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Public Bonded Warranty Warehouse or Technical Service Station is especially set up to store the service parts, which maintain and support overseas import machine running smoothly in China.
Bonded channels improve the cash flow and reduce cash occupancy; for example, duty is charged only on goods that are actually sold to Chinese customers. In addition, it improves the logistics performance because Chinese Customs has a preferential customs clearance procedure for goods imported through bonded warehouse, especial for import service parts. 

• As in all bonded warehousing schemes, Customs Duties and VAT are only paid or waived during the submission of documentation at the pre-agreed period, thus improve cash flow

• All outbound transactions from bonded warehouses are pre-approved, post-clearance, and be accessible 24 x 7

• Customs clearance formalities and documentation for these outbound transactions will be submitted on a weekly or monthly basis, accordingly it is easy for the license or permit application

• Customs Duty & VAT exemption for warranty exchange, as a result improving cash flow and cost down

• Allowing full sales revenue or cost to be paid to overseas account

• Supporting inventory direct transfer model between the bonded warehouses and enjoy tax-free

• Applying for license or permit is easy, such as China Compulsory Certificate and China Energy Label application. Customs clearance formalities documentation and license or permit for these outbound transactions will be submitted on a weekly or monthly basis

HMG provides a full range of services to assist multinational organizations in setting up efficient sales channels and robust and reliable Aftermarket or Service Parts Supply Chain solutions for domestic China users. 

The bonded consignment inventory model can be the best effective with service parts for critical equipment where the customer would not stock certain service parts due to budget constraints or demand uncertainty. In this situation, consignment inventory allows the supplier to provide a higher service level by having the parts immediately available, save expedited freight costs, Customs Duties and VAT be only paid or waived during the submission of documentation at the pre-agreed period, thus improve cash flow and ensure the customer does not procure a replacement part from a competitor.

Acting as a consignment trade agent in China, HMG sign consignment agreement with overseas suppliers, and stock consignment inventory in the bonded warehouse to support non-warranty sales for users in China.

Import Duties and VAT are levied only on goods that are actually sold to domestic buyers; thereby mitigate financial pressure on suppliers. In addition, it improves the logistics performance because Chinese Customs has a preferential customs clearance procedure for goods imported through bonded warehouse. According to the agreed terms of payment of purchase contract or order, HMG can arrange buyers to pick up cargoes at warehouse immediately or deliver home in the same day upon the receipt of PO, thereby shorten the response time of service parts supply, enhance the efficiency of supply chain, and improve the end-users’ purchase experience.

HMG is responsible for the collection and remittance of money (local currency or foreign currency). If buyers have request for credit and financing, HMG can provide services of credit amount application and accounts receivable financing. In addition, after deducting order fulfillment service and consignment agent charge agreed with overseas suppliers, HMG will remit payment in batch to overseas suppliers during a pre-defined period, therefore improve settlement efficiency and reduce the cost of collection and payment.