IV.Summary and EnlightenmentViolating Foreign Exchange Management RegulationsAccording to the Regulations of the Peoples Republic of China on Foreign Exchange Administration,the foreign exchange earnings from goods trade must match the actual customs declaration amount.If the foreign exchange earnings and customs declaration amount of an enterprise do not match,it may be regarded as non - compliant by the foreign exchange administration and face penalties such as fines or even suspension of foreign exchange business.

I.Regulatory and Compliance Risks

Output:

• ViolationofForeignExchangeManagementRegulations

According to the Regulations of the Peoples Republic of China on Foreign Exchange Administration,the foreign exchange earnings from goods trade must match the actual declared customs value.

If a companys foreign exchange earnings do not match the declared customs value,it may be regarded as non - compliant by the State Administration of Foreign Exchange and face penalties such as fines or even suspension of foreign exchange business.

Export tax rebates are an important source of revenue for foreign trade enterprises.If the goods are not declared for customs clearance legally,the enterprise will not be able to provide legal customs declaration documents and thus cannot apply for export tax rebates.

Operating in this way for a long time may lead to key inspections by the tax department.

If the foreign exchange receipts are not declared and written off legally,it may be regarded as tax evasion by the tax authorities.

Once this mode of operation is verified,the enterprise will face huge fines,and in serious cases,criminal liability may be pursued.

II.Business - level Impacts

Output:

• Difficulttoexplainthecapitalflow

Foreign exchange receipts without customs declaration records may be difficult to reasonably explain in the enterprises accounts,affecting the overall financial transparency.

For enterprises that need financing or review,this kind of operation may reduce the trust of banks and investment institutions.

Customers may request to view legal customs declaration documents.If they cannot be provided,it may affect the customers trust in the enterprise and thus the long - term cooperative relationship.

If the behavior of only receiving foreign exchange without customs declaration is investigated,the enterprises normal business may also be included in the scope of investigation,disrupting the entire operation chain.

III.Risk Avoidance and Suggestions

Output:

• Adjustbusinessoperationstoensurecompliance

Each foreign exchange receipt should correspond to legal customs declaration documents to ensure the correspondence between the capital flow and the goods flow.

If there are multiple factories producing similar products,it is necessary to clarify the flow of goods to ensure consistency with customer and customs declaration data.

• Unifiedmanagementofprocurementandsales:Establishclearprocurement,productionandsalesrecordstoensurethateverytransactionistraceable.
• Clarifytheexchangecostandincomedistribution:Whenadjustingthebusinesscustomsdeclarationamount,itisnecessarytoensurethatitdoesnotaffectthecalculationofexporttaxrebates.

IV.Summary and Insights

Output:

Receiving foreign exchange only without customs declaration is not only illegal but also has a serious impact on the enterprises financial management and business reputation.By choosing a professional service company,the enterprise can ensure that every foreign exchange receipt is supported by legal customs declaration documents,avoid legal and tax risks,and improve financial transparency.At the same time,the agency company can also optimize internal management,provide professional consultation,and help the enterprise establish a stable foreign trade operation system.Why does receiving foreign exchange only without customs declaration put enterprises in a difficult situation?| Shanghai Import/Export Agent