Using offshore accountsIn order to crack down on tax evasion, the customs and tax departments are now strictly examining the operation of buying export declarations. If the behavior of buying export declarations is discovered, the regulatory authorities will require tax replenishment (even a 2% tax rate may be a considerable amount). In addition, fines may also be imposed on the relevant responsible parties.can meet general foreign exchange settlement needs of enterprises, but once large amounts are involved, they will encounter the annual foreign exchange settlement quota of $50,000.

In this case, simply opening an individual foreign exchange payment account in Yiwu can solve this problem. Afterward, applying to the bank to open a foreign exchange settlement account can break through the annual $50,000 foreign exchange settlement limit.

Advantages include:

FastA complete export agency agreement should be attached with:

The process of handling foreign exchange for Yiwu individual businesses is notably fast. This allows for an annual foreign exchange settlement volume of up to $10 million, fully meeting the needs of most enterprises engaged in international trade. You no longer need to find someone to help you deal with transactions involving personal SOHO orCross-border E-commercebusiness dealings.

Convenient Foreign Exchange Settlement

Yiwu individual business owners can deposit foreign currency into bank accounts with very simple procedures, directly handling it without submitting documents to the bank, and there are no so-called remittance fees. This saves a portion of the costs.

Policy Support

Under the CRS policy, major banks have tightened the standards for opening offshore accounts. In contrast, the state has implemented a foreign exchange reform pilot in Yiwu. The municipal government actively responds. To encourage cross-border transactions by individual businesses, Yiwu banks have preferential policies for opening foreign exchange settlement accounts to handle foreign exchange settlements. With the support of this policy, this foreign exchange payment method is highly secure.

Cannot directly remit in USD.

Although this method has many advantages, it also has certain disadvantages. Unlike offshore accounts, individual business accounts cannot directly transfer USD. In actual transactions, they are widely paired with offshore accounts of Hong Kong companies, meaning internal transaction settlements use Yiwu foreign exchange settlement accounts, while Hong Kong offshore accounts are used for external payments.