Go beyond mere freight（3）：Project Completed, Saving Client 370% in Taxes

In the solution to the client's dilemma in the face of Sino - US trade friction, the supply chain design is very ingenious.

The aluminum profiles are purchased from South Korea and then shipped to China for cutting, and then shipped to Thailand together with the glass purchased from China. All items related to the glass curtain wall, such as rubber strips, glue, screws, etc., are all shipped from China to Thailand by sea, and a 7% value - added tax needs to be paid when entering Thailand.

This is a processing with supplied materials. When the products are processed in Thailand and then exported to the United States, Thailand will refund 6% of the tax, which means that the client actually only pays a 1% tariff. When the Thai products are shipped to the United States, only a 1.25% commodity tax needs to be paid. Although a tax needs to be paid when the aluminum profiles enter China from South Korea, the labor cost in Thailand is low.

Overall, after deducting the freight and the labor cost in Thailand, the cost of the new plan is similar to that of the original processing in China, but the tariff is saved by 370% - 380%. This innovative supply chain plan optimizes the tariff expenditure to a great extent while ensuring the cost, laying a solid foundation for the successful operation of the project.