Introduction: Overseas contracted projects become new growth point for foreign trade

Dear colleagues in foreign trade, have you noticed the term "overseas contracted projects" gaining increasing attention recently? Data shows that from January to April this year, China's investment in countries jointly building the "Belt and Road" initiative has continued to grow, with overseas contracted engineering projects maintaining...rapid growth momentumAs a seasoned veteran with 20 years of experience in the foreign trade industry, today I'll guide you through a comprehensive understanding of the key points in this field.

I. What is "Contracting Projects Abroad"?Export goods"?

Many friends easily confuse this concept with ordinary exports. Simply put, it refers tocompanies with overseas contracted project operation rightsexporting equipment and materials for contracted overseas construction projects. But pay attention to several key points:

• Must be approved by national commerce authorities
• Excluding special cooperation projects in border areas
• Mainly covering construction equipment and engineering materials

Remember in 2018 when we handled a power station project in the Middle East, we almost delayed customs clearance due to inaccurate understanding of goods classification. So this concept must be thoroughly grasped!

II.Inspection of vaccines: These red lines must not be crossed

The most concerning question for many enterprises is: Do my engineering materials require inspection and quarantine? According to the Work Regulations:

• Statutory inspection commodities must complete procedures in advance, this is non-negotiable
• It is recommended to start preparing relevant test reports 2-3 months in advance
• Special materials (such as hazardous chemicals) require extra attention to destination country requirements

Last year, a client had their cables detained by local customs for three months in an African project due to lack of inspection, resulting in heavy losses. These lessons must be learned.

License processing: Classification management must be remembered

Licensing issues are the most troublesome for enterprises. Here are the key points:

• Non-license controlled commoditiesThe customs declaration can be processed with the project contract, under the supervision method "Export under Contractual Projects" (3422).
• Commodities under license control: Must obtain prior approval from commerce authorities
• Quota commodities require additional bidding procedures

Pro tip: Recommend creating a commodity classification list with clear regulatory requirements marked for each item. Our company reduced license processing time by 40% using this method.

Self-use living materials: Declaration has its specifics

Many project teams ask: How to declare workers daily necessities? Note:

• Select "Other" (9900) as the regulatory method.
• Project contract is still required
• Materials subject to inspection and quarantine must be processed in advance

There was once a project that got into a big joke when it declared 200 boxes of instant noodles as "engineering materials" and was inspected by customs. Daily necessities are just daily necessities—never misclassify them.

Re-import: Time is money

Returning equipment after project completion requires technical handling:

• 3-month golden period: Equipment returned within 3 months after project completion can be duty-free
• Need extension? Must apply in advance
• Untimely return will be taxed as general trade

One client paid over 600,000 RMB extra tax for drilling equipment worth 5 million RMB returned just 1 day late. This teaches us:Deadlines must be strictly observed！

Compliant operations: These bottom lines must not be broken

Final reminder for everyone:

• Never compromise national security and national interests
• Strictly comply with domestic and international laws and regulations
• Emphasize social responsibility in project host countries

Remember in 2019 when a company used substandard building materials in a Southeast Asian project, not only receiving local fines but also being blacklisted by the Ministry of Commerce. Compliance isnt a cost, butthe lifeline of enterprises.

Conclusion: Seize opportunities while avoiding risks

Overseas contracted projects are indeed a "golden opportunity," but to make the most of it, you must master these key points for success. As someone who's been through it, I advise you:

• Establish a professional trade compliance team
• Maintain good communication with customs and commerce departments
• Make good use of facilitation policies like AEO

If you encounter any issues during the actual operation, feel free to discuss them at any time. Let's seize the opportunities of the "Belt and Road" initiative and promote "Made in China" and "Built by China" to the world!