EXW refers to all the costs and risks of the buyer sending the product from foreign trade sales to the final destination. In this mode, all customs procedures are completed by the buyer himself.
It is generally not recommended to use the EXW trade method for foreign trade, because once this request is made, the foreign trade seller must handle the customs clearance procedures for them, and the buyer shall bear the corresponding costs. However, before signing the EXW export transaction method, an agreement must be signed or the required customs liability must be directly included in the contract, and the relevant customs clearance fees borne by the buyer must be indicated.
According to international practice, the EXW delivery method can be declared and then refunded. In fact, as a term for international trade transactions, the EXW export customs declaration method should apply for customs declaration in the name of the supplier, and then apply for tax refund after customs declaration.
However, due to certain problems with its own delivery method, it needs to be delivered through a real factory and does not need to be responsible for customs declaration, so the supplier does not need to be responsible for customs declaration, so it cannot be refunded. This is another way of saying it. Therefore, if you choose this interactive method for trading and are not sure whether you can get a tax refund, you should pay attention to the key points of tax refund.
First, when the seller wants to declare customs, the seller should apply for customs declaration in the name of the shipper. If you declare customs in the name of someone else, it will cause a lot of unnecessary troubles, such as the procedures will be more complicated, or the shipper will need to go to the customs repeatedly to handle relevant materials, which will also waste the shipper’s time and energy.
Second, if the foreign trade shipper chooses to declare customs, he must ask the other party’s customer to provide the seller with a copy of the relevant bill of lading. With these copies, it proves that the shipper provided it to the relevant department when declaring customs. If the customer cannot provide the corresponding copy, the shipper can only provide a letter or explanation to the competent national tax in advance.
Generally speaking, the EXW export customs declaration process is very troublesome. If there are other ways to choose, it is recommended that foreign trade friends can choose fob for related transactions and customs declaration tax refunds, and compared with EXW export customs declaration, OB export customs declaration process is much simpler, and there are relatively fewer restrictions on the customs declaration subject. It is an export customs declaration method in international trade.
EXW export customs declaration is also an international trade term that minimizes the seller’s responsibility. If the seller does not want to declare customs and refund, he can choose EXW export customs declaration transaction, which can also reduce freight risks.