How should the customs duties for transit trade be handled? What should be paid attention to?
Solved#Entrepot trade#
Our company plans to engage in transit trade but is unfamiliar with customs duties. We would like to know how customs duties are calculated and paid during transit trade clearance. Are there any special policies or regulations? Additionally, how can we ensure compliance with duty payments and avoid unnecessary issues during operations? We hope experienced individuals can share relevant knowledge and tips.
Professional consultant answers
Amanda YangYears of service：3Customer Rating：5.0
Cost control consultantConsult
The calculation and payment of customs duties for transit trade are relatively complex. First, duties are typically calculated based on the dutiable value of the goods, which includes the FOB price in the exporting country plus transportation, insurance, and other costs. Different goods have different duty rates, which can be checked on the customs official website.
Regarding payment, duties are generally paid by the importer during customs declaration. In transit trade, goods may not enter the domestic market for sale, in which case bonded warehousing can be applied for, allowing goods to be stored in bonded zones or other designated areas without immediate duty payment.
To ensure compliance with duty payments, accurate declaration of goods information—including product name, specifications, value, etc.—is necessary to avoid misdeclaration. Additionally, close attention should be paid to changes in customs policies, especially rules of origin, to ensure goods comply with transit trade regulations.
William YangYears of service：5Customer Rating：5.0
International logistics consultantConsult
If transit trade involves preferential tariff rates, ensure that the required certificates of origin are provided; otherwise, preferential rates may not apply. All necessary customs documents, such as invoices and packing lists, must be prepared to expedite clearance and avoid issues affecting duty payments.
Robert ChenYears of service：6Customer Rating：5.0
Customer service consultantConsult
Companies can apply for advance customs classification rulings to clarify tariff codes and determine accurate duty rates. In transit trade, transportation routes and methods should also be considered, as they may impact the determination of dutiable value.
Emily LiuYears of service：10Customer Rating：5.0
Settlement and payment expertConsult
For transit trade goods, packaging must not contain misleading labels. If packaging suggests goods originate domestically, it may affect duty treatment. Before each transit trade operation, consult customs to ensure compliance with regulations.
Michelle ChenYears of service：3Customer Rating：5.0
Business coordination consultantConsult
For transit trade customs duty payments, retain all relevant documents, such as transportation and commercial invoices. These can prove the value and authenticity of transactions during customs audits, avoiding issues due to missing records.
Andrew HuangYears of service：7Customer Rating：5.0
Supply chain optimization expertConsult
Understanding trade agreements between countries is crucial. For example, some countries have free trade agreements, and transit goods may qualify for preferential tariffs. Research relevant agreements before conducting business.
David LiYears of service：6Customer Rating：5.0
Senior customs declaration consultantConsult
In transit trade, pay attention to regulations on the duration of goods in transit. Extended stays may incur additional fees or changes in duty policies. Maintain close communication with freight forwarders to ensure smooth logistics.
Sarah ZhangYears of service：8Customer Rating：5.0
Document expertConsult
When filling out customs declarations, ensure the correct trade method is selected—transit trade has specific options. Errors may lead to incorrect duty calculations or clearance delays. Also, pay attention to details like measurement units to ensure accurate declarations.
James LiuYears of service：10Customer Rating：5.0
Foreign trade tax refund consultantConsult
For transit trade customs duties, consider exchange rate fluctuations. Dutiable value calculations may involve currency conversion, and rate changes can affect final duty amounts. Time conversions carefully.
Elizabeth LiYears of service：3Customer Rating：5.0
Compliance and risk managerConsult
Utilize customs' enterprise liaison system. For complex duty issues, consult liaison officers for professional guidance to ensure compliant handling of transit trade duties.