No need - it can be shipped directly from the origin to the port of destination - to grasp the flow of documents and settlement flow.
Re-export Trade (re-export Trade) : refers to the exporter through the middleman and the importer to buy and sell relations. Then the goods directly from the country of export to the country of import. In this case, the goods are not cleared for import and export in a third country, and the middleman is only involved in the processing of the transaction documents. This type of documentary trade is, in effect, the re-export of ownership of goods.
The specific operation is also seen from other posts, according to the rhythm of payment is divided into two situations:
First, the entrepot trade of receiving before disbursing
1. The contract shall indicate the prepayment clause
2. Import verification note indicating the expected arrival date (not earlier than the payment date)
3. Shanghai enterprises shall be handled according to the classified management measures of Shanghai SAFE for Foreign Exchange Payment for trade and import. Class A units can handle various foreign exchange payment services; Class B and C units are not allowed to handle the expected arrival time >90 days, or > USD100,000 and > 20% of the contract rate of advance payment; Class D units can not handle prepayment business (determine which level of your bank's customers, if it is Shanghai customers)
4. Import payment verification form (the transaction code of import verification form is "0116 others ", the transaction postscript indicates "re-export trade", and the nature of foreign exchange payment is "re-export trade". Record form No. 999999)
5. Business License/Approval Certificate (Transit trade qualification)
6, detailed written instructions + official seal (detailed written instructions include at least "foreign exchange receipt and payment, settlement method, loading port, port of arrival, goods transfer confirmation, etc.)
7. Purchase contract and invoice
8. Sales contract and invoice
9. Proof of ownership transfer, such as bill of lading
10. Incoming bill/settlement memo/Letter of credit from the buyer (sign the amount, date and indicate "transit trade" on the incoming bill and other documents)
11. Foreign Income Declaration Form (0202)(The transaction code of the Foreign Income Declaration Form is 0202 Transit trade between third countries, and the transaction postscript indicates "transit trade")
12. Payment declaration form
Import payment record form, (or need to be) included in the "list of import entities whose authenticity is examined by the SAFE" (need to be stamped on the record form by the local SAFE)/ pay with the record form
Second, the entrepot trade:
1. Only Type A import units can handle the "first payment and then receive" re-export trade sales and payment (Shanghai enterprises)
2. Business License/Approval Certificate (Transit trade qualification)
3. Detailed written instructions + official seal
4. Purchase contract and invoice
5. Sales contract and invoice
6. Import payment verification note
7. Letter of credit opened by the buyer or payment guarantee issued by a foreign bank verified and sealed by the bank
8. Foreign Exchange declaration form
Import payment record form, (or need to be) included in the "list of import entities whose authenticity is examined by the SAFE" (need to be stamped on the record form by the local SAFE)/ pay with the record form
First of all, it is also the contract and proforma invoice. In addition, consult the local foreign exchange bureau for the requirements of enterprise data for transit trade write-off, which can be used as a reference for foreign exchange payment audit data.
In practice, the customer said that there is no such contract. When we do import verification for transit trade, we are required to show two contracts, one for import and one for export, from overseas to overseas, and the port of destination and port of shipment are the same. The names and quantities of the goods are the same, and the price is of course greater than that of the imports. In addition, customers need to cooperate and inform them in advance to declare transit trade when receiving foreign exchange to avoid legacy problems.
There are three types of Re-export Trade: re-export trade, pure re-export trade and processing re-export trade.
