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Shanghai Question Regarding Bill of Lading SHIPPER and Tax Rebate
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I am the head of an export enterprise in Shanghai. Recently, a US customer requested that the SHIPPER on the bill of lading must show their Hong Kong company name, but the customs declaration and payment collection are operated by our Shanghai company. I want to ask if this operation will affect our application for tax rebate? Will it be deemed as tax fraud by the tax bureau? If this must be done, what compliant remedial measures are there?
Andy GuoYears of service：3Customer Rating：5.0
Supply Chain Management ExpertStart a Chat
The problem you encountered directly touches the core compliance requirement of export tax rebate - "Three Flows in One". When the tax bureau reviews tax rebates，it will strictly compare the consistency of information on the customs declaration form，bill of lading，and VAT invoice. If the SHIPPER on the bill of lading shows a Hong Kong company，while the domestic consignor on the customs declaration form is your Shanghai company，this forms an obvious data mismatch，which is a high-risk operation. The specific risks are three points: First，the tax bureau will determine that the actual export subject of this transaction is unclear，and may directly refuse the tax rebate，Second，the data of customs，foreign exchange administration，and tax bureau are networked，and this inconsistency will trigger system early warning，causing subsequent transactions to be focused on verification，Third，if the amount is large，it may be deemed as false trade or tax fraud behavior. My suggestion is: resolutely avoid this operation. If the customer insists，a formal "Export Agency Agreement" must be signed，clarifying that your Shanghai company is the agent and the Hong Kong company is the principal，and the "domestic consignor" on the customs declaration form and the SHIPPER on the bill of lading should both be the Hong Kong company，and the payment should be collected directly by the Hong Kong company. Otherwise，you are paying for the customer's convenience with the company's compliance.
Kevin LinYears of service：4Customer Rating：5.0
Trade Solutions ManagerStart a Chat
From the perspective of logistics operation, the filling of SHIPPER on the bill of lading directly determines the ownership of goods and the right to release goods. If the SHIPPER is a Hong Kong company, but all export documents and collections are operated by your Shanghai company, it will lead to a serious disconnection between document flow and goods flow. The most troublesome things in practice are: First, during customs clearance at the destination port, the consignee needs endorsement or release instructions from the SHIPPER. If the SHIPPER is a Hong Kong company, will they cooperate? Second, if cargo damage or transportation disputes occur, the carrier only recognizes the SHIPPER on the bill of lading, and your Shanghai company does not have the legal subject qualification to claim; Third, when the bank presents documents, if the SHIPPER on the bill of lading is inconsistent with the consignor on the invoice and packing list, it may be regarded as a discrepancy, affecting the letter of credit settlement. My suggestion is: either use the Hong Kong company as the export subject for the whole process (including customs declaration and collection), or insist that the consignor on all documents is uniformly your Shanghai company. If the customer just needs confidentiality, consider making adjustments on the CONSIGNEE or NOTIFY PARTY of the bill of lading, but the SHIPPER must maintain the real export subject.
Grace WangYears of service：10Customer Rating：5.0
Senior Foreign Trade ConsultantStart a Chat
The customer's request for the SHIPPER on the bill of lading to show their Hong Kong company is usually out of consideration for supply chain confidentiality or risk transfer, but this cannot be built on our compliance risks. You need to communicate with the customer professionally and firmly. The script can be designed like this: "We understand your need for supply chain management, but according to Chinese tax and customs regulations, the export declaration subject must be consistent with the SHIPPER on the bill of lading to receive tax rebates normally. If the SHIPPER shows your Hong Kong company, we need to adjust the cooperation model to your company entrusting us for agency export, so the SHIPPER on the customs declaration form and bill of lading should both be the Hong Kong company, and the payment should also be collected directly by the Hong Kong company." At the same time, this can become your negotiation chip: "To ensure compliance, we can provide agency export services, but the agency fee rate needs to be renegotiated, and the payment method is suggested to change to T/T before shipment to reduce our capital risk." This appears professional and protects your own interests. Remember, compliance is not an obstacle, but a moat for screening high-quality customers and building long-term trust.