Can manufacturing enterprises handle the full process of import and export cross-border trade business on their own?

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I run a stainless steel fastener manufacturing enterprise with annual revenue of over 60 million. We used to entrust third-party agents to handle import and export business. Recently, our European customers requested us to directly handle customs declaration, foreign exchange receipt and tax refund processes, as they do not want to pay extra margins to agents.

However, I have no idea whether manufacturing enterprises like us can directly handle import and export business, for example, whether we need to apply for additional qualifications, what the compliance requirements for commodity classification during customs declaration and foreign exchange settlement are, whether the export tax refund process will be very complicated, and how to deal with situations such as customs inspection or document discrepancy. Could you explain the specific operation requirements and precautions in detail?

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Expert Answer

Sarah
SarahYears of service:3Customer Rating:5.0

Foreign Exchange AdvisorStart a Chat

Manufacturing enterprises can fully handle import and export business independently,but they need to complete qualification filing in advance and strictly follow compliance procedures. In 2026,the customs has simplified the processing procedures for import and export qualifications,and the filing of foreign trade operators and registration of customs declaration entities can be completed online through the China International Trade Single Window. The filing information must be consistent with the actual operating entity.

The core process is divided into three key nodes: First,the customs declaration link. It is necessary to accurately match the commodity code with the supervision conditions,truthfully declare the cargo value and transaction method,and avoid customs detention caused by classification errors. Second,the foreign exchange settlement link. It is necessary to handle foreign exchange receipt through compliant bank accounts,retain SWIFT messages or CIPS payment vouchers,and ensure that the capital flow is consistent with the trade background. Third,the export tax refund link. It is necessary to retain contracts,invoices,logistics documents and foreign exchange receipt vouchers,strictly implement the requirement of four-flow consistency. In 2026,the tax authority has launched the tax refund pre-declaration verification system,which can detect declaration errors in advance.

Plans for handling abnormal situations should be prepared in advance: In case of customs inspection,sort out documents such as cargo ownership certificates and production ledgers in advance to cooperate with the inspection,In case of document discrepancy,you can apply for deleting the declaration and re-submitting within the specified time limit,In case of port detention and container detention fees,you can apply to the shipping company for extension of the free storage period. In addition,it is recommended to sort out the latest customs and tax policies every quarter to avoid compliance risks caused by policy changes.

Take the fastener industry you are in as an example,exports to the EU need to meet the CE certification requirements,and the supervision code should be additionally marked during customs declaration. It is recommended to consult a professional institution in advance to confirm the commodity classification to avoid subsequent customs clearance obstacles. On the whole,independent handling of import and export business can save agency fees,but it requires a certain amount of energy to sort out the procedures. If compliant operation is realized,higher profit margins can be achieved.

Alexander
AlexanderYears of service:10Customer Rating:5.0

Senior Trade AdvisorStart a Chat

In 2026, the integrated customs clearance system has realized the linkage of all ports across the country. Manufacturing enterprises that declare customs independently need to complete the customs AEO certification filing first, so as to enjoy a lower inspection rate. Commodity classification shall be updated according to the 2026 edition of the Import and Export Tariff.

The codes of stainless steel fasteners shall be distinguished by material and specification. Incorrect declaration will lead to inconsistency with supervision conditions. In the price review link, real transaction price vouchers, including contracts, invoices, freight insurance policies, etc., shall be provided.

If the customs questions the cargo value, a third-party test report or market price comparison data shall be submitted in time. In case of pending accounts or declaration postponement, you can submit a declaration modification application through the Single Window to ensure the logical closed loop of documents.

In addition, the customs launched the "advance declaration" facilitation policy in 2026, which allows completion of customs declaration and review before the arrival of goods, shortening the customs clearance time. It should be noted that manufacturing enterprises declaring customs independently need to be equipped with full-time customs declaration personnel, or entrust a customs broker to assist in handling complex customs clearance affairs, so as to avoid customs detention caused by operational errors.

Daniel
DanielYears of service:8Customer Rating:5.0

Legal AdvisorStart a Chat

When manufacturing enterprises handle import and export business independently, the selection of logistics routes should be combined with the destination of goods and time limit requirements. For exports to Europe, direct shipping routes can be selected to avoid risks such as container rolling and port change caused by transshipment. In 2026, some shipping companies launched a combined solution of China Railway Express + sea transport, which can reduce logistics costs.

The application for free storage period shall be submitted 72 hours before the arrival of goods, and can be extended to 14 days to avoid port detention fees. Bill of lading endorsement shall be adjusted according to trade terms. Under FOB terms, the buyer shall endorse, and under CIF terms, the seller shall endorse. It is necessary to ensure that the cargo ownership of the bill of lading is consistent with the contract.

In terms of cargo ownership control, the time limit for cargo ownership transfer can be shortened through telex release of bill of lading or sea waybill, but the credit qualification of the other party shall be confirmed. In case of container detention fees, you can apply to the shipping company for reduction or exemption, and provide reasonable reasons for delay, such as customs inspection, document review delay, etc. It is recommended to sign a container detention fee reduction and exemption agreement with the freight forwarder in advance to clarify the responsibility boundary of both parties.

Sophia
SophiaYears of service:7Customer Rating:5.0

Senior Customs AdvisorStart a Chat

When manufacturing enterprises handle import and export business independently, tax planning shall focus on VAT deferral and export tax refund processes. In 2026, the EU VAT deferral policy has simplified the declaration process, and deferral applications can be submitted online without paying import VAT in advance. The export tax refund declaration shall be completed within 90 days after the goods are declared for export.

In 2026, the tax authority has realized the joint verification of tax refund and foreign exchange receipt, and it is necessary to ensure that the capital return is consistent with the trade background. The pricing of related party transactions shall comply with the arm's length principle to avoid being identified as BEPS risk by the tax authority.

In terms of withholding tax for non-resident enterprises, if royalties are paid overseas, withholding tax shall be withheld and paid at the rate of 10%, and reduction or exemption can be applied for through tax treaties. It is recommended to hire a professional tax consultant to sort out the cross-border tax structure to ensure compliance and avoid tax late fees and fines.

David
DavidYears of service:3Customer Rating:5.0

Business Development AdvisorStart a Chat

When manufacturing enterprises handle import and export business independently, foreign exchange settlement shall strictly comply with the compliance requirements for cross-border receipt and payment of foreign exchange. In 2026, the CIPS RMB cross-border payment system has covered more than 100 countries and regions around the world, which can realize RMB cross-border settlement and reduce exchange rate difference costs.

Foreign exchange settlement and account reconciliation shall be handled through foreign exchange accounts, and documents such as trade contracts, invoices and customs declaration forms shall be retained to ensure that the capital flow is consistent with the trade background. The payee information shall be accurately filled in the SWIFT message to avoid delayed arrival of funds caused by message errors.

Offshore account management shall comply with foreign exchange administration regulations. In 2026, the State Administration of Foreign Exchange has strengthened the supervision of offshore accounts, and account use reports shall be submitted regularly.

Foreign exchange purchase rate optimization can lock the exchange rate through forward foreign exchange settlement and sale products to avoid losses caused by exchange rate fluctuations. It is recommended to check the foreign exchange account statements monthly to ensure compliance.

John
JohnYears of service:6Customer Rating:5.0

Export Tax Rebate AdvisorStart a Chat

When manufacturing enterprises handle import and export business independently, they shall pay attention to the legal risks of international trade contracts. Soft clauses of letters of credit shall be carefully reviewed, such as the clause that "payment can be made only after the buyer issues an inspection report", which may cause the seller to fail to receive foreign exchange on time.

The force majeure clause shall define the scope, such as epidemic, war, customs inspection and other situations, so as to avoid compensation liability caused by breach of contract. Cargo ownership transfer shall be completed through bill of lading endorsement or sea waybill change, and the transfer process shall comply with local legal requirements.

The letter of guarantee (LOI) shall clearly define the guarantee scope and term. If the buyer requires the issuance of an advance payment guarantee, the credit qualification of the other party shall be verified. The customs protection filing of intellectual property rights can prevent the export of infringing goods.

It is recommended to file relevant trademarks and patents in advance. In case of trade disputes, they can be resolved through the China International Economic and Trade Arbitration Commission to avoid the high cost of transnational litigation.

Olivia
OliviaYears of service:5Customer Rating:5.0

Senior Customs AdvisorStart a Chat

When manufacturing enterprises handle import and export business independently, they shall make preparations in advance for on-site customs inspection. The authenticity of seals can be identified by checking the seal number, material, printing clarity, etc. Forged seals will be identified as abnormal cargo ownership transfer.

For full container unloading inspection, the goods shall be sorted out in advance and placed in the order of the customs declaration form to facilitate the inspection of customs personnel. During X-ray inspection, it shall be ensured that the cargo packaging meets the requirements to avoid cargo scattering caused by packaging damage.

The inspection notice shall be carefully read to clarify the inspection scope and requirements. If sample testing is required, samples and test reports shall be prepared in advance. The analysis of test reports shall be combined with the characteristics of the commodity.

If the test results are inconsistent with the declaration, supplementary materials shall be submitted in time to explain the situation. It is recommended to communicate with customs inspection personnel in advance to understand the inspection focus and avoid inspection delay caused by improper operation.

Emily
EmilyYears of service:3Customer Rating:5.0

Client Success AdvisorStart a Chat

When manufacturing enterprises handle import and export business independently, the cargo packaging shall meet the requirements of international transportation. Stainless steel fasteners are general cargo, but moisture-proof and rust-proof treatment shall be done, and vapor phase anti-rust film and wooden box packaging can be used.

The preparation of MSDS shall accurately describe the cargo characteristics, hazards and emergency treatment measures. If exported to the EU, it shall meet the requirements of REACH regulations. UN dangerous goods packaging is applicable to the transportation of dangerous goods. If the goods are not dangerous goods, there is no need to apply for UN packaging.

The selection of cushioning packaging materials shall be based on the weight of the goods and the mode of transportation. Wooden pallets can be used for sea transportation, which shall meet the ISPM15 quarantine requirements.

The moisture-proof reinforcement scheme shall consider the humidity change during transportation, and desiccant and breathable film packaging can be used. It is recommended to consult a professional packaging institution in advance to ensure that the packaging meets the quarantine requirements of the destination country and avoid the return of goods caused by unqualified packaging.

Charlotte
CharlotteYears of service:4Customer Rating:5.0

Currency Exchange AdvisorStart a Chat

When manufacturing enterprises handle import and export business independently, the export tax refund shall strictly comply with the requirements of document filing and compliance. In 2026, the tax authority has launched the electronic system for export tax refund document filing, and filing materials can be submitted online without paper archiving.

The capital return verification shall confirm that the amount of foreign exchange received is consistent with the amount on the customs declaration form. If there is a difference, a reasonable explanation shall be submitted. For tax official correspondence verification, it is necessary to cooperate with the tax authority to provide relevant materials, including contracts, invoices, logistics documents, etc.

The four-flow consistency verification shall ensure that the flows of contract, invoice, logistics and capital are consistent. In case of cross-month declaration, the declaration shall be completed within the tax payment period of the next month.

Pre-declaration verification can detect declaration errors in advance through the electronic tax bureau to avoid the rejection of formal declaration. It is recommended to carry out export tax refund self-inspection every quarter to ensure compliance and avoid the recovery of tax refunds and fines due to violations.

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