Document Declaration for Customs Clearance and Buying Documents for Customs Clearance

In the international trade process, customs clearance is a crucial link. Among the various customs clearance methods, document declaration for customs clearance and buying documents for customs clearance are two distinct approaches.

I. Document Declaration for Customs Clearance

Document declaration for customs clearance, also known as "document declaration for customs clearance" in English, refers to the way that enterprises with import and export rights submit true and effective import and export goods declaration forms and relevant documents to the customs and go through the goods clearance procedures in accordance with the procedures stipulated by the customs.

First of all, enterprises engaged in document declaration for customs clearance need to meet certain qualifications. They must first go through the record-filing procedures with the customs. That is, they need to obtain the registration certificate for customs declarant units. Once the enterprise has the relevant qualifications, when handling the customs clearance of goods, it needs to prepare a series of documents. For example, when importing goods, it needs to have a sales contract with the overseas supplier, a commercial invoice issued by the supplier, a packing list that details the specific composition and quantity of the goods, and a bill of lading or air waybill that proves the ownership and transportation of the goods.

The process of document declaration for customs clearance usually starts with electronic declaration. Enterprises use the electronic port system to submit the electronic data of the declaration form. The customs will then review the electronic declaration data. If the review is passed, the enterprise needs to print the paper declaration form and attach the relevant documents to go to the customs site for submission. After the customs conducts inspection and verification of the goods (in some cases, the customs may conduct spot checks on the goods), if the goods meet the relevant regulations, the customs will handle the procedures such as tax payment. Once the tax is paid and other formalities are completed, the goods can be released. The advantage of document declaration for customs clearance is that it is compliant and stable. It can ensure that enterprises carry out import and export business in the long term. However, its disadvantage is that the process is relatively complicated. It has high requirements for the enterprise's qualifications. It not only requires the enterprise to have import and export rights but also requires the relevant personnel to be proficient in the customs declaration procedures and the preparation of various documents.

II. Buying Documents for Customs Clearance

Buying documents for customs clearance, or "buying documents for customs clearance" in English, is a non-compliant customs clearance method. It refers to the behavior that enterprises without import and export rights carry out import and export customs clearance by purchasing customs declaration documents from enterprises with import and export rights.

For enterprises using buying documents for customs clearance, they do not have the legal qualification of import and export rights. So they need to find a way to bypass the customs supervision. They purchase relevant customs declaration documents, such as customs declaration forms, inspection and quarantine certificates, etc. Then they use the qualifications of the enterprises that sold the documents to declare customs. But this kind of behavior has serious legal risks. Firstly, the information in the declared documents is often untrue. The enterprise using buying documents is simply borrowing the qualification of another enterprise to carry out customs declaration, which violates the principle of truthfulness in customs declaration. Once the customs discovers such behavior, the consequences are very serious. The goods involved may be confiscated, and the enterprise may face heavy fines. Moreover, this behavior seriously undermines the order of customs supervision. It is a violation of the relevant laws and regulations of the customs.

The reasons why some enterprises resort to buying documents for customs clearance are mainly the desire to temporarily carry out import and export business without going through the formal procedures of obtaining import and export rights. However, the risks far outweigh the benefits. In the actual operation, buying documents for customs clearance is a behavior that is strictly prohibited by the customs.

III. Differences between the Two Methods

1. Subject Qualification

- For document declaration for customs clearance, the subject must be an enterprise with legal import and export rights. It has gone through the necessary registration and filing procedures with the customs, and meets the relevant requirements in terms of enterprise qualifications, financial situation, etc.

- For buying documents for customs clearance, the subject is an enterprise without import and export rights. It tries to use the qualification of other enterprises to bypass the customs supervision, which is an illegal evasion of the qualification examination.

2. Compliance Nature

- Document declaration for customs clearance is in full compliance with the customs regulations. The enterprise follows the legal procedures, submits true and reliable documents, and goes through the customs clearance procedures in accordance with the established process. It is in line with the requirements of the law and helps to maintain the normal order of customs supervision.

- Buying documents for customs clearance is a blatant violation of customs laws and regulations. It deliberately avoids the legal supervision of the customs by means of false documents and borrowed qualifications, which seriously disrupts the normal customs clearance order.

3. Risk Level

- Document declaration for customs clearance has relatively low risks. As long as the enterprise strictly abides by the customs declaration requirements, accurately prepares the relevant documents, and goes through the procedures in accordance with the regulations, it can smoothly complete the customs clearance. Even if there are problems in the process, it can be resolved through communication and correction with the customs.

- Buying documents for customs clearance is full of high risks. Once the customs detects the illegal behavior of buying documents, the enterprise will face severe penalties. The goods involved may be confiscated, and the enterprise may be fined heavily. In addition, the enterprise's reputation will be seriously damaged, which will have a negative impact on its future business development.

4. Process Complexity

- Document declaration for customs clearance has a relatively complex process. It requires the enterprise to have a complete set of import and export procedures, including the preparation of various documents such as contracts, invoices, packing lists, and bills of lading. It also needs to operate through the electronic port system for electronic declaration and then go to the customs site for on-site submission and verification.

- Buying documents for customs clearance, although it may seem simple on the surface in terms of the act of submitting documents, is actually a false operation. The underlying operation is illegal and does not conform to the real business situation, so it cannot stand up to the strict inspection of the customs.

In the international trade arena, document declaration for customs clearance is the mainstream and legal customs clearance method. Enterprises should abide by the relevant laws and regulations, go through the formal procedures to obtain import and export rights, and carry out customs clearance in accordance with the correct process. Buying documents for customs clearance is an illegal behavior that should be firmly resisted. Enterprises should clearly recognize the risks and consequences of buying documents for customs clearance and choose the legal and compliant document declaration for customs clearance to ensure the smooth progress of import and export business. Only by operating in compliance can enterprises avoid legal risks and maintain a good business environment in the international market. In the long run, legal customs clearance is not only beneficial to the healthy development of the enterprise itself but also helps to maintain the order of the entire international trade and customs supervision system.