Advance Release of Goods Guarantee: The 'Green Channel' for Foreign Trade Clearance

In foreign trade practice, time is money. When encountering special circumstances like undetermined commodity classification or incomplete documentation, the advance release of goods guarantee acts as a 'green channel' for companies. According to Article 66 of the Customs Law, under specific conditions, companies can obtain goods in advance by providing guarantees. This not only avoids demurrage fees but also ensures smooth supply chain operations.

Under what circumstances can advance release be applied for?

According to customs regulations, the following five situations can apply for guaranteed release:

• Commodity classification pending confirmation: When there is a dispute over HS codes
• Duty-paid value pending verification: Price negotiation period under special trade methods
• Origin pending determination: Cases involving preferential tariff treatment
• Incomplete documentationIn cases of temporary document deficiencies such as original B/L not yet arrived
• Tax payment grace periodAllows enterprises time for capital turnover

Selection strategy for guarantee methods

Customs accepts three main forms of guarantee, enterprises should flexibly choose based on actual circumstances:

• DepositDirect and effective but requires substantial capital allocation
• Bank guaranteeLower cost but requires bank credit line
• Insurance company guaranteeAn emerging method with more competitive rates

Special reminder: Guarantee amount is usually calculated at 110% of customs preliminarily assessed tax. Advance financial planning is recommended.

Five steps for online application

Since customs implemented paperless reforms in 2018, guarantee applications can be completed entirely online:

1. Log in to China Electronic Port System
2. Enter the 'Customs Affairs Contact System' module
3. Select corresponding business type (release against guarantee/extension/cancellation)
4. Accurately fill in key information such as customs declaration number
5. Track approval progress in real time after submission

Experience sharing: Applications submitted before 10 AM on workdays typically receive preliminary feedback the same day.

Three key points of guarantee management

To avoid subsequent disputes, special attention should be paid to:

• Term managementRegular guarantees are valid for maximum 6 months, extension applications require 5 working days advance notice
• Cancellation time limitGuarantee release procedures must be completed within 5 days after tax payment
• Record retentionElectronic receipts should be kept for at least 3 years for future reference

Response suggestions for special situations

In practice, we frequently encounter two special scenarios:

Scenario 1: Period of bulk commodity price fluctuations
When international market prices fluctuate sharply, it is recommended to use a 'deposit + letter of guarantee' combination as collateral. This meets customs requirements while allowing flexible fund allocation.

Scenario 2: Cross-border e-commerce return processing
For returned goods, temporary guarantee release can be applied for using original export declaration, significantly shortening return processing cycle.

Analysis of common corporate misconceptions

Based on years of practical experience, enterprises are reminded to avoid the following misconception:

• Mistaken belief that guarantees can substitute formal customs clearance procedures
• Neglecting the time node control of guarantee extension
• Using the guarantee system to circumvent license management
• Failing to distinguish between tax guarantees and administrative penalty deposits

Remember: Guarantee release is only a temporary measure in the customs clearance process, and companies still need to complete all customs procedures within the specified time limit.

New trends in customs reform

Starting in 2023, the General Administration of Customs piloted the 'Enterprise Credit Guarantee' system:

• AEOAdvanced certified enterprises can enjoy the cyclic use of guarantee quotas
• Certain products will pilot a "release before tax payment" model.
• Promoting the interconnection of guarantee information with tax authorities

It is recommended that high-quality enterprises actively apply for AEO certification to obtain more customs clearance conveniences.

Practical suggestions for foreign trade enterprises

As a foreign trade professional with 20 years of experience, sharing three insights:

1. Establish a dedicated guarantee ledger management system
2. Maintain real-time information synchronization with customs brokers
3. Regularly review guarantee usage efficiency (recommended quarterly)

Final reminder: When encountering complex situations, promptly call the 12360 Customs Service Hotline or consult professional customs brokers, which often achieves twice the result with half the effort.