Who on earth should handle the customs declaration in EXW entrepot trade? Come and find out!
Solved#Entrepot trade#
I've recently been involved in EXW entrepot trade and I'm not quite clear about the customs declaration part. Under the EXW terms, when the goods are delivered at the seller's factory, is it the seller or the buyer who should handle the customs declaration? What should be noted during the customs declaration process? I'm worried that not clarifying the customs declaration entity will cause problems in the trade process. I hope those who are knowledgeable can explain it to me in detail.
Professional consultant answers
Sarah ZhangYears of service：8Customer Rating：5.0
Document expertConsult
In EXW entrepot trade, conventionally it's the buyer's responsibility to handle the customs declaration. Because under the EXW term, the seller only needs to hand over the goods to the buyer for disposal at its location or other designated places (such as the factory, warehouse, etc.), and the delivery obligation is then completed. This means that from this moment on, the risks and related responsibilities of the goods are transferred to the buyer, and the customs declaration, as an important part of the goods' export, falls on the buyer.
However, in actual operations, the buyer may be unfamiliar with the customs declaration policies and procedures in the seller's location and will entrust the seller to handle the customs declaration procedures on their behalf, but the costs are borne by the buyer.
Whether the buyer handles the customs declaration by themselves or entrusts the seller to do so, they should pay attention to preparing accurate and complete customs declaration documents, such as commercial invoices, packing lists, bills of lading, etc., to ensure the smooth progress of the customs declaration process and avoid delays and additional costs.
James LiuYears of service：10Customer Rating：5.0
Foreign trade tax refund consultantConsult
Generally, it's the buyer who handles the customs declaration, but if the buyer and the seller have made other arrangements in the contract, then it will be done according to the agreement. It doesn't necessarily have to be the buyer who handles the customs declaration.
Amanda YangYears of service：3Customer Rating：5.0
Cost control consultantConsult
Mostly it's the buyer who handles the customs declaration because starting from the delivery point, the buyer is responsible for a series of subsequent matters such as transportation, and naturally the customs declaration is also their responsibility. However, some sellers will take the initiative to handle the customs declaration matters for the buyer in order to facilitate the transaction.
William YangYears of service：5Customer Rating：5.0
International logistics consultantConsult
In EXW entrepot trade, if the buyer doesn't have the ability or time to handle the customs declaration, they can find a professional customs broker to handle it on their behalf. It doesn't necessarily have to be done by themselves.
Robert ChenYears of service：6Customer Rating：5.0
Customer service consultantConsult
Although it's defaulted that the buyer handles the customs declaration, if the seller is familiar with the local customs declaration process and policies and has negotiated well with the buyer in advance about costs and other issues, handling the customs declaration on behalf of the buyer can accelerate the trade process.
Emily LiuYears of service：10Customer Rating：5.0
Settlement and payment expertConsult
After confirming the customs declaration entity, whoever handles the customs declaration should attach great importance to the accuracy of the declared information, otherwise they may face penalties from the customs.
Andrew HuangYears of service：7Customer Rating：5.0
Supply chain optimization expertConsult
When the buyer handles the customs declaration, they should learn in advance about the customs declaration requirements of the goods' exporting country and importing country to avoid delaying the customs clearance due to policy differences.
Joseph ZhouYears of service：10Customer Rating：5.0
Senior foreign trade managerConsult
If the seller handles the customs declaration on behalf of the buyer, they should clearly define the division of responsibilities with the buyer to prevent mutual shirking when problems arise.
Elizabeth LiYears of service：3Customer Rating：5.0
Compliance and risk managerConsult
Under the EXW trade mode, the time of customs declaration is also crucial. It should be declared in a timely manner according to the regulations to avoid affecting the shipment of the goods.
Michelle ChenYears of service：3Customer Rating：5.0
Business coordination consultantConsult
Whether it's the buyer or the seller who is responsible for the customs declaration, they should communicate closely with relevant parties such as freight forwarders to ensure the smooth transmission of information.