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In a re-export trade, how should Company B effectively seek remedies when facing difficulties?

NO.20260220*****

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I am an employee of Company B. When our company was doing re-export trade, the goods were detained by the customs in the transit country because there were problems with the declaration documents. The importer refused to pay as a result and also demanded that we compensate for the losses. Now the company is at great risk of losses. In such a situation of re-export trade, how should Company B seek remedies?

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Professional consultant answers

Jennifer Wang
Jennifer WangYears of service:4Customer Rating:5.0

Market development consultantConsult

Firstly, Company B should immediately communicate with the relevant parties responsible for the declaration documents, whether it is its own team or the entrusted freight forwarder, etc., to clarify where the problem lies, such as document errors, omissions, etc. If it is the fault of the freight forwarder, its liability can be pursued.

Secondly, quickly get in touch with the customs of the transit country, actively cooperate to explain the situation, supplement or correct the declaration documents as required, and strive to have the goods released from detention as soon as possible. At the same time, maintain close communication with the importer, explain that the detention of the goods is not the subjective will of the company and that the company is actively solving the problem, show the sincerity to solve the problem, try to negotiate a solution, such as giving a certain price discount or extending the payment period, etc., to avoid its firm claim for compensation. If the negotiation fails, consider choosing the arbitration or litigation approach to safeguard its own rights and interests according to the dispute resolution clauses in the trade contract.

Sarah Zhang
Sarah ZhangYears of service:8Customer Rating:5.0

Document expertConsult

Company B can investigate whether the problem with the declaration documents is caused by incorrect information provided by the supplier. If so, it can ask the supplier to bear part of the losses.

Amanda Yang
Amanda YangYears of service:3Customer Rating:5.0

Cost control consultantConsult

Collect all the documents related to this re-export trade, such as contracts, correspondence emails, etc., for possible subsequent dispute handling.

Michelle Chen
Michelle ChenYears of service:3Customer Rating:5.0

Business coordination consultantConsult

Consult the industry association or professional legal institutions to obtain targeted suggestions to help the company better cope with this situation.

Emily Liu
Emily LiuYears of service:10Customer Rating:5.0

Settlement and payment expertConsult

Check the purchased trade insurance to see if there are clauses that can cover the losses caused by the detention of goods due to document problems and claim compensation from the insurance company.

Elizabeth Li
Elizabeth LiYears of service:3Customer Rating:5.0

Compliance and risk managerConsult

Try to find new buyers. If the goods can be resold after the detention is lifted, some losses can be reduced.

David Li
David LiYears of service:6Customer Rating:5.0

Senior customs declaration consultantConsult

Evaluate the additional storage and other costs generated by the long-term detention of the goods, plan in advance the countermeasures to avoid excessive costs that will aggravate the losses.

Joseph Zhou
Joseph ZhouYears of service:10Customer Rating:5.0

Senior foreign trade managerConsult

Sort out the internal processes of the company, find out the links where the declaration documents have problems, and avoid similar situations from happening in the future.

James Liu
James LiuYears of service:10Customer Rating:5.0

Foreign trade tax refund consultantConsult

Communicate with the bank to see if short-term financial support can be obtained to deal with the current tight financial situation.

The relevant questions or replies only represent the user’s personal stance and do not represent any views of this website.

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