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What are the core accounting nodes and compliance requirements to be covered in internal accounting for re-export trade?
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TRACKING NO. 20260429 / GLOBAL Zhongshen Trade · 23+ Years of Expert Trade Agency
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I am the owner of a small and micro enterprise engaged in re-export trade with Southeast Asia based in Shanghai. Our order transfer volume has tripled in the past six months. Previously, we hired a part-time accountant to keep internal accounts casually. Last month, when checking foreign exchange payment vouchers, I almost made a wrong payment of 120,000 US dollars due to messy internal accounting data, which kept me up all night. Now I am afraid of such mistakes again, and I heard that non-compliant re-export trade internal accounting will also affect subsequent foreign exchange receipt and payment qualifications, but I have no idea where to start -- for example, should storage fees of overseas warehouses, loading and unloading fees at transit ports and container detention fees all be included in internal accounting costs? How to achieve accurate matching when there is a large time difference between cargo flow and capital flow? And how to distinguish internal accounts from external accounts while keeping correspondence between them? I am really anxious and just want to know how to standardize re-export trade internal accounting.
Cindy ChenYears of service：3Customer Rating：5.0
Key Account ManagerStart a Chat
First of all，you shall complete pre-document review well. All re-export trade related documents (including procurement contracts，sales contracts，marine bills of lading，overseas warehouse storage vouchers，transit port sundry fee invoices，etc.) shall be checked one by one to ensure that the name，quantity，weight of goods and transit port information on the documents are completely consistent. All vouchers shall be kept with both electronic scanned copies and paper originals as the original basis for internal accounting.
For the connection of core nodes，a "cargo flow - capital flow - document flow" three-linked ledger shall be established，with each order transfer corresponding to a unique ledger number: cargo flow nodes shall record the time when goods enter the overseas warehouse，the time of transit shipment，and the time of signing for receipt at the destination port，capital flow nodes shall synchronously record the time and amount of procurement foreign exchange payment，sales foreign exchange receipt and sundry fee payment，document flow nodes shall match relevant vouchers corresponding to the above operations，so as to solve the matching confusion caused by time difference.
Formulate exception response plans: If there is a mismatch between cargo flow delay and fund arrival，mark the "to be verified" status in the ledger，and contact logistics and foreign exchange receipt and payment agents to confirm the reason within 24 hours. If it is caused by bank remittance route delay，keep bank receipts for supplementary entry，if it is caused by logistics port detention，supplement port detention fee vouchers and record them into accounts.
For final compliance implementation，three first-level accounts of "re-export trade income"，"re-export trade cost" and "transit sundry expense" shall be set separately in internal accounts. Account and actual verification shall be carried out at the end of each month to ensure that internal account data is completely consistent with actual cargo flow and capital flow. Meanwhile，correlation mapping with compliance declaration data of external accounts shall be done well to avoid inconsistency between different accounts.
Andy GuoYears of service：3Customer Rating：5.0
Supply Chain Management ExpertStart a Chat
Core data of the customs declaration link shall be focused on in re-export trade internal accounting, especially the information of transit customs declaration forms of transit ports. The number, declaration date, cargo value and other data of transit customs declaration forms shall be synchronized to the internal account ledger to avoid customs valuation queries caused by inconsistency between customs declaration data and internal account cargo value. If there is a difference between the cargo value recorded in the internal account and the declared cargo value of the transit customs declaration form, the reason for the difference (such as commission and sundry fee split) shall be indicated in the remark column, and corresponding supplementary agreements shall be retained as support. In addition, if re-export of sensitive goods is involved, a separate accounting account for sensitive goods shall be set up in internal accounts, and special requirements of customs transit supervision shall be recorded synchronously to ensure that internal account data can cooperate with retrospective customs verification at any time.
Daniel XuYears of service：10Customer Rating：5.0
Director of Import & Export OperationsStart a Chat
Re-export trade internal accounting shall cover cost accounting and cargo right node records of the whole logistics chain, including storage fees of overseas warehouses, loading and unloading fees at transit ports, container detention fees, handling fees for bill of lading endorsement and transfer, etc. All logistics expenses shall be recorded into accounts with formal invoices or payment vouchers, and estimated expenses are not allowed. Meanwhile, key nodes of cargo right transfer (such as the date of bill of lading endorsement and the confirmation letter of cargo right transfer in overseas warehouses) shall be synchronized to internal accounts to ensure that the record of cargo right ownership in internal accounts is consistent with the actual time of cargo right transfer. If there is a change in logistics path (such as port change and transit port adjustment), logistics cost and cargo flow node records in internal accounts shall be updated within 24 hours to avoid inconsistency between accounts and facts caused by data lag.
Evelyn LiYears of service：3Customer Rating：5.0
Cross-border Compliance SupervisorStart a Chat
Re-export trade internal accounting shall follow cross-border financial and tax compliance accounting rules, especially for the tax base confirmation of re-export trade. The gross profit of re-export trade (sales revenue minus procurement cost and transit sundry expenses) shall be accounted separately in internal accounts, and domestic operating expenses shall not be allocated to re-export trade costs. If foreign exchange receipt and payment in different currencies are involved, internal accounts shall adopt the spot exchange rate on the transaction date to convert into the functional currency, and exchange rate adjustment shall be carried out for unsettled foreign exchange funds at the end of each month to confirm exchange gains and losses and record them into accounts. In addition, information of re-export trade counterparties (such as the countries of overseas suppliers and overseas buyers) shall be recorded in internal accounts to facilitate subsequent compliance self-inspection of cross-border related transactions.
Linda GaoYears of service：7Customer Rating：5.0
Documentation SupervisorStart a Chat
Re-export trade internal accounting shall be synchronized with compliance requirements of cross-border foreign exchange receipt and payment. Each foreign exchange receipt and payment shall correspond to a unique re-export trade ledger number, and the SWIFT message number, arrival/payment date, amount, currency and other information of foreign exchange receipt and payment shall be recorded in internal accounts to ensure that capital flow data is completely consistent with bank receipts. If there is a difference between the amount of foreign exchange receipt and payment and the contract amount (such as handling fee deduction and more or less shipment), the reason for the difference shall be noted in internal accounts, and supporting materials such as bank handling fee vouchers and more or less shipment agreements shall be retained. In addition, the total amount of foreign exchange receipt and payment for re-export trade shall be counted separately in internal accounts to ensure that it meets the cross-border foreign exchange receipt and payment quota requirements of enterprises, so as to avoid affecting subsequent transactions due to quota exceeding.
Grace WangYears of service：10Customer Rating：5.0
Senior Foreign Trade ConsultantStart a Chat
Re-export trade internal accounting shall be associated with core clauses of relevant legal documents, including cargo right transfer clauses and force majeure clauses in procurement contracts and sales contracts. The contract number, signing date and core clause abstract shall be recorded in internal accounts to ensure that accounting is consistent with contract agreements. If there is a contract dispute (such as overdue payment by overseas buyers and delayed delivery by suppliers), the status of "dispute pending handling" shall be marked in internal accounts, the progress of dispute handling and related expenses incurred (such as legal fees and arbitration fees) shall be recorded synchronously, and corresponding legal documents shall be retained as the basis for account entry. In addition, the endorsement status of bills of lading shall be recorded in internal accounts to ensure that the record of cargo right transfer meets the legal requirements of bill of lading endorsement.
Jason WuYears of service：10Customer Rating：5.0
International Logistics & Supply Chain ManagerStart a Chat
Re-export trade internal accounting shall be well distinguished from compliance requirements of export tax rebate. Re-export trade business shall be clearly marked in internal accounts, and shall not be accounted together with general trade export business, so as to avoid affecting the declaration and audit of export tax rebate due to account confusion. Re-export trade costs recorded in internal accounts shall not include domestic VAT input tax. If domestic input tax is included in re-export trade costs due to operation errors, accounting adjustment shall be carried out in time, and adjustment vouchers shall be retained. In addition, re-export trade data in internal accounts shall be checked with declaration data of external accounts at the end of each month to ensure that re-export trade business is not wrongly declared as export tax rebate business, so as to avoid the risk of tax inquiry.
Eric ZhouYears of service：6Customer Rating：5.0
Senior Manager of Foreign Exchange & Tax RebatesStart a Chat
Re-export trade internal accounting shall be combined with the supply chain structure for refined accounting. For re-export business with different transit routes, sub-route accounting accounts can be set up in internal accounts to count the cost and income of different transit routes, so as to provide data support for supply chain route optimization. At the same time, inventory linkage data shall be synchronized to internal accounts, including the inventory quantity of overseas warehouses and turnover days, etc., so as to avoid unrecorded capital occupation caused by inventory backlog. In addition, a cost actuarial model for re-export trade can be established through internal account data to calculate the profit margin of different counterparties and different transit ports, so as to provide data basis for subsequent business decisions.