Why set up company in Hong Kong - Story Five

Avoid disclosing supplier information - protecting trading business
 

Background

1. Mr. Achim originally sourcing from China company (C Ltd) and selling Mobile to his client in Jodan (J Ltd);
2. Mobiles shipping directly from china supplier C Ltd to J Ltd;
3. E Ltd found C Ltd on the bill of lading and deal with C Ltd directly in future;
4. Mr. Achim lost his client.

New Way

1. Mr. Achim setup a Hong Kong Company (H Ltd);
2. H Ltd becomes the middle trading company - buying from China and selling to Jodan;
3. Mobiles still shipping directly from China to Jodan;
4. Shipping document send to Hong Kong (H Ltd or it's representative) to :
   • Change "Certificate of Origin" (CO) issued country
     • From China CO [Sample] to Hong Kong CO [Sample];
   • Change "Bill of Lading" (B/L) via Hong Kong office of the China shipping company
     • From China B/L [Sample] to Hong Kong B/L [Sample]
   • Arrange certification of invoices, packing list etc. documents by trade consul or embassy of Jodan.
5. New shipping document send to Jodan Ltd.

Benefit