We heard of several Chinese manufacturers that are opening a Vietnam factory, in order to serve their American customers better by avoiding Trump's tariffs. Sometimes that makes sense, and sometimes it doesn't... If one of your suppliers tell you about their ability to produce in Vietnam, what should you do? … [Read more...]
Shipping E-Cigarettes with Lithium Batteries by Air from China
By Fabien Gaussorgues With the sharp increase of shipments of electric & electronic devices working with a lithium battery and new rules that appeared recently when it comes to shipments, clients keep asking us about applicable regulations for shipping e-cigarettes. This guide covers the shipment of e-cigarettes, as an example, but it is mostly applicable to other small devices with lithium batteries (smart devices, IoT, Bluetooth speakers, and so forth). Note: on sofeast.com we … [Read more...]
How Does the VAT Rebate for Exports out of China work?
In most cases, importers don't need to worry about the way their supplier handles the VAT rebate. They are usually better off negotiating a price under the FOB incoterm and avoid worrying about the complex paperwork involved in getting a rebate on the VAT paid on components/materials. However, once they start looking deep in their supply chain, they can identify risks as well as opportunities for saving money. And they might notice that their supplier pockets a margin much higher than they … [Read more...]
Can Alibaba Really Avoid Counterfeit Goods?
I just read a good article in this week's Week In China on the topic of counterfeit goods. It starts by reminding us of the regular accusations of big brands against Alibaba. Last May, brands led by Michael Kors, Gucci and Tiffany resigned their International Anti-Counterfeiting Coalition memberships after the board proposed Alibaba for membership, forcing that body to back down. Alibaba's boss, Jack Ma, responded to this and tried to use it for a specific purpose. Ma says the criticism is … [Read more...]
The Risks of Paying Sourcing Contractors (Employees) in China
Dan Harris wrote a pretty good overview of the risks of paying an individual as a sourcing/QC employee in China. He relates a recent change he noticed. (On our side, we also heard that controls on incoming flows of money have gotten much tighter over the past 2 months.) China banks (owned by the Chinese government) are providing information to China’s tax authorities regarding account-holders who consistently receive money from foreign companies. China’s tax authorities are apparently going … [Read more...]
What Regulatory Standards Apply to Garments?
Note: all free coupons were used up. But we still got some coupons at 50% discount. If you import products from another country, you should be aware of the regulations that apply to those products. Chances are, your country's authorities will consider you as the manufacturer (since you have put that batch on the market) and will go after your company if they find some irregularities. Large companies know this well and have systems in place to ensure they are (mostly) covered. The problem is, … [Read more...]
What European Importers Need to Know about Compliance: Q&A With an Expert
Fredrik Gronkvist is a co-founder of Chinaimportal, a company that helps small businesses import from China through supplier identification & verification services. A part of Fredrik's offer is to help importers understand what regulations and standards they need to comply with. in this Q&A he is sharing his experience about the European Union's requirements. Q: Importers who buy products from China want to be “in compliance”. What does this involve? A 'Compliant product' adheres to … [Read more...]
China Trade Shows: Don’t Get Your New Product Designs Stolen
Dan Harris just published advice to exhibitors that showcase their own new product designs. In his words: It should go without saying that you should not reveal anything more at a trade fair than you would otherwise, and you should have an agreement in place (an NDA or an NNN) before revealing any trade secret. This is good advice, but not always sufficient. I think this is a case where non-legal strategies are far, far more effective. Many people walk trade shows with fake name cards. And, … [Read more...]
My China Factory Has Gone Bankrupt: How to Get my Deposit Back?
A client called me and asked my advice regarding an uncomfortable situation. One of his long-time suppliers, a manufacturer in Zhejiang, just announced they had gone bankrupt and had stopped all activity. My client has wired a 30% deposit for an order that is currently finished, packed, inspected, and accepted for shipment. But that order is not leaving the factory’s warehouse. The manufacturer’s contact person tells my client the situation is “difficult”. What does the situation look like, … [Read more...]
How to complain about counterfeit/fakes on Taobao
There has been a mounting concern about the role of e-commerce platforms in the distribution of fake products. For example, two years ago I wrote Does your China factory sell your products on Taobao.com?. And it seems like the situation is getting better for owners of intellectual property rights. Yesterday I attended an interesting European Chamber seminar that was chaired by Chris Bailey from Rouse, a global agency specializing in IP rights monitoring and protection. Mr. Bailey informed us … [Read more...]