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The Collapse of 'Gray Custom Clearance' Rings the Alarm Bell for China's Foreign Trade

Posted on: Saturday, 27 June 2009, 09:00 CDT

HONG KONG, June 27 /PRNewswire-Asia/ -- China is Russia's biggest trade partner. China's consumer goods such as textile and garments, with their cheep prices, are sustaining the daily needs of Russian people, who are less than prosperous. The announcement by Russia on June 18th of destroying imported Chinese goods on its 22 counters has put the long-standing problem of "gray custom clearance" on the table, again.

"Gray custom clearance" refers to the practice by some government-connected "clearance" companies in Russia pushing imported goods into the Russian market at a tax rate far lower than the official level. These companies often undertake the whole process of the freight after they depart from Chinese ports, and deal with all procedures within the Russian territory.

Last October, nearly $1 billion worth of goods were banned due to "gray custom clearance," and up to 400 Chinese enterprises were afflicted. This time, after the confiscation of goods in these 22 counters, another 7000 or so counters are also challenged, where $5 billion worth of Chinese commodities are facing the danger of being destroyed.

"The incident that Chinese goods are being destroyed by Russia warns that China's foreign trade enterprises must seek a trustworthy, reliable and professional platform. The 'Fair N Fair' 3D Virtual Expo platform built by Fairtheworld is tailor-made for high-end enterprises around the globe who are seeking to explore the global market. The platform will integrate such key third party agencies as financing, insurance, logistics, storage and other links involved in the international trade; it invites banks, insurance companies, shipment companies and law firms with good reputation and professional performance from various countries, to run a booth in the 'Fair N Fair' Virtual Expo platform, where their efficient, professional and credible services will assist enterprises around the globe. Chinese companies, after suffering these losses, must search hard for a way to protect their interests, prevent similar mishaps from happening again through a legal, reliable, high-efficient trade platform," commented Mr. Chris, Managing Director (China area) of Fairtheworld.com.

SOURCE Fairtheworld

Source: PR Newswire

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