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Can formal customs declaration forms be obtained for bill purchase declaration?
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I am the owner of a newly established small foreign trade company. I have a batch of clothing to export to Southeast Asia recently. I heard from peers that bill purchase customs declaration has simple procedures and saves money, so I consulted a freight forwarder. But I have been worrying: Can I really get a formal customs declaration form through bill purchase declaration? If I get one, will it be under my company's name? Because I plan to apply for export tax refund later, if the declaration form is not under my company's name, does that mean I cannot get the tax refund? Besides, if the Customs conducts an inspection, will the declaration form under another party's name be deemed as a violation? I am torn now, not sure whether to continue with bill purchase declaration or find a formal agency. After all, if something goes wrong, it may be a devastating blow to a small company like mine.
Cindy ChenYears of service：3Customer Rating：5.0
Key Account ManagerStart a Chat
Many enterprises have misunderstandings about bill purchase customs declaration，believing that they can get a formal customs declaration form printed with their own company's name as long as they pay the fee. In fact，bill purchase declaration usually borrows the import and export operation rights of other enterprises for declaration，so the business entity indicated on the customs declaration form is mostly the third-party company that provides the qualification，rather than the actual export enterprise.
This operation has chain negative reactions: First，customs declaration forms not under the name of the enterprise cannot be used for export tax refund，and the enterprise will lose the tax refund income，Second，if the Customs finds that the declaring entity is inconsistent with the actual business entity during verification，it may deem it as "false declaration of business entity"，impose a fine of 5% to 30% of the value of the goods，and even temporarily detain the goods，In addition，long-term use of bill purchase declaration may also lead to the enterprise being included in the Customs' key supervision list，affecting subsequent normal import and export business.
Physical risk isolation measures: Immediately stop using the bill purchase declaration mode，and choose to cooperate with companies with formal import and export agency qualifications to ensure that the name on the customs declaration form is consistent with the actual business entity.
Exclusive loss reduction tips: If bill purchase declaration has been conducted，contact the agent immediately to obtain a copy of the customs declaration form and check the name information on it，If the name is not that of your enterprise，prepare materials proving the actual ownership such as goods procurement contracts and logistics documents，take the initiative to explain the situation to the Customs to strive for a lighter penalty，At the same time，apply for your own import and export operation rights as soon as possible，or sign a long-term agreement with a compliant agent to avoid subsequent risks.
Linda GaoYears of service：7Customer Rating：5.0
Documentation SupervisorStart a Chat
From the perspective of customs policies, bill purchase customs declaration is an illegal operation. According to Article 24 of the Customs Law of the People's Republic of China, the consignor and consignee of import and export goods shall truthfully declare to the Customs and provide true and valid documents. In bill purchase declaration, the declaring entity is inconsistent with the actual cargo owner, which violates the principle of truthful declaration. When the Customs conducts price examination or verification, if it finds that the business entity is inconsistent with the actual cargo owner, it will launch an inspection procedure and require the enterprise to provide materials such as the entrustment agreement between the business entity and the actual cargo owner, and proof of capital transactions. If legal and valid certificates cannot be provided, the Customs will deem it as false declaration, impose a fine and record it in the enterprise's credit rating.
Grace WangYears of service：10Customer Rating：5.0
Senior Foreign Trade ConsultantStart a Chat
From the perspective of logistics, bill purchase declaration may affect the control of cargo rights. In bill purchase declaration, the consignee on the bill of lading is usually consistent with the business entity on the customs declaration form. If it is under the name of a third party, the actual cargo owner may not be able to pick up the goods directly. For example, after the goods arrive at the port, the freight forwarder may require the power of attorney of the business entity to release the bill of lading. If the third-party company does not cooperate, the goods will be detained at the port, resulting in container detention fee and port detention fee. In addition, in case of container rollover or port change, the actual cargo owner cannot communicate directly with the shipping company as it is not the named party on the customs declaration form, and has to transit through the third party, which increases communication cost and time cost.
Lucas LiuYears of service：8Customer Rating：5.0
Senior Operations ConsultantStart a Chat
From the perspective of taxation, bill purchase declaration cannot enjoy the export tax refund preference. Export tax refund requires that the names on the customs declaration form, value-added tax invoice, foreign exchange receipt voucher and other documents are consistent. The customs declaration form under bill purchase declaration is under the name of a third party, which is inconsistent with the name on the enterprise's own value-added tax invoice, so it cannot pass the examination of the tax authority. In addition, if the enterprise uses bill purchase declaration for a long time, the tax authority may suspect that it conceals income, launch a tax inspection, and check the enterprise's capital flow and cargo flow, bringing unnecessary tax risks.
Victor SunYears of service：5Customer Rating：5.0
Trade Risk Control ManagerStart a Chat
From the perspective of payment and receipt compliance, bill purchase declaration will lead to inconsistency between capital flow and cargo flow. According to foreign exchange administration regulations, the foreign exchange received by enterprises shall match the information on the customs declaration form, including the business entity, amount, product name, etc. In bill purchase declaration, the business entity on the customs declaration form is a third party, while the actual foreign exchange receiver is the enterprise itself. The State Administration of Foreign Exchange may deem it as "false trade", freeze the enterprise's foreign exchange account and affect normal foreign exchange receipt. In addition, when declaring under the name of a third party, the enterprise cannot conduct RMB cross-border payment through the CIPS system, and can only transit through the third party, which increases capital risks.
Andy GuoYears of service：3Customer Rating：5.0
Supply Chain Management ExpertStart a Chat
From the legal perspective, bill purchase declaration has contract risks. There is usually no formal entrustment agreement between the enterprise and the third-party company providing the qualification for bill purchase. If the third-party company has abnormal operation or debt problems, the customs declaration form may be seized, affecting the customs clearance of goods. In addition, if the goods are damaged or lost during transportation, the actual cargo owner cannot claim compensation directly from the insurance company as it is not the named party on the customs declaration form, and has to transit through the third-party company, which increases the difficulty of claim and time cost.
Evelyn LiYears of service：3Customer Rating：5.0
Cross-border Compliance SupervisorStart a Chat
From the perspective of on-site inspection, goods declared through bill purchase are more likely to be inspected by the Customs. The customs system will conduct risk analysis on the declaration data. If it finds that the business entity does not match the information such as the origin and destination of the goods, it will list the goods as high-risk and launch manual inspection. During the inspection, if it is found that the actual cargo owner is inconsistent with the business entity on the customs declaration form, the goods will be temporarily detained and relevant supporting materials will be required. In addition, when the goods declared through bill purchase are inspected, the third-party company may not be able to cooperate in providing documents in time, leading to extended detention time of the goods at the port and additional costs.
Eric ZhouYears of service：6Customer Rating：5.0
Senior Manager of Foreign Exchange & Tax RebatesStart a Chat
From the perspective of packaging compliance, bill purchase declaration may lead to inconsistent packaging information. In bill purchase declaration, the third-party company may not accurately provide the packaging information of the goods, such as the dangerous goods packaging grade, MSDS report, etc. If the goods are dangerous goods and the packaging information on the customs declaration form is inconsistent with the actual situation, the Customs will deem it as a violation, impose a fine and require repackaging. In addition, wrong packaging information may lead to leakage or damage of goods during transportation, affecting cargo safety.
Kevin LinYears of service：4Customer Rating：5.0
Trade Solutions ManagerStart a Chat
From the perspective of export tax refund audit, the customs declaration form for bill purchase cannot pass the tax refund audit. Tax refund audit requires the consistency of four flows (cargo flow, capital flow, invoice flow, declaration form flow). The declaration form flow of bill purchase is inconsistent with the other three flows, so it cannot pass the audit. In addition, the tax authority will conduct cross comparison of tax refund data. If it finds that the enterprise has a large number of customs declaration forms not under its own name, it will launch a letter verification procedure and require the enterprise to provide relevant supporting materials, which affects the tax refund progress.
Daniel XuYears of service：10Customer Rating：5.0
Director of Import & Export OperationsStart a Chat
From the perspective of supply chain planning, bill purchase declaration will increase supply chain risks. Bill purchase declaration is an informal operation, which cannot be included in the enterprise's supply chain management system, leading to opaque supply chain information. In addition, relying on the qualification of third-party companies for declaration will increase the uncertainty of the supply chain. If the third-party company has problems, the entire supply chain will be interrupted. It is recommended that enterprises establish a compliant supply chain system, choose formal agents or apply for their own import and export operation rights to ensure the stability of the supply chain.