Cost Efficiency Of Warehouse Management-Reference To China Custom Laws And Regulations

When a company incorporated in China is planned to have export business, it can claim duty free and valued-added tax (hereafter called "VAT") free to import bonded material. On the other hand, if a company is importing material for domestic business, the Company must pay duty and non-refundable VAT upon the boarder of China boundary. After paying the duty and the non-refundable VAT, those imported material is classified as non-bonded material. According to current China custom regulation, these two types of material has to be physically separate located to ensure those bonded materials are used for export business and not used for production in China local market. This regulation requires full co-operation among the Company, its customers and its suppliers. In real world of which every enterprise is fighting with time and is asked to improve the operation in order to be efficient, this regulation is not realistic.The purpose of this thesis is to discuss the difficulty if a company in China has to be in line with this regulation at operational level. At the same time, it will also compare the similar regulation with Taiwan, Japan, Singapore.