In the global trade landscape, Hong Kong offshore companies play a unique and important role. Through close cooperation with domestic enterprises, they efficiently export goods to the US market. However, this process involves numerous complex operations and compliance requirements. This article will reveal the full picture of this operation mode.
Feasibility
(1) A Hong Kong offshore company can directly export goods to the US through a domestic enterprise. This mode of operation is called offshore entrepot trade in international trade.
(2) The domestic enterprise (i.e., the supplier) is responsible for production and export, but the Hong Kong company can handle payment collection and transaction management.
Regional Mandatory Certificationsimport and exportPower
(1) Domestic company: It needs to have the right to import and export because the goods are actually exported from China.
(2) Hong Kong company: It does not need the right to import and export, and only needs to have basic business qualifications and a bank account.
Sign the Contract
The Hong Kong company signs a sales contract with the US customer, and at the same time, the Hong Kong company signs a purchase contract with the domestic supplier (a domestic company with the right to import and export).
Payment collection process
(1) US customer: Pays the payment for goods into the account of the Hong Kong company.
(2) Hong Kong company: Transfers the payment for goods to the account of the domestic company (if it is desired that the payment enters China).
Customs declaration and logistics
(1) Domestic company: Responsible for the production, packaging andExport Clearanceof the goods. The shipper on the customs declaration form, bill of lading and other documents can be written as the Hong Kong company.
(2) Logistics company: Arranges the direct shipment of goods from China to the US customer to ensure smooth transportation and customs clearance.
Document processing
(1) Bill of lading: The shipper on the bill of lading can be filled in as the Hong Kong company, and the consignee can be filled in as the US customer.
(2) Invoice and packing list: Can be issued by the Hong Kong company to ensure document consistency and customer requirements.
Tax compliance
(1) Export Drawback: The domestic company responsible for the exported goods can normally enjoy the export tax rebate policy. Ensure the consistency of export documents and tax rebate documents.
(2) Foreign exchange management: The domestic company needs to conduct foreign exchange settlement and payment collection in accordance with the regulations of the State Administration of Foreign Exchange.
Customs declaration requirements
(1) Declaration Information: Ensure that the information on the customs declaration form is accurate and consistent with the actual goods, especially the commodity name, quantity, amount, etc.
(2) HS Code: The correct HS code can ensure smooth customs clearance and reasonable taxes and fees.
3、Contracts and Documents
(1) Contract Terms: Clear and definite contract terms help prevent trade disputes, especially regarding price, delivery time, payment method, etc.
(2) Document Consistency: Ensure that the information on documents such as bills of lading, invoices, and packing lists is consistent to avoid problems during customs clearance.
4、Logistics Arrangements
(1) Select a Reliable Logistics Service Provider: An experienced logistics service provider can offer professional customs declaration, customs clearance, and transportation services to ensure the safe and timely arrival of goods.
(2) Insurance: Insure the goods to reduce the risks during transportation.
5、Laws and Compliance
(1) International Trade Regulations: Understand and comply with relevant international trade regulations, especially those of the export destination country.
(2) Contract Legal Review: Important contracts should be reviewed by professional legal advisors to ensure compliance with legal requirements and protect the companys legitimate rights and interests.
Exporting goods from a Hong Kong offshore company to the United States through a domestic enterprise is a common and feasible mode of operation. This model can make full use of the international trade advantages of the Hong Kong company and the production capacity of the domestic company. However, attention should be paid to details in many aspects such as tax compliance, customs declaration requirements, contract management, and logistics arrangements. It is recommended to communicate fully with professional financial outsourcing companies, customs brokers, and legal advisors before actual operation to ensure the smooth progress of each link and achieve efficient and safe international trade operations.
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