In today's increasingly frequent global trade, customs declaration procedures have become particularly important. Every detail may affect the entire trade process, especially when filling out customs declaration forms where specific norms and requirements must be followed. To better understand these regulations, this article will use case analysis to explore the accurate interpretation and application of two crucial concepts: "consignor" and "producer/seller."
I. Case Background
Imagine a company named "Tianyu Electronics" decides to export its electronic components to the United States. To complete export tariff declaration and payment, they must fill out the relevant export customs declaration form. During this process, the account manager responsible for the task had questions about the "consignor" field. He believed "consignor" could simply be understood as the shipper, so he filled in the company's registration information.
However, according to Announcement No. 20 of 2016 from the General Administration of Customs, the "consignor" field on export declaration forms must contain the name and code of a Chinese legal entity, organization, or individual that is registered with customs and has signed and executes the export trade contract.
II. Understanding "Consignor"
In our case, "Tianyu Electronics" is a Chinese-registered legal entity that signed the export contract with an American client and is responsible for executing it. According to customs requirements, the "consignor" information should be "Tianyu Electronics'" name and corresponding code. However, if "Tianyu Electronics" signed the trade contract with another company (such as a Hong Kong trading company) that handles the actual export, then the information of the company executing the contract should be entered.
Particular attention should be paid to the words "and executes" in customs regulations, which reflect the principle of truthfulness in declarations. In practice, if a customs broker with proper qualifications handles the declaration and the exporting company differs from the consignor, then the "consignor" field should contain the name and code of the company commissioning the export. This ensures trade parties' information is accurately presented on the declaration form, avoiding clearance delays due to inconsistent information.
III. "Producer/Seller" in the Case
Besides "consignor," "Tianyu Electronics" also needs to fill in "producer/seller" information. On export declaration forms, this field mainly includes domestic production and sales units. For self-exporting companies, information should be truthfully entered; for companies commissioning others to export, relevant information must still be recorded. For companies like "Tianyu Electronics," which typically serve as both producer and seller, their own information should be entered in this field.
The case mentions that code requirements for producer/seller units are relatively flexible - codes aren't mandatory, and "NO" can be entered if unavailable. This flexibility provides convenience for small and medium-sized enterprises and newly established companies. However, distinguishing between "producer" (usually the factory) and "seller" (typically a trading or import/export company) remains important. Since "Tianyu Electronics" has import/export rights and is registered with customs, they can use their own name for declarations.
For processing trade, products must match the operating company name in processing trade manuals. Additionally, for goods involving tax reductions or exemptions, "producer/seller" information must match the applicant in the tax reduction/ exemption application - a crucial factor in ensuring smooth and compliant customs processes.
IV. Case Analysis
This case demonstrates that understanding customs declaration policies goes beyond knowing how to fill out forms. For instance, if "Tianyu Electronics'" client is an American company, they must ensure all declaration information is accurate and specific to prevent customs clearance delays. Therefore, every step must strictly follow General Administration of Customs regulations to ensure correct information.
During execution, account managers should regularly consult with legal and tax advisors to confirm compliance with national laws and regulations. Combining such professional knowledge can significantly reduce losses caused by information errors.
This also reveals that some companies implement insufficient quality control measures and don't prioritize customs documentation - often because they haven't thoroughly studied relevant customs policies. Thus, sharing such cases during exhibitions, industry exchanges, or client follow-ups becomes particularly valuable.
V. Summary and Outlook
The "Tianyu Electronics" case shows that accurately understanding and completing "consignor" and "producer/seller" fields forms the foundation for efficient and compliant export processes. Not following these norms may create unnecessary obstacles, potentially hindering international market expansion and causing financial losses.
Moving forward, both emerging SMEs and established corporations must emphasize customs declaration norms. In today's increasingly complex global trade environment, knowledge, skills, and policy understanding have become essential for international market success. Continuous learning, training, and collaboration with customs, legal, and financial departments are necessary processes for companies to successfully navigate international markets. Only then can businesses set sail smoothly in daily operations toward broader global horizons.
