In international trade, the quality of imported or exported goods may also need to be exchanged. Recently, we have also received inquiries from multiple companies regarding exchange and customs clearance. Let’s take a look at the specific operations.
Supervision method
In view of the situation that the import and export goods of enterprises in international trade need to be exchanged due to quality problems, etc., the customs has set up a special supervision method "Compensation of Goods at No Cost" (code 3100).
Compensation of goods at no cost means that after customs clearance of imported and exported goods, due to damage, shortage, poor quality or inconsistency in specifications, the consignor, carrier or insurance company of the import and export goods will freely compensate or replace the same or replacement goods with the original goods. Goods conforming to the contract.
The original import and export goods related to the free compensation goods are returned to and from the country, and the supervision method is "other" (code 9900).
Reporting time limit
The taxpayer shall declare to the customs for the import and export formalities of the goods for no-cost compensation within the claim period stipulated in the original import and export contract and within 3 years from the date of import and export of the original goods.
Before making a formal declaration to the customs, the following preparations must be made:
For import and export goods without cost, the original import and export goods should be returned out and in the country first, and the supervision method should be filled in other (9900), and the original import and export goods declaration number should be noted in the remarks column of the declaration form. When declaring import and export goods without cost, the supervision method should be filled as free goods (3100), and the original import and export goods declaration number and the original import and export goods return and entry declaration number should be noted in the remarks column of the customs declaration form.
1 , imported free replacement of goods, shall submit the following documents when applying:
1. Customs declaration form for original imported goods;
2. The export declaration form for the return of the original imported goods out of the country (the remarks column of the declaration form should indicate the number of the original import goods declaration form) or the certificate of abandonment of the original imported goods for customs processing (the original imported goods are short and the imported goods are not Need to submit);
3. Original imported goods tax payment certificate or "Tax Levy and Exemption Certificate";
4. Claim agreement signed by buyer and seller;
5. When the customs considers it necessary, it shall also submit an inspection certificate or other relevant certification documents issued by a qualified commodity inspection agency that the original imported goods are damaged, short, poor in quality or inconsistent with specifications.
2. The following documents shall be submitted when declaring goods for export without cost compensation :
1. The original export goods declaration form;
2. The import declaration form for the return of the original export goods into the country (the remarks column of the declaration form should indicate the number of the original export goods declaration form, because the original export goods are short and the export free compensation goods do not need to be submitted);
3. Original export goods tax payment form;
4. Claim agreement signed by buyer and seller;
5. When the customs considers it necessary, it shall also submit an inspection certificate or other relevant certification documents issued by a qualified commodity inspection agency that the original exported goods are damaged, short, poor in quality or inconsistent with specifications.
Tax collection
Imports of goods that are compensated at no cost will not be levied import duties and customs levies on behalf of the customs; for goods that will be compensated at no cost, no export duties will be levied.
No export duties will be levied on the replaced original imported goods when they are returned out of China. When the replaced original export goods are returned into the country, import duties and import duties are not levied on behalf of the customs.
