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KLBANK Suspended The Exchange Of Euro, You Must Pay In RMB!

With the resumption of US Sanctions against Iran, many Kunlun Bank (KLBANK) agents sent a message saying in early August: “Kunlun Bank suspended the Euro settlement since August 1st.”

For Example

KLBANK Suspended The Exchange Of Euro, You Must Pay In RMB!

Recently, there is a friend who has an Iranian order of more than 40,000 Euros. Both the PI of RMB and Euro have been made to the Client, and he informed the Client to pay in RMB. The Client has no objection!

Then the Client applied for the Foreign Exchange Quota and arranged the payment. As a result, the amount approved for this order was Euro, and the Client did not inform the Exporter to pay the Euro, the Exporter pay the amount directly after receiving!

However

KLBANK Suspended The Exchange Of Euro, You Must Pay In RMB!

When the Exporter submitted all the materials to KLBANK, the bank staff said, the Euro can not be settled now!

The options are

KLBANK Suspended The Exchange Of Euro, You Must Pay In RMB!

Return the money,

ask the Client to send RMB again.

However, Iranian Client have already used up the foreign exchange quota applied for this order, new orders need to be applied, and the procedures in the process are very troublesome.

Exchange Settlement in Original Currency, KLBANK tansfers the Euro to other Banks that have accounts with the company name.

But KLBANK was placed on the U.S. Sanctions list in 2012, and no bank now dares to take its money. And it is illegal to transfer Foreign Currency like this in China!

Unfortunately

KLBANK Suspended The Exchange Of Euro, You Must Pay In RMB!

If the Declaration is in Euro and the Receipt is in RMB, the tax cannot be applied for tax refund.

This is really a shame!

Therefore, we remind here to all Iranian Client and freight forwarders, it must use the RMB to settle through the KLBANK or KLBANK agents, no Euro! Please pay close attention to our wechat to learn more about logistics!

China to Launch New Anti-tax Avoidance & Strict Punishment!

Those who have been or is about to be involved in illegal activities, such as account opening for illegal money, money laundering or tax evasion in Tax Haven, will soon get into trouble as the CRS will be put into effect in China from Sep. and new anti-tax avoidance clauses were added into personal income tax last week, which may hit the act of off-shore tax evasion hard!

China to Launch New Anti-tax Avoidance & Strict Punishment!

Image | Google

The First CRS Information

Exchange in China

You have probably heart about relevant introduction about CRS and we have introduced it before.

China to Launch New Anti-tax Avoidance & Strict Punishment!

It’s worth noting that information exchange will be based on the identity of tax resident instead of nationality when CRS takes effect in China.

Example

Mr. B is a French and has been living and working in China for a long time. In this case, he is considered a Chinese tax resident and his overseas accounts have to be exchanged to China tax bureau rather than France tax bureau.

Once a large overseas amount is found, relevant person may pay a large amount of overdue personal tax bill and corporate income tax of 25% of overseas company.

Anti-tax Avoidance Clauses

Added Into Personal Income Tax

For the First Time

Recently, revised Personal Income Tax Law was ratified by NPC Standing Committee and is about to be put into effect from January 1 of next year, and anti-tax avoidance clauses are added for the first time.

Tax authority has the right to adjust tax with reasonable methods when one of the following situations takes place:

Business between individuals and related parties violates the Arm’s Length Principle and has no proper reasons
Enterprises controlled by individual residents or by individual residents and resident enterprises jointly in countries (areas) with relative low actual tax burden has no necessary and reasonable operation, profit that belongs to individual residents will not be distributed or will be reduced.
Individuals start business with unreasonable purposes to gain improper tax benefit.

Tax authority makes adjustment to tax based on previous clauses, impose overdue tax and interest.

Example

Mr. C invests through overseas BVI(Tax Haven Virgin Islands) shell company. Under current tax law, BVI company can avoid individual A paying tax if the profit is not distributed to individual shareholders; however, in the case of anti-tax avoidance clauses, China tax authority can impose tax on BVI company with no business in the name of controlled relevant company.

Individuals Added Into

Anti-tax Avoidance System

For a very long time, China income tax has been focusing on enterprises and related anti-tax avoidance measures have been aiming at legal representatives. But this anti-tax avoidance means relevant individuals’ tax avoidance behaviors are also added into anti-tax avoidance system.

It was reported by overseas media that a month ago, commercial banks in New Zealand and Australia have blocked thousands of accounts and investigated if the account holders are foreign taxpayers or not, and most of them turned out to be Chinese residents.

Image | nzherald.co.nz

China to Launch New Anti-tax Avoidance & Strict Punishment!

For those who want to buy foreign passports or establish off-shore companies to evade tax, hide illegal fortune or even participate in money laundering, CRS and new personal income tax put an end on their good days.

Ship Urgency & Freight Rise, Please Get Ready!

Under the special circumstances now, we can see that the cargo is blocked, the ship is in emergency, the freight is rising rapidly, please be ready at any time!!!

Ship Urgency

ESL

According to the notice of ESL, Sep 25 will be their last Iranian vessel, and then they will stop booking to Iran, it is expected to stop for a period of time.

They will consider whether to do the transit depending on the Sanctions. And then the freight rate of every Tuesday in September (Sep 11, Sep 18 & Sep 25) will be rise sharply, the cabin will also be tighter. The merchants and freight forwarders who want to ship the goods must be prepared in advance!

APL

Intra-Asia Service Update – Asia Subcontinent Void Sailing

Following our last advisory, please be informed that APL is implementing an additional void sailing on the Asia Subcontinent Express 3 (AS3) service. Please find below an overview:

For enquiries, please contact your local APL representative. We thank you for your business and continued support.

Freight Rise

CMA CGM

1. GRR – From Asia to West Africa

In a continued effort to provide our customers with reliable and efficient service, CMA CGM informs its customers of the following General Rate Restoration :

Effective September 17th, 2018 (B/L date):

From China, Taiwan

To West Africa

Quantum: USD 500/20′ – USD 1,000/40′

All cargo dry, reefer, OOG and breakbulk

MSK

2. Congestion Fee Destination (CFD) – Scope: World to Conakry, GN

Dear customer,

In order to keep providing you with our global services, Maersk Line is Expiry in Congestion Fee Destination (CFD) for ALL Cargo in World to Conakry, GN, effective 01st September 2018.

The revised tariff amount is detailed as follow:

For your reference, we have also included the levels and rate structure for some sample corridors to/from Europe valid from today until further notice. These may be subject to future change, however we will make sure to notify you accordingly.

Slide it!

The above rates are also subject to other applicable surcharges, including local charges and contingency charges.
The above surcharge acronyms mean: OF (Ocean Freight), OHC (Origin Terminal Handling Charge), DHC (Destination Terminal Handling Charge), ERS (Emergency Risk Surcharge), SBF (Standard Bunker Adjustment Factor), LSS (Low Sulphur Surcharge) and PSS (Peak Season Surcharge).
These rates are unaffected by, and do not affect, any tariff notified, published or filed in accordance with local regulatory requirements.
For trades subject to the US Shipping Act or the China Maritime Regulations, quotations or surcharges that vary from the Maersk Line tariff shall not be binding on Maersk Line unless included in a service contract or service contract amendment that has been filed with the Federal Maritime Commission (FMC) or the Shanghai Shipping Exchange, as applicable.

If you have any questions, please feel free to reach out to our local representatives on maerskline.com.

Sincerely,

Maersk Line

3. Maersk ups rate from Far East to US and Canada on September 15

MAERSK Line has announced an increase in all contract rates expiring September 14 on cargo from the Far East to the United States and Canada.

Thus, from the Far East to the Pacific Northwest of Canada and the US, there will be an increase of US$480 per TEU, $600 per FEU, $600 per FEU high cube and $800 per 45-footer containing dry cargo from September 15.

And from the Far East to the Pacific east coast of Canada and the US there will be an increase of US$480 per TEU, $600 per FEU, $600 per FEU high cube and $800 per 45-footer containing dry cargo from September 15.

APL

1. Asia-Gulf Market – General Rate Increase (GRI) for China to Gulf Destinations

Please be informed that effective 15 September 2018, APL will apply the General Rate Increase (GRI) within the following scope:

Origin: All China origins

Destination: All Gulf Destinations

GRI: USD 200 per TEU

Please contact your local APL representative if you need any assistance. We thank you for your business and continued support.

2. Asia-Red Sea Market – General Rate Increase (GRI) for China to Red Sea

Please be informed that effective 15 September 2018, APL will apply the General Rate Increase (GRI) within the following scope:

Origin: All China origins

Destination: All Red Sea Destinations (Saudi Arabia (Jeddah), Yemen, Egypt, Sudan, Jordan, and Djibouti)

GRI: USD 200 per TEU

Please contact your local APL representative if you need any assistance. We thank you for your business and continued support.

Hapag-Lloyd

1. Monthly Ocean Charges Newsletter from/to Middle East, ISC and Africa

The customer letter contains monthly revised ocean charges applicable from/to Middle East, ISC and Africa effective October 1, 2018.

Currency Adjustment Factor (CAF)

Bunker Charges (BUC) or Bunker Adjustment Factor (BAF) or Bunker Fuel Factor (BFF)

Low Sulphur Charges (LSF)

Emergency Bunker Surcharge (EBS)

2. Price Announcement – Far East Westbound East Asia (excluding Japan) to North Europe and Mediterranean

In a continued effort to provide you with a high level of service and uninterrupted liner services and equipment supply, Hapag-Lloyd announces an increased Ocean Tariff rate for all non-DG cargoes for 20’ and 40’ General Purpose (incl. High Cube Container) on the westbound trade from East Asia (excluding Japan) to North Europe and Mediterranean.

Valid for sailings commencing on September 15, 2018 onwards and until further notice, Hapag-Lloyd’s Ocean Tariff rate from East Asia (excluding Japan) will be as follows:

Strengthen Your IP Protection! What Are You Waiting For?

Government leaders and industry experts from more than 30 countries gathered at the China Patent Annual Conference in Beijing on Aug 30 to share plans for the future of intellectual property (IP) development.

Intellectual Property (IP) in China

Ten years removed from China’s launch of the National Intellectual Property Strategy Outline, experts say IP protection is more important than ever.

Most results over the past decade have shown progress. The number of international applications filed under China’s Patent Cooperation Treaty continues to grow, ranking second worldwide for 2017.

“China has a reason to have the largest patent office, largest trade market office, largest design office in the world, with the extraordinary support from the state leadership,” said Francis Gurry, director general of the World Intellectual Property Organization.

Officials at the conference said the nation has made great strides in enhancing IP protection.

Some expressed hopeful expectations over the future of China’ s IP protection

“When we think about it on a deeper level, we would really hope for stronger protection of trade secrets to enforce our rights. We would also like to see higher compensations in patent entrenchment proceedings,” said Udo Meyer, senior vice-president of BASF AG.

Commissioner Shen Changyu told the meeting that China will unwaveringly play the role of defender, participant and active builder of international rules on intellectual property rights. He added that the nation will protect legitimate IP rights of domestic and foreign enterprises according to law, thus helping China to further open up.

Our HACOS can help you!!!

Apply for a Chinese Trademark

HACOS would teach you how to apply for a Chinese Trademark, which could smooth your business way in China.

You need to know: Application Procedure

Trademark Registration Search

Check whether the application trademark is duplicate or similar with existed ones.

Confirm the pattern of trademark
Submi the registration documents of trademark

You should provide these required documents

Name of applicant

If the applicant is an enterprise, then the copy of Business License which has been signed by the company owner , and English digital design drawing of the trademark should be provided.

Signature of the applicant or company chop.
Select 10 Categories.
Registration Adress

In addition, Hacos can also provide the service of International trademark registration! Such as Foreign Trademark registration, Madrid Trademark registration, Hongkong, Macao & Taiwan Trademark registration.

Apply for a patent

Hacos can help you apply for a patent to protect intangible assets of your enterprise!

Patent for Invention
Patent for Industrial Design
Patent for Utility Models

Nowadays, more and more foreign capital enterprises start to register trademark and apply for a patent in China, what are still you waiting for?