Connect & Solve
Trade Q&A
The single export container from Chongqing was detained by the customs. What will happen after it is confiscated for smuggling?
Resolved
SERVICE
TRACKING NO. 20260118 / GLOBAL Zhongshen Trade · 23+ Years of Expert Trade Agency
Trade Challenges?
No import/export license, customs delays,
or complex compliance issues.
or complex compliance issues.
Our Solution
One-stop full-chain agency: ensure efficient
clearance and fund security.
clearance and fund security.
Cost OptimizationUrgent ClearanceGlobal ResourcesCompliant Rebates
A shipment of goods exported from Chongqing by our company has been detained by customs and has now been transferred to the Anti-Smuggling Bureau. We would like to ask what consequences we will face next? Will we be fined or held criminally liable? How should we respond to this situation?
Lucas LiuYears of service：8Customer Rating：5.0
Senior Operations ConsultantStart a Chat
After the goods enter the anti-smuggling process，they typically go through three stages: case filing and investigation，trial and determination of charges，and penalty execution. The entire process may last 3-6 months or even longer. The Anti-Smuggling Bureau focuses on verifying the following aspects: whether the HS code declaration is accurate，whether the export declaration price is genuine，whether the goods involve prohibited or restricted exports，and whether there are infringements of intellectual property rights. The potential consequences you may face，ranked by severity，include: first，making up the tax payments and being fined 10%-50% of the goods' value，second，having the goods confiscated，and third，if the amount involved is large (usually over 100,000 yuan for individuals and 500,000 yuan for enterprises) or there is intentional concealment，it may constitute the crime of smuggling ordinary goods，leading to criminal prosecution. We recommend you take three immediate actions: first，conduct a comprehensive self-inspection of the true trade background of the goods，and prepare complete materials such as purchase contracts，VAT invoices，and payment certificates，second，actively cooperate with the Anti-Smuggling Bureau's investigation，truthfully explain the situation，and avoid concealing or forging documents，third，hire professional customs lawyers as soon as possible to intervene and strive for the most favorable outcome before the case is determined. Special attention should be paid to the fact that if the case involves export tax rebate fraud or goods subject to license management，the nature of the case will be even more serious.
Evelyn LiYears of service：3Customer Rating：5.0
Cross-border Compliance SupervisorStart a Chat
From a logistics practical perspective, after the container is detained, you need to immediately handle several matters to minimize losses. First, notify your freight forwarder and shipping company immediately, requesting them to stop calculating demurrage and detention fees, and provide proof of customs detention. Otherwise, these fees will continue to accumulate to an unreasonable level. Second, confirm the standard for storage fees. At Chongqing port, the fee is generally 50-100 yuan/day, which you need to bear in advance. Third, check the trade terms. If it's FOB, the risks and responsibilities of the goods before they cross the ship's rail are all on you; if it's CIF, you can negotiate with the buyer to share the responsibility. Fourth, if the delivery deadline is urgent, evaluate whether to arrange for reshipment of the goods, but be sure to first resolve the compliance issues of the original goods to avoid making the same mistake twice. Fifth, check your insurance policy. Some export credit insurance or transportation insurance may cover customs inspection losses, so file a claim as soon as possible. Sixth, prepare all logistics documents: packing lists, commercial invoices, contracts, certificates of origin, and inspection and customs clearance documents, as the anti-smuggling bureau may require them at any time. Finally, prepare for the worst-case scenario: if the goods are ultimately confiscated, you will need to arrange for their destruction or return, which will incur additional costs.
Andy GuoYears of service：3Customer Rating：5.0
Supply Chain Management ExpertStart a Chat
In this situation, maintaining client trust is more important than explaining the reasons. The key lies in the communication strategy and tactics. It is crucial to notify clients promptly, rather than waiting for them to hear the news from shipping companies or freight forwarders, as this would completely erode trust. A suggested response: "Due to adjustments in China Customs' supervision policies for export goods, your order is currently undergoing routine compliance checks. This is a normal procedure implemented by the Chinese government to strengthen quality control, which also demonstrates the legitimacy of the products you purchase." This approach not only explains the delay but also enhances the value of choosing your company.
Regarding payment methods:
- For letters of credit, immediately contact the bank to modify the validity period to avoid document discrepancies.
- For T/T payments, sincerely request the client to extend the payment deadline and offer a small discount as compensation.
- Review the force majeure clauses in the contract. Unfortunately, customs seizures are not typically considered force majeure, so you cannot use this to avoid liability.
- To retain this client, proactively propose compensation plans:
- Cover the additional freight costs incurred due to the delay.
- Offer a 2-3% discount on the next order.
- Commit to prioritizing production scheduling.
In the long run, it is recommended to add a "customs inspection risk-sharing clause" to future contracts, clarifying how losses will be shared beyond a 30-day inspection period. This will prevent one party from bearing all the pressure in future situations.