Issue 137 October From Dezan Shira & Associates. Selling to China

Transcription

1 Issue 137 October 2013 From Dezan Shira & Associates Selling to China Certifications for Imported Goods in China Setting up a Representative Office in China Understanding State-Owned Enterprises in China Available Incentives for Exporting to China October 2013 CHINA BRIEFING - 1

2 Issue 137 October 2013 Introduction Sabrina Zhang National Tax Partner Dezan Shira & Associates Beijing Office As the Chinese government strives to boost domestic consumption in order to achieve sustainable growth within its economy, China s urban residents are continuing to see their disposable income levels rise. Consequently, they are increasingly pursuing a higher standard of living, and one important means of achieving this is via the purchasing and use of quality import products. From food to clothing, mobile phones, electronic appliances and cars, foreign brands are perceived as superior to domestic ones, and consumers are willing to pay a premium for them. This trend opens up tremendous opportunities for established foreign sellers interested in expanding their market coverage to include one of the world s largest (and increasingly affluent) populations. However, while many opportunities abound, selling to China may not be as simple and straightforward as what foreign sellers are accustomed to in other markets. China is a unique landscape shaped by its own history and culture, and has its own unique legal and regulatory system. Successfully doing business in China involves complying with myriad constantly-evolving legal requirements, as well as a thorough understanding of the market. Conducting market research before deciding to enter the market is crucial, and patience is key as it may take several years before profits are realized. In this issue of China Briefing Magazine, we demystify some complexities of conducting business in China by introducing the main certification requirements for importing goods into the country; the basics of setting up a representative office; as well as the structure and culture of State-owned enterprise in China. Finally, we also summarize some of the export incentives available in various Western countries. Kind regards, Sabrina Zhang This publication is also available as an interactive PDF utilizing the added features below. Get your copy from the Asia Briefing Bookstore.? Questions? China Briefing News info@dezshira.com Related Reading This Month s Cover Art Autumn Beauty ( 秋艳 ) Engraved Painting, 40x39cm Dai Bin ( 戴斌 ) Wan Fung Art Gallery ( 云峰画苑 ) wanfungart@126.com *107 Regulatory Updates International Perspective Multimedia To subscribe to China Briefing Magazine (10 issues per year for US$149.90), please visit Other Asia Business Resources ASIA BRIEFING INDIA BRIEFING VIETNAM V BRIEFING All materials and contents 2013 Asia Briefing Ltd. No reproduction, copying or translation of materials without prior permission of the publisher. 2 - CHINA BRIEFING October 2013

3 Selling to China Contents From food to clothing, mobile phones, electronic appliances and cars, foreign brands are perceived as superior to domestic ones in China, and consumers are willing to pay a premium for them. p.4 p.6 p.8 p.10 Certifications for Imported Goods to China Setting up a Representative Office in China Understanding State-Owned Enterprises in China Available Incentives for Exporting to China Related Material From China Briefing* * Material featured here is clickable on the interactive PDF version of the magazine. Get your copy on the Asia Briefing Bookstore: Shanghai s New Free Trade Zone Import-Export Taxes & Duties In China China Clarifies New VAT Exemptions Opportunities for American Companies in China ASIA BRIEFING Additional Asia Resources to Help Your Business Expand beyond China For more business, legal, tax and operational intelligence concerning foreign investment in Asia. Our daily news site and bi-monthly magazine about emerging Asia, combining all our titles and publications under one portal. If you are expanding out of China, access Asia Briefing today. New Issue Out Now Work Visa & Permit Procedures Throughout Asia October 2013 CHINA BRIEFING - 3

4 Certifications for Imported Goods in China By Shirley Zhang and Eunice Ku, Dezan Shira & Associates China has various inspection and certification requirements for imported goods. Chinese product certification standards are to a large extent aligned with the European International Standards Organization (ISO) and American Standard Test Methods (ASTM). However, China has independent applications for testing procedures that must be conducted in a licensed Chinese laboratory. The certification processes are not more expensive than elsewhere, but are very time consuming. The time frame varies by the certification processes and, depending on the product, there may be only one necessary test, or a series of tests performed in multiple labs. Below, we discuss some of the major certifications in China. China Compulsory Certification (CCC) The China Compulsory Certification (CCC) mark is a compulsory safety mark for domestically-manufactured and imported products listed in the CCC Product Catalogue, approved and jointly released by the General Administration for Quality Supervision and Inspection and Quarantine (GAQSIQ) and the Certification and Accreditation Administration (CNCA). CCC was implemented on May 1, 2002 and became fully effective on August 1, The CCC mark is administered by CNCA, which designates the China Quality Certification Centre (CQC) to process CCC mark applications. The CCC Product Catalogue includes electric appliances, vehicles, safety glasses, medical equipment and toys, etc. GAQSIQ is an administrative department directly under the State Council. It is in charge of quality supervision, inspection, animal and plant quarantine, and food safety for all goods transported across the Chinese border. It also supervises the CNCA and the Standardization Administration of China (SAC), as well as Entry-Exit Inspection and Quarantine Bureaus throughout China. CNCA is responsible for legislating inspection and quarantine standards and relevant regulations. CQC is a professional certification body under the China Certification & Inspection (Group) Co., Ltd. (CCIC). CCIC was originally established with accreditation by GAQSIQ, CNCA, and the National Accreditation Service for Conformity Assessment of China (CNAS), but is now an independent enterprise. It is China s largest international enterprise providing inspection, authentication, certification, and product testing services worldwide with regard to the quality, safety, health, and environmental protection aspects of products. It has approximately 300 offices and 200 testing laboratories located at major ports, cities and trade centers in more than 20 countries and regions. Certificates issued by CCIC based on their inspection and testing are accepted and sometimes required by government authorities. For example, when selling waste products to China, CCIC s inspection prior to loading them onto the ship is mandatory. The GAQSIQ offices at the ports of China will only accept inspection and quarantine applications after the CCIC certificate has been issued. CCIC also provides services in sectors such as chemical products, agricultural products, industrial products, consumer products, food and automobile. As an entity under the CCIC, CQC s core functions includes CCC, voluntary certification and management system certification. It is also a third-party certification body authorized by the State to certify energy saving, water saving and environmental-friendly products. The CCC certification process usually takes between four to eight months. A designated test laboratory in China will test product samples and CQC will send representatives to inspect the manufacturing facilities. CCC certificates are valid for five years from the original date of issuance. The CCC certificate and permission of printing the CCC mark must be renewed annually as part of a follow-up certification, which involves a one-day factory audit. To clarify if a product must be certified, it is also helpful to look at the Guobiao (Chinese for national standard, GB) standards for the product. GB standards are the basis for the testing which products must undergo during the CCC certification. GB standards are national standards issued by the SAC. Mandatory standards are prefixed GB, while voluntary standards are prefixed GB/T. They are followed by a standard number. SAC maintains a database of all GB Standards, which is searchable in English or Mandarin. Standards can be searched using various criteria such as standard number, standard title, ICS code, date of issuance, or relevant technical committee. 4 - CHINA BRIEFING October 2013

5 Certification for Imported Goods in China Some products listed in the CCC Product Catalogue, such as those that are used for scientific purposes and product testing or those that are displayed at trade fairs, may be imported without a CCC certificate. China Inspection and Quarantine (CIQ) Certifications China s Law on Import and Export Commodity Inspection requires that all imported goods listed in the Catalogue of Import and Export Commodities Inspected by Entry-Exit Inspection and Quarantine Institutions, which is generally updated every year, to be equipped with a China Inspection and Quarantine (CIQ) certificate in order for them to be permissible for use and sales in China. The CIQ Certificate has been one of the essential certifications for exporting to China since The consignee or agent should apply for the inspection with the inspection bureau located at the place of Customs declaration. Registered agencies at inspection authorities can be hired to help process the inspection declaration by proxy. The Customs will release the imported commodities only after verifying the CIQ certification. Medical Products Import Heavier restrictions are imposed on the import of medical products, which must be conducted via ports specifically designated for importing them. Currently, there are 19 such ports in China, they are Beijing, Tianjin, Shanghai, Dalian, Qingdao, Chengdu, Wuhan, Chongqing, Xiamen, Nanjing, Hangzhou, Ningbo, Fuzhou, Guangzhou, Shenzhen, Zhuhai, Haikou, Xi an and Nanning. In order to pass through Chinese Customs, the consignee must apply for a Medical Product Import Clearance Form (Clearance Form) with a drug administration authority located in the approved port. To apply for the Clearance Form, a Medical Product Import Registration Certificate (Registration Certificate) issued by the China Food and Drug Administration (CFDA) is required. CFDA will test the drugs and ensure the drugs are safe and effective and meet the quality standards before they issue the Registration Certificate, and can withdraw it if the drug is found to cause adverse reactions or is harmful to the human body. Drugs without a Registration Certificate are prohibited from being manufactured, imported, sold, or used in China, and those that have been manufactured or imported should be destroyed or disposed under the supervision of local CFDA. To import anesthetic and psychotropic drugs, an import permit is required. Additional inspections will be conducted by CFDA designated institutions, and a Port Inspection Notice of Imported Drugs (Inspection Notice) will be issued upon approval. The Customs will initiate the clearance procedure upon issuance of the Clearance Form or the Inspection Notice. China Energy Label (CEL) The China Energy Label (CEL) is used to show the energy efficiency level of an energy-consuming product. All products listed in the Catalogue of Products Requiring Energy Labels should have a uniform energy label displayed in a prominent place on the product or on the layer of packaging closest to the product, accompanied with relevant explanations in the product manual. The label should contain the following information about the product: a) The name of the manufacturer or its abbreviation; b) Model and specifications; c) Energy efficiency level; d) Energy consumption amount; and e) The serial number of the applicable GB standards for energy efficiency. Importers or manufacturers can determine the energy efficiency level of their products by conducting a test via their own testing lab or authorize a designated testing institution to run the test and determine it for them. If adopting the former, the testing lab should possess the basic capability to conduct the test in line with the energy efficiency standards of the State. Once the label is put into use, the importer or manufacturer should make a record filing of the energy label they used with the GAQSIQ and the National Development and Reform Commission and provide relevant product information within 30 days. A new record filing is required upon any changes to the information on the label. October 2013 CHINA BRIEFING - 5

6 Setting up a Representative Office in China By Eunice Ku, Dezan Shira & Associates Once a foreign seller decides to enter the Chinese market, there are several options - working through an agency or distributor, or registering a representative office (RO). Whereas an agent or distributor may have limited loyalty or little interest in end user satisfaction, an RO is an effective way for foreign investors to get a feel for the Chinese market while demonstrating commitment to the market. It is the easiest type of foreign investment structure to set up and, unlike the wholly foreignowned enterprise, has no registered capital requirements. The defining characteristic of an RO is its limited business scope -- an RO is generally forbidden from engaging in any profit-seeking activities, and can only legally engage in: Market research, display and publicity activities that relate to company product or services; and Contact activities that relate to company product sales or service provision and domestic procurement and investment. RO Setup Process Procedure Time Frame Securing an Office for Registration Depends on Client Preparation and Collection of Relevant Registration Documentations Days Online Registration Application via Administration of Industry and Commerce (AIC) Website 3-5 Working Days Registration Certificate and Working Card Application On-spot at AIC 5-10 Working Days Chop-Making and Filing with Public Security Bureau 3-5 Working Days Enterprise Code Certificates Application at Technical Supervision Bureau 1-3 Working Days Tax Registration Certificates Application at Local Tax Bureau and State Tax Bureau 1-3 Working Days Bank Account Opening in Bank Working Days 6 - CHINA BRIEFING October 2013

7 Setting up a Representative Office in China While an RO is relatively easy to establish and maintain, they are fairly limited in terms of operational scope since they cannot actually issue invoices (i.e., fapiao, the basis for obtaining tax deductions in China) or sign contracts. An RO has no legal personality, meaning it does not possess the capacity for civil rights and conduct, cannot independently assume civil liability, and is limited in its hiring ability. Chinese staff working for an RO, although not limited in number, must be employed through a human resources agency that will sign a contract with the RO on the one hand and with the Chinese staff on the other in order to ensure social security and housing fund contributions are paid on a regular basis. No more than four foreign employees can be hired per RO. Foreign staff working for ROs should have an employment relationship with the parent company abroad, and any disputes should be settled under the laws of that country. From 2010 on, companies that intend to register a RO must be at least two years old. The registration certificate for an RO is only valid for one year. Every year when an RO renews its license, a notarized and legalized incorporation certificate of the parent company will need to be provided. In addition to the incorporation certificate, a bank reference letter will also need to be notarized and legalized. All ROs have the same business scope: engage in non-profit making business activities related to its parent office. ROs are required to submit an annual report between March 1 and June 30 every year providing information on the legal status and standing information of the foreign enterprise, ongoing business activities of the RO, and payment balance audited by their accounting agencies. The registration authorities will issue fines if the RO fails to provide such reports on time or if it provides false information. ROs are usually taxed on gross expenses with the overall tax burden around percent of total monthly expenses; however, these rates may be increased by the relevant tax bureau according to the industry. If the chief representative is a foreign national, whether they stay in China or not, they are subject to individual tax based on the income derived from the RO. Representative Office in Beijing Monthly Expenses Forecast Sheet Running expenses Amount (RMB) 1 Office rental and management fee 12, Salary for chief representative 25, Salary for two local employees (RMB4,000 and RMB10,000) 14, Social insurance for employees 11, Pension insurance (20%) 5, Medical insurance (10%) 2, Injury insurance (0.4%) Unemployment insurance (1%) Maternity leave (0.8%) Housing fund (12%) FESCO fee 1, Other miscellaneous (i.e., telephone, office utilities, etc.) 6, Bank charges 1, Stamp duty Individual income tax 4, for chief representative 3, for local employees Total monthly operating expense 74, October 2013 CHINA BRIEFING - 7

8 Understanding State-Owned Enterprises in China - By Shirley Zhang, Dezan Shira and Associates Some foreign sellers see selling to China s State-owned enterprises (SOEs) as a way of quickly reaching a large and stable customer base. However, it is important to be aware that selling to SOEs is generally a much more arduous task in comparison with selling to private enterprises in China. This is because SOEs are very complex in structure, and extremely bureaucratic. High-level managers in SOEs tend to act more like government officials than entrepreneurs in that they are more risk-averse. In addition, these managers are usually very busy and prefer to vet collaboration opportunities only after they have undergone a thorough screening by their subordinates. Therefore, in addition to having good products to sell, it is crucial to locate the correct person who is both open-minded and motivated to push forward the products. Below, we give a brief introduction of the history and culture of SOEs in China. Since China started its reform of SOEs in the late 1990s, the number of enterprises under sole State ownership has declined significantly. Many SOEs turned into State-holding enterprises (i.e., enterprises in which a majority of shares are held by the State) or enterprises with minority shares held by the State. These enterprises have contributed considerably to China s remarkable growth over the past few decades. Although these privatization efforts have provided these enterprises with more flexibility in making business decisions that keep pace with the changing market while simultaneously enjoy government financial support and access to favorable policies, these advantages also carry with them some notable constraints. In particular, government control and impact over State-holding enterprises is still intensive and infiltrative, which impedes general operations, including the decision-making processes of these companies. Due to these continuous privatization reforms, some of the larger SOEs are becoming more like private or public corporations in a general sense. They are listed in stock exchanges, hold board of directors and shareholder meetings, and set up marketing departments to observe the changing business environment. However, these changes are largely cosmetic, and do not reflect the mostly unchanged influence of the State and local government. Corporate culture and management tone, which were established long before the start of the SOE reforms, also remain relatively untouched. Most large-sized SOEs are overseen by the State-owned Assets Supervision and Administration Commission (SASAC), an institution directly subordinate to China s State Council. SASAC has the final say on all major business operation decisions of these SOEs. For example, the majority of shares of one of the biggest listed SOEs, China Petroleum & Chemical Corporation (Sinopec), are held by Sinopec Group, which is 100 percent owned by the State and takes orders directly from SASAC. Other shareholders are companies such as the Industrial and Commercial Bank of China (ICBC), PICC Life Insurance Company Limited, and Bank of Communications, all of which are SOEs directly overseen by SASAC. SASAC also exerts influence via the SOEs Communist Party organizations (usually referred to as the party committee ), which are mandated to be established within all Chinese companies according to China s Company Law. All party committees in SOEs are under the supervision of the party committee of SASAC. Typically, the party committee comprises of a certain percentage of the SOE s directors. The secretary (i.e., the head of the party committee of a company) usually has the final say in major management decisions, and may be prioritized even over the chairman of the board. In practice, the secretary of the party committee and the chairman of the board are very often the same person. All SOEs in China are also required to set up a labor union, overseen by the party committee, to represent its members in disputes with management over infringement of the rights and interests of the employees. At least one employee director, subject to approval from SASAC, will be elected through a general meeting of the representatives of staff members held by the labor union. Although employees can vote for their own director, the procedure may be cumbersome because of influence from the party committee. In addition, since the director in question must also be approved by SASAC, it only allows employees a nominal amount of influence over the workplace. SOEs maintain close contact with the government in a variety of ways, many of which the average investor or even employee is unaware. Political considerations are a key and omnipresent concern for them in all decisions. Before making any systemic decisions likely to effect change to the company, the senior executives of SOEs must consider whether or not the decisions suit the company s political objectives 8 - CHINA BRIEFING October 2013

9 Understanding State-Owned Enterprises in China and fit the long-term development strategy of the Chinese government. Once a project fits in the blueprint of government, it will be much easier for SOEs to get access to vast financial and operational resources from additional government support. Government departments and SOEs will also prioritise cooperation with other SOEs over other entities because of the common ties they share, and sometimes government policies even require them to do so. For instance, SOEs often enjoy a much lower interest rate on loans from State-owned banks such as Bank of China (BOC), China Construction Bank (CCB), or ICBC. Another example is Roewe, a subsidiary of the State-owned SAIC Motor Corporation. Roewe recently became the Shanghai government s biggest supplier of cars, mostly because the Shanghai government wants to support its local brand (SAIC Motor is a Shanghai-branded SOE). The influence from the State tends to lead to top-down management of SOEs, similar to the structure of the Chinese government. Unlike regular companies, in which most internal meetings require the input of employees and staff to solve problems, almost all internal meetings in SOEs are just a formality for the managers or supervisors to deliver the decisions that have already been made by the upper level. The senior executives discuss and make decisions in their own small group meeting, and then turn to more junior workers for implementation of those decisions. Hence, managers who have the power to make decisions are highly respected and rarely challenged, at least formally. Employees who contribute ideas or opinions to managers will usually talk to their direct supervisor in private first, and then the supervisor decides whether or not to pass it on to the upper level. In addition, most employees at SOEs, including the senior executives and those junior to them, are not encouraged to improve existing processes or to conceive of new initiatives that can increase the company s revenue. Their chief goal is to avoid making errors. Innovation and major changes in daily routine are also uncommon, and risk avoidance is the modus operandi of most employees. Although the largest SOEs have adopted performance management practices for employee appraisal, which will determine the employees yearly bonus (SOEs usually offer very generous year-end bonuses to employees), the final score of performance depends in large part on the opinion of their direct supervisor instead of more objective measures. SOE Structure Board of Shareholders Board of Supervisors Board of Directors Secretarial Bureau Audit & Risk Committee Senior Executives Strategic Committee Remuneration & Appraisal Committee Functional s Business Units Financial Audit Human Resource Legal IT Marketing Operational General Management Strategic Planning Research & Development Office of Foreign Affairs Safety & Environmental Protection of Retired Employees Party Committee Office October 2013 CHINA BRIEFING - 9

10 Available Incentives for Exporting to China - By Eunice Ku, Dezan Shira & Associates Many countries have specialized agencies and schemes that provide assistance and incentives for exporting locally manufactured products and that help mitigate the risks inherent in exporting, e.g., buyers default of payment. We summarize some of them below. United States The U.S. Export Assistance Centers (USEACs), in conjunction with the Small Business Administration (SBA) and the U.S. Export Import Bank, support U.S. exporters in determining export finance options and insurance strategies. In terms of tax savings, export companies can apply to qualify as an Interest Charge Domestic International Sales Corporation (IC-DISC). An IC-DISC allows taxpayers to channel a portion of their export income (attributable to the first US$10,000,000 of gross export receipts) into a DISC by paying a commission to the DISC. The tax on the portion of the taxpayer s income sheltered by the commission is deferred indefinitely, subject to a low interest charge. Taxpayers are permitted to deduct the commission paid to the IC-DISC against their ordinary income, which is taxed at up to 35 percent. Any earnings of an IC-DISC in excess of those attributable to the first US$10,000,000 of gross receipts are deemed to be distributed by the IC-DISC in the year that they are earned and are characterized as dividends, which are taxed at percent. To qualify as an IC-DISC, a domestic corporation must pass two main tests - the qualified export receipts test which requires that 95 percent of the gross receipts of the IC-DISC constitute qualified export receipts, and the qualified export assets test which requires that 95 percent of the assets of the IC-DISC be qualified export assets. United Kingdom The UK Export Finance (UKEF) is UK s official export credit agency that plays an important role in helping boost Britain s exports. It provides guarantees to banks that offer loans to overseas buyers for purchasing UK exports. This means that it takes on the risk of the loan from the bank so that the bank is more likely to offer it. It also provides insurance to UK exporters against non-payment by overseas buyers. UKEF also assists exporters overcome bonding and working capital constraints. In , UKEF provided 4.3 billion worth of support to British businesses, up from 2.3 billion in the previous year, reaching the highest in 12 years. This helped 66 exporters including 49 small and medium-sized businesses (SMEs) win contracts worth over 500 million. Recently, UKEF developed a 1.5 billion Direct Lending Scheme, which will provide overseas buyers loans of between 5 million and 50 million to finance the purchase of capital goods or services from UK exporters. Loans can be made in sterling, US dollars, euro or Japanese Yen. UK Trade & Investment (UKTI) also offers services to businesses looking to export from the UK, including financial subsidies, export documentation, export training and market research. France Ubifrance, the French Agency for International Business Development, is in charge of promoting exports of all goods and services. SMEs can receive loans of up to 80,000 for developing export business from Oséo, the French agency for innovation whose mission is to promote innovation and growth of SMEs. Oséo provides guarantees and financing for SMEs in France with activities dedicated to exports as well as those that are prospecting foreign markets. It also provides export pre-financing to SMEs in France exporting capital goods or services, as well as loans for export. Oséo may also co-finance investments alongside banks. Oséo often works with Coface Group, a globally operating credit insurer that acts as France s Export Credit Agency. Coface manages guarantees for exports by French corporations and offers them solutions to protect them against the risk of financial default of their clients. Guarantees from Oséo generally complement those from Coface. Italy SACE is Italy s export credit and project finance agency. SACE provides a wide range of insurance and financial products and services, including insurance against non-payment risk for Italian enterprises that export goods and supply services. SACE also guarantees loans granted by the bank to foreign buyers and to Italian companies CHINA BRIEFING October 2013

11 Available Incentives for Exporting to China Germany In Germany, the Euler Hermes Deutschland AG and PricewaterhouseCoopers Aktiengesellschaft Wirtschaftsprüfungsgesellschaft manage the official export credit guarantee scheme on behalf of the Federal Government. These guarantees are widely known as Hermes Cover since Euler Hermes acts as leading partner in this consortium. Hermes Cover is an instrument for managing risks involved in export business (e.g., insolvency, unwillingness to pay, confiscation of goods) and it protects companies against bad debt losses. The application for an export guarantee should be made wherever possible before the export contract has been finally concluded. Australia Australia s Export Market Development Grants (EMDG) scheme is a key government financial assistance program for exporters and encourages small and medium-sized Australian businesses to develop export markets. The EMDG scheme reimburses up to 50% of eligible export promotion expenses above A$10,000, as well as provides up to seven grants to each eligible applicant. Businesses should have an income of not more than A$50 million in the grant year. To access the scheme for the first time, businesses need to have incurred at least A$20,000 over two years on eligible export expenses. First-time applicants are required to satisfy grant entry requirements, which include providing financial statements and some information that explains their business and product or service. New Zealand The New Zealand Export Credit Office (NZECO), New Zealand s official export credit agency, sells a range of government-backed trade credit insurances and financial guarantees. This allows exporters and their international buyers to gain access to credit, thus facilitating export sales. Ireland The Irish Exporters Association (IEA) assists Irish companies to maximise their export sales. It has developed a full range of services tailored to each business specific needs, both SMEs and MNCs. For SMEs, for example, IEA offers new members meeting to assist in developing export strategy and funded programs to assist with new export market entry strategies. Enterprise Ireland also provides various export assistance as it supports companies focused on growth through international sales. It has an online market research center that provides market and sectoral information in various countries. It also holds trade events and missions and offers various training programs. Using China s Double Tax Agreements (DTAs) & Free Trade Agreements (FTAs) Both China and Hong Kong are signatories to a wide array of DTAs and FTAs that can significantly impact positively upon the tax implications of trade with China, including the sale of goods. For example, China has a FTA with the Association of Southeast Asian Nations (ASEAN) which reduces import duties on thousands of products to zero if sourced from an ASEAN nation. Our ASEAN Briefing website at www. aseanbriefing.com lists all of the applicable DTA and FTA agreements that ASEAN and its member states hold with China. Dezan Shira & Associates also maintains a database of all agreements China has signed internationally, these can be accessed from the firm s website at For professional advise concerning the tax benefits these agreements can provide, please contact the practice at china@dezshira.com. The Asia Briefing Bookstore - Asia Trade Series Since 1999, China Briefing has been publishing business magazines and guides for foreign investors in China. Today, all of our China Briefing publications are housed on the main Asia Briefing portal ( which is home to hundreds of business publications about China, India, Vietnam and emerging Asia. These publications feature on-the-ground insights from the professionals at Dezan Shira & Associates ( a specialist foreign investment practice providing corporate establishment, business advisory, tax advisory and compliance, accounting, payroll, and financial review services to multinational corporations throughout China and Asia. China Briefing Magazine Trading with China India Briefing Magazine Trading with India China Briefing Magazine Sourcing from China Vietnam Briefing Magazine Manufacturing in Vietnam to Sell to ASEAN & China China Briefing Magazine E-Commerce in China Asia Briefing Magazine Expanding Your China Business to India & Vietnam October 2013 CHINA BRIEFING - 11

12 Helping Balance Foreign Trade In China 21 years of excellence Foreign Direct Investment Advice into China and the Rest of Emerging Asia Corporate Establishment Due Diligence Business Advisory Tax Planning Accounting Payroll Audit and Compliance Beijing: Dalian: Guangzhou: Hangzhou: Hong Kong: Ningbo: Qingdao: Shanghai: Shenzhen: Suzhou: Tianjin: Zhongshan: China Hong Kong India Vietnam Singapore