SAFE mainly starts the investigation of entrepot trade from the following aspects. Firstly, it conducts an authenticity review of transactions. It will check documents such as contracts, invoices, and transportation documents to verify whether the trading background is real, such as whether the goods actually flow in circulation and whether the contract terms conform to commercial logic. Secondly, it pays attention to the matching situation of capital flows and goods flows to ensure that the collection and payment times and amounts correspond to the delivery time and amount of goods, etc. Moreover, it examines the trading records and operating capabilities of enterprises. If the volume of an enterprise's entrepot trade business increases abnormally in a short period or exceeds its past operating scale, it will attract attention. It will also verify the information on customs declarations and compare it with the data declared by the enterprise to confirm whether they are consistent. In addition, it will also examine the rationality of prices in entrepot trade to prevent illegal operations such as capital transfer through unreasonable pricing.
Enterprises need to ensure that their business documents are complete, authentic, and that the logic of each link is clear in order to better cope with SAFE's inspections.
Professional consultant answers
David LiYears of service：6Customer Rating：5.0
Senior customs declaration consultantConsult
SAFE mainly starts the investigation of entrepot trade from the following aspects. Firstly, it conducts an authenticity review of transactions. It will check documents such as contracts, invoices, and transportation documents to verify whether the trading background is real, such as whether the goods actually flow in circulation and whether the contract terms conform to commercial logic. Secondly, it pays attention to the matching situation of capital flows and goods flows to ensure that the collection and payment times and amounts correspond to the delivery time and amount of goods, etc. Moreover, it examines the trading records and operating capabilities of enterprises. If the volume of an enterprise's entrepot trade business increases abnormally in a short period or exceeds its past operating scale, it will attract attention. It will also verify the information on customs declarations and compare it with the data declared by the enterprise to confirm whether they are consistent. In addition, it will also examine the rationality of prices in entrepot trade to prevent illegal operations such as capital transfer through unreasonable pricing.
Enterprises need to ensure that their business documents are complete, authentic, and that the logic of each link is clear in order to better cope with SAFE's inspections.
Sarah ZhangYears of service：8Customer Rating：5.0
Document expertConsult
SAFE will focus on checking the logistics track of entrepot trade to see whether the goods transportation is reasonable, such as whether the transportation route takes a detour and whether it conforms to the normal commercial path. If there are abnormalities in the logistics, it is very likely to be investigated in depth.
Emily LiuYears of service：10Customer Rating：5.0
Settlement and payment expertConsult
SAFE may investigate the trading counterparts involved in entrepot trade to understand their reputations, operating situations, etc. If there are problems with the trading counterparts, the enterprise's entrepot trade business is also easily questioned.
James LiuYears of service：10Customer Rating：5.0
Foreign trade tax refund consultantConsult
It will check the financial statements of the enterprise's entrepot trade to analyze the sources and destinations of funds and whether there are abnormal fund flow situations, such as large inflows and outflows of funds in a short period.
Elizabeth LiYears of service：3Customer Rating：5.0
Compliance and risk managerConsult
SAFE will also compare the entrepot trade data of the same industry. If some indicators of an enterprise deviate too much from the industry average, such as profit margins and business volume growth rates, it may trigger an inspection.
Robert ChenYears of service：6Customer Rating：5.0
Customer service consultantConsult
It will examine the details such as the signing time and execution time of the entrepot trade contract to see whether they match the actual business progress and whether there are situations of contract fraud or deliberate delay in execution.
Michelle ChenYears of service：3Customer Rating：5.0
Business coordination consultantConsult
It will pay attention to the foreign exchange receipts and payments of the enterprise. Whether the foreign exchange income and expenditure of the entrepot trade are balanced and whether the foreign exchange settlement and sales operations are compliant.
Amanda YangYears of service：3Customer Rating：5.0
Cost control consultantConsult
SAFE may conduct on-site visits to enterprises to check the storage situation, etc., to confirm whether the goods actually flow in circulation and whether there are false operations.
Joseph ZhouYears of service：10Customer Rating：5.0
Senior foreign trade managerConsult
For the documents involved in entrepot trade, such as bills of lading, etc., it will examine their authenticity and legality and whether there are signs of forgery or tampering.
Jennifer WangYears of service：4Customer Rating：5.0
Market development consultantConsult
It will examine the internal entrepot trade business processes and risk control measures of enterprises to see whether they are sound and whether there are loopholes that are prone to lead to illegal behaviors.