【EXPERT Q&A】Do foreign trade without import and export rights are there other ways to export?

August 16, 2024  Source: drugdu 95

Drugdu.com expert's response:

 

When foreign trade enterprises do not possess import and export rights, there are indeed alternative methods to achieve exports. These methods primarily encompass:

I. Export Under Billing 

This refers to units without import and export rights using the name of another import and export company for export purposes. The specific operational process is as follows:

1.Purchase of Export Documents: Acquire a set of export customs declaration documents, which will be used for customs clearance procedures.

2.Submission of Customs Declaration Materials: Submit the purchased customs declaration materials to a customs broker or freight forwarder for customs clearance. Once the goods are successfully declared and released, the process of export under billing is completed.

3.Handling of Customs Clearance Documents: The information used for customs declaration may differ from the header company for customs clearance documents provided to the recipient at the destination port, but documents must be consistent, meaning the bill of lading, packing list, and invoice must be under the same header company. Companies without import and export rights can use their own company headers as foreign customs are not directly connected to Chinese customs, avoiding complications.

4.Foreign Exchange Handling: The foreign exchange earned from export under billing can be remitted to any corporate foreign exchange account, personal account, or overseas account.

5.Tax Rebate Issues: Export under billing does not qualify for tax rebate policies, thus goods can be procured from factories on a "non-invoice" basis.

II. Engagement with Foreign Trade Agents

Foreign trade agents provide another avenue for enterprises without import and export rights to export. These agents assist with the export process, including foreign exchange collection, payment, verification, and tax rebates. The specific operational process is as follows:

1.Signing of Agency Agreement: Enter into a foreign trade agency agreement with a foreign trade agent company.

2.Foreign Exchange Handling: Direct foreign clients to remit foreign exchange to the foreign trade agent's account, who will then settle the funds to the factory after exchange settlement.

3.Customs Clearance for Export: The foreign trade agent prepares customs declaration documents and handles customs clearance before shipment.

4.Tax Rebate Processing: The factory issues VAT invoices to the foreign trade agent, who then handles tax verification, rebates, and final settlement.

III. Other Cooperation Modes

1.Collaboration with Overseas Clients: If the company has overseas clients, it can cooperate with them to arrange transportation and customs clearance procedures. The company only needs to ship the goods to the designated port or airport, and the clients will handle import procedures thereafter.

2.Partnership with International Logistics Companies: Partnering with international logistics companies enables export under billing or adoption of other compliant export methods. Logistics companies provide professional export services to help enterprises successfully complete the export process.

3.Precautions: Select Reliable Partners: Whether engaging in export under billing or partnering with a foreign trade agent, it is crucial to choose reliable partners to ensure transaction authenticity and security.

4.Understand Relevant Laws and Regulations: When conducting export business, be familiar with and comply with relevant laws, regulations, and requirements to avoid risks and losses due to violations.

5.Consider Long-term Planning: If the enterprise plans to engage in import and export trade for an extended period, it is advisable to consider applying for import and export rights to gain more autonomy and flexibility.

In summary, enterprises without import and export rights still have multiple avenues to achieve export operations. However, when selecting specific methods, it is essential to comprehensively consider the enterprise's actual situation, needs, as well as the reliability and professionalism of partners.

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