x You don't understand clearly what unlicensed cargo transportation is? Are there any advantages or disadvantages? What are the shipping processes and procedures?
x Shippers, import-export businesses, online shops, etc. need to transport goods from China to the country and are wondering between official and unofficial forms? x You can't distinguish the difference between a small quota and an official quota?
In addition to official transportation through border gates, consumers who want to trade goods with other countries will have more choices with unofficial transportation. PROSHIP.VN will quickly update the knowledge you need to know about what quota is, the process of transporting quota goods, the advantages and disadvantages of quota, and how it is different from the official quota.
What is a minor quota?
What is a minor quota? Unquoted import and export is one of the forms of exchange and trade of goods between people living near the border between two countries with adjacent borders. Our country's people live in border areas in some provinces bordering neighboring countries such as Quang Ninh, Lang Son, Lao Cai,...
Items often traded through unofficial channels include: agricultural products, consumer goods such as clothes, fabrics, etc. Unofficial import and export is one of the forms of trading and trading of goods that many traders do. Popular today because of simple, easy procedures and low shipping costs.
Users of the unofficial transportation service:
- Business households;
- Retail individuals;
- Small traders at markets and stalls;
- Shops, stores or shops selling online through e-commerce channels,...
Advantages and disadvantages of unofficial import and export
What are the advantages and disadvantages of this form of transporting goods through small quotas? That is:
Advantages of quota import and export
Advantages of informal import and export:
- The procedure is simple, does not require many complicated documents or invoices. Just fill out the customs declaration and pay the border fee and the goods can be cleared through customs;
- Tax declaration procedures and tax fee schedules for non-quota goods have lower fees than official quotas;
- Unofficial transportation costs are cheaper than official ones, helping to reduce the financial burden on business people.
Disadvantages of unofficial import and export
Besides the advantages, unofficial import and export also have certain limitations:
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- Does not guarantee business stability, especially for those dealing in high-end products;
- Small quotas easily cause disputes over price, quality and other issues;
- Each daily transaction is limited in value, usually up to 2 million VND/person/day, so it is only suitable for small businesses;
- Goods can easily be swapped with poor quality goods, making them vulnerable to being confiscated by market management agencies during inspection.
How is the small quota different from the official quota?
As above, Proship has answered the question of what is a quota, what are the advantages and disadvantages of transporting goods through a quota. Next is a table comparing the differences between unofficial transportation and official transportation:
| CRITERIA | SUB-CHANGE TRANSPORTATION | ORIGINAL SHIPPING |
|---|---|---|
| Form of transportation | It does not have to be transported through the border gate, but on a separate route, and is not subject to strict inspection by market management agencies. However, goods will be inspected at any time. | Transporting through border gates and having to pay related taxes is quite high. At the same time, it is subject to strict control by specialized agencies. |
| Import and export procedures | No need to prepare many documents, just fill out the customs declaration form and pay the border fee. | Need to prepare many related documents, vouchers, and invoices, the procedures are quite complicated and subject to high taxes. |
| One day transaction value | Limited transaction value per day, cannot transport large quantities of goods. | No transaction value restrictions, allowing large quantities of goods to be transported. |
| Goods safety | Loose management of goods, easy to mix goods and not guaranteed safety during transportation. | Goods are more tightly controlled so there is less risk during transportation. |
>>See more: What is official quota?
Import procedures and small-quota goods transportation process
Procedures and processes for transporting non-quota goods are carried out as follows:
Procedures for importing non-quota goods
According to Decree 14/2018/ND-CP, detailed regulations on border trade activities. Circular 80/2019/TT-BTC guiding customs procedures for border trade goods. Procedures for small-scale import across the border are carried out as follows:
Goods declaration procedures
Organizations and individuals are allowed to do cross-border import-export business. When importing and exporting goods, you must go to the border gate customs to complete declaration and tax payment procedures. To import and export without quota, you need to submit:
- Goods declaration according to form HQ2019/TKXKBG or HQ2019/TKNKBG;
- Present a permit proving border residence.
Inspection procedures
Inspection procedures are carried out as follows:
- Organizations and individuals with border-quota import and export goods must bring them to the border gate and present the goods for customs inspection;
- Based on the regulations of the General Department of Customs, depending on the nature of each specific type of goods, the head of border gate Customs shall prescribe appropriate inspection methods. The goods inspection must be carried out in the presence of the goods owner;
- The inspection officer compares the declaration and related documents with the actual exported or imported goods to record the inspection results;
- Based on the declaration documents and inspection results, the head of border gate Customs decides on tax payment and whether the goods are exported or imported. Then record the actual export or import certificate and complete customs procedures.
Document circulation
The circulation of documents must comply with:
- Return to the goods owner 1 goods declaration form, 1 tax receipt if the goods are imported or exported without quota, or 1 CT13 sheet, if the goods are from border residents;
- Save the remaining documents at the border customs.
The process of transporting goods by unofficial routes
The process of transporting small-scale goods includes:
- Step 1: Goods are gathered at the Carrier's warehouse, usually near shopping centers, markets, or near production workshops;
- Step 2: The carrier receives the goods, packs them and writes a receipt;
- Step 3: The carrier loads the goods onto the truck and transports them to the goods gathering area near the border. Usually vacant land located close to the border;
- Step 4: Each bag of goods is carried by the porters on their shoulders via a shortcut across the border and gathered at the gathering point;
- Step 5: Goods are loaded onto trucks and transported to big cities then delivered to customers;
- Step 6: Handover, confirmation and payment.
Proship Logistics has shared knowledge related to what is non-quota goods , what are the procedures for transporting non-quota goods, what are the advantages and disadvantages of non-quota transportation,... Interested businesses and individuals should read and Apply if you are wondering between the method of sending goods through unofficial channels and official channels. If you have any questions related to unquote goods, please contact us immediately at 0909 344 247 and a consultant will come directly to you.
