What should I do if there is a quality problem with the import and export goods and how can I need to exchange them?

Hongmingda Logistics is a logistics company with more than 20 years of transportation experience. It specializes in European, American, Canadian, Australian, Southeast Asian markets, etc., and is more of a cargo owner than a cargo owner~

In international trade, companies may need to exchange goods if there are quality problems with the goods they import or export. How does the exchange work? Let’s find out together.

Supervision method

In response to situations where enterprises import and export goods need to be exchanged due to quality problems in international trade, the customs has set up a special supervision method "compensating goods without cost" (code 3100).

Free compensation goods refer to the goods that are identical or replaced with the original goods due to damage, shortage, poor quality or inconsistent specifications after the import and export goods are released by the customs. Goods that comply with the contract.

The original import and export goods related to the goods without consideration compensation are shipped out and into the country, and the supervision method is "other" (code 9900).

Declaration time limit

The taxpayer shall declare to the customs and handle the import and export procedures for free compensation goods within the claim period stipulated in the original import and export contract and not exceeding 3 years from the date of import and export of the original goods.

Before making a formal declaration to the customs, the following preparations must be made:

For imported and exported goods without compensation, the original imported and exported goods should be returned and imported first, the supervision method should be reported as other (9900), and the customs declaration number of the original imported and exported goods should be noted in the remarks column of the customs declaration form.

When declaring import and export goods without compensation, the supervision method should be reported as goods without compensation (3100), and the original import and export goods declaration number and the original import and export goods return and entry declaration number should be noted in the remarks column of the customs declaration form.

To import goods without compensation, the following documents must be submitted when declaring:

1. Original customs declaration form for imported goods;

2. The export customs declaration form for the return of the original imported goods out of the country (the customs declaration number of the original imported goods should be noted in the remarks column of the customs declaration form) or the goods abandonment certificate for the original imported goods handed over to the customs (the imported goods without compensation due to the shortage of the original imported goods cannot be need to be submitted);

3． The original tax payment note or "Certificate of Taxation and Exemption" for imported goods;

4． Claims agreement signed by the buyer and seller;

5. When the customs deems it necessary, it shall also submit an inspection certificate or other relevant supporting documents issued by a qualified commodity inspection agency indicating that the original imported goods are damaged, lacking, of poor quality or inconsistent with specifications.

To export goods without compensation, the following documents must be submitted when declaring:

1. Original export goods customs declaration form;

2. The import customs declaration form for the return of the original export goods into the country (the customs declaration number of the original export goods should be noted in the remarks column of the customs declaration form. Due to the shortage of the original export goods, it is not necessary to submit the export of free compensation goods);

3． Original tax payment letter for exported goods;

4． Claims agreement signed by the buyer and seller;

5. When the customs deems it necessary, it shall also submit an inspection certificate or other relevant supporting documents issued by a qualified commodity inspection agency indicating that the original export goods are damaged, lacking, of poor quality or inconsistent with specifications.

tax collection

For goods imported without compensation, no import tariffs and customs taxes at the import stage will be levied; for goods exported without compensation, no export duties will be levied.

No export duties will be levied on the replaced original imported goods when they are returned out of the country. When the replaced original export goods are returned into the country, no import duties and customs taxes at the import link will be levied.