What should I do if there is a problem with the quality of imported and exported goods and need to be exchanged?

In international trade, companies may have to exchange goods if they have quality problems in imported or exported goods, but how does the exchange work? Let's find out together.

Supervision method

In view of the situation that the import and export goods of enterprises in international trade need to be exchanged due to quality problems, etc., the customs has set up a special supervision method "compensation of goods at no cost" (code 3100).
Compensation of goods at no cost means that after customs clearance of imported and exported goods, due to damage, shortage, poor quality or inconsistency in specifications, the consignor, carrier or insurance company of the imported and exported goods will freely compensate or replace the same or the same goods as the original goods. Goods conforming to the contract.

The original import and export goods related to the free compensation goods are returned to and from the country, and the supervision method is "other" (code 9900).

Reporting time limit

The taxpayer shall declare to the customs for the import and export formalities of the goods for no-cost compensation within the claim period stipulated in the original import and export contract and within 3 years from the date of import and export of the original goods.

The following preparations must be made before the formal declaration to the customs:

For import and export goods to be compensated at no cost, the original import and export goods should be returned out and in the country first, and the supervision method should be filled in as Other (9900), and the original import and export goods declaration number should be noted in the remarks column of the declaration form.
When declaring import and export goods without cost, the supervision method should be filled with goods without cost (3100), and the number of the original import and export goods declaration form and the number of the original import and export goods return and entry declaration form should be noted in the remarks column of the customs declaration form.
The following documents shall be submitted when applying for the import of goods to be compensated for at no cost:

1. Customs declaration form for the original imported goods;

2. The export declaration form for the return of the original imported goods out of the country (the remarks column of the declaration form should indicate the original import goods declaration form number) or the certificate of abandonment of the original imported goods for the customs processing (the imported goods are not compensated for at no cost due to the shortage of the original imported goods. Need to be submitted);

3. Original imported goods tax payment certificate or "Tax Levy and Exemption Certificate";

4. The claim agreement signed by the buyer and the seller;

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

For the export of goods for compensation at no cost, the following documents shall be submitted in the declaration:

1. The original export goods declaration form;

2. The import declaration form for the return of the original export goods into the country (the remarks column of the declaration form should indicate the number of the original export goods declaration form, because the original export goods are short and the export free compensation goods do not need to be submitted);

3. Original Export Goods Tax Payment Form;

4. The claim agreement signed by the buyer and the seller;

5. When the customs considers it necessary, it shall also submit an inspection certificate or other relevant certification documents issued by a qualified commodity inspection agency that the original exported goods are damaged, short, poor in quality or inconsistent with the specifications.

Tax collection

Imports of goods that are compensated for at no cost shall not be levied import duties and customs levies on behalf of the customs at the import link; for exports of goods that shall be compensated for at no cost, no export duties shall 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 to China, no import duties and import duties are levied by the customs on behalf of the customs.