At least the pedal cars are here!
Here we are at Xmas time and we are nearly through with the paperwork to import the Morgan cars. All being well the final certificates will be issued before Chinese New Year 2013. As it is so easy to forget what has taken place, I've just written up some notes to remind myself of the final stages and time line. Once again I have been thankful for the efforts of Lee & Lee who have doggedly pursued all the paperwork - I have to say also that I have been impressed by the Chinese system. Yes it has taken time but it is all rational and without corruption. Yesterday we had a tax official visit our offices to ensure that we really are selling cars, before they will issue us with a fapiao machine. The meeting was civil and friendly and perfunctory.
So before we take a break to open some presents, a quick review of our progress.
Legal process
18/12/2012 Capital verification received. (attached is the stamped page of the 13 page report).
20/12/2012 Submit to AIC the Business License with the Capital Verification report. Update the business license about the term “paid-up capital” with the Capital Verification report.
26/12/2012 Updated Business License issued.
27/12/2012 Apply for Customs Registration Certificate and Auto Customs Clearance Paper.
07/01/2013 (Provisional) Customs Registration Certificate issued.
25/01/2013 (Provisional) Customs Clearance Paper issued.
Showroom.
This is coming along nicely with a massive vote of thanks to anySCALE, the architecture firm which has proven to be a godsend. We debated long and hard on the issue of having English or Chinese on the signage, and opted for English; one to position the company as British but also as the Chinese characters are so intricate the backlighting is almost impossible unless they have a certain size. These decisions take ages, but we believe that these will all combine to make the showroom look fitting as a flagship Morgan store.
25/01/2013 Beijing Showroom main construction finished.
09/02/2013 to 16/02/2013 Chinese New Year
The trick now is to schedule the shipping of cars; we have to pay Morgan of course and then ship to arrive not before the certificates have been issued to avoid the cars languishing in customs. Due to Chinese New Year we have to delay shipping and missing 2-3 weeks of the cars being in showroom. As the cars accrue some 100% - 150% duty, collection from customers is a key post Xmas task. As customers don't want to pay before the cars are in China, this presents one of the greatest risks of the business. I have seen first hand vehicles in bonded warehouses unable to be cleared.
Our provisional first shipment timeline:
w/c 28/01/2013 depart UK
w/c18/02/2013 arrive Tianjin
Shipment of 6 vehicles:
Plus 8
Plus 8
44 7th Anniversary
Roadster
Plus 4
Plus 4
w/c 18/03/2013 (assume 4 weeks)
Clearance of cars and shipping to customers
For Xmas I have 2 pedal cars which arrived in Beijing today, and should clear within 3 days. What a relief to deal with a product with wheels which is so easy to get through customs.
Due to the weather - I will have to see if Morgan sells snow tires!