In international trade,Transitional tradeIt is a common form of trade. It usually involves transporting goods through third-party countries or territories to trade purposes. Here are some specific issues and operational suggestions for transfer trade, which we hope will help you.

Protection of Supplier Channels

Description of the problem:
Customers request the goods to go to the tax zone after the operation, but the tax zone and the supplier are not in the same city, fearing that customers will know directly about the supplier channels.

The solution:

(1) The operating part of the report: The first customs report is carried out by your company and the goods are sent from the supplier to the tax zone. The customs document shows the sender is your company and the receiver is the warehouse of the tax zone. The second customs report is sent by the warehouse of the tax zone and the receiver is the customer. In this case, the customer cannot see the information of the supplier directly from the customs document.
(2) Agreement with tax zone service providers: To enter into a clear agreement with the warehouse service providers in the tax zone, agreed that they will not disclose supplier information to customers. If the customer tries to contact the tax zone service providers directly, ask them to notify you, and all information related to prices and suppliers will be processed by you.
(3) Control of listings and invoices: Maintain control over your invoices and invoices. Make sure that invoices and invoices contain only your company information, not the information of the supplier directly.

2) Fill out the delivery address

Description of the problem: When the goods arrive in the guaranteed tax zone, how should the delivery address of the supplier be filled in?

The solution:
(1) The address of the tax zone: When concluding a purchase contract with a supplier or submitting an order, the delivery address should be filled in with the specific address of the tax zone. This can be the detailed address of the tax zone warehouse, including the name of the warehouse, the specific location, etc.
(2) The specific address is obtained: If you are not familiar with the tax zone, you can obtain a detailed address by:
(a) Consult with the administrative department or warehouse service provider of the tax zone to obtain a detailed receipt address.
(b) Consult with colleagues or partners who have already operated in the tax zone to learn about their operating experience and specific address information.

2 Double taxation

Description of the problem: How to deal with the issue of double taxation in the transfer trade?

The solution:
The first report:
a) Supplier : Supplier
(b) Recipient: Your company (or the warehouse of your designated tax zone)
(c) Customs reporting documents: invoices, invoices, packaging documents, etc.

The second report:
(a) Sender: Warehouse of the tax zone (your company)
b) Recipient: Customer
(c) Customs reporting documents: re-generated invoices, invoices, package sheets, etc.

Attention to:

(1) But do not disclose supplier information.
(2) In the second paragraph of the customs report, you may change the sender information for your company to ensure that the customer only knows that your company is the sender.

Contracts and responsibility division

Question Description: The transfer trade involves multi-party operations, how to clarify the responsibilities and operational processes of the parties?

The solution:
(1) The conclusion of a tripartite agreement: A clear agreement is entered into with suppliers, guaranteed warehousing service providers and customers separately, detailing their respective responsibilities and operating processes. The agreement should include specific requirements for the transfer of goods, customs reporting, filing and invoice processing.
(2) Explicit responsibility belongs to:
a) Your company is responsible for the transportation of goods from the supplier to the guaranteed customs territory and the first customs clearance.
(b) The warehouse service provider in the tax zone is responsible for the receipt, storage and second customs reporting of goods.
c) The customer is responsible for picking up and subsequent transportation of goods from the tax zone.
Establishment of operating manual: Develop detailed operating manuals to ensure that all participants understand and comply with operating processes and regulations, including how to fill in the customs declaration, how to handle the invoices and invoices, and how to transport goods.

5 – Risk control

Description of the problem: Possible risks and control measures in the transaction.

The solution:
1) Confidentiality of information: Ensure that the agreement with the storage service provider contains strict information confidentiality clauses to prevent customers from directly accessing supplier information.
(2) Operational monitoring of operations: By regularly inspecting and monitoring the operation of each link, ensure that the processes are conducted in accordance with the regulations, and timely detect and correct any possible violations.
b) The risk insurance: If necessary, consider purchasing related commercial insurance, such as goods transport insurance, liability insurance, etc., to reduce potential risks and losses.

Transfer trading involves multiple links and stakeholders, and the operation process requires careful planning and strict management. Through segmented customs clearance, information confidentiality, clear responsibility assignment and risk control, you can effectively protect the supplier channels and ensure the smooth shipping and delivery of goods to customers.