What is Double Clearance Tax Package? Double Clearance Tax Package Review

Origin

Double Clearance and Tax Package is mainly for special goods that cannot be cleared and imported as normal goods, or where normal customs clearance and import are troublesome, or where certain documents such as licenses cannot be provided.

For products

Double-clearance tax package is mainly for some special goods that cannot be cleared and imported as normal goods, or the normal customs clearance and import are troublesome, or some documents such as licenses cannot be provided. Such as cosmetics, health products, red wine, milk powder, raw leather, gifts, toys, handicrafts, accessories, clocks, lamps, electronic products, medical equipment, chemical products, walkie-talkies, mobile power supplies, built-in supporting battery products such as mobile phones, tablet computers, unicycles, etc. These products are divided into whether they are imitation brands, branded, or unbranded, and the prices may vary greatly.

harm

1. You don’t need your own EORI number for customs clearance.

(1) If the seller does not have his own EORI and ships the goods to an overseas warehouse or FBA, the ownership of the goods belongs to the provider of the EORI. Once the goods associated with this EORI are inspected, the seller cannot claim the ownership of the goods;

(2) If multiple customers share the same EORI number for customs clearance, if it is found that the EORI number is borrowed from someone else or the EORI number is invalid, the goods may be detained and unable to clear customs.

2. If you use the freight forwarder's VAT for customs clearance, there is no import VAT to be deducted. When the goods are sold, if they are checked by HMRC, the sales VAT still needs to be paid.

3. If the buyer requires the seller to provide an invoice containing VAT, and the seller is unable to provide it, the buyer has the right to refuse to pay the purchase price , and can even use it to blackmail the seller.

Big Events

At the end of November 2017, the BBC exposed the double-clearance and tax-inclusive routine of China's freight forwarding industry. In early December 2017, the British tax authorities launched a one-stop service to simplify the VAT registration and declaration process, and required Amazon, eBay and other e-commerce platforms to bind VAT.

The new "Overseas Warehouse Due Diligence" will take effect from April 2018. One of the items is that all items stored in overseas warehouses must provide a valid VAT tax number, the name of the owner and valid contact information, and a valid import certificate is also required to prove that the goods have paid the import VAT. Any overseas warehouse that fails to comply with the requirements will face the cancellation of its license and face huge fines (3,000-5,000 pounds) and legal liability.

USA

The regular shipping practice is for the shipper to apply for an IOR from the U.S. Customs to obtain an EIN (tax number) for a foreign company and purchase a U.S. Customs bond in the name of the shipper.

IOR stands for Import of Record in English. By applying for IOR from the U.S. Customs, you can obtain an EIN (tax number) for a foreign importer. As long as the importer does not change, the tax number is permanently valid after a one-time application, and you can use any customs broker to handle imports into the United States in the future.

Bond is a security deposit in layman's terms. In traditional trade, importers will purchase bonds. Once the importer owes money to the U.S. Customs and fails to pay, the U.S. government can directly ask the bond company for the money, and then the bond company will come to the importer.

risk

1. The products sold on e-commerce platforms do not have any records of customs clearance and tariff payment. Once they are investigated by the US government in the future, they will inevitably have to pay additional tariffs;

2. If the goods that go through "double clearance" are consolidated with other "double clearance" goods, once the container is found to have problems after customs inspection, other sellers' goods will also be "affected".

References

• 1. The harm of double-clearance tax package: Sohu.com [cited on 2018-03-06T16:00:00.000Z]
• 2. Major events regarding the double-clearance tax package: BBC website [cited on 2018-03-06T16:00:00.000Z]