Is the Import and Export Right a Tax on IQ? 3 Truths to Subvert Your Cognition

"Mr. Zhang recently wanted to expand into overseas markets, but was told that he needed to handle the Import and Export Right first. He was at a loss: ‘Isn't it just selling goods abroad? Why do I need to specifically handle a right?’" Such confusion is not an isolated case. Many entrepreneurs and even veteran business owners still have the perception of the Import and Export Right at the "dispensable" stage until they are stopped by a customs document and then regret it bitterly. Today, we will unveil the true face of this underestimated "commercial pass".

Simply put, the Import and Export Right is the legal qualification for enterprises to legally conduct international trade. It is not a physical certificate, but an operating permission jointly recognized by the customs, the foreign exchange administration and other departments. Without it, your goods may be "unable to move an inch" at the port - just like what happened to Ms. Li: Last year, her ceramic order worth 2 million yuan was forced to pay a high agency fee to complete the customs clearance due to the lack of the Import and Export Right.

• Basic Permissions: Self-declaration of customs, receipt and payment of foreign exchange, handling of tax refunds
• Hidden Values: Improving enterprise credit, obtaining policy subsidies, getting extra points in bidding

The expert team of Zhongshitong has sorted out three common misunderstandings:

• Misunderstanding One: "Individual businesses cannot handle it" - Since 2023, many places have opened applications for individual industrial and commercial households.
• Misunderstanding Two: "You can sell globally once you handle it" - Some special commodities require additional qualifications (such as medical devices).
• Misunderstanding Three: "It is taken for granted to handle it through an agent" - The cost of handling it by oneself is less than 1,000 yuan, far lower than the agency fee.

A home furnishing brand not only saved 120,000 yuan in agency fees every year by handling the Import and Export Right on its own, but also directly connected with overseas buyers to increase the profit margin by 40%. The key lies in that they have done the following:

• Completed the recordation of the customs e-port card in advance.
• Applied for 150,000 yuan of cross-border subsidies from the local government with the import and export qualifications.
• Established a complete trade flow through self-declaration of customs and obtained low-interest loans from the bank.

With the deepening of agreements such as RCEP, the threshold for cross-border trade is being lowered, but the compliance requirements are becoming more and more stringent. You might as well do a self-test:

• Have customers actively inquired about overseas orders?
• Have you considered going overseas through cross-border e-commerce platforms?
• Do you hope to obtain export tax refund incentives?