In today's rapidly globalizing economy, import trade has become a crucial strategy for business growth. The customs clearance process stands as the pivotal gateway to successful imports. Whether through general trade or processing trade, understanding these procedures establishes a solid foundation for efficient customs clearance while avoiding unnecessary delays and losses.
I. General Trade Import Process
General trade import refers to standard commercial transactions for most commodities. Mastering these key steps will significantly enhance your company's import management capabilities.
1. Payment Method Determination
Selecting appropriate payment terms is critical for transaction security and convenience. Common methods include Telegraphic Transfer (T/T) and Letter of Credit (L/C). When opting for L/C, coordinate with your bank for issuance procedures and ensure alignment with shipment schedules to prevent cargo release issues.
2. Essential Document Preparation
Obtain commercial documents from suppliers including bills of lading, commercial invoices, and packing lists. For specialized commodities like natural dyes or chemicals, additional certifications such as non-wooden packaging declarations may be required for certain destinations like Japan or South Korea.
3. Bill of Lading Exchange
Exchange the original bill of lading for a delivery order at the shipping company. Verify all cargo details (description, specifications, quantity) on the delivery order to prevent future complications.
4. Commodity Inspection Procedures
Certain imports require mandatory inspection. Apply through the Commodity Inspection Bureau, ideally processing this concurrently with bill exchange to save time. Non-regulated goods can bypass this step entirely.
5. Customs Declaration Preparation
Submit complete documentation including the customs declaration form, commercial invoice, packing list, delivery order, power of attorney, and any inspection certificates to your freight forwarder. Document completeness ensures smooth clearance.
6. Import Duty Payment
Pay applicable tariffs promptly after declaration submission. For expedited processing, consider using temporary payment instruments (with prior finance department approval), then settle final amounts upon receiving official payment notices from customs. Most payments are processed through designated banks - ensure proper endorsement on all payment documents.
7. Customs Clearance & Cargo Release
Submit payment confirmation to your forwarder for customs release authorization. Once customs stamps the delivery order, collect your goods from the designated port location.
II. Processing Trade Import Procedures
Processing trade offers distinct advantages and operational flexibility compared to general trade imports. Below are the specialized procedures for this trade model.
1. Processing Manual Application
Companies must apply for processing trade manuals (either "Processing with Imported Materials" or "Processing with Supplied Materials") from relevant authorities. These manuals serve as foundational documents for customs clearance facilitation.
2. Customs Declaration Preparation
Submit the processing manual along with standard import documents. Notably, processing trade typically requires only duty deposits rather than full tariff payments.
3. Deposit Payment
Deposit amounts vary by commodity classification, typically ranging from nominal fees (e.g., ¥100) to full duty equivalents. This mechanism significantly improves cash flow management.
4. Manual Verification & Deposit Refund
Upon completing all imported material transactions specified in the manual, companies can apply for deposit refunds after final verification, further optimizing capital utilization.
In today's dynamic international trade environment, understanding these procedural differences enables businesses to navigate complex customs challenges effectively. Proper preparation and process mastery will enhance operational efficiency and competitive positioning in global markets.
While import customs procedures can be complex, systematic preparation at critical junctures ensures efficient clearance, enabling businesses to capitalize on market opportunities swiftly. With these insights, your import operations are well-positioned for success in the global marketplace.
