Key points of compliance management and tax planning for import and export enterprises

In the import and export business, companies face complex compliance management and tax planning needs. This article aims to discuss the importance of compliance management before, during and after the event, as well as the key points that need to be paid attention to during the tax planning process.

Prior compliance management

Record management

Confirm the ICP and EDI certificates of the e-commerce platform website to ensure the authenticity and compliance of the cross-border e-commerce platform and e-commerce enterprise transaction URLs (website, APP, WeChat applet). In addition, it is necessary to confirm the validity period of the “financial license” or “payment business license” of the payment enterprise and the “express business license” of the logistics enterprise.

Promotion reporting

Enterprises should submit a promotion application to the competent customs before conducting promotions, and provide detailed information such as the type, quantity, price, discount intensity, promotion time, expected order quantity and other information of promotional goods. For products that are about to expire, the shelf life must be specified.

In-process compliance management

Document review

Determine reasonable price ranges for products of different tariff codes and brands, and set corresponding manual review ratios for products that are significantly lower than this price range. Strengthen the inspection of the order product name field and set up self-audits for certain key sensitive words (such as testing, do not shoot, defective, etc.).

Physical goods management

Strengthen the inventory of cross-border e-commerce account books, adopt the form of a combination of regular comprehensive inventory and irregular sampling inventory, and introduce the participation of third-party intermediaries when necessary to prevent unauthorized goods from entering the “blind area of ​​the account book.”

Post-event compliance management

According to the relevant provisions of the “Customs Inspection Regulations”, enterprises that voluntarily report violations of customs supervision regulations to the customs and accept the punishment may be given lighter or reduced administrative penalties. In addition, the “General Administration of Customs Announcement No. 54 of 2022” clarifies the specific applicable rules for proactive disclosure of tax-related violations.

Tax planning considerations

Get complete and accurate product information

Having sufficient product information is the basis for product classification, including information required to be declared by the customs (such as product name, specification, model, etc.) and auxiliary information (such as exporting country product code, original name of the product and its translation, etc.).

Make full use of product advance ruling rules

The Customs Law stipulates that the customs can make pre-classification administrative rulings on goods to be imported or exported. Enterprises can declare to the customs and determine the commodity code before the actual import and export of goods to facilitate legal import and export and speed up customs clearance of goods.

Make full use of prior inspection rights

The “Customs Law” allows parties to inspect the goods and take samples of the goods in advance before making declarations to the customs. Enterprises should have a clear understanding and evaluation of the goods themselves before making import and export declarations.

Testing, declaration and supplementary declaration

Enterprises should truthfully and accurately declare the product names, specifications, models, etc. of their imported and exported goods, and when necessary, provide samples to the customs laboratory department or other professional laboratory departments to determine the composition, ingredients and functions of the goods. If you have any objection to the test conclusion, you can apply for re-testing. For commodities that are more complex and require more information to meet the classification requirements, supplementary declarations can be made to ensure the completeness and accuracy of the classification declaration.

Review and self-examination of classification

After import and export declarations, customs departments, other internal audit and inspection departments or independent third parties can review and self-examine the declared commodity codes. If a company misclassifies and voluntarily discloses it, it can seek to be exempted from penalties or receive lighter penalties.

Auxiliary identification and agency declaration by third-party professional institutions

The socialization of commodity classification has been carried out. Intermediaries with professional qualifications can conduct professional identification of commodity classification before declaration. Professionals from some accounting firms, law firms, industry certification agencies and even consulting companies can also Provide consultation, identification and declaration of commodity classification.