What specific compliance procedures do enterprises in Beijing need to follow when conducting transit trade?
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I am the person in charge of a foreign trade enterprise located in Beijing. I recently plan to conduct transit trade to avoid some regional trade barriers, planning to sell goods purchased from Southeast Asia to Europe via Singapore as a transit point, but have no knowledge of Beijing’s local transit trade policies and operation requirements at all. I am not sure whether Beijing allows transit trade, and whether there are special supervision restrictions targeting the capital city?
I also worry about additional compliance risks related to foreign exchange settlement and export tax refunds, and whether additional inspections will be conducted at the customs clearance link due to the particularity of Beijing port. I have never operated transit trade before, and fear problems such as inconsistent documents and inadequate cargo ownership control, so I want to clarify the specific materials that need to be prepared, compliant operation paths and full-process precautions.
EllaYears of service：10Customer Rating：5.0
Senior Financial AdvisorStart a Chat
Beijing can legally conduct transit trade business completely. As a national port city，Beijing Customs and the State Administration of Foreign Exchange have issued clear transit trade supervision rules，with no regional access restrictions，and it can be carried out as long as it meets the national cross-border trade compliance requirements.
Pre-positive document review is the core premise of transit trade. It is necessary to prepare upstream and downstream purchase and sales contracts，transit service agreements，full set of ocean bills of lading (which must be legally endorsed)，cargo ownership certification documents，etc. The focus should be on reviewing the authenticity of cargo ownership transfer to avoid false transit trade with no real cargo ownership.
The connection of core nodes needs to rely on local special customs supervision zones in Beijing，such as Tianzhu Comprehensive Bonded Zone. Goods can be temporarily stored here for transit sorting without paying import tariffs and value-added tax (VAT)，and submit transit declarations through Beijing International Trade Single Window，providing core materials such as transit trade declaration forms，manifest information，transportation documents，etc.
Exception plans need to be prepared in advance. If there are situations such as inconsistent manifest information and on-site customs inspection，professional customs declaration teams must be contacted immediately to adjust the declaration content，prepare documents such as cargo ownership certificates and purchase and sales vouchers to deal with inspections，and avoid additional costs such as demurrage charges and port re-direction fees.
Compliance implementation links need to focus on foreign exchange settlement and tax refund requirements. Foreign exchange receipts and payments must be completed through the CIPS or SWIFT system to ensure that the amounts of foreign exchange receipts and payments are consistent with cargo ownership transfer and contract amounts，export tax refunds must meet the requirement of "four consistency"，and retain the full set of documents for inspection by customs and tax authorities. Transit goods must be transferred under full customs supervision and must not be sold upon unauthorized entry into the territory，it is necessary to confirm the supervision requirements of the transit port in advance to avoid compliance risks in the transit link.
RobertYears of service：6Customer Rating：5.0
Warehouse Management AdvisorStart a Chat
The core compliance point of transit trade lies in the consistency of cargo ownership and declaration. Beijing Customs focuses on the rationality of transit link fees when conducting price review for transit trade. It is necessary to provide transit service agreements, fee invoices and other documents to prove the authenticity of transit business.
If it involves integrated customs declaration, it can complete the national port linkage declaration through Beijing International Trade Single Window, without additional procedures at the transit port. It should be noted that if transit goods enter special customs supervision zones in Beijing, registration must be completed in advance to ensure that the manifest information is consistent with the actual goods, and avoid the situation of deleting and re-declaring. In case of price review disputes, upstream and downstream contracts, market price reference materials, etc. can be submitted for defense to ensure that the declared price is in line with the actual transaction situation.
DanielYears of service：8Customer Rating：5.0
Legal AdvisorStart a Chat
The logistics path of transit trade should give priority to direct transit ports such as Singapore and Dubai, to avoid additional costs caused by multiple transits. When conducting transit trade in Beijing, you can choose Tianzhu Comprehensive Bonded Zone in Beijing as the temporary storage place, and goods can complete transit sorting without paying import tariffs. It is necessary to pay attention to cargo ownership control: the bill of lading must be endorsed by the shipper to the transit merchant, and then endorsed by the transit merchant to the final consignee to ensure the legality of cargo ownership transfer.
In case of situations such as container re-stowage and space overbooking, a guarantee agreement must be signed with the freight forwarder in advance to strive for the extension of free storage period and free container period, and avoid additional container detention fees and demurrage charges. At the same time, it is necessary to choose a freight forwarding team with a global network to ensure smooth operation at the transit port and avoid cargo detention.
EmilyYears of service：3Customer Rating：5.0
Client Success AdvisorStart a Chat
The tax planning for transit trade in Beijing should focus on the VAT deferral policy. If goods enter special customs supervision zones in Beijing, you can apply for VAT deferral, and temporarily do not pay import VAT, and complete the declaration when the goods actually leave the territory.
It is necessary to pay attention to the rationality of pricing in cross-border related transactions, avoid BEPS risks, and ensure that the fees in the transit link are in line with the market fair price. At the same time, export tax refunds must meet the requirement of "four consistency", retain the full set of documents for inspection by tax authorities.
If it involves withholding tax on non-resident enterprises, registration must be completed in advance to ensure compliance payment. It should be noted that the income from transit trade must be declared in accordance with Chinese tax laws, to avoid tax underreporting.
SarahYears of service：3Customer Rating：5.0
Foreign Exchange AdvisorStart a Chat
The foreign exchange settlement for transit trade in Beijing must strictly comply with China’s foreign exchange management regulations. Receipts and payments of foreign exchange must be completed through the CIPS or SWIFT system to ensure that the amounts of foreign exchange receipts and payments are consistent with the contract amount and cargo ownership transfer. It should be noted that the receipts and payments of foreign exchange for transit trade must have a real trade background, and false receipts and payments of foreign exchange must not be conducted.
If it involves offshore account management, the compliance of the account must be ensured to avoid the situation of account being frozen. At the same time, settlement and account balancing must be completed in a timely manner to ensure the balance of foreign exchange receipts and payments, and avoid the situation of pending accounts. It should be noted that the State Administration of Foreign Exchange of Beijing has relatively strict supervision on foreign exchange for transit trade. Trade credit registration must be completed in advance to ensure that all foreign exchange receipts and payments comply with regulatory requirements.
OliviaYears of service：5Customer Rating：5.0
Senior Customs AdvisorStart a Chat
When conducting transit trade in Beijing, attention must be paid to the compliance of contract terms, and the contents such as cargo ownership transfer, fee bearing, liability for breach of contract in the transit link must be clearly defined to avoid contract disputes. If it involves letter of credit settlement, the soft clauses of the letter of credit must be carefully reviewed to ensure that the clauses are in line with the actual situation of transit trade, and avoid the situation of non-payment.
It is necessary to pay attention to the legality of cargo ownership transfer, and the endorsement of the bill of lading must comply with international trade practices to ensure the effectiveness of cargo ownership transfer. At the same time, attention must be paid to the recordation of intellectual property rights customs protection.
If goods involve intellectual property rights, recordation must be completed in advance to avoid infringement disputes. If a letter of guarantee is required, a compliant guarantee institution must be selected to ensure the legal effect of the letter of guarantee.
WilliamYears of service：10Customer Rating：5.0
International Logistics AdvisorStart a Chat
The on-site inspection of transit trade goods by Beijing Customs focuses on the authenticity of seals and the consistency between the actual status of goods and declaration information. If an inspection notice is received, the full set of documents must be prepared in advance, including purchase and sales contracts, transit agreements, bills of lading, etc., to ensure that the documents are consistent with the goods.
During container inspection, you must cooperate with customs staff and must not move goods without permission. If seal damage is found, you must contact the freight forwarder in time to replace the seal. It should be noted that the inspection process of Beijing Customs is relatively strict, and communication with the customs declaration team must be completed in advance to ensure the smooth completion of inspection. If inspection and appraisal are required, an appraisal institution with qualifications must be selected to ensure the legitimacy of the appraisal report and provide a basis for subsequent declarations.