What to Prepare Before Starting Import and Export Operations
Author: Junanda ConsultingReviewed by: Junanda Service Team2026-09-19
When a company does its first export, the first question is usually "what licences do we need". Yet what really determines whether the business runs smoothly is whether the model, the payment routes and the documentary capability have been thought through internally. Licences are a threshold; capability is the dividing line. This article sets out what to decide, build and assemble before starting import and export operations for the first time.
Decide on the Business Model First
Different business models involve very different document flows, payment routes and tax treatment. If the model is undecided, everything downstream is built on sand.
Self-operated export: the company declares the goods in its own name, receives the foreign exchange itself and files its own export tax rebate (or exemption). The document chain is complete and the rebate belongs to the company, but this model makes the highest demands on document standards, compliant receipt of foreign exchange and rebate filing capability.
Agency export: an agent handles the export in its own name or as entrusted party, while the company supplies the goods. The company does not directly hold the export customs declaration, and the rebate or exemption is usually handled by the agent and settled afterwards. The agency agreement must state who owns the rebate, how fees are composed and how documents are handed over.
Transit trade: goods do not physically enter or leave the country; the transaction is completed through documents such as the bill of lading. Funds move as foreign exchange receipts and payments, so the focus is on whether the contract chain and the chain of title documents form a closed loop, and on cross-border compliance.
Cross-border e-commerce: sales are made through overseas platforms or a self-built site, which brings in platform settlement cycles, overseas receiving accounts, logistics models (direct mail, overseas warehousing) and the corresponding filing methods. The documents look quite different from those in traditional trade.
The most common result of choosing the wrong model is documents that do not match, a rebate that cannot be filed and foreign exchange that cannot be received. Before starting, write one sentence covering four questions — who declares, who receives the foreign exchange, who claims the rebate and who bears the exchange rate and credit risk — and treat it as an internal consensus.
Check That Your Business Scope and Qualifications Match
Import and export operations place real requirements on the company name and business scope, and some goods involve prior or special approval.
Check whether the business scope on the business licence covers wording such as "import and export of goods" and "import and export of technology". If it does not, file a change first.
Confirm whether the foreign trade operator filing, the customs consignor and consignee filing and the corresponding registrations with the foreign exchange and tax authorities have been completed (subject to the requirements currently in force locally).
Confirm whether the goods fall into a licensed category. Where food, medical devices, dangerous goods or dual-use items are involved, the corresponding licence or filing must be obtained separately.
Check the customs code (HS code) of the goods. The code determines the regulatory conditions, the export rebate rate and whether a licence is required.
Item 4 is the one most often overlooked: a classification error will hold things up at the customs declaration stage and will also affect the rebate. For goods you are unsure about, confirm the classification before the transaction is concluded.
Settlement Channels and Exchange Rate Risk
Bringing the funds back is the lifeline of an export business, so the channel has to be opened before you accept the order.
Foreign exchange account: a foreign exchange settlement account will generally need to be opened at a bank. Confirm that bank's efficiency in crediting receipts, the documents required, the settlement process and how it charges fees.
Overseas receiving platforms: cross-border e-commerce businesses commonly use third-party receiving platforms. Confirm the platform's compliance qualifications, crediting timescale, withdrawal route and fee structure, and make sure the funds can ultimately be brought onto the company's books compliantly.
Awareness of exchange rate risk: there is a time gap between quoting and actually receiving the funds, and exchange rate movement can directly eat into profit. Common practices are to build an exchange rate buffer into the quote, to settle large orders in tranches, and where necessary to use instruments such as bank forward foreign exchange settlement and sale (whether these apply, and at what cost, is subject to the bank's quotation).
Choosing Customs Declaration and Logistics Partners
Customs brokers, freight forwarders and shipping lines have different responsibilities. Most companies deal with them through a forwarder as a single point of contact, but the boundaries of responsibility still need to be clear.
Party
Main responsibility
What the company should confirm
Customs broker
Declaring the customs declaration, cooperating with inspection
How liability for declaration errors is borne
Freight forwarder
Booking space, haulage, document flow
Fee breakdown, whether work is subcontracted
Shipping line or carrier
Actual carriage, issuing the bill of lading
Stability of space and sailing schedule
Warehousing
Container loading, labelling, release
Liability for shortage and damage to goods
Practical dimensions for judging a partner: willingness to provide a clear fee breakdown, whether they proactively flag regulatory conditions, prior experience with the same category of goods, and responsiveness when something goes wrong.
Documentary Capability and Rebate Preparation
Day-to-day export work is about documents, and a company must at least be able to read and check these: the commercial invoice, the packing list, the bill of lading (or waybill), the certificate of origin and the customs declaration. The basic requirement when completing them is that product name, quantity, amount, currency and consignor and consignee details are consistent across all the documents, and that the invoice amount can be corroborated by the contract and the amount received.
Advance preparation for the export tax rebate (or exemption) includes: completing the export rebate (or exemption) filing as required; ensuring that a legitimate and valid special VAT invoice or customs import payment certificate is obtained at the procurement stage; and establishing a document retention and filing system under which filed documents, filed data and business records correspond and can be traced. The rebate places high demands on documentary standards: non-compliant purchase invoices, or customs declaration details that do not match the invoice, will make the rebate impossible. All tax-related treatment is subject to the latest rules of the State Taxation Administration.
Internal Roles and Archive Management
Once volume grows, having one person carry everything tends to produce systemic problems. At a minimum, make clear who handles order intake and contracts, who follows the order and its documents, who handles customs declaration and logistics, who handles receipts and reconciliation, and who assembles the rebate materials. Roles may be combined, but responsibility must rest with a named person.
The basic requirement for archive management is one file per order: keep the contract, proforma invoice, purchase invoice, customs declaration, bill of lading, packing list and foreign exchange receipt voucher together, numbered, with an electronic scan as backup. This is the basis both for rebate filing and tax verification, and for the chain of evidence in a trade dispute.
Preparation Checklist Before Your First Export
Business model decided, and who declares, receives the foreign exchange, claims the rebate and bears the risk is clear
Business scope on the business licence covers import and export wording
Relevant filings and registrations completed (subject to local requirements in force)
Customs code of the goods confirmed, with regulatory conditions and licence requirements clarified
A foreign exchange settlement account or compliant receiving channel opened, with crediting verified
Customs brokers and freight forwarders selected, with responsibility and fee terms confirmed in writing
Capability to prepare and check basic documents such as invoices, packing lists and bills of lading
Export rebate (or exemption) filing completed, and the route for obtaining purchase invoices clear
Internal rules on exchange rate risk and credit risk (advance payment ratio, settlement method) in place
Roles assigned, and a one-file-per-order archive system established
Common Pitfalls
Assuming that "having an agent means everything is covered" without controlling the documents and data yourself, so that when a problem arises you cannot produce evidence or remedy it.
Quoting without regard to the exchange rate and the rebate cycle, calculating only on the domestic gross margin, so that actual profit is compressed.
Chasing cheap procurement by not asking for invoices, or holding invoices whose product name does not match the goods, so that no rebate can be claimed.
Mixing business current account payments, personal accounts used for goods payments and the company's foreign exchange receipts, leaving compliance issues behind.
Believing small orders need no files, so that when a rebate or verification comes, the materials cannot be completed.
This article is general business information prepared by Junanda Consulting. Specific policy positions, tax rates, deadlines and procedural requirements are subject to the latest official versions issued by the competent authorities. To understand how these requirements apply to your business, please contact Junanda Consulting for further information and support.
