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A Lesson from a Loss of 3 Million Dollars!!
October 23rd, 2008, China and Singapore signed the China-Singapore Free Trade Agreement and the both sides promised to reduce or cancel the tariff of some import/export goods for promotion of mutual benefits. The agreement has been implemented since January 1st, 2009.
It is important but always hard to know well about the changes of other countries' policies and regulations during the international trade. Sometimes these changes might impact your industry and business; sometimes they can lead a miss of great opportunities or even a big loss.
It is important but always hard to know well about the changes of other countries' policies and regulations during the international trade. Sometimes these changes might impact your industry and business; sometimes they can lead a miss of great opportunities or even a big loss.
A world famous dairy products company, so called company A, is exporting Milk powder from Singapore to China and makes huge profit every year.
But now, according to "The People's Republic of China government and the Government of the Republic of Singapore Free Trade Agreement", signed by two governments at October of 2008, China Customs Changed the import tariff rate for exported product from Signore to China from 15% to 8%.
Upon the policies of China Customs, Company A can apply certificate of origin in Singapore for its milk product and submit this file to China Customs. Then Company A will be in compliance with the new tariff rate at 8%.
But there is very limited channel for Company A to collect this information. They remain the way as before to handle the Customs clearance with China Customs and keep using the original tariff rate, 15%.
Just half year, Company A has paid additional 3 million US Dollars as import tariff to China Customs which actually, should be the profit.
But now, according to "The People's Republic of China government and the Government of the Republic of Singapore Free Trade Agreement", signed by two governments at October of 2008, China Customs Changed the import tariff rate for exported product from Signore to China from 15% to 8%.
Upon the policies of China Customs, Company A can apply certificate of origin in Singapore for its milk product and submit this file to China Customs. Then Company A will be in compliance with the new tariff rate at 8%.
But there is very limited channel for Company A to collect this information. They remain the way as before to handle the Customs clearance with China Customs and keep using the original tariff rate, 15%.
Just half year, Company A has paid additional 3 million US Dollars as import tariff to China Customs which actually, should be the profit.
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Trade alert is a 24-hour mail alert service. When any changes occurred in your industry, we will send you the real time information in English.
Our services include: Trade policy, tariff changes, customs procedures, foreign exchange, and market situation etc.
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present. We have 100 international trade analysts to monitor China's trade policy, tariff changes, customs procedures, foreign exchange and market situation in 24 hours, for the purpose of benefiting you and reminding you to evade the economic loss resulted from the change of China's policy and regulation.
Trade alert is a 24-hour mail alert service. When any changes occurred in your industry, we will send you the real time information in English.
Our services include: Trade policy, tariff changes, customs procedures, foreign exchange, and market situation etc.
How to make a subscription?
You can make a subscription only by leaving your Email address and select your industry as well as the information you concerned.
We can help you save cost and evade risk?
present. We have 100 international trade analysts to monitor China's trade policy, tariff changes, customs procedures, foreign exchange and market situation in 24 hours, for the purpose of benefiting you and reminding you to evade the economic loss resulted from the change of China's policy and regulation.
