I want to understand if proxy import companies can sell goods. I was told by companies I contacted that they can directly sell imported goods, and I am unsure about their legality and related risks. The best answer points out that as long as the proxy import company has legal operating qualifications, selling goods is legal, but buyers need to review the company's qualifications and the source of the goods, and sign a detailed contract to protect their own rights and interests.
How to use a Hong Kong company for import and re-export trade? Come get some tips!
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I would like to know how to use a Hong Kong company for import and re-export trade. I've heard that doing import and re-export trade through a Hong Kong company can offer some advantages in terms of taxation. But how exactly should it be operated, starting from registering a Hong Kong company to all subsequent trade processes, such as goods transportation, document handling, and fund flows? Can any professionals provide a detailed explanation? I hope for a comprehensive and easy-to-understand introduction. Thank you!
Trade Expert Insights Answers
Sophia WangYears of service：6Customer Rating：5.0
International Logistics CoordinatorStart a Chat
First, you need to register a Hong Kong company. You can seek assistance from professional organizations like Zhongmaoda, and prepare the relevant documents to follow the process.
Regarding goods transportation, for example, if goods are produced by a factory in mainland China, they can be shipped to Hong Kong first. The Hong Kong company will be the consignee. As Hong Kong is a free port, goods can be stored and managed conveniently there.
For document handling, the Hong Kong company needs to prepare corresponding commercial invoices, bills of lading, and other documents. The consignee should be the Hong Kong company, and the documents should indicate that the goods are exported from Hong Kong to the final destination.
For fund flows, overseas customers pay the freight to the Hong Kong company. After deducting its profit, the Hong Kong company then pays the remaining amount to the mainland supplier. This way, in terms of tax planning, Hong Kong has a lower tax rate. Keeping some profit in the Hong Kong company can reduce the overall tax burden. However, it is important to comply with relevant regulations and ensure the authenticity of the trade during operations.
Kevin HuangYears of service：3Customer Rating：5.0
E-Commerce Export AdvisorStart a Chat
When using a Hong Kong company for import and re-export trade, pay attention to the handling of the bill of lading. Try to have the freight forwarder list the Hong Kong company as the consignee on the bill of lading as per the requirements of the Hong Kong company, and then the Hong Kong company endorses and transfers it to the final customer. This ensures that the control of the goods remains with the Hong Kong company.
Thomas LiYears of service：7Customer Rating：5.0
Import Licensing AdvisorStart a Chat
Be cautious when choosing a cooperative freight forwarder. Find one that has experience in handling re-export trade. They can better handle various issues during the transportation process, such as arranging Hong Kong warehousing and coordinating cargo transshipment, to ensure the smooth flow of goods.
Richard WuYears of service：8Customer Rating：5.0
Global Trade Operations ExpertStart a Chat
Fund operations must be standardized. Fund flows in the Hong Kong company's account must match the trade business, and all fund flow vouchers should be retained for audit and verification to avoid tax risks.
Anthony LuoYears of service：10Customer Rating：5.0
Trade Compliance ExpertStart a Chat
The Hong Kong company should sign a purchase contract with the mainland supplier, with clear terms regarding goods quality, delivery period, etc., to protect its own rights. At the same time, it should also sign a sales contract with the overseas customer to avoid trade disputes affecting the re-export trade process.
Emma ZhaoYears of service：3Customer Rating：5.0
Export Documentation SpecialistStart a Chat
After the goods arrive in Hong Kong, timely inspection of the goods should be carried out. If any problems are found with the goods, communicate and resolve them with the mainland supplier promptly to avoid affecting the subsequent delivery to overseas customers.
Olivia LiuYears of service：6Customer Rating：5.0
Foreign Exchange Risk ManagerStart a Chat
Emphasis should be placed on archiving documents. All trade-related documents, such as invoices, contracts, bills of lading, etc., should be properly stored for future reference and to handle possible inspections.
Linda GuoYears of service：3Customer Rating：5.0
Trade Dispute MediatorStart a Chat
Pay attention to exchange rate fluctuations. After the Hong Kong company receives foreign currency payments, exchange and transfer operations are involved. Exchange rate fluctuations can affect profits, so appropriate exchange rate risk management can be considered.
Robert TanYears of service：5Customer Rating：5.0
International Market Development AdvisorStart a Chat
The Hong Kong company must conduct audits and tax filings on time, truthfully declare the company's financial status and operating results, comply with Hong Kong's tax regulations, and maintain the company's good operational status.