Leasing Trade Export Operation Guide | Vortrich International Logistics

A Complete Guide to Leasing Trade Export and Lease-End Processing

Hello, foreign trade partners! Today we’re going to talk about leasing trade exports. Based on the lease duration, customs supervision is divided into two types: leases of less than one year are classified as “Lease Under One Year,” code 1500; leases of one year or more fall under what we’ll focus on today — “Leasing Trade,” supervision code 1523. This content is packed with practical information, so I recommend bookmarking it for easy reference!

Step One: Initial Leasing Export

Remember one key point: for leases exceeding one year, customs declaration must use the supervision method “Leasing Trade.”

The key to smooth customs clearance lies in preparing a complete set of documents, which mainly fall into two categories:

Basic documents: Commercial Invoice and Packing List.
Key documents: Lease Agreement and Lease Explanation.

The Lease Agreement must clearly state: the lease period, the rental amount, and a “re-export clause” specifying whether the goods will be returned or purchased at the end of the lease.

The Lease Explanation is a statement you write to customs, explaining four things: what the goods are, how they are being leased, how they will be used overseas, and how they will be handled when the lease expires.

Once the documents are in order, the goods can be shipped out smoothly. But the real challenge comes when the lease period is about to end.

Step Two: As the Lease Expires, You Have Three Options

First, a reminder: please determine your plan at least one month before the lease expires to allow sufficient time for processing.

Option One: Overseas Purchase Retention (Goods Don’t Come Back)

What this means: Essentially selling the goods to the foreign buyer. You need to complete formal export sales procedures under “General Trade.”
Key restriction: This supplementary procedure must be handled by the same customs broker who processed your original leasing export declaration!
Required documents: Purchase retention agreement, purchase retention explanation, commercial invoice and packing list, and bank foreign exchange receipts as proof of payment.
Special note: If extending the lease before purchase retention, only the receipt for the second transaction needs to be provided.

Option Two: Lease Extension

Key restriction: You can only extend once, and only with the original lessee — you cannot sublease to another party. The extension period is negotiable between the parties.
Required documents: A new extension agreement, extension explanation, and the corresponding commercial invoice and packing list.

Option Three: Return to China

Key point: The goods must physically arrive at a Chinese port (e.g., Tianjin Port) and complete import customs clearance before the lease contract expiration date! The timing is extremely strict.
Core declaration requirements are twofold:
- Declaration consistency: The declared value and net weight for re-import must be exactly the same as the original leasing export declaration.
- Tax certificate: You must provide customs with the “Certificate of No Export Tax Refund” or “Certificate of Tax Already Paid” issued by the tax bureau — this is critical for processing the return.

Finally, a quick summary of three core points:

Export classification: Lease period > 1 year, firmly choose supervision code 1523 (Leasing Trade).
Plan ahead: At least one month before the lease expires, decide on purchase retention, extension, or return.
Path rules:
- Choose purchase retention: Go back to the original customs broker and complete supplementary procedures under General Trade.
- Choose extension: You can only extend once with the original customer.
- Choose return: Strictly meet the port arrival and customs clearance deadlines, and prepare the no-refund or tax-paid certificate.

In short, as long as you plan ahead and understand the rules, even complex leasing trade can be handled with confidence. If you have specific questions, feel free to discuss them in the comments. If you found this useful, remember to share it with others who need it. See you next time!

In-Depth Analysis

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