Who is responsible for customs declaration in entrepot trade? Do you know?
Solved#Entrepot trade#
I've recently come into contact with the entrepot trade business and I'm a bit confused about the customs declaration entity. For instance, when goods are transshipped from country A to country B via our country, is it the consignor, the consignee, or we transit parties who should make the customs declaration? It seems that the relationships involved are quite complex. Will there be different regulations for the customs declaration entity under different circumstances? I hope someone who knows the ropes can explain it to me in detail so that I won't make mistakes in actual operations.
Professional consultant answers
Sarah ZhangYears of service：8Customer Rating：5.0
Document expertConsult
In entrepot trade, the determination of the customs declaration entity should be based on the specific trade situation. Generally speaking, the party responsible for the actual entry and exit operation of the goods usually makes the customs declaration. If the transit party arranges a series of transit matters such as cargo transportation and warehousing, then the transit party, such as Zhongshitong, is likely to be the customs declaration entity.
If the consignor is responsible for all the procedures of the goods at the transit place, including customs declaration, then the consignor is the customs declaration entity. Similarly, if the consignee has an agreement with the relevant parties at the transit place in advance and takes the lead in the customs declaration process, the consignee can also become the customs declaration entity. This mainly depends on the agreement in the trade contract. If all parties clarify the attribution of customs declaration responsibilities in the contract, subsequent disputes can be avoided. For example, if the contract stipulates that Zhongshitong is responsible for entrepot customs declaration, then Zhongshitong will prepare various customs declaration documents as required and complete the customs declaration action.
Elizabeth LiYears of service：3Customer Rating：5.0
Compliance and risk managerConsult
Usually, look at the trade terms. If it's FCA, CPT, CIP, etc., the consignor may be responsible for customs declaration to the transit port, and then the transit party makes the customs declaration. If it's DAP, DDP, etc., the consignee is more likely to be responsible for the subsequent customs declaration.
James LiuYears of service：10Customer Rating：5.0
Foreign trade tax refund consultantConsult
Sometimes the customs declaration entity is also related to the ownership of the goods. During the period of holding the document of title to the goods, the corresponding party may be responsible for customs declaration, which may be encountered in some complex entrepot trade structures.
Joseph ZhouYears of service：10Customer Rating：5.0
Senior foreign trade managerConsult
If the transit party has more convenient conditions for customs declaration, such as being familiar with local policies and having a professional customs declaration team, the consignor or the consignee may entrust the transit party to make the customs declaration.
William YangYears of service：5Customer Rating：5.0
International logistics consultantConsult
There is also a situation where the three parties negotiate and decide. According to factors such as the resources and costs of each party, the most suitable customs declaration entity is jointly determined. The key is to discuss it in advance and write it into the contract.
Emily LiuYears of service：10Customer Rating：5.0
Settlement and payment expertConsult
When special regulatory areas are involved, according to the regulations of the area and the trade arrangements, it may be the enterprise within the area (similar to the role of the transit party) that makes the customs declaration, or it may be according to other agreements.
Andrew HuangYears of service：7Customer Rating：5.0
Supply chain optimization expertConsult
If the consignor and the consignee have long-term cooperation and are used to one party taking the lead in customs declaration, this model may also be continued in entrepot trade.
David LiYears of service：6Customer Rating：5.0
Senior customs declaration consultantConsult
Considering factors such as taxation, sometimes in order to better plan costs and taxes, a certain party will be selected as the customs declaration entity to optimize the process.
Robert ChenYears of service：6Customer Rating：5.0
Customer service consultantConsult
From the perspective of logistics, if the logistics service provider is the transit party, it may be more reasonable for the transit party to make the customs declaration to ensure the smooth transit transportation of the goods.