Handling import and export trade business, involving entrepot trade, wanting to know if entrepot trade will be displayed on the customs declaration form and in which parts, as it is important for subsequent trade processes and financial handling. The best answer states that entrepot trade may be displayed on the customs declaration form, generally reflected in the "Trade Method" column, which is conducive to customs supervision and enterprise follow-up procedures, and enterprises must accurately declare.
Does transit trade require customs clearance first? Why is there such a requirement?
Resolved
I've recently been involved in transit trade-related business and am not quite sure if transit trade requires prior customs clearance. If it does, what are the reasons? Do the customs clearance requirements for transit trade vary significantly between different countries and regions? I hope a professional can help answer this question, so I can have a clearer understanding of transit trade customs clearance and better conduct my business.
Trade Expert Insights Answers
Whether transit trade requires prior customs clearance depends on the actual transportation and storage conditions of the goods. If the goods do not enter the commercial circulation domain of the transit country and are merely handled for loading, unloading, storage, and other operations at the transit port before being directly transshipped to the final destination, customs clearance is generally not required in the transit country. This is because the goods are not sold in the transit country and do not involve its import trade processes.
However, if the goods are stored in specific bonded areas, bonded warehouses, or other supervised zones within the transit country for storage or simple processing before transshipment, formal customs clearance is usually not required, as these areas are considered outside the national customs territory, and the goods have not truly entered the transit country's customs jurisdiction.
Nevertheless, if the goods are to enter the domestic market circulation of the transit country, then customs clearance is mandatory. Import procedures must be completed, and applicable taxes and fees must be paid, as this is equivalent to an import trade for the transit country. There are indeed differences in the customs clearance regulations for transit trade across various countries and regions, and local policies and regulations need to be understood in detail.
Some transit points may require simple declarations for cargo movement data, even if the goods do not enter the local market, but this does not constitute customs clearance in the strict sense. Free trade ports, for example, have more relaxed management of transit trade goods, and as long as the stipulated procedures are followed, complex customs clearance may not be necessary.
If the transit goods are special categories, such as those involving intellectual property rights, endangered species, etc., regardless of whether they enter the transit country's market, customs clearance may be required to verify relevant qualifications and documents and ensure compliance.
In some situations, even if the goods do not enter the transit country's market, the transit country may conduct inspection procedures similar to customs clearance for transit goods to strengthen security supervision and prevent the circulation of prohibited items.
If the transit trade involves value-added services such as repackaging or relabeling of goods and these are carried out in non-bonded areas of the transit country, it is very likely that customs clearance will be required first to legally place the goods within the transit country for operations.
When the transportation method of transit goods undergoes special changes, such as switching from sea transport to land transport, the transit country may require customs clearance to ensure transportation connection and supervision.
If there are trade agreements or special policies between the transit country and the country of origin or destination of the goods, this will also affect whether transit trade requires customs clearance, for example, declaration requirements for goods under specific preferential policies.
For some high-value and easily falsified goods, the transit country may strengthen supervision to prevent illegal activities such as smuggling, requiring prior customs clearance and inspection to verify the authenticity and legality of the goods.
When transit goods need to change carriers in the transit country and the stay duration is relatively long, the transit country may require customs clearance to control the cargo's movement and manage it better.