Trade Pack
Common concerns
- Country-specific customs clearance and regulations are complex and cannot be dealt with
- Cannot find local suppliers or logistics partners
- Equipment procurement, relocation and installation is disjointed and inefficient
- Concerns about managing foreign exchange and cash flow
Advancement Program
Investment in New Equipment
Needs
Uneasiness
Infrequent overseas capital investment and uncertainty about export procedures, etc.
Capital
The parent company installs the equipment of the foreign subsidiary once and then resells it to the subsidiary.
Exporter
Equipment exports that are not their own products do not want to be exporters in terms of export controls.
Autonomy
We want to outsource our capital investment abroad in a hands-off manner.
Key points of this service
Outsourced supplier coordination and delivery coordination.
The parent company is removed from the commercial stream, thereby preserving funds for property purchases, eliminating parent-subsidiary transactions and transfer pricing risks.
Outsourced import location side permits.
Logistics costs can be optimised, purchase consumption tax burdens can be eliminated and human costs can be reduced.
Accumulation of know-how that is not influenced by internal personnel changes, etc.
Used Equipment Relocation
Needs
Export
Not aware of export procedures and trade control rules that are different from those for new equipment.
Import
Unsure of foreign import regulations/procedures.
Program
Unable to produce a comprehensive delivery schedule (man-hours) list. Or uncertain.
Price
It is unclear how much a property with no book value should be sold for to a foreign subsidiary.
Knowledge
In the first place, they thought it was impossible to introduce second-hand products abroad.
Experience
Have handled and caused accidents in-house in the past.
Key points of this service
Objectivity is increased by SEALS buying the property at the price at which it was assessed.
The property price is paid to the parent company with VAT.
Outsourcing of importing-ground-side permits and pre-shipment inspections.
Logistics costs can be optimised, purchase consumption tax burdens can be eliminated and human costs can be reduced.
Accumulation of know-how that is not influenced by internal personnel changes, etc.
Production Transfer Program
Needs
- The local subsidiary is too busy with withdrawal operations to relocate and dispose of equipment, and wants to reduce the burden on the local subsidiary.
- A single point of contact is requested for relocation, sale, and disposal.
- The transfer of idle machines between overseas subsidiaries is planned; however, the procedures for importing/exporting used machines and the points of sale are unclear.
Key points of this service
Centralised management of equipment from loading to unloading, both domestically and internationally.
Support for obtaining permits and approvals, including applications for import licences for used equipment, pre-shipment inspections and duty-free applications on behalf of China, Indonesia, Thailand, Vietnam and other countries.
Assessing the present value of equipment can lead to reduced transfer pricing taxation problems and objective transactions.
Support on Japan EL (export licence application) and US EAR (US re-export controls).
Improved cash flow from finance services.
Glossary
SEALS provides the service of preparing the relevant determination documents required for export. For machine tools, SEALS uses a laser measuring instrument to measure the accuracy and issues a certificate of compliance.
SEALS provides support for applying for export and service transaction permits to the Ministry of Economy, Trade and Industry on your behalf.
- Intended purpose: The tax system aims to regulate tax avoidance through manipulation of transaction prices with foreign subsidiaries.
- Tax may be levied even if unintentional.
- There is a risk of taxation in each country where the foreign subsidiary is located, rather than in one country only.
Used equipment price assessments using the following method by a third party can be expected to have the effect of adding objectivity to used equipment sale and purchase prices.
- Sales comparison approach calculation method
- Income approach calculation method
- Cost approach calculation method
- Prior consultation and application to the Ministry of Economy, Trade and Industry (METI) is required when reselling or re-exporting property for which an export licence application (EL application) has been submitted to METI.
- US products require EAR (US re-export regulations) compliance.