When it comes to cross-border trade, the biggest hurdle for foreign-trade professionals is often customs clearance and tax refunds—

Signed orders, because CIF, C&F, EXW Failure to properly calculate the transaction method and incorrect FOB pricing led to customs clearance delays; after eagerly anticipating the refund of export taxes, the system rejected the application due to misinterpretation of the freight and insurance charges; not to mention that, following the 2025 regulatory changes, errors in reporting EXW ancillary fees resulted in cargo being held at the port and schedule delays, causing direct financial losses…

In particular, following the July 2025 update to the International Trade Single Window, the new requirement that all ancillary charges under the EXW term must be explicitly declared has caught many foreign trade professionals off guard. At best, this results in shipment delays and missed orders; at worst, it leads to customs audits and penalties, rendering all prior investments futile.

With many years of deep expertise in the foreign trade logistics industry, Huijietong We understand all too well the pain points faced by foreign trade professionals! As a comprehensive, internationally-oriented logistics enterprise approved by the state and backed by strong capabilities, Huijietong operates in Shenzhen’s Yantian, Shekou, and Huanggang ports, Man Kam To All four major ports have established customs brokerage firms, each with a dedicated customs clearance team that has in-depth expertise in the entire customs clearance and tax rebate process and is thoroughly familiar with the details of various new regulations. These firms provide year-round one-stop services for foreign trade enterprises, covering customs declaration, inspection declaration, and tax rebate, helping countless exporters avoid common pitfalls in customs clearance and tax rebates, ensuring smooth shipment and efficient receipt of payments.

Today, Huijietong will share essential, hands-on insights on customs declaration and tax rebate—drawing on our own practical experience—to provide a comprehensive breakdown, from transaction types and the end-to-end process to tips for avoiding common pitfalls. Our goal is to help you streamline shipments, maximize tax rebates, and avoid unnecessary detours!

I. Must-Know: In-Depth Analysis of the Four Core Deal-Closing Methods (with Dual Focus on Customs Declaration and Cost Accounting)

Regardless of the transaction method specified in the contract, Invoicing, tax refunds, and revenue recognition must all be converted to FOB ex-works prices. —This is the iron rule for customs declaration and tax rebate in foreign trade, and also the key to preventing process bottlenecks and anomalies in tax reconciliation. Foreign trade professionals must remember it well. Drawing on over a thousand real-world customs-declaration cases, Huijietong has compiled a clear breakdown of responsibilities and the distinctive features of customs declarations for four mainstream transaction modes—simply refer to this guide when you need it, and you’ll no longer have to keep flipping through reference materials.

1. FOB (Free On Board): The Most Hassle-Free Pricing Basis

It is the most commonly used transaction method in foreign trade and serves as the “base price” for customs declaration and tax rebate calculations. The process is straightforward and virtually error-free, making it easy for newcomers to master quickly. For customs clearance of common product categories such as apparel, hardware, and plastics handled by Huijietong, this method is typically employed, delivering the highest clearance efficiency.

Allocation of Responsibilities : The seller is only required to load the goods onto the vessel designated by the buyer; thereafter, all risks, international carriage charges, and insurance premiums shall be borne by the buyer.

Characteristics of the Customs Declaration : The freight, premium, and miscellaneous charges columns are all zero; no conversion is required. You can directly issue the invoice based on the customs declaration amount, recognize revenue, and process the tax refund.

Huijietong Reminder : On the customs declaration form, freight and insurance charges refer only to “international-leg” expenses; domestic transportation and handling fees are not included in these two fields. Huijietong offers end-to-end domestic trailer-hauling and handling services to help you properly categorize costs and avoid errors in your declarations.

2. C&F (Cost and Freight, also known as CNF/CFR): The seller bears the freight charges but has no insurance liability.

Compared with FOB, this term adds the responsibility that “the seller bears the international freight charges,” so during cost calculation you only need to deduct the freight—no additional complex procedures are required for foreign trade professionals. Huijietong has access to high-quality shipowner resources and can provide competitive quotes for international freight, while also assisting with FOB price calculations to help prevent errors.

Allocation of Responsibilities The seller shall arrange for the carriage of the goods to the port of destination designated by the buyer and bear the full international freight charges, but shall not be responsible for the insurance premium; upon loading of the goods on board the vessel, the risk shall pass to the buyer.

Characteristics of the Customs Declaration Only the freight column shows an amount; the premium and miscellaneous charges columns are zero. When calculating the FOB value, simply subtract the freight from the customs-declared value.

3. CIF (Cost, Insurance, and Freight): The mainstream term in international trade, where the seller bears the freight and insurance costs.

It is the most common Incoterm for landed-price quotations in international trade; when calculating such quotes, both freight and insurance premiums must be deducted, making this one of the most error-prone steps for foreign-trade professionals. Close attention is therefore essential. Huijietong offers integrated cargo-insurance services and provides end-to-end support in cost calculation, ensuring accurate FOB-to-FOB conversions and helping to prevent tax-refund rejections.

Allocation of Responsibilities : The seller is responsible not only for the international carriage charges to the port of destination but also for arranging cargo insurance on behalf of the buyer; once the goods are loaded aboard the vessel, risk passes to the buyer.

Characteristics of the Customs Declaration Both the Freight and Premium columns show amounts, while the Miscellaneous Charges column is zero; when calculating the FOB value, both freight and premium must be deducted from the customs declaration value.

4. EXW (Ex Works): Lightest Liability; New Regulations Focus on This Term

This is the transaction method with the lightest liability for the seller; however, following the new regulations implemented in July 2025, it has become the most common source of pitfalls for international traders. The core challenge lies in the accurate declaration of “miscellaneous charges.” Leveraging years of customs-declaration expertise, Huijietong has assisted over a hundred companies in completing EXW-mode customs clearance by precisely reporting these miscellaneous charges and thereby avoiding the risk of customs scrutiny.

Allocation of Responsibilities : The seller is only required to deliver the goods to the buyer at the factory or warehouse; all subsequent activities, including loading, domestic transportation, customs clearance, international freight charges, and insurance, shall be the buyer’s responsibility, and the seller shall not participate in any logistics operations.

Characteristics of the Customs Declaration : Freight and premium fields are grayed out and set to 0; the new regulations require that the miscellaneous fees field Reporting is mandatory; blank or zero reports are strictly prohibited. (General Administration of Customs of the People’s Republic of China).

Recommendations for Filling Out the New Regulations of Huijietong : If the enterprise does not actually bear the miscellaneous expenses, there is no need to report a high amount; instead, a small estimated figure for transportation and related costs “from the domestic factory to the domestic export point prior to loading” should be reported based on the actual situation. Reporting an excessively high amount may result in revenue recognition that does not align with actual business operations, thereby affecting the accuracy of tax rebate calculations (General Administration of Customs of the People’s Republic of China). Huijietong can assist in estimating reasonable expenses to ensure compliance in reporting.

Huijietong Compliance Alert According to customs regulations, EXW miscellaneous charges must include domestic trucking fees, port handling charges, and other related expenses; failure to declare such costs as required may be deemed underreporting of value, exposing the party to customs verification or penalties (General Administration of Customs of the People’s Republic of China). In practice, additional challenges include the proper allocation of courier and airfreight charges, as well as the apportionment of costs for foreign consolidators. The Huijietong professional customs brokerage team can provide end-to-end support to help avoid risks arising from inaccurate cost calculations.

II. Key Practical Skills: Understanding Freight and Insurance Markings to Avoid Pitfalls in FOB Price Conversion

Many international trade professionals make mistakes in customs declaration and tax rebate processing—not because they’ve miscalculated the formula, but because they haven’t properly understood the “Freight and Insurance Mark” on the customs declaration form. This seemingly minor figure directly determines how freight and insurance costs are calculated; if misinterpreted, it can throw the entire subsequent process—customs clearance, invoicing, and tax rebates—off track, leading to order delays and doubled losses! Drawing on real-world case studies, Huijietong helps you quickly decipher this mark and accurately convert FOB prices.

1. Shipping Fee Tag: Three Pricing Methods, with Tag 3 Being the Most Common

The numerical code in the freight column of the customs declaration form corresponds to three different calculation methods. In day-to-day operations, Code 3 (total freight cost) is used most frequently; in Huijie’s customs clearance practice, more than 80% of orders are processed using this method:

Note 1: Freight rate (calculated as a percentage) → Freight = Customs declaration value × Freight rate

Note 2: Unit freight rate per ton (charged by weight) → Freight = Total cargo weight in tons × Unit freight rate per ton

Label 3: Total Shipping Cost → Directly enter the total international shipping cost; no additional calculation is required.

2. Premium labeling: Only two categories—no label for Category 2—simple and easy to calculate.

Premium labeling is simpler than freight labeling, with only two options—no “2” label. As long as you remember this rule, you’ll get it right. The Huijie Customs Clearance Team has distilled a straightforward mnemonic that even beginners can master quickly:

Note 1: Insurance rate (expressed as a percentage) → Premium = Customs declaration value × Insurance rate

Mark 2: Total Insurance Premium → Simply enter the total premium amount; no additional calculation is required.

✅ Huijietong Practical Case (Direct Application)

A certain foreign trade client exports lighting fixtures (a standard product category handled by Huijie). Cost, Insurance, and Freight Customs declaration value: USD 20,000; premium indicator: 1; premium rate: 0.3%; freight: USD 2,000. Huijietong assists in calculating the FOB price:

1. Premium calculation: 20,000 × 0.3% = $60

2. FOB price calculation: USD 20,000 – USD 2,000 (freight) – USD 60 (insurance premium) = USD 17,940

3. General Rules for Reporting Miscellaneous Expenses

There’s no need for complicated calculations in the miscellaneous fees column; the key is to categorize by transaction method. Only EXW has special requirements. Huijietong has compiled the general rules, so you can simply refer to them:

FOB/ Cost and Freight /CIF mode: Fill “0” uniformly in the miscellaneous charges column; no additional reporting is required unless there are special circumstances.

EXW mode: In accordance with the new regulations, report the domestic transportation costs incurred prior to loading within China. If no actual expenses have been incurred, enter a small estimated amount; zero or blank reporting is strictly prohibited. Huijietong can provide end-to-end assistance with the completion of the declaration.

III. A Six-Step Process: End-to-End Tax Refund Filing with Zero Errors or Omissions (Huijietong Offers Full-Service Agency)

The key to effectively implementing export tax rebates is to ensure Data consistency among the customs declaration form, invoice, accounting records, and tax-refund system —particularly the standardization of FOB pricing. The following six-step standardized process can be directly adopted by foreign trade and manufacturing enterprises, with minor adjustments as needed. Huijietong offers end-to-end agency services to help you avoid bottlenecks and ensure efficient tax refunds:

Step 1: Receive the customs declaration form and verify the core information item by item.

Upon receipt of the customs declaration form, we promptly verify the key information to prevent errors at the source: specifically, we carefully check the transaction terms, the amounts and markings for freight, insurance premiums, and miscellaneous charges, foreign-currency amounts, and the export date, ensuring that all details match the actual transaction. The Huijie Customs Clearance Team conducts an immediate review of the declaration information and, upon identifying any discrepancies, promptly communicates with the relevant parties to rectify them, thereby avoiding subsequent complications.

Step 2: Accurately convert to FOB price based on the transaction method.

Based on the transaction method indicated on the customs declaration, apply the corresponding formula to calculate the FOB amount in foreign currency, then convert it into RMB using the exchange rate prescribed by tax authorities—this serves as the core basis for subsequent invoicing and tax refunds. Foreign trade professionals must ensure accurate calculations to avoid bottlenecks in downstream processes. The professional team at HuiJietong can provide precise conversion services and leverage years of experience to mitigate risks associated with exchange-rate calculations.

Core Conversion Formulas (compiled by Huijietong; must be retained) ：

FOB price = FOB customs declaration value (no conversion required)

FOB price = C&F customs declaration value – freight charges

FOB price = CIF customs declaration value - freight charges - insurance premium

FOB price = EXW customs declaration value + miscellaneous charges (domestic pre-loading expenses)

Step 3: Issue a standard export invoice, ensuring the remarks column is fully completed.

The invoice amount must be the FOB RMB price; it is strictly prohibited to issue invoices based on CIF, C&F, or EXW prices. The remarks column must clearly indicate the transaction terms, the foreign-currency amount, the conversion exchange rate, and the customs declaration number, ensuring a one-to-one correspondence between the invoice information and the customs declaration to provide supporting documentation for subsequent tax-refund verification. In addition, the item description on the invoice must exactly match that on the customs declaration to avoid tax-refund rejection due to discrepancies. Huijietong can assist in verifying the invoice details to ensure accuracy.

Step 4: Accounting treatment—recognize revenue at the FOB price.

This step can be synchronized with financial processing, with the core principle being to recognize main business revenue strictly at the FOB RMB price and to clearly allocate expenses to their respective cost centers:

If the seller actually bears the freight, insurance premiums, and miscellaneous charges, these costs must be recorded as selling expenses or as a related payable account (such as other payables). Under no circumstances should these expenses be offset against main business revenue, as doing so would result in an incorrect revenue recognition basis, trigger tax reconciliation discrepancies, and adversely affect the refund processing timeline. Huijietong can assist foreign trade professionals in coordinating with their finance teams to clearly allocate these costs and prevent errors.

Step 5: File the tax refund application in the tax refund system and match the four-party data.

Log in to the export tax rebate system and accurately enter all information from the customs declaration form, with particular emphasis on matching the FOB amount in RMB. Ensure that the FOB price, customs declaration number, and export date entered into the system are fully consistent with the customs declaration, invoice, and accounting records, and submit the declaration only after verifying that all details are correct. Under the new regulations effective in 2026, the declaration process has been streamlined: Class I and Class II enterprises can receive their rebates within three working days after submission. Huijietong can assist companies in benefiting from these policy incentives, improve cash flow efficiency, provide end-to-end monitoring of the declaration process, and promptly communicate the results.

Step 6: Organize the documents and retain them for inspection as required.

Upon filing the tax refund application, promptly organize and archive the complete set of supporting documents, retaining them for at least five years in accordance with tax authority requirements to facilitate audits by tax and customs authorities.

Required Documents : Original customs declaration form, export contract, standard export invoice, logistics documents (bill of lading, transport contract), and proof of payment for freight, insurance premiums, and miscellaneous charges (invoices, bank statements, etc.) (General Administration of Customs of the People’s Republic of China). Huijietong can assist in organizing and filing these documents; it is recommended that enterprises establish an “Export Tax Rebate Document Management Table” and use color-coded labels to distinguish document statuses, thereby enhancing management efficiency. Huijietong also offers document management support services.

IV. Final Reminder: Two Key Pitfalls to Avoid—Huijietong Has Your Back

When it comes to customs clearance and tax refunds for foreign trade, compliance is paramount. Foreign trade professionals must keep these two key points firmly in mind to avoid pitfalls and minimize losses. Huijietong provides end-to-end support and assurance for your customs clearance and tax refund process:

1. Compliance with the new EXW rules: Never declare zero miscellaneous fees.

Do not take chances: even if the buyer is responsible for all costs, you must still accurately declare the estimated domestic transportation charges as required and retain supporting documentation (such as logistics quotation sheets) to avoid customs inspections and cargo detention at the port. Failure to comply with these declaration requirements may be deemed underreporting of value, resulting in penalties and potential disruptions to the clearance of future shipments. Huijietong can assist in estimating reasonable charges, documenting the supporting evidence, and ensuring full compliance throughout the entire customs declaration process.

2. Standardized FOB Pricing: Consistency Across All Three Channels Is Key

Regardless of the transaction method used in the contract or the customs declaration, The FOB price must be exactly the same across the invoicing, revenue recognition, and tax refund filing systems. —This is the core prerequisite for successful tax rebate approval and smooth customs clearance of goods. Never inflate the FOB value, as this may be deemed an overstatement of the tax rebate amount and could result in tax penalties; at the same time, ensure consistency in exchange rate application to avoid discrepancies that trigger abnormal tax reconciliation and delay the rebate process. Huijietong can perform end-to-end data verification across all three platforms to guarantee consistency and prevent rebate rejections.

Huijietong Services: One-Stop Customs Declaration and Tax Refund Solutions to Help Foreign Trade Professionals Avoid Detours

Foreign trade customs declaration, accounting, and tax rebate may seem complicated, but they actually follow a clear set of procedures. Foreign trade professionals no longer need to worry—by choosing the right professional partner, they can easily handle all challenges.

As a distinctive, full-service, comprehensive international logistics enterprise in South China, Huijietong has been deeply rooted in the industry for many years. It boasts a professional customs clearance and inspection team, operates customs brokerage offices at Shenzhen’s four major ports, maintains close communication with customs authorities, commodity inspection agencies, and other relevant departments, and has implemented EDI-based paperless operations. This enables the company to promptly stay abreast of new regulatory developments and track cargo flow in real time, thereby providing foreign trade enterprises with:

One-stop customs declaration and inspection services: covering a wide range of product categories (apparel, hardware, plastics, lighting fixtures, electronics, etc.), with in-depth expertise in the clearance procedures at the four major ports, ensuring fast clearance, minimal container inspections, and secure, efficient handling.

End-to-end customs clearance and tax rebate agency services: interpretation of transaction terms, FOB price conversion, miscellaneous fee declaration, and tax rebate filing—with dedicated personnel overseeing the entire process to ensure zero errors or omissions and high efficiency.

Interpretation of New Regulations and Compliance Guidance: Timely alignment with new customs regulations to help enterprises mitigate audit risks, particularly in the accurate reporting of miscellaneous charges under the EXW trade term, with end-to-end oversight by a dedicated professional team.

Complementary value-added services: international sea and air freight, domestic trucking, cargo insurance, certificate of origin processing, and bulk cargo warehousing, providing a one-stop solution for all foreign trade logistics needs.

The key is to clearly define the allocation of responsibilities among the four transaction modes, understand how freight and insurance costs are marked, adhere to the bottom line of a uniform FOB price, and leverage the professional support of Huijietong—this will help you avoid the vast majority of customs declaration and tax-refund errors, put an end to cargo being held at the port or tax refunds being rejected, and ensure smoother cross-border operations.

Save this valuable guide—next time you encounter challenges with customs declaration accounting or tax refunds, simply refer to it for a quick, time-saving, and hassle-free solution!

📢 Having trouble with customs clearance and tax refunds for foreign trade? Just turn to HuiJietong!

Leveraging its professional expertise, high-quality service, and competitive pricing, Huijietong has earned the trust of countless foreign-trade enterprises. We offer free customs-clearance and tax-refund consulting, FOB-price conversion, and interpretation of new regulations—helping your cross-border orders sail smoothly into global markets!

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