Analysis of Customs Declaration and Tax Rebate in Russian Export Transactions under Hong Kong Payment

Background Informationforeign tradeFilling in the Port of Destination and Country of Final Destination on the Customs Declaration Form

Filling in the Trading Country - Hong Kong

Your Russian customer has placed an order for the factorys regular products. The payment is made in US dollars by a Hong Kong company, and the contract is also signed with the Hong Kong company. According to the contract terms (FOB Shanghai), you only need to transport the goods to the warehouse and provide the necessary documents. The final destination of the goods is Russia.

In such a situation, you will face the following problems:

1. How should the country of destination and port of destination be filled in on the customs declaration form?
2. Should the trading country be filled in as Hong Kong?
3. Can the tax refund be smoothly processed under such an operation?

Lets analyze the operation method of this situation in detail so that everyone can handle similar situations smoothly in the future.

Key Points of Tax Refund Operations

First of all, the most common question isWhat should be filled in for the country of destination and port of destination on the customs declaration form?Since your goods are shipped to Russia, when filling in the customs declaration,Both the country of destination and the port of destination should be filled in as Russia..

Why do this? Because the customs needs to determine the actual export place of the goods based on the information of the country of destination and port of destination. If the country of destination shows Russia and the information on the bill of lading is also Russia, this will ensure that the export information of the goods is consistent, which is helpful for handling subsequentExport Drawbackprocedures. Therefore, on your customs declaration form, the country of destination and port of destination should be clearly filled inRussiaso as to meet the requirements for tax refund.

Key points of tax refund operation

Then, how should the trading country (also known as the country of transaction)be filled in on the customs declaration form? Since your buyer is a Hong Kong company and the contract and payment are made by the Hong Kong company,The trading country should be filled in as Hong Kong.In this case, although the final destination of the goods is Russia, in fact, your trading partner is the Hong Kong company, and all commercial activities such as contracts and payments are completed through the Hong Kong company. Therefore,.

In the customs declaration form, the trading country column should be filled in as Hong Kong,which means that your export act is a sale to the Hong Kong company.Regarding this issue, some friends may worry that

If the trading country on the customs declaration form does not match the bill of lading information, will it affect the tax refund?The bill of lading does not show the trading country.

In this case,It only shows the transportation route and destination of the goods. Therefore, it is completely reasonable that the port of destination shown on the bill of lading and the country of destination on the customs declaration form are both Russia. And on the customs declaration form, the trading country is filled in as Hong Kong because your contract partner is the Hong Kong company, which does not conflict with the information on the bill of lading. So, there is no need to worry about affecting the tax refund at all.To apply for tax refund smoothly, here are several key points:

It should be filled in as Hong Kong. This can not only meet the policy requirements of export tax refund, but also ensure the smooth progress of the entire process.

Customs Declaration Information:

• Ensure that the country of destination and port of destinationon the customs declaration form are Russia, and the trading countryis Hong Kong.Bill of Lading Information:The port of destination information on the bill of lading should be consistent with the country of destination on the customs declaration form (both are Russia).: When applying for tax refund, the contract signed with the Hong Kong company can be used as evidence to prove that this export act is a sale to Hong Kong, and accordingly, the destination of the exported goods is Russia.
• This operation is actually a“tripartite trade”
• Export Drawbackmodel. You, as the exporter, the Hong Kong company as the trading entity, and the actual destination of the goods is Russia. This kind of tripartite trade is very common in foreign trade business. Therefore, whether it is the customs, freight forwarder, or tax authority, they are very familiar with this model.

As long as the documents are complete and consistent, there will be no problem with the tax refund.Confirm Document Requirements with the Freight Forwarder in Advance:Before starting the customs declaration, it is best to confirm with the freight forwarder the specific requirements for all documents to avoid rejection of tax refund due to inconsistent documents.Ensure Information Consistency:.

Precautions and Experience Sharing

• The information in various documents needs to be consistent, especially the information on the main documents such as the customs declaration form, bill of lading, and contract.Communicate Clearly with the Customer:
• Sometimes the customer may not be familiar with the customs declaration process. As the exporter, you can communicate with the customer in advance to ensure smooth customs clearance of the goods at the destination.In this kind of export to Russia, if the customer pays through a Hong Kong company, the country of destination and port of destination on the customs declaration form should be clearly filled in
• whileshould be filled in as Hong Kong. This can not only meet the policy requirements for export tax refund but also ensure the smooth progress of the entire

Summary

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