Republished from Amber Road’s Global Trade Talk Blog
The total costs to conduct business and supply chain operations in China for multi-national companies are greatly influenced by a company’s capabilities to manage its General Trade, Processing Trade, and Bonded Zone operations in China.
Processing Trade, for example, affects companies that import materials and components into China and use those materials and components to manufacture finished goods for export to foreign markets. When properly administered, Processing Trade transactions are exempt from import duties and value-added-taxes on export. Utilizing the Processing Trade program can reduce product costs and increase working capital efficiency by 25 percent or more.
However, many companies today lack the compliance infrastructure, tools and technology needed to effectively lower the total costs for their trade operations in China. One way to address these costs and complexities is by utilizing a China Trade Management (CTM) solution. CTM automates import and export processes for all China operations, allowing companies to meet China’s compliance requirements while reducing costs, enhancing supply chain efficiencies, and ensuring uninterrupted trade operations via timely regulatory updates.
Download Aberdeen Group’s report, China Trade Operations: Trends and Advancements, to learn how you can how you can improve end-to-end efficiencies with a CTM solution.