/ By tjchinafreight ivy / FBA

What is the difference between overseas warehouse and FBA?

  • FBA, or Fulfillment by Amazon, means that sellers send products sold on Amazon directly to local warehouses. When a customer places an order, the Amazon system automatically completes the delivery.
  • Overseas warehouses refer to storage facilities established overseas. Cross-border e-commerce enterprises export goods to overseas warehouses in batches according to general trade methods. Once the order is placed, the item is delivered to the consumer.

Advantages of overseas warehouses

Faster delivery. It effectively reduces order response time by 50-70% compared to shipping from China. Additionally, it improves user experience and greatly reduces product turnaround time.

Reduce logistics costs. Through centralized delivery to overseas warehouses, local express delivery in the United States can reduce delivery costs by 30-50%.

FBA inventory adjustment is easy. For sellers, the overseas warehouse is the buffer warehouse of Amazon FBA, which is convenient and flexible to adjust the FBA inventory.

Disadvantages of overseas warehouses

Pay storage fees. The use of overseas warehouses requires payment of a certain fee, which is generally charged on a daily basis. And the cost of warehousing in different countries is also different, and sellers need to calculate the cost by themselves.

In stock. The premise of entering overseas warehouses is that sellers need to have a certain amount of inventory, which means that they need to stock up in advance, which will bring the risk of slow sales. And not suitable for sellers who sell special customized products.

Cash flow is inconvenient. Due to the large amount of stocking to overseas warehouses, the capital investment in stocking, logistics, warehousing, etc. is large, which can easily lead to a breakdown in the capital chain.

Sellers have high requirements for warehouse management data monitoring. Sellers need to monitor the detailed data of incoming and outgoing shipments, as well as putting on and off the shelves, otherwise it will easily lead to loss of goods or data mismatch. Some Amazon sellers responded that the inventory quantity did not match the actual number of products sold. Since Amazon has a complete warehouse management system, third-party overseas warehouses cannot guarantee that there will be no problems.

In essence, there is no difference between overseas warehouses and FBA. Both provide sellers with comprehensive warehousing and fulfillment services. However, there are obvious differences between the two in terms of service content and form.

1. The difference between service providers: FBA is Amazon's official warehouse distribution service, and after-sales service is provided by Amazon; overseas warehouses are provided by third-party service providers, responsible for the warehousing and distribution of sellers' products.

2. Different service forms. Once the seller has sent the goods to FBA, there is no need to deal with shipping related issues. The whole process from sorting to shipping is completed by FBA. The overseas warehouse is divided into two parts, first sorting and packaging in the warehouse, and then entrusting the local express company to complete the delivery service.

3. The service content is different. The service content of FBA is relatively simple, that is, it simply helps sellers deliver goods. The service content of overseas warehouses is more abundant. In addition to basic warehouse distribution, it also provides related services such as labeling and labeling, single-piece delivery, transit replenishment, quality inspection, and front-end logistics. For example, worry-free overseas warehouses can also realize customized services according to customer requirements.

4. Overall price difference. Combining all services, FBA is more expensive, while the overall cost-effectiveness of overseas warehouses is higher.

Other differences

Choose:

Amazon FBA warehouse has certain restrictions on the size, weight and category of products, so the choice is biased towards small, high and high-quality products

DH overseas warehouses have a wider range of choices than FBA warehouses.

Product:

FBA does not provide assembly services, and requires sellers to affix the outer box label and product label before entering the warehouse. If the product label is found to be damaged, it will be returned for repair.

DH overseas warehouses will provide sorting and assembly services before products are put on the shelves.

/ By tjchinafreight ivy / Shipping

The difference between virtual overseas warehouse and overseas warehouse

Cross-border e-commerce and cross-border logistics coexist synergistically. Compared with the booming cross-border e-commerce in my country, the shortcomings of cross-border logistics are becoming more and more prominent, which restricts the development of cross-border e-commerce to a certain extent. In addition to using the domestic direct mail mode, traditional cross-border e-commerce can also use the overseas warehouse mode. The virtual overseas warehouse is a mode between domestic only delivery and overseas warehouse delivery.

Virtual Warehouse is an international logistics model that combines the advantages of physical overseas warehouses, and is more intended to make up for its shortcomings. By generating a tracking number in the destination country of the domestic (Shenzhen) system, the centralized goods are directly delivered by high-quality air. In the destination country, the electronic express pre-clearing method is adopted to shorten the delivery time of the express in the destination country.

Overseas warehouse mode

1. Headway transportation
Cross-border e-commerce transports goods to overseas warehouses by sea, air, land or intermodal.

2. Warehouse management
Through the warehouse management system, cross-border e-commerce merchants can effectively view overseas warehoused goods and manage inventory in real time.

3. Local delivery
According to the order information, the overseas warehouse center distributes the goods to customers by local post or express.

Disadvantages: need to stock up, there is inventory risk and increase capital cycle costs, it is inconvenient to operate multiple SKUs at the same time, increase inventory storage costs and operating costs, overseas national policy changes will cause certain losses and troubles

Virtual overseas warehouse mode

1. First of all, the virtual overseas warehouse model does not require sellers to stock up, there is no inventory risk, and there is no financial pressure;

2. The virtual overseas warehouse mode is equivalent to having local overseas warehouse inventory at all sites on any platform;

3. The virtual overseas warehouse model shows local delivery, which improves consumers' purchasing confidence and purchasing experience, increases sales, and increases profits. At the same time, it also prevents buyers from malicious returns and exchanges because the delivery address is displayed in China;

4. The overall logistics cost of the virtual overseas warehouse model will be similar to the local delivery price, but the timeliness will be much faster. After all, it is equivalent to taking a special line to the destination country by yourself;

5. The virtual overseas warehouse model can respond to changes in foreign policies at any time, operate flexibly, reduce risks, and is more suitable for small sellers who are not particularly well-funded. Details (dimensional: ues5588)

Disadvantages: At present, virtual overseas warehouses are not recognized on e-commerce platforms.

Suitable for the crowd: small amount of capital, weak risk tolerance.

/ By tjchinafreight ivy / Shipping

Practical knowledge of export supervision warehouse

What is an export regulated warehouse?

Export supervision warehouse, commonly known as "export warehouse", refers to a warehouse established with the approval of the customs to store, bonded logistics and provide value-added services for goods that have completed customs export procedures. The export supervision warehouse and the bonded warehouse are collectively referred to as "two warehouses", which are the basic form and carrier of bonded logistics.

What are the types of export supervision warehouses?

Export distribution warehouse
A warehouse for storing export goods for physical departure.
Domestic knot transformation warehouse
A warehouse that stores export goods for domestic carry-over.

Which goods can be stored in the export supervision warehouse?

With the approval of the customs, the export supervision warehouse can store the following goods:

  • General trade export goods.
  • Processing trade export goods.
  • Export goods transferred from other areas and places under special customs supervision.
  • Goods imported for assembling export goods, and packaging materials imported for repackaging of goods in export-supervised warehouses.
  • Other goods for which customs export procedures have been completed.

Which goods cannot be stored in export supervision warehouses?

Export supervision warehouses shall not store the following three types of goods:

  • The country prohibits the import and export of goods.
  • Unapproved countries restrict entry and exit of goods.
  • Other goods that are not allowed to be stored by the customs.

What are the practical functions of the export supervision warehouse?

Goods storage, assembly and distribution
Processing trade export goods, general trade export goods, goods imported for assembling export goods, and packaging materials imported for changing the packaging of goods can be stored in the export supervision warehouse at the same time, and can be assembled and distributed according to regulations. In addition, goods can also be transferred between export supervision warehouses and other special customs supervision areas and bonded supervision places.

Carry out value-added services for circulation

With the approval of the competent customs, value-added services such as quality inspection, grading and classification, sorting and packaging, marking, marking, filming, and packaging change can be carried out in the warehouse. The domestic equipment and materials needed to carry out value-added circulation services in the export supervision warehouse can only be transported into the warehouse after being examined and approved by the competent customs, and the customs shall implement registration management for this business.

Some warehouses that meet the conditions can realize warehousing tax rebate
For export supervised warehouses that are approved to enjoy the policy of tax rebate upon entry into the warehouse, the customs will handle the tax rebate certificate procedures for export goods after customs clearance of the goods. For export supervised warehouses that do not enjoy the policy of tax rebate upon entry into the warehouse, the customs will handle the tax rebate certificate procedures for export goods after the goods actually leave the country.

Approved warehousing goods can be distributed and reported
With the approval of the competent customs, for the goods stored in the export supervision warehouse with small batches and frequent batches, the goods can be stored in batches, and then the customs declaration formalities can be handled in a centralized manner within the specified time limit.

Inbound cargo replacement
For the goods that have been stored in the export supervision warehouse and are required to be replaced due to quality and other reasons, the goods can be replaced with the approval of the customs in charge of the warehouse. Before the replaced goods are released from the warehouse, the replacement goods should be put into the warehouse first, and the commodity code, product name, specification, model, quantity and value of the original goods should be the same.

/ By tjchinafreight ivy / Shipping

International air transport knowledge

Eight elements of air freight inquiry:

1. Product name (whether it is dangerous or not)
2. Weight (charges involved), volume (dimensions and whether it's in stock)
3. Packaging (Wooden box or not, with or without pallet)
4. Destination airport (whether it is a basic point or not)
5. Time required (direct flight or transfer flight)
6. Requested flight (different flight services and prices)
7. Types of bills of lading (main and separate orders)
8. Required transportation services (customs declaration method, agency documents, whether customs clearance and delivery, etc.)

Air freight is divided into heavy cargo and bubble cargo.

1CBM=167KG The volume weight is compared with the actual weight. Which one is larger is charged according to which one. Of course, there is a little secret in the air freight bubble, which all colleagues should know, and it is inconvenient to talk about it here. Manufacturers who do not understand can figure it out for themselves.

Air freight structure composition - did you know?

There are many people who do air freight. Do you know how the air freight rates of airlines are calculated? A brief introduction, I hope to help everyone.

Air freight composition:

1. Airfreight freight (charged by the airline)
2.Fuel sur charge fuel surcharge (depending on the airport, the price of the destination point is different, Hong Kong is generally about the first 4 yuan now, before 3.6, last year the highest 4.8, the price is adjusted by the airport, generally 2 yuan to Asia)
3. Security check fee (fixed fee of 1 yuan/kg in Hong Kong)
4. Airport operation fee (HKD283/ticket in Hong Kong, the airport is responsible for transporting goods on the plane, etc.)
5. Terminal fee: 1.72/kg When the goods are handed over to the dealer, the dealer is responsible for the board and other things, and finally handed over to the airport for collection)
6. Air main bill fee: HKD15/bl is the fee for issuing the bill of lading - document of title.

The above is the composition of accounting fees for most airlines, mainly Hong Kong Airport. Because Hong Kong is a super-large free trade port, and Hong Kong Airport is the largest airport in the world, it has fewer restrictions, a wide range, and a large number of cargo aircraft. There are currently 78 airlines. There are more than 100 flights every day, which can be the first choice when the space and service are guaranteed. However, the cost is generally about 2 yuan higher than that in China!

What are the types of air cargo?

When you decide to ship your goods by air, you should know that there are two main types of air freight:

  • Special shipment
  • General shipment

Special cargo allows heavy, hazardous material and temperature managed cargo. It also allows human tissue samples, organs, fragile, value items and animals.
General Crago allows digital machinery, hardware, consumer goods, retail goods, toys, clothing and textiles, and more.
Air cargo is transported using different types of aircraft including passenger, cargo, charter or helicopter.

What are the factors that affect the cost structure of air freight?

Many factors contribute to the cost of air freight, such as:

  • Special event or holiday
  • Traditional/New Regulations
  • Economic situation
  • Technology (robotics, augmented reality, drones, artificial intelligence and big data)
  • Other additional charges such as cargo insurance, airline terminal handling charges, customs clearance and security surcharges are also included in the fee.

Common air freight nouns:

ATA/ATD (Actual Time of Arrival / Actual Time of Departure)
Abbreviation for actual arrival/departure time.

Air Waybill (AWB)
A document issued by or on behalf of the shipper, which is proof of the carriage of goods between the shipper and the carrier.

Unaccompanied Baggage (Baggage, Unaccompanied)
Baggage that is not carry-on but checked in, and luggage that is checked in.

Bonded Warehouse
In this type of warehouse, goods can be stored indefinitely without paying import duties.

Bulk Cargo
Loose shipments that are not palletized and boxed.

CAO (Cargo for Freighter Only)
Abbreviation for "Cargo Aircraft Only", meaning that it can only be carried by cargo aircraft.

Charges Collect
List the charges to the consignee on the air waybill.

Charges Prepaid
List the charges paid by the shipper on the air waybill.

Chargeable Weight
The weight used to calculate air freight. The billable weight can be the volumetric weight, or when the cargo is loaded in the vehicle, the total weight of the load minus the weight of the vehicle.

CIF (Cost, Insurance and Freightage)
Refers to "Cost, Insurance and Freight", which is C&F plus Seller's insurance for loss and damage to the Goods. The seller must sign a contract with the insurer and pay the premium.

Consignee (Consignee)
The person whose name is listed on the air waybill and who receives the goods carried by the carrier.

Consignment
The carrier receives one or more pieces of goods from the shipper at a certain time and place, and carries it to a certain destination with a single air waybill.

Consignor
Equivalent to shipper.

Consolidated ConsignmentA consignment of goods consigned by two or more shippers, each of which has signed an air freight contract with a consolidation agent.

/ By tjchinafreight ivy / Shipping

What to pay attention to when exporting to India by sea

1. Exporting to India: Challenges

U.S. exporters must be aware of certain obstacles when exporting to India. But with careful planning and assistance from agencies like US Business Services, exporters of all sizes can definitely succeed in the Indian market. According to the National Business Guide for India, the challenges include:
High tariffs and protectionist policies
Exporters and investors face an opaque and often unpredictable regulatory and tariff regime. xxx
price sensitivity
Even before the economic slowdown and the pandemic, Indian companies and consumers were extremely price-sensitive.

Infrastructure
Inadequate road, rail, port, airport, education, power grid and telecommunications infrastructure are major obstacles to the country's efforts to achieve strong economic growth. India's continued urbanization and rising incomes have led to increased demand for improved infrastructure to provide public services and sustain economic growth.

Data localization requirements and e-commerce restrictions
The Indian government is aggressively pursuing a policy of requiring Indian data to be processed and stored only in India, which has severely impacted the business of many US companies. The proposed data protection bill currently being passed through the Indian legislature will affect a wide range of businesses in India and internationally. Changes to laws on what and how e-commerce companies can sell online are an unexpected blow to the U.S. online giant. The new law limits discounts for e-commerce companies and prohibits companies from selling products from companies they affiliate or own.

Local content requirements
In specific sectors, including information and communication technology (ICT), electronics and solar energy, the Indian government is seeking local content requirements to stimulate an increase in the contribution of manufacturing to GDP. These policies have had a negative impact on U.S. exporters.

State power
Companies should be prepared to face the different business and economic conditions in India's 29 states and 7 federal territories. Power and decision-making in India is decentralized, with major differences at the state level in terms of political leadership, quality of governance, regulations, taxation, industrial relations and education levels.

Intellectual Property (IP)
India is one of the most challenging major economies in the world in terms of intellectual property protection and enforcement.

customs clearance - TJ

2. Customs regulations

First of all, all goods transferred to the inland freight station in India must be transported by the shipping company, and the final destination column of the bill of lading and manifest must be filled in as the inland point. Otherwise, it is necessary to dig out the box at the port or pay a high fee for changing the manifest before transshipment to the inland.

Secondly, after the goods arrive at the port, they can be stored in the customs warehouse for 30 days. After 30 days, the customs will issue a notice of delivery to the importer. If the importer cannot pick up the goods on time for some reason, he can apply to the customs for an extension as needed. If the Indian buyer does not apply for an extension, the exporter's goods will be auctioned after 30 days of storage in customs.

3. Customs clearance

After unloading (usually within 3 days), the importer or its agent must first fill in the Bill of Entry in quadruplicate. The first and second pages are retained by the customs, the third page is retained by the importer, and the fourth page is retained by the bank where the importer pays the tax. Otherwise, high detention fees must be paid to the port authority or airport authority.

4. Return regulations

Indian Customs stipulates that the exporter needs to provide the original importer's certificate of abandonment of the goods, the relevant delivery certificate and the exporter's request for return letters and telegrams, and entrust the shipping agent to complete the return procedures after paying the port storage fees, agency fees and other reasonable fees.

If the importer is unwilling to issue the exporter with the certificate of rejection of the goods, the exporter can rely on the letter of the importer's refusal to pay or take delivery or the letter of the importer's non-payment redemption provided by the bank or the shipping agent, the relevant delivery certificate and the seller's request. The letter and telegram for the return of the goods shall be entrusted to the shipping agent to directly submit the return request to the relevant Indian port customs and go through the relevant procedures.

/ By tjchinafreight ivy / Shipping

Easily handle international returns

If you sell online, you will inevitably be rewarded. While many online sellers see international sales as a one-way ticket to business growth, few seem to think about international returns.
While cross-border trade is a key focus for online retailers looking to expand sales, it also faces challenges. Specifically, one of the main reasons small and midsize companies shy away from international sales is the fear of returns.
That said, the process is getting easier as governments and postal service operators work together to optimize cross-border e-commerce deliveries and returns.

Take care of taxes and duties

One of the biggest challenges mentioned by small businesses when dealing with international returns is managing taxes and duties. This is because different countries—even states, provinces, republics, and territories—have unique tax laws. Failure to properly calculate taxes can result in delayed shipments, or worse, forfeitures.
In some cases, taxation can be a simple process. For example, there are no taxes or duties on items under $40 shipped from the U.S. to Canada. Others may be more complex and the tools available are invaluable for estimating these potential costs.

Why are products being returned?

A lower rate of return means more profit and more satisfied customers. That's why it's important to find out why a product was returned. Here are some common reasons:

  • Customer receives wrong product or wrong size
  • Product does not match product description
  • Damage to the customer when the order arrives

Of course, the reasons may vary depending on what you sell, your industry, and many other factors.

5 Tips for Handling International Returns

1. Let your customers choose how to return

The first and easiest option for you is to leave the return method to your customers. The only thing that is fixed is the address your client has to send to (that is, your address).
Your customers choose which carrier to ship with and which delivery point to ship the package to. However, this is the least customer friendly solution, so it may cost you switching costs in international online stores.
The advantage is that once you receive the product, you can evaluate it yourself and add it back to your inventory faster.
As an online retailer, you are not reimbursed for returns.
However, if the customer returns their entire order (within the EU), you will have to reimburse the outbound shipping. In addition to that, you can choose whether to let your customers pay for returns. You can make this return method more customer-friendly.
But how?
Extend the return period. Your customers will then become attached to the product or care less about it. This also reduces the chance of returns.

2. Arrangements with International Carriers

If you're shipping a lot, including returns, you can make a lot of deals with international carriers.
A good example is fashion chain Zalando, which has a partnership with DHL for both shipping and returns. By making a custom arrangement with a carrier, you can often not only discuss lower rates, but also get more services from the carrier, such as pickups and returns.
Furthermore, with Sendcloud you can offer multiple shipping methods and optimal integration with local and international carriers. In this way, you can provide a more efficient and budget-friendly return process.

3. Subtly offset return costs for your customers

Our research shows that 74% of European consumers would not reorder from an online store if they had to pay for the return themselves. 77% agree that free returns are more convincing to order from online stores more frequently.
However, if you don't want to incur the return costs yourself but still want some form of service, you have another option. You can add a return label to your order and deduct the return fee from your order refund. This method is allowed since you do not need to be reimbursed for returns.
This is great for customers because they don't have to pay immediately when they return the package. This eases the pain of returns, especially the cost of returns.
More importantly, it makes returns a little easier. 37% of European consumers say they would reorder from an online store if they were offered a quick and easy return process.
So it's also in your favor: your customers will come back to you faster thanks to your easy return policy.

4. Outsource international returns to a local party

Have you ever thought about processing returns through your local party? By doing this, you allow customers to return their products to the party you are working with in the country of sale.
This party specialises in handling consignment/returns and therefore ensures that processes, including administration, run as efficiently as possible.
When there are many packages, the parties can return to your warehouse in large quantities, which is cost-effective. Working in this way also allows you to pay back your customers faster, as the product can be received and evaluated faster locally.
This option is relatively expensive because you are doing external collaboration. However, if you receive a lot of returns (like fashion), it can help you save as much as possible.
Create clear protocols and ensure good connections between your online store, inventory and external parties. When you receive a return notification for a product, you can immediately refund the customer or ship a new product, even before your warehouse receives the order.

5. Easily process returns for you and your customers

Would you rather take your online store's returns process into your own hands?
Then use smart solutions to process returns more efficiently. With the Sendcloud returns portal, you can provide your customers with a simple and smooth returns process.
You can offer other refund options and let your customers decide how to return them using flexible returns.

/ By tjchinafreight ivy / Warehouse

Do you need a bonded warehouse?

What is a bonded warehouse?

A bonded warehouse is a place used to store and process goods imported into new markets. Goods stored in bonded warehouses are not subject to customs duties (a type of tax). Any applicable customs duties shall be paid when the goods are transported to the next destination. Bonded warehouses can be owned by governments or private companies, helping to improve inventory and cash flow efficiency.
Using a bonded warehouse means that goods can be moved closer to their final destination, and payment of duties can be deferred until the product is moved.

The system provides significant benefits for commercial transactions across different jurisdictions. For organizations importing and exporting goods, bonded warehouses can be used to eliminate the need to pay customs duties, further increasing efficiency.

Why use a bonded warehouse?

  • Bonded warehouses can be an ideal option for importers and exporters of certain products for a number of reasons. These include:
  • Deferred payments for such products mean that no tax is due until the item is sold, which can greatly improve a business's cash flow. In many cases, this can be between 25% and 33% of the upfront cost of imported goods.
  • If the goods are set for export, there is no duty to be paid in the UK, but in the destination country. This means double spending will be avoided, resulting in further savings.
  • Goods can be imported and stored in bonded warehouses ahead of peak season, which means they can fulfill orders without delay.
  • Many times, bonded warehouses have specialized facilities, such as deep freezing vats for storing wine or spirits.
  • Entry and exit customs documents are usually provided by bonded warehouse facilities.

If you're not sure whether bonded storage is right for your business, here are three reasons why you should consider it.

1) Improve cash flow
Delaying payment of tariffs before purchasing goods can have a positive effect on cash flow. By storing your goods in a bonded warehouse, you only pay import duties when the goods enter the UK market, so if you have any difficulties moving your goods, you don't have to pay taxes in advance. You can't guarantee the sale will pay for itself. In bonded storage, all shipments are classified as suspended duty, which avoids prepayment of duty on products that may be in stock for several months.

2) If you export the goods, you do not need to pay import tax
If you're importing to exporting to a non-EU country, using a bonded warehouse is a breeze. Storing your goods in a bonded warehouse means you don't have to pay any import duties on exported products, saving you time and money. This means businesses can avoid paying tariffs twice, often saving around 25-30%.

It's also worth noting that if your goods need to be destroyed without selling, you won't have to pay import duty on them.

3) Port-centric logistics
Most bonded warehouses are located at or very close to ports (for example, John Good has a bonded warehouse in the Port of Felixstowe), which means you can store your goods at ports of entry and distribute them when needed. This lowers costs across the supply chain due to shorter lead times, lower potential for damage, significant savings in transportation costs and lower carbon emissions.

/ By tjchinafreight ivy / Shipping • Warehouse

Bonded Factory Goods Clearance

What is a bonded factory?

A bonded factory is a bonded area licensed by the person in charge of the customs to manufacture processing of foreign and domestic goods as raw materials. The bonded factory system is one of the main export support measures of the customs rebate system. Foreign goods brought into a bonded factory, manufactured and processed while retaining customs duties. Therefore, exports can be promoted by reducing the financial burden of enterprises and simplifying customs clearance procedures to improve the international competitiveness of export commodities.

Customs clearance procedures for bonded factory goods

1. Goods shipped to bonded factories

1.1 Import from abroad

When a bonded factory imports raw materials, it should prepare a raw material import application (B6) and go through customs declaration procedures in accordance with the procedures applicable to ordinary goods. If the customs deems it necessary, it may send customs personnel to the location of the bonded factory to inspect the imported raw materials.

1.2 Import from bonded area

1.2.1 For the bonded goods sold by enterprises in export processing zones, science and technology parks or other bonded factories to the bonded factories, the buyer and the seller shall jointly issue a declaration with necessary documents (B2, invoice, packing list) to declare to the customs goods. They can apply to customs on a monthly basis for permission to declare.

1.2.2 For the goods supplied by the bonded warehouse to the bonded factory, the owner or the manifest holder shall prepare the necessary documents (D7) to declare the goods to the customs, and the warehouse operator and the customs supervisor can confirm the mark and quantity according to the customs declaration or bill of lading After that, it will be shipped from the warehouse.

1.2.3 For the goods sold from the self-provided bonded warehouse to the bonded factory, the buyer and the seller shall jointly prepare a customs declaration form (D7), attaching the documents required for the goods to be declared at the customs. Only after confirming the identification and quantity with the customs clearance or bill of lading, the goods can be shipped from the warehouse. They can apply to customs on a monthly basis for permission to declare.

1.2.4 For the goods provided by the logistics center to the bonded factory, the factory and the center shall jointly prepare a declaration form (D7) and attach the necessary documents, and the center shall declare the goods to the customs electronically. After customs clearance, the goods can be delivered. They can apply to customs on a monthly basis for permission to declare.

1.3 Imports from taxable areas

The processing raw materials sold by domestic suppliers to bonded factories need to be deducted or refunded for import duties and taxes. When the raw materials enter the bonded factory, the buyer and seller should prepare and sign the application form for import and export of raw materials (B1) together, together with the invoice, packing Form, etc., and report to the competent customs for approval. Raw materials are allowed to enter the factory and be recorded. The competent customs shall, within 20 days from the date of approving the application, approve and issue a duplicate application to domestic suppliers as export goods as evidence for applying for tax refund and tax credit.

2 .Goods shipped from bonded factories

2.1 Courtiers bound for abroad

When a bonded factory exports products, it should prepare a product export application form (B9), and indicate the page number and reference number of the relevant "Detailed Table of Raw Material Usage per Unit" in it. "With the approval of the supervisory customs, (when the customs at the export port deems it necessary, the bonded factory may be required to provide a copy of the approved list of raw material usage per unit product") or the reference number of the relevant application submitted or received to the supervisory customs, if the annex Awaiting approval and filing with customs at the port of export for customs clearance in accordance with the procedures applicable to the export of general goods.

2.2 When the bonded goods are sold to enterprises in science and technology parks or export enterprises in export processing zones or other bonded factories for further processing and export, the bonded factory that sells the goods and the buyer shall jointly prepare an application (B2) for the import and export of such bonded goods, together with Invoices, packing lists, approval documents issued by the competent department of the bonded area and other related documents shall be filed with the supervising customs or the local customs branch for customs clearance at the seller's office.

2.3 Driving to the taxable area

2.3.1 For further processing and export to export processing plants eligible for credit recording of import duties and taxes payable:

The buyer and the seller should jointly prepare an export/import application (G2) for the deep-processed products processed and sold in the bonded factory, export to the export processing factory that meets the taxable amount for record, and file with the relevant documents such as invoices, packing lists, etc., at the bonded factory. Before leaving the factory, go through import duties, credit purchase tax and release procedures with the supervision customs. Bonded factories can submit monthly reports. Import duties and taxes on credit purchases for the above-mentioned export processing plants shall be handled in accordance with the "Administrative Measures for Import Duties and Tax Credits or Refunds of Raw Materials Used in Exported Products",

2.3.2 For products sold to domestic companies:

In principle, the products of bonded factories are exported. If domestic sales are required, an application shall be made to the competent customs for approval. If the products processed by the bonded factory are approved to be sold domestically, the bonded factory alone or jointly with the buyer prepares an application for "import of foreign goods" (G2); and when the above application is submitted, the customs supervision will supplement and verify the import tariff according to the form and state of the product when it leaves the factory. The product may not be released until the factory.

Enterprises purchasing the products for domestic sale may apply to the supervisory customs to choose one of the following methods to calculate and collect the import tariffs of the products. Once selected, they cannot be changed within one year, but more than 50% of the materials used for assembly tile-shaped intermediate products are manufactured for domestic sales. product, the import duty of the product shall be levied at the rate applicable to the dutiable value of the product.

/ By tjchinafreight ivy / Warehouse

Customs warehouse guide

Customs Warehouse: Definition

A customs warehouse is a warehouse where goods are stored under customs supervision and security. They are stored in designated places and are not subject to import duties and taxes until they are designated a final regime.
The type of entry into the customs warehouse mainly depends on the final destination of the goods and the commercial needs of the importer

Types of customs warehouses

There are basically five types of customs bonded warehouses:

Private warehouse
This type of warehouse is owned and operated by the company in which its imported or manufactured goods are stored. Goods from the port are received here and then distributed, for example, to various stores in the retail chain.

Public warehouse
Here, everyone can store their goods for import, export, manufacturing and distribution. Businesses use these facilities to address their short-term distribution needs. When there is no more space in the retailer's warehouse, excess goods can be stored in public warehouses.

Automated warehouse
Many warehouses have been modernized thanks to advances in computer and robotics. They use the latest technology to operate faster and more efficiently. The level of mechanization can range from small conveyors that move goods from one area to another to fully automated warehouses. Automation reduces labor and operating costs. It also simplifies functionality, making warehouses run faster, smoother, and generally have fewer bugs.

Temperature controlled warehouse
Many products require special handling; these include products such as computer equipment, sensitive electronic parts, frozen foods, produce, and flowers. To keep these shipments in ideal condition, make sure your warehouse offers air-conditioned and humidity-controlled space within your specifications.

Distribution center
This type of warehouse helps distribution companies receive products from various suppliers and then ship them to their customers. The point here is not storage, but reorganization and movement. Goods entering a distribution center can be broken down, aggregated or reprocessed, ready to be shipped to a store or customer.

Advantages of customs warehouse

As a major benefit, we highlight the advantage of being able to store goods without paying import duties and taxes until a final regime is specified for their transport.
Also comment on the improvement in the quality of customer service as it makes it easier for the company to get inventory and you will enjoy greater lead time efficiency.
On the other hand, another advantage to consider is cost savings for the company.

  • Configuration files and operations of customs warehouse:
  • Custodian: is the person in charge who is authorized to manage deposits.
  • Depositor: A person who is bound by a statement incorporated into the system, or who has been assigned the rights and obligations of the previous system.
  • Representative: Represents any of the above (the depositor or depositor) and provides statements related to the deposit.
  • Customs Control: Customs control of the warehouse in question depends on it.
  • Inventory accounting: A set of records for operations on stored goods: entry, exit...
  • Transfer between warehouses: The transfer between two commodity warehouses related to the system.
  • Declaration/Information: A communication from the depositor, custodian or representative, where appropriate, to the relevant customs office.
/ By tjchinafreight ivy / Shipping • Warehouse

Guidelines for Bonded Warehouses, Bonded Factories, and Export Supervision Warehouses

warehouse

Bonded supervision place is one of the important forms of customs bonded system. There are several common modes of bonded warehouse, export supervision warehouse, bonded factory and bonded logistics center. With so many similar concepts, can you tell them apart? Today, TJ chinafreight will introduce these concepts and related tax refund policies to you.

Bonded warehouse

A bonded warehouse is a place used to store and process goods imported into new markets. Goods stored in bonded warehouses are not subject to customs duties (a type of tax). Any applicable customs duties shall be paid when the goods are transported to the next destination. Bonded warehouses can be owned by governments or private companies, helping to improve inventory and cash flow efficiency. Using a bonded warehouse means that goods can be moved closer to their final destination, and payment of duties can be deferred until the product is moved. The system provides significant benefits for commercial transactions across different jurisdictions. For organizations importing and exporting goods, bonded warehouses can be used to eliminate the need to pay customs duties, further increasing efficiency. The purpose and structure of a bonded warehouse varies from country to country.

Bonded Factory

A bonded factory is a factory or enterprise that has been approved by the customs and specialized in processing and manufacturing re-exported products with bonded imported materials. The materials and parts imported by the bonded factories for the production of export products are customs bonded goods, and the customs will fully bond them. After the processed and manufactured finished products are exported, the imported materials and parts will be exempted from import duties, import value-added tax and consumption tax according to the actual consumption.

Export supervision warehouse

The export supervision warehouse refers to the special customs supervision warehouse that stores goods that have gone through customs export formalities, carries out bonded logistics and distribution, and provides marketable value-added services. Including the export distribution warehouse (storing the actual exit of the export) and the internal transfer warehouse (storing the export and internal transfer).
Bonded warehouse refers to a warehouse dedicated to storing bonded goods and other goods that have not gone through customs formalities. Including public bonded warehouses, self-use bonded warehouses and special bonded warehouses (such as liquid dangerous goods bonded warehouses, material bonded warehouses, agency sales bonded warehouses, etc.).

Inbound and outbound cargo management between the logistics center and overseas. For goods entering and leaving between the logistics center and overseas, the customs in charge of the logistics center shall implement record entry and exit management. Goods entering the logistics center from abroad upon approval by the customs shall be bonded, office supplies, transportation, transportation tools, consumer goods, etc. for self-use imported from abroad, as well as imported machinery, loading and unloading equipment, management Equipment, etc., go through relevant procedures in accordance with the relevant regulations and tax policies of imported goods. When the goods stored in the bonded logistics center leave the logistics center and are finally exported to overseas, the customs shall implement the record management.

Management of incoming and outgoing goods between the logistics center and areas outside the domestic bonded supervision area. The goods entering the logistics center are deemed to be imported, and the import declaration procedures shall be handled according to the actual trade mode and actual status of the goods; the goods entering the logistics center from the territory are deemed to be exported, and the domestic consignor shall go through the export declaration procedures, and can enjoy the refund of export goods (exemption). tax policy.