Abid
AR-1 gyro manufacturer
- Joined
- Oct 31, 2011
- Messages
- 6,254
- Location
- Tampa, FL
- Aircraft
- AR-1
- Total Flight Time
- 4000+ 560 gyroplanes. Sport CFI Gyro and Trikes. Pilot Airplane
Hi All:
So we are next week shipping 3 aircraft to China by air shipment (folding mast and a tail junction allows that and reduces shipping time to days rather than months).
Here are some interesting tidbits.
1) Shipping cost by air to Shanghai is almost the same as shipping via 40 foot container. The extra cost is making the metal framed crates and re-assembly
2) The Chinese government collects VAT (Value Added Tax) at 18% or so while you clear customs even if you are a company to resell there. They take their cut right off the top. Even Chinese manufacturers who make things there have to pay VAT as soon as they finish the product and it goes into inventory.
3) But if you were a Chinese manufacturer and had a PO from the US to build something, you do not then have to pay VAT on that and then when you show the (Chinese) government that you finished and shipped/exported items on that PO, the (Chinese) government will kick you back 18% on the back end for exporting to the US.
HOW IN THE HELL IS THAT FAIR TRADE????
You could make something and sell it at cost and make 18% margin.
No wonder all these businesses put factories in China. Of course this can't be sustained once their currency opens up for too long.
So we are next week shipping 3 aircraft to China by air shipment (folding mast and a tail junction allows that and reduces shipping time to days rather than months).
Here are some interesting tidbits.
1) Shipping cost by air to Shanghai is almost the same as shipping via 40 foot container. The extra cost is making the metal framed crates and re-assembly
2) The Chinese government collects VAT (Value Added Tax) at 18% or so while you clear customs even if you are a company to resell there. They take their cut right off the top. Even Chinese manufacturers who make things there have to pay VAT as soon as they finish the product and it goes into inventory.
3) But if you were a Chinese manufacturer and had a PO from the US to build something, you do not then have to pay VAT on that and then when you show the (Chinese) government that you finished and shipped/exported items on that PO, the (Chinese) government will kick you back 18% on the back end for exporting to the US.
HOW IN THE HELL IS THAT FAIR TRADE????
You could make something and sell it at cost and make 18% margin.
No wonder all these businesses put factories in China. Of course this can't be sustained once their currency opens up for too long.
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