Choosing a foreign seller and ordering goods from him is only half the battle. The most important thing remains - to organize the transportation of products, create conditions for safe delivery and quick clearance. This article describes how to clear goods from China.
International Incoterms Rules
Before making transactions with foreign counterparties, you should carefully study the rules of Incoterms. They regulate the relations between all participants in international trade and determine their responsibility for the goods. All contracts are based on these conditions.
Incoterms standards have been used since 1936. Knowledge of these rules makes it possible to determine the stage of transfer of responsibility for the goods from seller to buyer. The standards also establish what costs and up to what point both parties to an international transaction incur. Consider the main types of contracts.
Types of international contracts
EXW (ex works) - according to this contract, the buyer takes all the costs, starting from the manufacturer’s factory and ending with his warehouse. Such an agreement is very "burdensome" the buyer and is not always convenient.
DDP (delivered duty paid) - this contract provides that the buyer receives goods from China at a specific place without paying any fees. The Chinese rarely work under such a contract, since they do not know how to "customs" goods in other countries and in such cases use the services of intermediaries. And this affects the cost of production.
DAT (delivered at terminal) - according to this agreement, the seller is obliged to pay for the delivery of goods to the customs terminal specified in the agreement. That is, the main transportation, insurance and all export payments are paid by the seller. And the remaining costs of import and customs clearance are borne by the buyer.
Customs brokers
After choosing the type of contract and the method of transportation, the most crucial stage begins - customs clearance of goods from China. Here you can use the services of an intermediary company called a customs broker. She prepares goods from China at the Federal Customs Service. Customers who decide to contact an intermediary should be careful and cautious. The fact is that customs brokers are mainly managed by former FCS employees who will not always represent the interests of the consignee. Therefore, the buyer should be well versed in the conditions foreign economic activity and know the fees that need to be paid. Thus, the buyer will be able to evaluate the actions of the broker and understand whose interests he is protecting.
Documents for customs clearance
Customs clearance of goods from China involves the verification and execution of certain documents. So, the buyer of the goods must present the following documents to the FCS employee:
- Delivery contract with a foreign manufacturer and specification. These documents describe all the features of products, packaging, etc. The contract and specification must be translated into English and Russian. Therefore, it is recommended to immediately conclude agreements in two languages, so that later there are no unpleasant situations.
- Packing list - it contains data on all grades and types of products that are in separate packages.
- Product certificates.
- An international bill of lading and a bill of lading is a standard bill of lading that certifies the carriage and the right to receive foreign products.It contains such information: the name of the carrier company and the vessel, the place of unloading of the goods, the name of the sender and receiver of the goods, the characteristics and description of the products being transported, the date and time of issue of the bill of lading and the signature of the master of the court.
- Invoice.
- An export declaration is a document that confirms the “customs clearance” of goods in China.
- Price list for transported products - it confirms the prices at which the goods were purchased in China. The price must be certified by the Chamber of Commerce and Industry of China. This document is required by customs. Goods from China must have a specific value, on the basis of which taxes and duties are to be paid.
All these documents are required for customs clearance of goods. Therefore, their design must be taken care of in advance, having settled all issues with Chinese suppliers.
Tax preparation and tax payment
Customs clearance of goods from China is carried out after filling out a customs declaration (TD). It can be filled with the help of a consultant, or independently. The procedure for the preparation of the declaration is determined by the decision of the Commission of the Customs Union.
The declaration is the main document in the processing of international cargo, which must indicate the name of the goods, place of departure and arrival, the amount of taxes and customs payments. Also in the TD should indicate the code of the imported goods. Each type of product has its own code, which can be found in the classification of the Commodity Nomenclature for Foreign Economic Activity of the Customs Union. The fact is that the size of the duty and VAT depend on the type of product. For example, the duty on children's knitted sweaters is 10%, and VAT is 18%. Thus, the buyer himself calculates the size of all taxes and payments that must be paid for goods from China. Customs clearance of the goods and delivery to the recipient occurs only after filling out the declaration and payment of all customs costs.
When is it profitable to contact an intermediary
Nowadays, more and more people are looking for ways to directly work with manufacturers from China. Customs clearance of goods is the main issue that interests all buyers. After all, this is a process that requires some knowledge and experience. For this reason, people often use the services of qualified personnel. The advantages of this solution are obvious. Firstly, the buyer can be calm in the fact that he will receive a fully formalized delivery, saving his time on all customs procedures. Secondly, for beginners, this greatly simplifies the receipt of goods. But the services of customs intermediaries cost money, so the consignee will incur additional costs.
Another way of customs clearance is self-clearance of cargo. If the buyer plans long-term cooperation with Chinese suppliers, it is more profitable to carry out a customs clearance himself. Personal participation in all customs procedures will allow you to fully control the situation and gain valuable experience. So, the buyer will be able to learn all the nuances of design, making it more economical.
