Navigating China s Regulatory Maze

Transcription

1 Navigating China s Regulatory Maze March 2, 2015 TPM Los Angeles, California Presented by - Mac Sullivan NNR Global Logistics

2 Connecting your dreams.

3 Global Structure 92 companies, 130 locations with over 18,000 employees, boasting more than 100 years of carefully controlled organic expansion.

4 China Beijing Tianjin Tangshan Shenyang Dalian Qingdao Wuxi Shanghai Chengdu Wuhan Wai Gao Qiao Hangzhou Suzhou Chongqing Ningbo Guangzhou Xiamen Shenzhen Futian NNR Established 1984 Approx. 760 staff Air, Ocean and 3PL operations ISO 9001 Certified TAPA Certified CHINA HONG KONG TAIWAN

5 Understanding the Plan Shanghai as International Transportation Hub by 2020 Is the Pilot Free Trade Zone a good fit for me?

6 The Future Cross Border E-Commerce Many new types of industry moving into FTZ s in China. Better move fast

7 Expansion With Balance Do your homework, have strong partners who have connections with customs / regulatory / channel partner, and be flexible as change happens quickly

8 Global Logistics

9 How can we help you? Business Scope Material Imports Import Duty Trade (RMB) Export Tax Refund Cargo Storage Foreign Exchange Comparison of BLP/FTZ/EPZ BLP FTZ EPZ Multiple country consolidation, deconsolidation, reconsolidation & Int l transshipment, trading, warehousing & distribution Customs registration only, no tax, duty and license required Duty and tax on import to domestic Via commodity exchange market issuing VAT (RMB) invoices trade is allowed Tax refund applicable once domestic goods declared export & entered into BLP No time limit Cost is 50% higher than FTZ Both FX & RMB accounts, legal FX in & out Manufacturing, International trading, warehousing & distribution Customs registration only, no tax, duty and license required Duty and tax on import to domestic Via commodity exchange market issuing VAT (RMB) invoices trade is allowed Tax refund applicable until domestics goods actually exported No time limit Both FX & RMB accounts, legal FX in & out Export-oriented manufacturing Customs registration only, no tax, duty and license required Encourage on export only trade is not allowed Tax refund applicable once domestic goods entered into EPZ Only goods for processing allowed, no trading goods Both FX & RMB accounts, FX account only for receiving

10 How can we help you? Business Models Import Export VAT Refund Export VAT Refund & Handbook Import Transshipment Export VAT Refund & Import Business Module (Not Involved Manufacturing or Assembling ) BLP FTZ EPZ Entity (A) Entity (A) Entity (A) Oversea Supplier Oversea Customer Export, Gain VAT Refund Export, Gain VAT Refund Export, Gain VAT Refund Bonded Logistics Center Bonded Logistics Center Bonded Logistics Center Bonded Logistics Center Bonded Logistics Center Import by Handbook Import by Handbook Import by Handbook Entity (B) Entity (B) Entity (B) Duty/VAT

11 How can we help you? Use and final destinations Duty and VAT obligations (i) Bonded goods sold between enterprises within the FTZ Exempted from duty and VAT (ii) Bonded goods used exclusively in the manufacture of export products by enterprises within the FTZ Exempted from duty and VAT, if the bonded goods after processing areshipped out of China within one year. [3] (iii) Bonded goods delivered to enterprise outside the FTZ for exclusive use in the manufacture of export products Exempted from duty and VAT, if the bonded goods after processing are shipped out of China within one year. Security for duty and VAT shall be provided under securityaccount system. (iv) (v) Bonded materials, parts and components sold by an enterprise situated inside the FTZ to an enterprise situated outside the FTZ (elsewhere in the PRC) Finished goods, consisting of imported components, are sold by an enterprise situated inside the FTZ to an enterprise situated outside the FTZ (elsewhere in the PRC). It is considered to be import and subject to duty and VAT. It is subject to duty and VAT. If thefinished goods consist of both imported and locally purchased components, the customs shall levy duty and VAT on the amount of imported components only. [4] (vi) Bonded goods sold or returned to destinations in other country or regions (vii) Bonded goods stay within the PRC for a period exceeding 1 year. Exempted from duty and VAT Bonded goods can stay in FTZ and EPZ without time limit.