Are there really so many pitfalls in registering an import and export trading company?

Mr. Zhang resigned and started a business last year, hoping to "earn some US dollars" through import and export trade. However, he was stuck for three months in the registration process due to the "customs code". Ms. Li's cosmetics export business had just started, but an entire container of goods was returned because she missed a qualification document... Import and export trade may seem to have a low threshold, but the hidden professional processes and compliance requirements often catch novices off guard. This article will take you 10 minutes to analyze the entire process and avoid the pitfalls that 90% of entrepreneurs have stepped into.

It only takes 7 days to register an ordinary company, but an import and export trading company needs to additionally complete:

• Customs filing: Log in to the "China International Trade Single Window" to submit the registration certificate of the customs declaration unit. The review usually takes 5 working days.
• Electronic port card: The legal representative needs to bring the original identity card to the local customs card-making center to handle it.
• Registration in the list of the State Administration of Foreign Exchange: It directly affects the legality of subsequent foreign exchange receipts and payments.

It is recommended to apply for the qualification recognition for export tax rebate simultaneously. Otherwise, if it is later, the accounts of the previous 12 months need to be re-verified.

The qualifications involved in different commodities vary greatly:

• Food/cosmetics: Require official health certificates from the country of production + Chinese label filing
• Medical devices: Business filing certificate (Class I) or business license (Class II/III)
• Chemical products: MSDS report + Dangerous Goods Transport Identification Certificate (if any)

Zhongshitong foreign trade consultants remind: Query the HS code in advance can accurately lock the regulatory requirements and avoid finding a lack of certificates when the goods arrive at the port.

For the first customs declaration, it is recommended to pay attention to:

• The "domestic source of goods" on the customs declaration form must be exactly the same as the address on the value-added tax invoice.
• Wooden packaging must be marked with the IPPC logo, otherwise there is a risk of return of goods.
• Under the FOB term, freight/insurance premium must be declared actively, otherwise it will affect the amount of tax rebate.

According to a certain spot check, 47% of customs declaration returns are due to contradictions between the proforma invoice and the packing list information.

Common foreign exchange problems for new companies include:

• The overseas payer is inconsistent with the contract signing party, triggering bank risk control.
• If the advance payment exceeds 30% of the contract amount, a explanatory document needs to be submitted.
• Foreign exchange must be received within 90 days after export, otherwise an extension needs to be filed.

It is recommended to open cross-border RMB settlement to avoid exchange rate fluctuations and purchase export credit insurance to prevent bad debts.

What needs to be focused on maintaining every year:

• Customs annual report (before June 30 of the following year)
• Foreign exchange receipts and payments report (within 5 working days at the beginning of each month)
• Archiving of export tax rebate documents (each batch of materials is kept for 5 years)

Customs data in a certain place in 2023 shows that 21% of enterprises were downgraded to dishonest enterprises due to overdue annual reports.

1. Log in to the "National Enterprise Credit Information Publicity System" to check the restrictions of the target industry
2. Make an appointment with the enterprise management department of the local customs for one-on-one consultation
3. Join the enterprise training zone of the "Single Window" to learn the latest policies

Which are you going to enter? Welcome to share your preparation experience in the comment area. We will select 3 readers to provide free compliance diagnosis!