What Core Procedures and Qualifications Are Required for New Enterprises to Conduct Import and Export Business?
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I am the owner of a startup foreign trade company in Shanghai, mainly looking to sell domestically produced smart small appliances to Europe. I finally received my first trial order recently, but the client is pressing me to ship the goods as soon as possible.
I’ve searched online and found a lot of confusing and conflicting information about customs registration, electronic port, certificate of origin, customs declaration form... What I fear most now is making a mistake in some link that causes the goods to get stuck at the port, resulting in a pile of detention fees and fines, which would make this order a huge loss.
So I’d like to ask, what procedures do new companies like ours need to go through from start to finish? Are there any particular "pitfalls" we need to avoid in advance?
OliviaYears of service：5Customer Rating：5.0
Senior Customs AdvisorStart a Chat
Your concerns are very realistic. Once cargo arrives at the port，detention fees are calculated daily，and they snowball far faster than you can imagine. For new enterprises，the key is not to know "all" procedures，but to grasp those critical "one-vote veto" nodes. The entire process can be broken down into four major steps，but many enterprises fail at the first step due to "taken-for-granted assumptions".
The first common misconception is thinking that you can directly engage in import and export business once you have a business license. In fact，you need to complete the "Foreign Trade Operator Record-filing" (Ministry of Commerce)，"Customs Declaration Entity Record-filing"，and activate the legal person card for the "Electronic Port". These three are mandatory entry requirements，none can be omitted. By 2026，these filings will basically be available for one-stop online processing，but the accuracy of the enterprise information submitted directly affects the legality of all subsequent documents.
The real high-risk area is the second step: transaction and document preparation. Many new enterprises "plant mines" here. For example，if you export small appliances and make a single-digit error in the HS Code，the goods may be reclassified from ordinary cargo to products requiring 3C certification，and will be intercepted when they arrive at Shanghai Port. Another example: if the amount on the pro forma invoice does not match the subsequent declaration amount，even a decimal point error will trigger customs price verification，putting the goods in a "pending" status and incurring daily detention fees. We once handled a case where a client made a currency code error (writing EUR instead of USD)，leading to document discrepancies. The cargo was detained at Rotterdam Port for two weeks，and the fees exceeded 30% of the cargo value.
Therefore，the core method for physical risk isolation is "pre-review of documents". Before production begins，submit drafts of the contract，invoice，and packing list，along with detailed product descriptions and images，to professional customs personnel for compliance review. Focus on verifying: HS Code classification，declaration elements (such as brand，model，power)，trade terms (FOB/CIF)，and origin standards. This step can eliminate 80% of potential customs clearance obstacles in advance.
The third step is specific customs clearance operations: entrust a customs broker to prepare the customs declaration form and supporting documents (contract，invoice，packing list，agency agreement，etc.)，and file the declaration with the customs. By 2026，national integrated customs clearance will be fully mature，and it will be common practice to file declarations in Shanghai and obtain release at other ports. However，new enterprises must ensure that the shipper on the bill of lading (B/L) strictly matches the domestic shipper on the customs declaration form. This is the "lifeline" for foreign exchange and tax refund，any discrepancy will break the subsequent "foreign exchange collection" and "tax refund" chain.
The final step is follow-up management: after the goods are released，confirm the issuance of the export tax refund form through the Electronic Port，then prepare documents to file for tax refund with the tax authority. At the same time，the foreign exchange received must be declared for international payments as required. An exclusive risk mitigation tip here is: establish a "document closed-loop" for each transaction. Electronically archive all documents，from inquiry emails，contracts，production orders，logistics records，customs declaration forms，bills of lading，to payment receipts. In case of subsequent customs audits，tax inquiries，or foreign exchange inspections，you can retrieve the complete evidence chain within 10 minutes，which is the most powerful weapon to respond to supervision and resolve risks.
SarahYears of service：3Customer Rating：5.0
Foreign Exchange AdvisorStart a Chat
HS Code is the "ID card" for customs declaration. Misclassification may lead to comprehensive errors in regulatory documents, tax rates, and tax refund rates. New enterprises often rely on search engines or simple descriptions for classification, which carries extremely high risks.
For example, a smart speaker with Bluetooth function cannot be simply classified as "speaker" or "radio equipment"; it requires professional determination based on its main function, receiving principle, etc. It is recommended to conduct pre-classification using tools such as the Import and Export Tariff and customs classification decisions, or apply for a customs pre-ruling before the first shipment, to lock in compliance and tax costs from the source.
CharlotteYears of service：4Customer Rating：5.0
Currency Exchange AdvisorStart a Chat
The choice of international logistics route directly affects cost and timeliness. New enterprises easily fall into the trap of "price-only" thinking. For example, for goods destined for Europe, choosing a seemingly cheaper transit port solution may increase the risk of cargo damage due to unstable schedules and multiple loading/unloading operations, and the free container detention period is short.
If customs clearance is slightly delayed after arrival, demurrage fees will quickly erode profits. It is recommended to conduct a comprehensive evaluation based on cargo value and delivery urgency: for high-value goods with tight delivery schedules, direct routes are preferred; for low-value, bulky goods, reliable transit solutions can be considered, but the connection time of the entire second voyage and the free storage policy at the destination port must be confirmed.
JohnYears of service：6Customer Rating：5.0
Export Tax Rebate AdvisorStart a Chat
When exporting to the EU, VAT handling is crucial. In the traditional model, enterprises pay import VAT when importing into the EU, then apply for a refund after sales, which results in severe capital occupation. For new enterprises with continuous business plans, they can evaluate registering for local EU VAT and applying for Postponed VAT Accounting.
No actual import VAT needs to be paid when goods are imported; only tax declaration is required, shifting the cash flow pressure to the final sales link. However, this requires the enterprise to have a compliant tax representative in the EU and accurate declaration records, otherwise it will face fines and credit losses.
WilliamYears of service：10Customer Rating：5.0
International Logistics AdvisorStart a Chat
Cross-border foreign exchange collection and payment must follow the basic principle of "who exports collects foreign exchange, who imports pays foreign exchange". A common problem for new enterprises is using personal accounts or third-party accounts to collect or pay on behalf of others, which will cause the foreign exchange collection and payment data of the foreign exchange authority to not match the customs declaration data, triggering an early warning of "mismatch between cargo flow and capital flow".
You must settle through your company's bank with an activated foreign currency account, and ensure that the operating entity on the customs declaration form is consistent with the payer/payee. For advance payments, you need to complete the cancellation procedure in a timely manner after the goods are exported to close the foreign exchange verification loop.
DavidYears of service：3Customer Rating：5.0
Business Development AdvisorStart a Chat
International trade contract terms are the first line of defense against risks. New enterprises easily overlook "soft clauses" in letters of credit, such as "customer inspection certificate as one of the negotiation documents", which means that if the buyer does not issue the inspection certificate, the bank can refuse payment, putting the seller in a completely passive position.
It is recommended to delete such clauses that fully transfer control of documents to the buyer as much as possible during the contract or letter of credit review stage. In addition, the export contract should clearly define the scope of force majeure, including situations that may cause detention fees such as "strikes or congestion at the destination port", to provide a contractual basis for subsequent cost sharing or delivery extension.
RobertYears of service：6Customer Rating：5.0
Warehouse Management AdvisorStart a Chat
Customs inspection is a probabilistic event. New enterprises, due to lack of customs declaration experience, have a relatively higher chance of being targeted for inspection.
After receiving an inspection notice, the first task is to accurately interpret the inspection instructions: whether it is a simple inspection to "verify the name and quantity of goods", or a thorough inspection involving "opening containers and sampling for testing". When cooperating on-site, arrange personnel familiar with the goods to be present, and quickly and accurately assist customs officers in locating the target goods.
For goods with abnormal images from machine inspection, customs officers may require container stripping. At this time, standardized packaging and clear marking can greatly improve efficiency and reduce unnecessary unpacking losses.
DanielYears of service：8Customer Rating：5.0
Legal AdvisorStart a Chat
The physical safety and transportation safety of cargo packaging are equally important. Smart small appliances with lithium batteries belong to Class 9 dangerous goods (UN3480/UN3481), and must use certified dangerous goods packaging, with accurate "Cargo Transport Condition Appraisal Certificate" and dangerous goods declaration form attached.
Ordinary carton packaging cannot be loaded onto ships or planes, and will be required to be reworked, causing delays. Even for ordinary goods, considering the humid environment of long-distance sea shipping to Europe, it is necessary to evaluate adding protective measures such as moisture-proof bags and desiccants to avoid cargo damage claims.
EllaYears of service：10Customer Rating：5.0
Senior Financial AdvisorStart a Chat
The core of handling export tax refunds is "complete documents, consistent information, and timely declaration". New enterprises' first tax refund application usually triggers an on-site inspection by the tax authority. The focus of the inspection is "consistency of four flows": the cargo flow (customs declaration form), capital flow (foreign exchange collection certificate), invoice flow (special VAT invoice), and contract flow (sales contract) all point to the same transaction and are logically consistent.
Be sure to obtain the input invoice from the supplier in a timely manner after the goods are declared for export, and confirm the customs declaration information in the tax refund system. For cross-year export business (such as goods exported in December and foreign exchange collected in January of the next year), pay attention to the declaration deadline to avoid being taxed as domestic sales due to overdue declaration.
SophiaYears of service：7Customer Rating：5.0
Senior Customs AdvisorStart a Chat
From the perspective of supply chain cost accounting, the choice of trade terms directly affects profits. New enterprises often quote FOB prices for convenience, transferring the right to arrange sea shipping to foreign buyers. However, this means you cannot control the main shipping schedule, freight costs, or the operation quality of the nominated freight forwarder.
It is recommended to gradually establish your own logistics supplier system and try quoting with CIF or CFR terms. This not only allows you to integrate logistics resources to obtain better freight rates, but also enables you to firmly control cargo title documents such as bills of lading, avoiding the risk of release of goods without a bill of lading due to collusion between the nominated freight forwarder and the buyer, while facilitating the coordinated arrangement of export customs declaration and loading time.