The process of importing, distributing and selling luxury goods in China raises further challenges for companies, including a number of difficult questions regarding tax treatment, customs duty, logistics and the transfer of intellectual property.

Customs duty, import VAT and consumption tax can all be charged on luxury goods imported into China. The ability of brands to mark up their goods at dramatic premiums can also prove difficult to explain to tax authorities when the time comes to file income tax returns.

Read the rest of “Luxury Brands in China: Part V” or post a comment >>

By Shawn He Yuxun

Sourcing from China has evolved from a straight-forward, cost-driven approach to more elaborate and strategic varieties. While the recent product recalls did not seem to have impacted Chinese exports based on overall figures, however we have come across anecdotal evidence suggesting the otherwise.

Undoubtedly the initial sourcing interest was triggered by China’s notorious low costs, both direct (such as those for labor and land or rent) and indirect (rendered under a myriad of government export incentives, such as subsidized fuel costs, export VAT refunds, non-taxation and/or tax reduction).

Over the years the exercise has evolved from a static, per item price-driven modus operandi to more sophisticated ones. For example, many US buyers now employ a vertically or laterally integrated approach, or both. Read the rest of “Latest China Sourcing Trends” or post a comment

The mistake many people make when engaging manufacturers or buying products in China is to think cheap. Lowest cost-lowest price, discount discount discount. There is a much better alternative and one that traders are not currently exploiting.

For example lets take a pair of shoes. Almost 50% of all the shoes sold in the UK originate in China. Now the costs involved in manufacturing a pair of shoes include the cost of materials, ie. leather, the cost of packaging, the cost of …

Read the rest of “Cheap or value added” or post a comment >>

By Haitao Qi

Following the great global transfer of manufacturing started in seventies of last century, the global transfer of the service industry has taken the first place as a new tide. And offshore outsourcing, as the keystone of the new-round global integration, brought Chinese companies both opportunities and challenges.
 
2007 Top 50 Service Outsourcing Providers in China by Chinasourcing is the first company list in China that faces the whole service outsourcing industry aiming at present the best Chinese outsourcing companies to the global outsourcing market so as to strengthen their international competence and get more business opportunities in the offshore outsourcing market. Read the rest of “Top50 Service Outsourcing Providers in China Unveiled” or post a comment

By Blake Keller

Much thought and effort goes into the selection of vendors, but how much effort do you put into selecting an audit provider? Many potential clients begin their conversations with “We have tried third party auditors in the past…”

Does that sound familiar? I can’t tell you how to pick one company over another. Your particular industry and needs will determine who is right for you. What I can do, is give you some advice about audits in general.

An audit in general terms is an objective evaluation of product, processes, and/or systems. Most importantly, an audit is a comparison of actual performance to predetermined standards. Note, please the emphasis on predetermined standards, and the means to evaluate your auditor is clear. You must first specify to what standards you desire your supplier to be audited. Feel free to ask your potential auditor to what standard they will perform an audit. Read the rest of “Evaluating your Audit Provider” or post a comment