In todays increasingly complex global logistics landscape,China-Europe Railway ExpressAs an important passage for China - Europe trade, it provides an efficient and convenient transportation solution. However, how to accurately estimate and declare the return freight has become the focus of many enterprises. This article will introduce in detail the valuation and declaration process of the return freight of the China - Europe freight train, helping enterprises achieve compliant operations and optimize costs inimport and exporttheir business. To help enterprises better understand and operate the valuation and declaration process of the return freight of the China - Europe freight train, the following are some key knowledge points and practical suggestions.

What is the China - Europe freight train?

Entry and exit ports of the China - Europe freight train

The China - Europe freight train is divided into three channels: the western, central and eastern channels:

Basis for deduction of return freight of the China - Europe freight train

The China - Europe freight trains are divided into three channels: the western, central, and eastern channels:

• Western Passage:Enter and exit through the Alashankou and Khorgos railway ports.
• Central Passage:Enter and exit through the Erenhot railway port.
• Eastern Passage:Enter and exit through the Manzhouli, Suifenhe, and Tongjiang railway ports.

Declaration process for deduction of return freight of the China - Europe freight train

According to the relevant provisions of the Measures of the Customs of the Peoples Republic of China for Examining and Determining the Dutiable Value of Imported and Exported Goods (Decree No. 213 of the General Administration of Customs), the transportation and related expenses of imported goods during the domestic section of the return transportation shall not be included in the dutiable value of the imported goods, but a separately listed freight voucher or a basis for apportionment that meets objective and quantifiable standards shall be provided.

Tips: Unloading Behavior

The unloading behavior that occurs when the China - Europe freight train changes tracks within and outside China can be regarded as the unloading point of transportation. Only the transportation and related expenses after changing tracks at the place of entry within China can be deducted from the dutiable value.

Matters needing attention

Depending on different transaction methods, the declaration processes vary:

I. Declared transaction terms as EXW, FOB, or C&I

• Expenses Listed Separately:Only declare the transportation and related expenses before unloading in the freight column of the customs declaration form.
• Unable to Provide Expense Vouchers Separately but Can Quantify and Apportion:Declare all the transportation and related expenses before unloading in the freight column of the customs declaration form, and provide the apportionment standards and basis.

II. Declared transaction terms as C&F or CIF at border ports

• No Adjustment Required:Declare directly according to the actual situation.

III. Declared transaction terms as C&F or CIF at domestic destination ports

• Expenses Listed Separately:Declare the transportation and related expenses after unloading in the “miscellaneous fees” column of the customs declaration form in a negative value, and provide relevant contracts, invoices and other documents.
• Unable to Provide Expense Vouchers Separately but Can Quantify and Apportion:Declare the apportioned transportation and related expenses after unloading in the “miscellaneous fees” column of the customs declaration form in a negative value, and provide the apportionment standards and basis.

Illustrative examples

1. Provide Apportionment Basis:If the basis for apportioning the transportation and related expenses after unloading cannot be provided, the customs will not make the deduction.
2. Documents and Materials:Documents and materials such as transportation invoices specifically listing the freight details need to be submitted. When making apportionment calculations, an apportionment basis that meets objective and quantifiable standards should be provided, such as the current freight rates of each section of the China - Europe railway, the proportion of transportation and related expenses before and after unloading, the proportion of transportation distances, etc.

The China - Europe freight train is a container international railway intermodal train operating between China and Europe and countries along the Belt and Road Initiative. It is an important carrier for deepening economic and trade cooperation between China and these countries.

An enterprise imports a batch of goods through the China - Europe freight train with the transaction method of FOB. The freight invoice shows that the full - journey cost is 10,000 yuan. The enterprise provides that the ratio of the transportation distance of the overseas section to the domestic section is 1.59:1. After apportionment, the freight of the overseas section is 6,139 yuan, and the freight of the domestic section is 3,861 yuan. When declaring, the enterprise can deduct the domestic - section freight of 3,861 yuan, saving taxes and fees of 938.22 yuan (10% tariff, 13% VAT).

Friendly reminder

Due to the diversity of the return - transportation mode and transaction methods of the China - Europe freight train, before declaring the import of goods, enterprises should communicate fully with the customs to ensure the accuracy of declaration and apportionment, so as to fully enjoy the policy dividends.

Through the understanding and practice of the above processes and precautions, enterprises can better manage the freight declaration of the return goods of the China - Europe freight train, rationally utilize policy preferences, and reduce import costs.