contracts with overseas customers
• Handling customs declaration, tax refund and other procedures independently
• Establishing foreign exchange accounts to receive and pay international payments

Foreign trade experts from Zhongshitong remind: According to customs data in 2023, about 38% of small and medium-sized enterprises lost orders due to incomplete qualifications, and the cost of applying for the right to engage in import and export operations may be much lower than expected.

2. Disassembly of the whole application process

Ms. Li's food factory successfully applied for the right to engage in import and export operations last year. She summed up three key steps:

• Step 1: Adding items to the business license - Adding "import and export of goods" or "import and export of technology" to the business scope
• Step 2: Customs record-filing - Submitting enterprise information through the "Single Window" to obtain a 10-digit customs code
• Step 3: Registration with the Foreign Exchange Administration - Activating the function of receiving and paying foreign currency accounts

The whole process usually takes 15 - 30 working days, but some regions have a green channel for cross-border e-commerce enterprises.

3. These misunderstandings have tripped up too many people

After serving more than 200 enterprises, we found that common cognitive biases include:

• Misunderstanding 1: "Only foreign trade companies need it" - In fact, manufacturing and technology-based enterprises also need it
• Misunderstanding 2: "There will be a high annual fee after getting it" - There are no mandatory fees except for a small amount of customs declaration system maintenance fees
• Misunderstanding 3: "Finding an agent is more cost-effective than doing it by oneself" - In the long run, the cost of independent operation can be reduced by more than 60%

4. The latest policy dividends in 2024

This year, three major changes worthy of attention are:

• Cross-border e-commerce B2B exports enjoy priority customs clearance
• The export tax rebate rate for some categories has been raised to 13%
• Electronic document record-filing replaces paper materials

Zhongshitong suggests: Now is the best window period to layout the overseas market. Agreements such as RCEP have significantly lowered the market access threshold for Southeast Asia.

Is your supply chain really safe?

When the fluctuation of international logistics costs becomes the new normal, having the right to engage in import and export operations is like having "double insurance" for the business. You might as well check now:

• Does the company's official website display the customs code?
• Can the finance department directly receive TT/L/C payments?
• Is there a backup customs declaration channel?

Let's talk in the comment section: What "thrilling moments" caused by import and export qualifications have you encountered? Professional consultants will select 3 cases for in-depth analysis.