CTS Consulting Co.

Thaltej, Ahmedabad, Gujarat

Arbitration is the next preferred method where negotiation fails. Unless the parties can agree on arbitration after the dispute has arisen, the underlying contract or separate agreement must indicate that disputes will be resolved through arbitration. The Arbitration clause shall indicate the process of appointment of arbitrator, place of arbitration and number of arbitrators. In many instances, international arbitration is an effective though perhaps underutilised dispute resolution mechanism Especially in China and India. Arbitration also offers an advantage over litigation because of the finality of the rulings. Court rulings are subject to appeal, which means litigation may continue for a lengthy period of time.
Agreements to arbitrate usually specify a choice of arbitration body, which may be located in country of contract party or other country.

In China there are two Chinese government-sponsored arbitration bodies for handling cases involving at least one foreign party :

• China International Economic and Trade Arbitration Commission (CIETAC) and
• China Maritime Arbitration Commission (CMAC).

In India there are major three arbitration institute which provides alternate dispute resolution :

• Indian Council of Arbitration (ICA)
• Indian Institute of Arbitration & Mediation (IIAM)
• The International Centre for Alternative Dispute Resolution (ICADR)

In Hong Kong, there are three major arbitration institutions :

• The Hong Kong International Arbitration Centre (or HKIAC)
• Hong Kong Mediation and Arbitration Centre (HKMAAC)
• Hong Kong Institute of Arbitrators (HKIArb)

Companies should clearly mention in contract  an alternative to any country base arbitration if they choose international body like Singapore Arbitration Centre.

Accounting & Bookkeeping standards in China differ from one country to another, even though most countries GAAP have been modified to be in compliance or similar to International Financial Reporting Standards (IFRS).  Chinese accounting standards are the accounting rules used in mainland China. As of February 2010, the Chinese accounting standard systems is composed of Basic Standard, 38 specific standards and application guidance.
Every accounting and bookkeeping GAAP has its own standards and sometimes allows for more than one way to report. For example, there are different rules for impairment of assets, inventory costs & reversal, capitalization of development costs, depreciation expenses, interest & dividend expenses and asset valuation. Those different methods can have an impact on your business ratios, profitability and tax burden.

Our Accounting Services

• Setting Up of Appropriate Accounting Systems
• Maintenance of Accounting Books and Records
• Preparation of Monthly, Periodic and Annual Financial Reports
• Management Accounting

Our Tax Services

• Advice on Corporate Tax Planning
• Tax Returns
• Tax Compliance Services Like Preparation of Profits / Salaries Tax Return
• Design Tax Strategies to Minimize Profits Tax and Enhance Tax Efficiency
• Advice on Tax Effects of Inter-company Transactions / Offshore Claims
• Personal Tax Planning

Read more about Taxation in China

Accounting & Taxation in Hong KongAccountancy in Hong Kong is regulated by the HKICPA under the Professional Accountants Ordinance (Chapter 50, Laws of Hong Kong). The auditing industry for limited companies is regulated under the Companies Ordinance (Chapter 32, Laws of Hong Kong), and other Ordinances such as the Securities and Futures Ordinance, the Listing Rules, etc.
Accounting standards in Hong Kong are known as Hong Kong Financial Reporting Standards (HKFRS) and set out recognition, measurement, presentation and disclosure requirements dealing with transactions and events that are important in general purpose financial statements. It is the application of HKFRS that gives us a “true and fair view” of financial statements. The HKICPA has also issued a Financial Reporting Standard (SME-FRS) for certain qualifying SMEs. Since 30 April 2010, the Institute issued the Hong Kong Financial Reporting Standard for Private Entities (HKFRS for Private Entities) for Hong Kong companies that do not have public accountability. The HKFRS for Private Entities will eliminate some accounting treatments permitted under full HKFRSs, remove topics and disclosure requirements that are not generally relevant to private entities, and simplify requirements for recognition and measurement.

Tax Structure in Hong Kong
Taxes collected in Hong Kong can be generally classified as :

• Direct tax – including Salaries Tax, Property Tax and Profits Tax; the guiding statue is Inland Revenue Ordinance (Cap 112)

• Indirect tax – including Stamps Duty and others.
  • Income Tax: Salary Tax and Profit Tax
  • Property Tax (levied on the income arising in letting of immovable property in Hong Kong)
  • Stamp Duty (collected upon existence of certain transactions in Hong Kong)

Our Accounting Services

• Setting Up of Appropriate Accounting Systems
• Maintenance of Accounting Books and Records
• Preparation of Monthly, Periodic and Annual Financial Reports
• Management Accounting

Our Tax Services

• Advice on Corporate Tax Planning
• Tax Returns
• Tax Compliance Services Like Preparation of Profits / Salaries Tax Return
• Design Tax Strategies to Minimize Profits Tax and Enhance Tax Efficiency
• Advice on Tax Effects of Inter-company Transactions / Offshore Claims
• Personal Tax Planning

Disputes and litigation are a part of modern life.  In today’s environment, these disputes or potential disputes often involve complex financial, economic and business issues.
Whether in litigation or other dispute resolution means, clients and their counsel require the rapid mining, modelling and analysis of data in order to make case-critical decisions.  We provide quantitative analytic solutions in instances where facts are disputed and answers are buried in voluminous, complex collections of transactional data.
At China Trade Solution we take a creative approach to litigation and arbitration support, finding thoughtful solutions that are time-sensitive and tailored to our clients’ legal strategy. We partner with outside counsel and in-house teams to collect the information needed to get results, whether it’s evidence to support a legal position or for leverage against opponents.

Our expert lawyers can assist in a wide range of areas :

• Claims relating to M&A transactions
• Investment disputes

• Claim against manufacturer or supplier
• International Arbitration
• Professional negligence claims
• Breach of contract, breach of warranty
• Construction and capital project disputes

We at China Trade Solution, follow three different approaches to solve any dispute in the interest of clients to save time and cost.

• Negotiation
• Arbitration
• Filling Lawsuit  

NegotiationNegotiation is first and most cost effective means of dispute resolution. In fact, the majority of commercial contracts have a standard clause stipulating that negotiation should be pursued before other dispute settlement mechanisms are used. This is also the expectation within other business culture more generally and failure to adequately follow this may be interpreted as a lack of courtesy or goodwill, or a lack of cultural sensitivity.
Breach of contract generally results in termination of the contract and damages for any losses incurred. In China however, a greater emphasis is placed on preserving business relationships or using personal connections to assist in resolving disputes. When a foreign firm experiences difficulty in directly negotiating a solution to a dispute with its counter party, companies sometimes seek assistance from government officials who can encourage the counter party to honor the terms of the contract. However, negotiations do not always lead to resolution.

What we do

• We meet your counter party and put all our efforts to honor the terms of the contract
• We negotiate between you and your counter party to reach at some mutually accepted level of resolution and follow up to ensure that party performs the obligation in stipulated time.

Once product is ready to ship, we arrange the fastest, reliable, reasonable and professional logistic company to ship the cargo by Sea or Air as per your requirements and depending on nature of product.

We inspect cargo at two levels:

• Empty Cargo Inspection
  • To Check that container is clean and safe for loading
  • To check that gates, side wall & roof are perfect and not broken any where

• Loading Supervision at loading port
  • To check the quantity of the products being loaded
  • To check the condition of the container after loading
  • To check the secure seal after loading to ensure that right products would be delivered

We take care of custom clearance and documents required.

Utilizing shipping technology, we select and suggest the best cost-effective shipping method as well as service provider for you, or you can choose it by yourself. For your convenience, you would have 24/7 online access to track your cargo once BL is issued.

A final step to resolve a commercial dispute is through litigation in courts. In China, foreign individuals and companies have the same ability to bring action in court as Chinese citizens and companies. There are three levels of courts in China. Every major city has basic courts and intermediate courts. Supervising these courts are the provincial high courts.
In Hong Kong Civil proceedings can be instituted by :

• The Government against individuals (including companies); or
• Individuals against the Government; or
• Individuals against other individuals.

The standard of proof is based on the balance of probabilities. The main branches of civil law include contract, tort, property, administrative, family and revenue law.
Our lawyers have earned international acclaim for providing cutting-edge legal solutions to many foreign companies doing business in or with China & Hong Kong. Our vast experience handling China-Hong Kong specific entity formation, contracts, intellectual property matters, and dispute resolution gives our clients the security of knowing they have a truly seasoned legal team behind them.

Tips to avoid disputes :

• Have clear contract terms. Specify exact terms of payment and performance standards. Set timelines. Include specific dispute resolution clauses, including details on the procedure and maintenance of operations during a pending dispute. Pay careful attention to details, such as initialising pages of contracts and signing properly. Make sure the Chinese version of the contract is consistent with the English version. Do not attempt to enter into an agreement without sound legal advice.
• Make certain your project is economically viable by its own terms. Profitability of a project or the sale of goods and services should be based on sound economic criteria.
• Make sure you know your buyer/seller. Take due diligence report from consulting firm. Choose your partner carefully and only after a careful examination of experience and dependability. Check the reliability of the data your partner or customer provides from independent sources.
• Make sure you get paid. A contract with an insolvent partner or customer is worthless. Pay careful attention to how you get paid, when you get paid and in which currency.
• Search for problems & its solution before they materialize. In addition to creating pro forma balance sheets, spend some time at the beginning of a project to examine what you will do if things go wrong. Try to anticipate possible problem areas. If you can’t find any, you are not looking hard enough. Create a strategy to deal with potential problems with the help of your consulting firm.
• Do a thorough risk analysis. Be realistic about how much risk you are willing to accept in your business venture. Make sure you use reliable sources for this assessment. Use more than news media sources or your immediate partners to evaluate the risk.
• Limit your exposure. Set milestones for a particular transaction. Always start with small value order as trial.

Our qualified staff will visit the factory to assure the order is on the production schedule and maintain timely control of orders. We do following inspection to meet the quality requirements of clients :

• Pre Production inspection, before we place orders with the suppliers, our staff will check factories standards, their certificates and make sure that they can meet your requirement and quality. We will send you complete report of the process after very detail evaluation.
• During Production Inspection, we would also check the goods and the stage of production regarding the time and quality. We make sure there is no delay in time and quality during this phase and will keep you updating about the order status.
• Final Production Inspection, after the goods are ready to pack. Once we get the goods in our ware house, pack the goods as per your requirement with assurance that logo, color, size, quantity etc are as per order.

Risk is a fact of business life, more so of international business. Importing can be an effective way of finding low-cost supplies, reducing your costs and making your business more competitive. It might even allow you to branch out into a whole new product line, selling something that isn’t generally available in India. Importing of products at low cost and selling at higher price in domestic country is well known and profit making trading business. But at the same time, importing is more complex than buying from a local supplier. And when things go wrong, sorting them out can be more difficult and expensive.

• Importing is particularly cash flow intensive for two key reasons – economies of scale make it more efficient to place large orders, and long delivery times mean working capital can be tied up for many months.
• The distance between importing country and country of supplier is much greater than when importer sources locally. This applies to geographical distance, but equally to cultural and language differences. This can make it more difficult to deal with quality control, or to return faulty goods.

• Import can be proved extremely complex, confusing, costly and loss making if you are not vigilant importer. Expected gains can often be erased by long transit times, rising or fluctuating delivery costs, unexpected delays and fraud by supplier.

Risk is part of business and it cannot be avoided but it can be mitigated or reduced to some extent. Due to our expertise and network we are able to provide services to traders and manufacturers in importing quality products at least risk with best price. Our service starts from sourcing of product to till the final delivery of goods at your location.

Sourcing of productProduct Sourcing simply means “Finding products to sell through your business.” This refers to importing products at a wholesale price and selling them in domestic market for a profit. Sourcing product from right place is most important to reap the benefits in domestic market. There are hundred options for a particular product to be imported in respect of color, size, length, grade, country etc.  We will help your company find sources to source your product from Asian country. We can provide numerous sourcing options for your product. We help you to source the product that meets your requirements. In addition before we start sourcing the product we provide our valuable views on market conditions, related duty and risk associated with product you want to import. This will save your money and time to focus on other profit making product.

How we source the product for you :

• Client provides us the details of product to be imported
• We give our first report on marketability of product in importing country if the importer is importing first time
• We take price and specification of product to be imported from at least 10 manufacturers/suppliers that help us to decide the geographical location, market price and quality of product to be imported
• Based on various industry reports and country’s regulation we finally select the supplier, method, location and quality & quantity of product to be imported and share the final source with client.

In a cross border transactions, learning more about your trading partner is a critical part of business decisions. In global trade there is little room for error in choosing a trustworthy supplier or relying on a credible buyer.  Some of the common frauds in import business are :

• No response from supplier after opening of Letter of Credit.
• No response from supplier after payment of initial deposit as per contract.
• Fake Bill of Lading is submitted by supplier along with other shipping documents and payment is made as per contract either LC terms or TT.
• Product delivered is totally different from product ordered and payment of LC (at sight) is released by bank based on fake Bill of Lading. Sometime supplier ships product is either banned or on which Anti dumping duty is applicable in importing country.
• Delivered product is different from approved sample product and it does not match with your requirement in terms of color, chemical composition, size, length, taste etc

To relive yourself from the above problems and be sure that you paid for what you intended to buy, we at China Trade Solution helps our clients to get the right product at their destination.
Our Payment term depends on product, quantity and business policy of manufacturer. We normally accept Telegraph Transfer payment, Western Union Money Transfer for order value below our specified limit. In case of large value order we accept Letter of Credit at Sight issued by prime bank in issuing country.

• We take order only after written approval from the client
• Payment terms are mutually decided before sourcing product
• Client will make payment to CTS authorized person/company intimated by CTS in writing

Business Project ReportThe process of establishing a new business is preceded by the resolution to select entrepreneurship as an occupation. This calls for recognizing lucrative business ideas upon a meticulous evaluation of the entrepreneurial prospects. Creation of business ideas is not sufficient, they must be tested on techno-fiscal, economic and authorized viewpoints.
A project report for new business conducts a profound road map for effectual business venture. It discusses whether the business requires finance or not, the challenging risks, several problems en route, etc. Hence it becomes vital for every new business to prepare a project report, to acquaint them on forewarning issues.
We provide sector specific project report for China, Hong Kong and India.
Our project report contains all the relevant details as under.

• Background of the business

• Customer’s profile

• Long and short term Corporate Objectives
  • To perform a viability assessment of the proposed new business ideas in   terms of marketability, technical feasibility, financing and authorities
  • To be able to prepare a relevant business plan
  • To recognize fundamental startup issues

• Market Analysis
  • Brief discussion on the type of market, chief influencers, players, etc
  • Market description
  • Reasons for starting business in a particular market
  • Target clients
  • Advantages of the services offered by the new business
  • Market consumption patterns
  • Past and existing supply location
  • Production prospects and limitations
  • Exports and Imports
  • Price structure
  • Flexibility of demand
  • Client behavior, purposes, intentions, impetus, approaches, inclinations and needs
  • Supply network and marketing rules formulated by the government
  • Government and technical limitations imposed on the promotion of the product

• Financial Assessment
  • Investment expenditure and value of the entire project
  • Methods of investment
  • Anticipated productivity
  • Money flows of the project report
  • Investment value evaluated in context of different points of merit
  • Estimated financial ranking

• Marketing Assessment
  • Product
  • Price
  • Place
  • Promotion

• Operational Plan
  • Business models
  • Production of goods and services

• Financial Plan
• Management Structure
• Business structure (Ownership, staff, etc)

• SWOT Analysis
  • Significant Success aspects depending on Strengths, Weaknesses, Opportunities and Threats to be faced by the firm in futur.

• Attachments
  • Break-Even Assessment
  • Profit and Loss Synopsis
  • Fund Flow Summary

Arbitration is the next preferred method where negotiation fails. Unless the parties can agree on arbitration after the dispute has arisen, the underlying contract or separate agreement must indicate that disputes will be resolved through arbitration. The Arbitration clause shall indicate the process of appointment of arbitrator, place of arbitration and number of arbitrators. In many instances, international arbitration is an effective though perhaps underutilised dispute resolution mechanism Especially in China and India. Arbitration also offers an advantage over litigation because of the finality of the rulings. Court rulings are subject to appeal, which means litigation may continue for a lengthy period of time.
Agreements to arbitrate usually specify a choice of arbitration body, which may be located in country of contract party or other country.

In China there are two Chinese government-sponsored arbitration bodies for handling cases involving at least one foreign party :

• China International Economic and Trade Arbitration Commission (CIETAC) and
• China Maritime Arbitration Commission (CMAC).

• 
  In India there are major three arbitration institute which provides alternate dispute resolution :

  • Indian Council of Arbitration (ICA)
  • Indian Institute of Arbitration & Mediation (IIAM)
  • The International Centre for Alternative Dispute Resolution (ICADR)

  • 
    In Hong Kong, there are three major arbitration institutions :

    • The Hong Kong International Arbitration Centre (or HKIAC)
    • Hong Kong Mediation and Arbitration Centre (HKMAAC)
    • Hong Kong Institute of Arbitrators (HKIArb)

    • Companies should clearly mention in contract an alternative to any country base arbitration if they choose international body like Singapore Arbitration Centre.