Import and Export Company Handling Hides These Pitfalls

Have you ever thought about doing business overseas? Last year, Mr. Zhang sold the handicrafts produced by his own family to Europe by registering an import and export company, and his annual profit tripled. Ms. Li, on the other hand, made imported maternal and infant products into online bestsellers through cross-border e-commerce platforms. Import and export trade may seem to have a high threshold, but in fact, as long as you master the methods, ordinary people can also get a share of the pie. This article will use the most straightforward language to take you through the whole process of handling an import and export company step by step.

Before registration, you need to determine the nature of the enterprise first:

• Production-oriented: Having its own factory and directly exporting products
• Trade-oriented: Engaging in commodity trading and being able to operate both imports and exports simultaneously
• Service-oriented: Providing services such as international logistics and customs declaration

It is recommended that start-up enterprises choose "Import and Export of Goods" or "Import and Export of Technologies" as their business scope. The case of Zhongshitong shows that the success rate of trade companies including these two items in passing customs record-filing is as high as 92%.

The preliminary steps of ordinary company registration and import and export company registration are exactly the same:

• Name Verification (It is recommended to prepare 3 - 5 alternative names)
• Submit the Registered Capital (The minimum under the subscribed capital system is 30,000 yuan)
• Handle the Business License
• Engrave the Official Seal

Pay special attention to choosing the "General VAT Taxpayer" qualification, which is a prerequisite for subsequent applications for export tax rebate. The statistical data of a certain local tax bureau shows that 90% of the applications for import and export qualifications are rejected at this stage.

This is a crucial step that distinguishes it from ordinary companies:

• Record-filing with the Commerce Bureau (Receive the Record-filing Form for Foreign Trade Operators)
• Customs Registration (Obtain the 10-digit Customs Code)
• Application for Electronic Port Card (Used for customs declaration operations)
• Record-filing with the Foreign Exchange Administration Bureau (Open the permission for foreign currency accounts)

The whole process usually takes 15 - 20 working days. It is recommended to handle Record-filing for Entry-Exit Inspection and Quarantine simultaneously, especially for special categories such as food and cosmetics.

The qualification is just the admission ticket. In actual operation, you should pay attention to:

• International Settlement: Choose a bank account that supports multiple currencies
• Logistics Cooperation: Reserve at least 3 freight forwarding companies for backup
• Document Management: Invoices, Packing Lists, and Certificates of Origin are all indispensable

Ms. Li's lesson is quite typical: She once had to pay high tariffs on a batch of goods in ASEAN countries due to the lack of FORM E Certificate of Origin, resulting in a direct loss of 60,000 yuan.

The daily management of import and export companies has special requirements:

• Monthly Submission of Electronic Port Data
• Quarterly Declaration of Foreign Exchange Receipts and Payments
• Annual Submission of Customs Annual Reports

It is recommended to use a professional foreign trade ERP system. The customer tracking data of Zhongshitong shows that the error rate of customs declaration of enterprises using digital management has decreased by 67%, and the average time for tax rebate to be credited to the account has been shortened by 11 days.

Now you might as well take out a pen and paper to do a calculation: If you sell the products you are most familiar with overseas, how much can the profit margin be increased? The dividend period of import and export trade is still ongoing. Agreements such as RCEP are making tariffs lower and lower, and the infrastructure of cross-border e-commerce is also becoming more and more perfect. Starting from today to prepare materials, you can receive the first international order in as fast as 45 days. What products are you going to bring to the world? Welcome to share your business ideas in the comment section.