However, since the implementation, there are still many customers or banks engaged in foreign trade who do not know what is the market purchase trading mode? How to operate and how to choose?
Under the guidance of Guangdong Department of Commerce and organized by Guangdong Chamber of Commerce for Import and Export, HACOS explained “Foreign Trade Export, Foreign Exchange Collection and Settlement Method under the new situation” to over 1,000 foreign trade business owners and practitioners at the 2019 China foreign trade cross-border summit.
HACOS partner Leo vividly explained on the scene that everyone is very interested in. Participants also consulted and raised questions coming to our booth. Below we will make a brief review and supplement on the lectures yesterday.
Common ways of export collection
At present, the common methods of export collection are divided into two types: “Need to apply for export tax rebate” and “Do not need to apply for export tax rebate”.
Need to apply for export tax rebate:
Entrusted agent export and collection
Do not apply for export tax rebate:
Buying export license for custom
Market procurement trade export
Hong Kong account collection
The banks currently available for opening Hong Kong company accounts are:
Hang Seng Bank
Standard Chartered Bank
Overseas Chinese Wing Hang Bank
Citibank and etc.
With the introduction of regulatory upgrades, such as the Financial Action Task Force on Money Laundering (FATF) and SCR policies, it is becoming more and more difficult to open a Hong Kong corporate account.
目前随着监管升级，洗钱金融行动特别工作组（Financial Action Task Force on Money Laundering， 简称FATF ）和SCR等政策的出台，开设香港公司账户的难度越来越大。
With 10 years of experience in offshore accounts in Hong Kong, HACOS has deep cooperation with many banks in Hong Kong, so we guarantee 100% account opening success!
New trade methods –
Market Purchase Trade
The mode of market purchase mode (the code of customs supervision mode is 1039) refers to the mode of trade in which qualified operators purchase goods with a value of less than usd 150,000 (including) in the market agglomeration zone recognized by the national competent department of commerce and go through the customs formalities for export commodities at designated ports.
1. Tax Exemption
No VAT invoices.
2. Expansion of Customs Clearance Limit
The limit was raised to $150,000 per batch.
3. Classified clearance
Export goods are declared and identified according to major categories.
4. Quick customs audit
Export customs clearance is convenient and quick.
Due to the legalization and convenience, it is an excellent way for professional market operators and small and medium-sized buyers to directly carry out export trade.
Entrusted HACOS to export and declare
HACOS declares according to market purchase trade mode
The principal provides the contract and the formal invoice
Remittance of foreign exchange by the public account of HACOS
Settlement of exchange into RMB
Transfer to a specified bank account provided
HACOS is one of the first cooperates in Guangzhou to carry out Market Purchase Trading business.
Self-owned customs declaration company, agent declaration qualification, fast customs clearance
Have non-vessel carrier qualification, one-stop service of export, customs declaration, foreign exchange collection, freight forwarding.
Comparison and selection of foreign exchange methods
Finally, Leo summed up the strengths and weaknesses of the following major collection methods, including:
Self-operated export / general trade (0110)
Offshore account collection
Market Purchase Trade (1039)
If you can get a VAT invoice
If you have a stable and secure settlement channel
offshore account collection
If you do not have a Hong Kong account, there is no stable and secure channel for settlement
Market Purchase Trade
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