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Compliance in China. Challenges of Transparency, Interpretation & Enforcement.

August 24, 2014 Another China Blog, Blogs

Compliance is one of the biggest challenges facing foreign companies operating in China.

While there is a law/policy/regulation/suggested standard promulgated by Beijing for almost every aspect of doing business, for the typical Western owned company operating in China, the problem is two-fold:

Interpretation and enforcement of the law varies greatly not only

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3rd Party Assembly and VAT planning

August 21, 2014 Another China Blog, Blogs

Quoted FOB and EXW by the Chinese supplier.  Who pays the VAT in these circumstances? Who can apply for the refund?

Marisa in S. Florida writes in to explain her situation and ask her VAT questions:

Hi Mike,

I have your book and also have heard you speak at the seminars in Miami

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How to find and manage partners for logistics services in China

August 16, 2014 Videos

A lot of third-party logistics companies (3PL) will say they have global coverage in their marketing, but I have found that when you dig deep into their experience you will find they focus on certain shipping routes or destination ports. And the giant freight forwarders that do have offices around the world are usually not interested in smaller accounts. So if you are moving less than 20 containers per year, they may not be a good fit anyway.

Beware of Brand Name Scam from China

August 16, 2014 Featured

I don’t have enough fingers and toes to count how many times I have been contacted by buyers who think they can buy famous brands like Apple iPhones and iPads direct from China only to fall into a scam. Everybody knows that most of these Apple products are made in China, but what people fail to realize is that due to the tax system in China, the price of the products at wholesale and retail or higher than the pricing you would find back home if you live in North America or Europe.

How to Return defective merchandise to China

August 16, 2014 Videos

If you are not worried about doing quality control because you think you can send the defects back to China. Think again. Unfortunately, this is one the biggest headaches in China sourcing. The system in China is designed to make it very hard to get defective goods into China, even if the overseas buyer has clear paper trail and full support of the original supplier in China.

Demand Letters and Legal Options with Chinese Suppliers

August 16, 2014 Videos

If diplomatic means prove unsuccessful, before you go to court, you may want to consider issuing a demand letter in hopes of resolving the situation.

A demand letter template adjusted by you the buyer is not going to do much good. If you want to go down that route, you need to get an English-speaking China-based lawyer involved so that they at least understand the basics and can prepare a logical argument in the form of the letter addressing what the supplier has done and what remedies are requested.

Beware of this very common mistake when selecting products to buy from China

August 13, 2014 Another China Blog, Blogs

“XXX famous brand is made in China. I’ll buy them in bulk from a Chinese wholesaler or factory on the cheap and get rich!”

buying famous brands factory direct in China. TOO GOOD TO BE TRUE!


At least once per week, the CSIC is contacted by a buyer that has

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