Offshore business in the field of foreign trade

With the opening of new trade laws and import and export rights, small and medium enterprises and natural persons to enter the increasingly accelerated pace of international trade. But international trade was not "a buy and a sell" so simple, it covers many areas of knowledge and, Decoration Efull so there are a lot of risks. Small and medium production (trade) enterprises and natural persons the maximum advantage in international trade is on the product and customer information, and other complex does not have enough experience and manpower. From the perspective of social division, play to your strengths, outsource to other complex professional foreign trade company is the best choice. Therefore, the current foreign trade companies is the main external trade is the most economical mode of operation. But there may be a trade house theft, export proceeds were used, and more a series of risks.

, The prevention of trade information was stolen

Looking for agents in an overseas trading, credit (or D/P, d/a, t/t) will be subject to foreign trade companies, so you will most likely notice in the credit sector sales, settlement. Self interest due, cannot guarantee that no one will use this information. Once the information has been stolen, the customer is very passive. And there is no guarantee of a foreign trade company, once there is any change, will affect the reputation of foreign customers. Even if customers and old customers will not be forced to go abroad, but with the increasingly fierce competition in international trade, profits will be less and less in the middle (factory, customers and overseas customers are like that). And when profits decreased to a certain extent, the costs of either party has considerable allure. And then, if a competitor (or the customer's factory) steal your information, offer foreign customers our prices lower than you, foreign customers to protect themselves does not necessarily have to be tempted. Even if competitors do not poach your customers abroad, but foreign customers know the prices lower than you, are likely to bargain with you, this is also bad for you.

Through Hong Kong or offshore companies to do international trade, Hong Kong (offshore) on behalf of the company contracts with foreign customers in Hong Kong (offshore) company as the beneficiary of a letter of credit, all trade information from your personal control will prevent information being stolen by others.

Second, to avoid the departments have been occupied

Looking for agents in an overseas trading, back to get back to the trade company's bank accounts abroad. Foreign trade companies, more and more depressed, export proceeds being used may have occurred:

(1) the Corporation may be foreign trade companies or take up loans in other sectors;

(2) may be foreign trade creditors of the company (the sluggish foreign trade companies, foreign debt is a common thing) against foreign trade companies or forced deductions;

(3) foreign trade company's creditor banks may be charged, and this is more likely:

Countries to push the State-owned bank listed, and listed on the premise that cleaning up Bank assets and bad debts, banks clean up bad loans, deductions are taken for granted. Either the three situations mentioned above occurs is fatal: cash was withdrawn by foreign customers, payment being used or withheld, to pay the payment factory, trade links throughout the disruption. This problem may not occur now, but growing risk that, once again, to intermediate traders, is absolutely deadly.

While using Hong Kong (offshore) company's offshore trade operation will be able to completely solve the problem: Hong Kong (offshore) companies in their bank on behalf of a single negotiation, Exchange can be placed in your account for some time or other secured bank account to foreign trade companies, form the Yuan quickly after payment to the factory. On the foreign trade account only the time of day (that is, only one day risk), with at least one month before the risk of chargebacks, the security number. Even without falling foreign trade companies paid factory direct endorsement by cheque account, so there is absolutely no risk.

Three, do not use the funds to earn profits

Both foreign buyers and appropriate domestic manufacturers, there is no funding, the manufacturer is not willing to give him only a letter of credit, rich middleman profits can only give up. Hong Kong (offshore) companies will be able to solve this problem: foreign buyers to issue letters of credit to your Hong Kong (offshore) company, your credit is transferred to the factory again. Without a money deposit, and confidential information such as foreign buyers, prices can be hidden. Similarly, imports are also easy: l final domestic buyers to your Hong Kong (offshore) company, you transfer the letter of credit to foreign sellers.

Four, allocating funds freely, no foreign exchange control

In foreign trade, both imports and exports, free receipt and payment of foreign exchange is vital. But now or in the future for a long period of time, China is still subject to foreign exchange controls, very inconvenient for trade operations in practical work. An offshore company is a foreign company, it opened foreign exchange accounts at home on an offshore account, in the law, our accreditation from the foreign exchange management. The offshore account is a free Forex account, whether it was remit or remit, whether foreign or domestic, whether companies or individuals, foreign exchange is free cash, and all three can be intersected.

Above are general concepts, concrete benefits are as follows. For export, offshore companies are free to charge domestic and international commissions and to pay ocean freight and insurance costs, ease of write-off tax rebate and so on; for imports, offshore companies can not only free cash commissions at home and abroad, can also advance, import payment, opening or transfer credit, and so on.

Five-speed and efficiency, increasing export tax rebates

Some foreign trade companies in the area of tax rebates is too slow. Because you own a foreign company, the initiative in their own hands, you can find the fastest-growing area of foreign trade companies as agents of export tax rebate. And if you have the right to import and export factories for verification, tax refund more quickly, in fact, is not taxed. (National provisions: for factory direct export "VAT refund" policy, common understanding is not also not returned)

Q: (1) want to hurry to write-off tax rebate, but remittances from abroad will have to wait a period of time, what then?

(2) some time ago, I have a few exports, the balance is less than the export declaration of the amount of remittances, so there is some balance there is no way to write off tax rebates, offshore companies can solve this problem?

A: no problem. This is the biggest write-off of offshore companies in tax refund benefits.

You know, accounts on an offshore bank accounts, offshore companies, money free, not subject to exchange control: as long as your account has Exchange, at any time, regardless of the amount of votes and how many you are free of foreign exchange to the country's foreign exchange in the bank account verification, and refund. Tax refund for early cancellation or replacement not write-off tax rebate amounts.

Six, is conducive to avoiding trade and non-trade barriers

China's domestic enterprises, to the United States, Western Europe and other developed countries export product, usually need to apply for quotas and a range of related procedures, costs 12 times more times the cost you want. Meanwhile, the developed countries in order to protect the interests of domestic companies, often set on enterprises in developing countries such as tariff barriers, anti-dumping, countervailing, green barriers, technical barriers and other restrictions. If the business owns an offshore company, from enterprises to own offshore companies export, then by the offshore companies to export to countries, to a certain extent, avoid these trade and non-trade barriers of discrimination and restrictions.

Seven, the finance operation, reasonable cost and increase profits

That do not violate the law and try to avoid or reduce tax is the enterprise business strategy. The biggest advantage of offshore companies and offshore business is through financial operations, reasonable cost and increase profits.

Eight, and production enterprises, capital operation and the establishment of foreign-funded enterprises with import and export rights

Production enterprises, trade intermediaries, foreign customers for export, which is indispensable to the three main international trade chain. But with the increasingly fierce competition in international trade, profit margins are getting smaller. Meanwhile, as the increasingly transparent market information, trade brokers the situation more difficult. Combined with the manufacturer, is the inevitable way trade brokers to become bigger and stronger. Offshore companies not only provide trade brokers to avoid trade risks provide many benefits, but also played many advantages combined with production enterprises. Offshore companies are foreign companies, can use the offshore company's capital or equity acquisitions of domestic enterprises, capital operation. Can also be produced with domestic enterprises to set up joint ventures, of course, this naturally has the right to import and export. In this way, using offshore companies not only to maximize profit, but also enjoy various preferential policies. This is the offshore companies are the use of top of the POPs.

Nine, improved corporate image and reputation, easy to open up international markets or with international brands to open up the domestic market

Hong Kong company shop in front and factory pattern

Ten, the use of offshore companies, the full integration of general trade, processing trade, processing trade with imported materials advantages

Background: general trade was for the processing trade. It refers to the use of domestic raw materials and spare parts manufactured products are exported directly to foreign or import foreign products directly for sale at home.

Processing trade is characterized by raw materials and parts from abroad, processed products are also sold in foreign markets. There are two main ways of processing trade: feed processing and materials processing. Feed processing businesses need to raise funds from abroad into raw materials and spare parts, and then to the foreign market sales, imports and exports were two separate transactions, the profits of the enterprises obtained export finished products.

The processing trade, also known as processing and assembling trade. Processing enterprises that undertake without paying import material funds, into and out of two sides of a transaction. Ownership of materials and finished products for the overseas clients all, enterprises are obtained by processing fees, labour costs, but did not bear the sales risk.

In recent years to the protection of domestic resources, increasing employment opportunities, actively encourages the development of processing trade, and also in terms of tax preferential policies. At present the rapid rise in the proportion of processing trade, compared with general trade reached 6:4, and growth is not reduced. In summary, if the operational skills appropriate, from the comparison of advantages for processing > feed processing > general trade. so, how to use offshore companies advantage integration of the three trade up?

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