If you are buying from China especially buy from different suppliers, you will properly need someone there help you do the consolidation. Usually people will consider to hire an agent like buying agent to help them. A professional buying agent used to be a registered company in China, to be legal. There is also some people who will think to hire a private person, which means he or she is not a company. Is it really good to hire them? Today let us tell you something.
Nowadays, China has much stronger control on the foreign exchange, only the registered company can receive USD transfer legally. Like setting up a company in Hongkong or China mainland, then apply for a company USD account.
If you have a registered company here, then you can have unlimited amount of receiving USD, as long as you can submit related order invoice to the bank.
China allows a private persona receive USD with limited amount of US$50k yearly, but it should be personal purpose. If the amount is big and then the bank will stop it and ask for why.
So hiring a private person will be hard for receiving USD.
Even a private person has “some chance” to get USD, not matter transfer or cash, it will be hard to change USD into local currency RMB. As changing USD into RMB, you need to put the USD into the export system, and you will have to export the goods under company name then they will allow you change into RMB. This is official way, but it should go with a registered company.
There is still people who does the “black way” here. That means change USD from black market. It could be risky now. Since China publish strict laws since beginning of 2019 mentioning that, change USD via black market is strictly prohibit. So government catch it, then both the USD and RMB will be confiscated.
However, when there is profit, there is people doing the business. It is such a risky way now.
Being a private person, he or she might need to work in a company. Then he or she can not make sure the time arrangement. Especially from Monday to Friday which is the working time. If you want the order to be processed urgently in 1~2 days, but it is working day, then the private person can not 100% make sure the time.
While hiring a professional company, they will have a professional team which service you accordingly. If you need it urgently then they can make it for the top priority.
If you are making an order to a supplier, then usually you should sign a legal contract with them to protect the transaction. While a private person can not sign the contract as he or she does not have any company stamp, he or she can only sign by his or her name which is not legal. So that means the contract is not legal and the transaction is not very well protected.
A professional buying company can sign the contract with the supplier in a legal way and can protect the transaction very well. If there is any after sales guarantee, a signed contract can also protect it.
So only a buying company can sign the legal contract.
So all in all, hire a private person seems little bit cheaper for handling the order. But everything will be risky and not very well processed. If your order is important and can not suffer any risky, then hiring a professional buying company in China could be more sensible.
My name is Gary Cox from the Bahamas, a small country very close to North America . Presently I’m doing business with a firm that does all of my logistics but I need to know what others companies offers.
Services such as Consolidating all products from different suppliers, Inspection, also product sourcing.
My main product is the Automotive industry such as, Batteries, Radiators, Alternators, Compressors, Front Head Lamps, Fenders, Oil etc. These are mainly for the Japanese vehicles, all items must be OEM certified. I’m more interested in Trading companies who offer lots of items with a small MOQ obligation.
First of all can your firm assist me and can your firm offer an excellent percentage rate so I can consider my next shipping needs in the near future.. By the way I was in Guangzhou last year to the Canton Show, Very Exiting….
Ph # 1242-376-7303 I’m on WeChat Also.