Q: I had understood that there was a structural problem on the Chinese side, that to export you needed a special license which is not easy/inexpensive to get, hence the need to use a trading company. Is that not the case?
A: If the manufacturer is newly opened or small scale, they may not have made the investment in time and capital to get their own export license. Also, during the first years of a new company, they are generally classed as “small scale tax payer” and only once they have a track record of paying tax and exporting well, does the government move them to “normal tax payer” status. Once at normal tax payer status, they can get the full VAT rebate at export. Since the trading company may be mature and at normal tax payer status, it sometimes saves money in the beginning for mfg to outsource the export if the mfg is small or recently opened.
A hand full of sensitive industries are highly regulated and a trading company may be required. But those industries are few and far between.
If you have any more questions about Amazon business, please do get in touch so we can assist you in getting the right information.
Leeline sourcing company is involved in different sourcing business that will help your company’s grow, and make your international business better. No matter how big or small your orders are, we will help you source quality and affordable products, and we will ship them directly to you.
• Product Sourcing: With over 10 years experience in this field, our team will keep your mind at peace, and you will be sure that the products are supplied through a responsible supply chain.
• Amazon FBA sourcing service: We offer you Amazon seller services, from product procurement, to brand labeling, quality inspection, packaging services, product photographing and also shipping of products to FBA warehouses. Just tell us what you need, and we will help ship your products to your warehouse at lightning speed.
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