How should the place of origin be filled in for entrepot trade? Come and help me quickly!
Solved#Entrepot trade#
Our company is currently carrying out entrepot trade business and now we have encountered a problem with filling in the place of origin. The goods are purchased from Country A, transshipped in Country B, and finally sold to Country C. I'm not quite sure whether the place of origin should be filled in as Country A, Country B, or if there are other filling rules on the relevant trade documents. Will filling it wrong affect subsequent processes such as goods customs clearance? I hope that professionals can help answer this question. Thank you very much!
Professional consultant answers
David LiYears of service：6Customer Rating：5.0
Senior customs declaration consultantConsult
In entrepot trade, the filling in of the place of origin needs to be judged according to specific circumstances. Usually, the place of origin of the goods refers to the country of origin of the goods, that is, the country where the goods are substantially processed and manufactured, so it is highly likely that it should be filled in as Country A. Substantial processing means that after the product is processed in that country, the first four digits of its HS code change, or the value-added part exceeds 30% of the total value of the product.
However, if operations that meet the above substantial processing standards are carried out in Country B, then the place of origin may have to be filled in as Country B.
Filling it wrong is very likely to affect goods customs clearance. The customs of the importing country will determine the tariff rate, the applicability of trade policies, etc. according to the place of origin. If it is filled in wrong, it may lead to incorrect tariff calculations, and even problems such as the goods being detained and customs clearance being delayed. Therefore, it is necessary to fully communicate with suppliers, freight forwarders and customs brokers before filling it in to clarify the true origin situation of the goods.
Sarah ZhangYears of service：8Customer Rating：5.0
Document expertConsult
Generally speaking, if there is no special processing situation, fill it in according to the country of origin, that is, Country A. Because entrepot trade is only the circulation of goods in the transshipment country, and if there is no substantial processing, the country of origin is the key information.
James LiuYears of service：10Customer Rating：5.0
Foreign trade tax refund consultantConsult
If only simple sorting, packaging and other non-substantial operations are carried out in Country B, then fill it in as Country A. Only when Country B has carried out in-depth processing to change the nature of the goods should Country B be considered for filling in.
Emily LiuYears of service：10Customer Rating：5.0
Settlement and payment expertConsult
You can check the certificate of origin of the goods. The place of origin marked on it is the place of origin that you should fill in on the trade documents. Filling it in according to the certificate is usually not wrong.
Elizabeth LiYears of service：3Customer Rating：5.0
Compliance and risk managerConsult
Communicate and confirm with the customer to see which place of origin the customer requires for customs clearance. Filling it in according to the customer's requirements can reduce subsequent troubles.
Amanda YangYears of service：3Customer Rating：5.0
Cost control consultantConsult
Consult the local customs. They have clear standards and explanations for the determination of the place of origin. Filling it in according to the guidance of the customs is more reliable.
Jennifer WangYears of service：4Customer Rating：5.0
Market development consultantConsult
Carefully check the terms of the trade contract. Some contracts will have special agreements on the filling in of the place of origin. Just fill it in according to the contract.
Michelle ChenYears of service：3Customer Rating：5.0
Business coordination consultantConsult
If you are not sure, make a pre-declaration before submitting the trade documents to see the feedback from the customs and thus determine the correct filling in of the place of origin.
Andrew HuangYears of service：7Customer Rating：5.0
Supply chain optimization expertConsult
Refer to the way of filling in the place of origin in similar entrepot trade cases, but still combine it with the actual situation of your own goods.