Abady Law Firm, P.C. – Customs and Import/Export Attorney Blog

Learn the Basics of Customs and International Trade Policy and Procedure

Archive for November, 2012

$50,000.00 Wire Transfer Limit from China to the U.S.

Chinese clients are presented with the issue of moving more than $50,000 per year from China to the U.S. due to Chinese banking restrictions. China controls inbound and outbound foreign exchange flows. If a Chinese citizen wants to make an overseas payment they must purchase the funds with renminbi (RMB) i.e. official currency of the People’s Republic of China. Further, when converting the RMB to a foreign currency, the bank is required to review whether the payment is for investment or for a regular payment. If it is for an investment the chances of acceptance are slim.

One has a greater chance of acceptance if done through a corporation. Chinese law provides that a corporation can make investments but they have to gain approvals from the government agencies in China such as National Development and Reform Commission (NDRC), The Ministry of Commerce (MOFCOM) and the State Administration of Foreign Exchange (SAFE). This application process takes time. Factors that are taken into account may include 1) the industry sector and size of the investment; 2) location of the corporation; 3) tax status; 4) the feasibility analysis of the investment (which may include scrunity as to the background of the corporate members).

Resource Information

For more information about this blog post, please contact Abady Law Firm, P.C. and speak with our attorney at (800) 549-5099. Also visit www.customsesq.com to chat with a lawyer — who has insight into the Chinese wire transfer limits — about your company’s legal situation and to schedule a consultation.  To chat with us, click the bottom right corner tab of our homepage.

Liquidated Damages by Customs and Border Protection

Liquidated Damages are predetermined civil penalties assessed against importers who have breached the terms of Customs bond.  These liquidated damages claims arise when an importer  fails to adhere to the Customs regulations and/or requests made by Customs on behalf of other government agencies (e.g. FDA). Specifically, a majority of the claims for liquidated damages stem from issues related to failure to redeliver goods, or improper  classification, valuation, or marking.

Petitions for relief from liquidated damages must be filed within sixty (60) days from the date of mailing to the bond principal, the notice of claim for liquidated damages, or penalty secured by a bond.  The degree at which Customs will grant mitigation is dependent on Customs mitigation guidelines and the facts and circumstances of the case.

As always when faced with a liquidated damages claim it is best to consult with a customs attorney about your options when preparing a petition to file with Customs.

Resource Information

For more information about this blog post, please contact Abady Law Firm, P.C. and speak with our customs attorney at (800) 549-5099. Also visit www.customsesq.com to chat with an import export attorney — who has insight into liquidated damages claims — about your company’s import or export situation and to schedule a consultation.  To chat with us, click the bottom right corner tab of our homepage.

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