Taxation on temporary import and export goods

Subject to the approval by the Chinese customs,a list of goods temporarily imported into China, for a period not exceeding 6 months, are exempted from tariff and VAT.

However the consignee is required to place a refundable security deposit at the bank equal to the amount of the duty and taxes payable. The customs may grant an extension of stay for the goods upon the application of the taxpayer.

Taxation on temporary import and export goods -

American Imports, Chinese Deaths: The human cost of doing business - Salt Lake Tribune

MONDAY
Outdated machines cause an epidemic of amputations.

TUESDAY
Batteries made by hand lead to kidney failure and death.

WEDNESDAY
Who's responsible for workers' health? Not us, American companies say.

'Big problem for Americans': With each new report of lead detected on a made-in-China toy, Americans express outrage: These toys could poison children. But Chinese workers making the toys - and countless other products for America - touch and inhale carcinogenic materials every day, all day long. Benzene. Lead. Cadmium. Toluene. Nickel. Mercury.

Many are dying. They have fatal occupational diseases. Mostly they are young, in their 20s and 30s and 40s...

Salt Lake Tribune - American Imports, Chinese Deaths: The human cost of doing business: " MONDAY Outdated machines cause an epidemic of amputations. TUESDAY Batteries made by hand lead to kidney failure and death. WEDNESDAY Who's responsible for workers' health? Not us, American companies say. "

China Exim Bank says to further promote imports

The Import and Export Bank of China (China Exim Bank) has granted US$20 billion of supportive fund to promote Chinese imports from other countries, a bank official said on Thursday.

China Exim Bank says to further promote imports

Popularity of CV Duty Actions against Chinese Products Continues to Grow as Congress Considers Possible Amendments to the Law (tdctrade.com)

Last month, the U.S. International Trade Commission launched separate countervailing duty investigations on lightweight thermal paper and certain magnets from China, bringing the total number of active CV duty investigations on Chinese products to SEVEN.

Popularity of CV Duty Actions against Chinese Products Continues to Grow as Congress Considers Possible Amendments to the Law (tdctrade.com)

Frequently Asked Questions for Canton Fair, 2007 October-- by Outsourcing In Asia, LLC

China Export Commodities Fair, also known as Canton Fair, is held twice a year in Spring and Fall since it was launched in the Spring of 1957. It is China's largest trade fair of the highest level, of the most inclusive varieties and of the largest attendance and business turnover.

October 15th, 2007 is the first day of 102th Canton Fair. at below link you could find answers to FAQ in three categories about this fair.

1)Traveling Questions
2)Exhibition Visiting Questions
3)Buying at Exhibition Questions

Get your Frequently Asked Questions Answered for Canton Fair, here

U.S. officials study Japan for lessons on Chinese food imports - International Herald Tribune

Increasing concerns about the safety of Chinese products have the U.S. government looking at the tough approaches taken by another Asian country, Japan."Japan is five years ahead of the rest of the world in dealing with quality problems from China," said XXX.

(Japan)test samples from about 10 percent of all food shipments entering Japan while the United States, which imports about a tenth of its food supply, tests less than 1 percent of shipments.

Read Full article: U.S. officials study Japan for lessons on Chinese food imports: "tests less than 1 percent of shipments"

The 2007 Shanghai Foreign Investment Environment White Paper Released

Of the 481 foreign enterprises in Fortune 500 in 2006, 257 have made investments in Shanghai. As at the end of last year, these 257 companies have invested in 1,884 projects with total contracted foreign investment of US$22.701 billion, accounting for 19.82% of the city's total contracted foreign investment. The 10 Fortune 500 companies with the biggest investment, in descending order of their investment scale, are: General Electric, Sumitomo, Hitachi, Itochu, Mitsubishi, Mitsui, Siemens, Fujifilm, Marubeni and Volkswagen.

View full at tdctrade.com

Outsourcing in Fujian Benefits Attract Multinational Companies

In order to attract more multinational companies to set up production bases, R&D centres, marketing centres and regional headquarters in Fujian in a move to undertake international services outsourcing, the opinions stipulate that prior approval and easier business registration are granted to enterprises engaged in service outsourcing.

View Full Aricle at tdctrade.com

Other related information on Outsourcing in China, visit OutsourcingInAsia.com

China Raises Import Duties on Luxury Goods

Effective on 1 August, duties on luxury consumer goods, including brandname watches and cosmetics, that's carried by mainlanders into the country from abroad are raised by 10% to 30%.

Read Full at article from tdctrade.com

The Hidden Truth about Mattel Toy and Graco Crib Recalls

---An perspective from a China Sourcing Consultant AND a regular US consumer

As being pregnant and ready to deliver any time, I was panicked when hearing the news on TV that cribs sold in the States could be dangerous to my baby. I googled to find more information, these headlines coming up,

"Is China Trying to Kill US?"
"Dangerous made-in-China products..."

I am offended as an original Chinese who works in the States helping US companies to import made-in-China products.

...

Who wants to buy more for less?
Who would demand that I want That NOW?

The answer is, "Us, US Consumers."

Read Full Story

Mattel Official Delivers an Apology in China - New York Times

What is the right or wrong?
1) Mom teaches, "Never blame innocent people. " In this case, don't blame who were hired by Mattel to earn money using their honest labor--Chinese workers.
2) Mom teaches, "Men created equal. Don't always think yourself deserves better attention than the others." In this case, dangerous China was regarded as murder of our precious US kids.

Mattel own their Chinese factories, hire their own people, design their own toys, buy their own supply, and inspect their own quality before selling to US kids. Questions,
1)Who made a fortune using those Chinese resources?
2)Who shall be blamed when Mattel toys hurts or kills?
Sourcing from China is hurting some of our jobs, but it is providing the luxury life we can't afford using our own labor.

Don't grudge on a couple of incorrect sourcing practices made by certain careless companies, and use this as a weapon to hurt the other people's feeling. That’s unfair and wrong.


Read more: Mattel Official Delivers an Apology in China - New York Times

Mattel Toy Recalls -- Mattel Apologized to China

Finally, Mattel apologized to China, the place that created a fortune for them, but was blamed by Mattel's own fault. Mattel owns the factory, its own people does the quality inspection, and does its own design...

Mattel loses moral high ground to China (Shades of Gray)

USTR Seeks Comments on WTO Dispute with China over Subsidies

Issue 19, 2007 (13 September)

The Office of the U.S. Trade Representative is seeking comments by 5 October on the issues raised in a WTO case filed by the U.S. against China's continued use of subsidies that appear to be prohibited by WTO rules. The U.S. argues that China maintains measures that provide enterprises in China with refunds, reductions or exemptions from taxes otherwise due to the government on the condition that those enterprises purchase domestic over imported goods or meet certain export performance criteria.
The U.S. and Mexico held two rounds of consultations with Chinese authorities on this matter earlier this year in an effort to reach a mutually agreeable solution. The consultations did not resolve the dispute, however, which compelled the U.S. and Mexico to file separate requests on 13 July for the establishment of a dispute settlement panel. China blocked those requests on 24 July but they were subsequently re-filed and accepted on 31 August, which means that a panel will be established shortly. The panel will have six months from its establishment to issue its final report to the parties involved in the dispute. The report will be made available to all WTO members three weeks later, at which time China, the U.S. or Mexico will have the option of filing an appeal with the Appellate Body. If that occurs, the Appellate Body would have a maximum of 90 days to render a final verdict.


News Source

Risk Factors in China Sourcing

Author: Dylan Sun | Posted: 21-09-2007

Risk factors involved in China sourcing are worth taking note off before setting off. It is prudent to build in mechanisms to offset risks in China sourcing from the beginning.
-Risk #1 in China Sourcing – Renewed Competition
-Risk # 2 in China Sourcing – Question of Legal Protection
-Risk # 3 – Is The Cost of China Sourcing Really Low?
-Risk # 4 – Contradictions and opportunities for China sourcing

Full Article

China Sourcing: Strategies and Advantages

Author: Dylan Sun

For most of the companies China manufacturers offer three broad benefits for savings.

1.The first is related to raw materials and labor. Producers in China benefit from a massive pool of workers, stretchy working conditions.

2.The second is the one sometimes ignored called as wealth avoidance. These include lower setup land and factory costs.

3.The third advantage is a more recent enough lies in low cost product design and research and development actions.

Read Full

Four Observations on Import and Export Prices and the Dollar

This critics talks about Importing prices raise and Dollar re-evaluation, from an economist's perspective.

Related other link: the reasons of importing price raise, more digetstive!
Read here here

China Curbs Garlic, Ginger Exports to U.S. for Safety Reason

Responding to mattel toys' recall and toxic pet food from China, Chinese government is working on from inside to prevent more incidents like these. Good job.

Read Full Story

What Makes a Good Sourcing Inquiry-China Sourcing Step 1

A good inquiry get you quotes in no time.
A good inquiry saves confusion and leads to efficient communication with Chinese suppliers.
A good inquiry starts good DIY Sourcing business.

What are necessary elements in a good inquiry?
How questions should be asked?

View full article at
http://www.outsourcinginasia.com/forum/index.php?topic=3.0

This above content talks about the sourcing step one. A full import-from-China process are accessible at http://www.outsourcinginasia.com/resources_in_china/import_from_china.html

How Government Decisions Change Sourcing Jobs and US Consumers?

Critics and comments on Chinese Currency Reevaluation and How well US Companies doing on Exporting to China

In international trade, currency inflation would discourage its country's exporting and encourage importing. This is the main reason why US government takes all effort to inflate Chinese RMB currency, therefore, to encourage more US exports to China and deter further Chinese products invasion.

Following the path, Chinese government in 2007 issued a couple policies. Starting in June 1st, 2007, many items that Chinese manufacturers export would face increased tariff rates. Below are from the announcement of the State Council Tariff Regulation Committee of The People's Republic of China.

Levy 5% provisional export tariff rate on 53 steel products such as coiled, sheet, wire steel and 5 natural resources items such as Ammonium metatungstate, magnesite, Burning magnesium, etc.

Levy 10% provisional export tariff rate on 30 steel products such as steel of the shot, Angle Profile, etc. and coal tar, natural graphite, rare metal, refined lead, oxide dysprosium(Dy), oxide terbium(Tb), Not unwrought roll zinc and 21 items that are non-ferrous metal waste and scrap.

Levy 15% provisional export tariff rate on 33 items that are domestic rare metal raw mineral such as hard coke, steel billet, steel ingot, pig iron, a portion of iron alloy, fluorite, wood-non-coniferous and nickel (Ni), chromium (Cr),wolfram(W), manganese(Mn), molybdenum(Mo), rare-earth metal, etc.

The above three categories encompass 142 tax items.

Among, 110 items had non tariff before, and 32 items increased from 5% to 10%, or from 10% to 15%. China export manufacturing, and our sourcing projects that involve with above resources is encountering a significant increasing cost challenge. I bet a lot of Chinese product purchasers have had some taste already.

On the other hand, Chinese government is encouraging import by lowering provisional tariffs will apply to 209 types of imported products. Among these, key parts and components such as positive displacement pumps, seals, parts for roller bearings and valves, compressors and parts for air-conditioning machines and refrigerators, parts for engineering machines, parts for cameras, parts for television sets, and lenses for video cameras, will be subject to provisional tariff rates of 2-6%. Certain products for daily use will also enjoy lower provisional import tariff rates of 6-17%. These mainly include baby food, kitchen utensils, tableware, food processors, corrective lenses, building materials, ornamental ceramic articles and household appliances (hktdc.com, 2007). Before, some products' going-into-China tariff could be as high as 25%.Under conforming with WTO obligation pressure, Chinese currency is undergoing around 6% inflation in the last couple of month. On the other hand, US currency is depreciating the same value when purchasing from China.

What does that mean for our China Sourcing Business? We need to pay extra 6% for everything we buy from China. For common US consumers, in about 2 month, they would start to feel the their luxury life has some change, they would be paying more to buy less.

This might be something US citizens not really like to see. However, this is what lots of enthusiasts really liked trying to use US exports to gain back job opportunities. But does it really work?

The trade deficit with China might be able to improve with more exports. Currently it's 1 to 5 in term of Exporting comparing to Importing trade with China (U.S. Census Bureau's data, 2007).

However, is Chinese currency inflation a good way to encourage exporting to China by sacrificing many consumers' lifestyle?

Use the link below or see attached, let's take a look at China Customs' number on export-to-overseas (yellow) and import-into-China (blue) in 2005. USA just doesn't do as close to Japan and Korea, not even as well as EU.

• In 2005 Japan sold almost $100 billion worth of products to China
• The U.S. only sold about half that much, even though our economy size is 2.5 times of Japan's
• Even a comparable EU (in terms of both cultural similarity and GDP clout) did 50% better than we did

US companies haven't do a good job in the history. How much do you think Chinese currency inflation could change the current trade deficit and make us do better?

This might be able to tell how much we are shooting at a wrong target, Chinese currency.

Some Chinese consumer research shows, Chinese consumers usually prefer US products over any other country's.

• Are there something missing, why China is the only one to blame?
• Does US company really understand Chinese market?
• Are there some education needed to equip US companies to sell more to Chinese? For American exporters, there are a lot to learn about the other side of the world, China. For someone who's interested to find out answers to this topic, you can visit http://www.sellinasia.com/.

Like many Chinese manufacturers are losing their jobs, a lot of sourcing consultants like us would soon join them in the States. It is worthy only if US exporting could land us more jobs, right?

However, did you know,

“If you took every one single job in the US today and shipped it to China,… It would still have labor surplus (http://www.albinoblacksheep.com/video/shifthappens).”