Does entrepot trade require payment of customs duties? Come and discuss together!
Solved#Entrepot trade#
I have recently come into contact with the area of entrepot trade and am not very clear about the regulations regarding customs duties. The goods are transported from Country A to Country B, but they have to go through our country for entrepot trade in the middle. I would like to know in this situation whether customs duties are required for entrepot trade. What are the criteria for judging whether to pay customs duties? I hope that friends who are knowledgeable in this area can help answer this question. The more detailed, the better. Thank you.
Professional consultant answers
Michelle ChenYears of service：3Customer Rating：5.0
Business coordination consultantConsult
Whether customs duties are required for entrepot trade depends on the specific situation. Generally speaking, if the goods are only transshipped at the ports of our country and do not enter the customs territory of our country, that is, the goods are on the means of transportation and do not substantially enter the domestic market circulation of our country, no customs duties are required in this case. Because customs duties are a kind of tax levied on goods and articles entering and leaving the customs territory.
However, if the goods enter specific areas such as bonded areas and bonded logistics centers of our country for storage, sorting, packaging, etc., and comply with the relevant bonded supervision regulations, no customs duties are required when they do not enter the domestic market for sale. But if the goods enter the domestic market for sale from these specific areas, then customs duties need to be paid according to the regulations for general imported goods. The tax base is usually the dutiable value of the goods, and the tax rate is determined according to the classification of the goods. In short, the key lies in whether the goods enter the customs territory of our country and their subsequent flow.
Elizabeth LiYears of service：3Customer Rating：5.0
Compliance and risk managerConsult
Most cases of entrepot trade do not require payment of customs duties. For example, if the goods do not land at the port and are directly transshipped by changing ships, definitely no customs duties are required. But if they enter special supervision areas and there are some processing operations, it may be a bit more complicated and depends on the specific policies.
Jennifer WangYears of service：4Customer Rating：5.0
Market development consultantConsult
If the goods of entrepot trade enter a bonded warehouse, as long as they do not flow into the domestic market, basically no customs duties are required. If the warehouse expires and the goods are not properly handled and need to be sold domestically, then customs duties need to be paid retroactively.
Emily LiuYears of service：10Customer Rating：5.0
Settlement and payment expertConsult
To judge whether to pay customs duties, one also has to look at the trade contract agreement and the actual state of the goods. If the contract clearly states that it is pure entrepot trade and the state of the goods has not changed, most likely no customs duties are required.
James LiuYears of service：10Customer Rating：5.0
Foreign trade tax refund consultantConsult
In entrepot trade, if international multimodal transport is adopted and the transshipment process complies with the regulations, usually no customs duties are required. But if it involves short-term storage in the country to change the packaging, this may not be the case.
David LiYears of service：6Customer Rating：5.0
Senior customs declaration consultantConsult
For general simple entrepot trade, if the goods are just passing by and do not enter the domestic consumption link, no customs duties are required. If they enter the domestic market for processing and then are exported again, then the customs duties issue may have to be dealt with according to the regulations for processing trade.
William YangYears of service：5Customer Rating：5.0
International logistics consultantConsult
If the goods of entrepot trade comply with specific tax exemption policies, such as the situations stipulated in some agreements, no customs duties are required either. So one has to understand the relevant policies and regulations.
Sarah ZhangYears of service：8Customer Rating：5.0
Document expertConsult
Looking at the mode of transportation also has something to do with it. For example, direct transshipment by sea and transshipment by land to a certain place in the country and then transshipment again may have different handling methods and different customs duty situations.
Amanda YangYears of service：3Customer Rating：5.0
Cost control consultantConsult
During entrepot trade, if what is declared to the customs is entrepot trade and the goods are under the full supervision of the customs and do not enter the domestic customs territory, basically no customs duties will be generated.
Joseph ZhouYears of service：10Customer Rating：5.0
Senior foreign trade managerConsult
Whether customs duties are required for entrepot trade also requires attention to the nature of the goods. For some special goods, there may be special regulations in the policies.