China general trade imports: connect purchase, customs and warehouse records
Reconcile supplier, customs, tax, warehouse and payment evidence for a China general-trade shipment.
A China sales team may receive an overseas supplier's commercial invoice, a customs declaration, tax payment documents, warehouse receipts and a bank statement at different times. Those records answer different questions. Reconcile them to the same shipment and the entity that actually undertook each transaction before deciding the accounting or tax treatment.
This guide considers a China-incorporated business buying goods from an overseas supplier, importing them under general trade, receiving them into a China warehouse and selling them domestically. In the example it is the buyer, import consignee and domestic seller. Bonded cross-border ecommerce retail imports, imports through another company, and purchases from a domestic importer have different evidence and should not be treated as the same chain.
Identify the buyer, importer and seller
Use the purchase agreement and order to identify the buyer, overseas supplier, product, currency, price and delivery terms. Check the importer/consignee, declaration and customs-broker authority against the actual transaction. A freight forwarder or customs broker may submit documents on a client's behalf; that alone does not make it the buyer or owner of the goods.
China's 2025 customs declaration regulation, General Administration of Customs Order 277, sets rules for declarations by consignees and authorised customs brokers. The customs declaration service guide lists commercial documents such as contracts, invoices, transport documents and packing lists. Applicable supporting documents depend on the goods and declaration.
When the importer and China sales company are separate entities, document the actual transaction, transfer of title, settlement and supporting records between them. The importer's documents do not automatically become all of the sales company's own purchase documents. Shared group ownership does not itself replace an actual intercompany transaction and its evidence.
Example: reconcile one shipment and its payment
Suppose one China company orders 50,000 units from an overseas supplier for a goods price of RMB 8 million, denominated in RMB. The supplier's commercial invoice and the customs declaration both state 50,000 units, and their goods-price basis agrees with the contract. At the review date, the warehouse has received 49,600 acceptable units. The other 400 units had damaged packaging noticed during unloading and have not yet been accepted as saleable; the business is checking them with the supplier and logistics provider. The company has paid RMB 5 million of the goods price; RMB 3 million remains unpaid.
Keep the two reconciliations separate:
- Quantity: 50,000 units on the commercial and customs records = 49,600 accepted into the saleable warehouse plus 400 awaiting disposition. The unresolved 400 units are 0.8% of the shipment; damaged packaging does not by itself establish a total inventory loss.
- Goods price: RMB 8 million contract price = RMB 5 million paid plus RMB 3 million outstanding, assuming no discount, refund or other price adjustment. This comparison excludes separately incurred international freight, insurance, customs duties, import VAT and domestic transport.
The difference between the customs quantity and the quantity accepted as saleable does not by itself require a customs amendment. Identify where and why the difference arose. If the declaration itself is found inaccurate, handle it according to the facts and applicable customs procedures rather than rewriting an original record simply to force agreement.
Build a shipment evidence pack
| Stage | Records and questions |
|---|---|
| Purchase and title | Purchase agreement, order and overseas commercial invoice: who bought and sold what, in which currency, for what price and under which delivery terms? |
| Transport and declaration | Bill of lading or other transport record, packing list, customs declaration and any applicable permits; retain customs-broker authority where relevant. |
| Taxes and expenses | Applicable customs-duty and import-VAT payment documents, freight, insurance and agent invoices: who bears each amount and which shipment does it relate to? |
| Warehouse and claims | Receipt, inspection and inventory records: distinguish accepted, damaged, pending inspection, returned and claimed units. |
| Payment and domestic sale | Bank payments, accounts payable, domestic sales and returns: what has actually been paid, what is outstanding and how is it linked to the shipment? |
An overseas commercial invoice and a Chinese VAT invoice are different documents. Similar names do not make them interchangeable. The customs-declared value, contract price, bank payment and inventory carrying amount may differ because of delivery terms, freight, currency conversion or subsequent adjustments. Explain the actual differences rather than forcing the numbers to match.
Assess import VAT, duties and inventory cost separately
Applicable duties, tax amounts and permit requirements depend on the actual product classification, origin, transaction and current rules. There is no single rate that can be applied to every import. Match tax payment records to the relevant entity and shipment. Whether import VAT is deductible depends on the taxpayer's applicable calculation method, lawful deduction documentation, use of the goods and relevant rules. China's VAT Law addresses deduction documents and excluded input tax; possession of a document alone does not establish every condition for a credit.
Determine inventory cost using the relevant accounting rules and actual charges. Do not assume that every tax or freight charge belongs in cost, or that the supplier's quoted price already includes every charge. Flag expenses that need allocation, missing bills and unresolved tax questions for finance review.
Leave an actionable exception list
For the 400 units with damaged packaging, record the shipment, discovery point, condition, inspection evidence, responsible owner and supplier or carrier response. Track any return, replacement or claim when it actually occurs. For the unpaid RMB 3 million goods price, record the contractual due date and expected payment; payment status alone does not decide inventory or tax treatment.
CaiGeek is an AI financial assistant for small and medium-sized businesses. Ask it to organise the purchase, customs, tax, warehouse and payment evidence for a shipment and identify unresolved differences. The business supplies the records and its responsible staff confirm the facts and decisions. For stock held away from a store, see the cross-region warehouse handover guide, or visit the contact page for product and service information.
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