<![CDATA[FaBuTX - Discover Our Blog]]>

<![CDATA[FaBuTX - Discover Our Blog]]>Wed, 04 Aug 2021 01:24:58 +0800Weebly<![CDATA[FaBuTX Limited Revamped Its Website]]>Fri, 30 Jul 2021 14:17:40 GMThttp://fabutx.weebly.com/blog/fabutx-limited-revamped-its-website

Lately, we encountered a commentary on the internet: "The digital world is in a perpetual state of evolution. Your website is continually ageing, both technically and graphically."

Then we thought this might be a good idea. We always want to provide our customers and potential customers more information about us or more latest news in the market. Besides, how to help our site visitors navigate smoothly or make use of our services more efficiently is always our interest.

After some researches, we found that unless we do something very differently from before, the wishes of having a better website is not easily to be achieved.

With some extensive effort, our new website has been revamped. We purposely leave the entry look of the website similar to the previous one so that our visitors will return to a more familiar feel.

We shall let you enjoy our new website and experience the difference !

#AML #CFT #TCSP #KYC #EDD #credit #trade #BigData #FinTech #CompanyCreditReports #SiteVisitReports #TradeReports #FaBuTX

FaBuTX Limited is a FinTech company that provides financial services and business intelligence to help companies to grow their revenue.

Applications include Know Your Customer (KYC), TCSP customer due diligence, compliance, credit management, competitive information, digital marketing, CRM, supplier management, receivable management, collection etc.

FaBuTX offers fresh company credit reports from 200+ countries, including China Credit Reports, Hong Kong Credit Reports, Taiwan Credit Reports, ASEAN Credit Reports. Besides, Site Visit Reports and Trade Reports are provided from 50+ countries.

See our new website and contact us at https://fabutx.com or http://發佈天下.com

]]><![CDATA[Are There 100 Millions of China Companies Involve in Import & Export Activities?]]>Fri, 21 Sep 2018 03:39:25 GMThttp://fabutx.weebly.com/blog/are-there-100-millions-of-china-companies-involve-in-import-export-activities

18.47% of the total world population is located in China. With a population of over 1.386 billion, it ranks number 1 in the list of countries by population. Not surprisingly, it contains a large number of companies to support its economy. According to a report by the Chinese Government released on January 19, 2017, the number of market entities (companies and registered organizations) in China by the end of 2016 is 87,054,000.

However, how many of these 87 millions of market entities involve in import and export activities?

The rising number of market entities in China is growing at an annual aggregated rate of 12%. By the end of 2016 approximately, there were 16,513,000 newly registered market entities, increased by 11.6% from 2015. Among the 16 million of new registrations, 5,528,000 were companies. This represented an average of 15,100 new companies registered daily, and this number was a record high.

To put the number of 5.528 million of new companies into perspective, this number is more than double of the total number of actively trading businesses in Australia (2,171,544 as of June 30, 2016).

As of June 2018, according to the import & export statistics, there are 422,274 companies with import and export activities in the 12 months from 2017 June to 2018 June.

Nearly 50% of the total number of companies are located in 3 provinces: 80,274 companies located in Guangzhou, 68,222 in Zhejiang, and 60,651 in Jiangsu.

The following table and chart depict the company distribution by province:

It is a general practice to make use of China Company Credit Reports to build a Know Your Counterpart (KYC) process to check your trading partners before any financial commitment. For more information, check out the books: Know Your Customers Faster Cash.

]]><![CDATA[Kung Hei Fat Choi 恭喜發財]]>Tue, 13 Feb 2018 05:10:10 GMThttp://fabutx.weebly.com/blog/kung-hei-fat-choi

It’s our great pleasure to accompany you in the coming Year of the Dog. On this joyous occasion, allow us to extend to you and your family our warmest greetings, wishing you a happy Spring Festival, your career greater success and your family happiness and lasting prosperity.
真誠地祝您幸福、快樂、成功！

]]><![CDATA[Trading Partner Changed Their Bank Account, Should KYC be Re-done?]]>Thu, 08 Feb 2018 07:33:59 GMThttp://fabutx.weebly.com/blog/trading-partner-changed-their-bank-account-should-kyc-be-re-done

One day, a textile product trading company received a phone call from one of its suppliers: the caller mentioned that their factory was relocated, and their bank account was changed. The supplier asked to wire the payable balance to their new bank account. The CFO of this trading company recalled that he read an article about a similar case in which the subject company was caught in trouble because they wired money into the trading partner’s new bank account. What should the CFO do in this case?

The first thing came to the CFO’s mind was the principle of KYC (Know Your Customer): if there is a major change of a trading partner, then the KYC process must be re-executed to ensure that compliance is satisfied.

Without the re-launch of KYC process, the CFO might not know whether:

the person who phoned in was still working or representing the existing supplier.
the supplier’s shareholding structure might be changed. The new factory location might or might not belong to the existing supplier.
the new bank account holder was the existing supplier, and not someone else.

Since the trading company had been a long-term customer of iQor-RMS, he called iQor-RMS for advice. The CFO was immediately ensured that he had all the reasons to worry because iQor-RMS had handled a number of similar dispute cases.

The iQor-RMS Advisor quickly put together a scenario that the trading company had a trading contract with the existing supplier, and the payable balance should be wired into the existing bank account. Without re-doing KYC and after paying to the new bank account, the existing supplier might chase after the trading company if the new bank account was not owned by the existing supplier. Also, if the supplier changed its shareholders, and potentially its key management personnel, then the trading company needed to reconsider their trading relationship.

As for the KYC check, iQor-RMS suggested the CFO to do the following:

Got a Collectability Report of the supplier in which the CFO would see its latest shareholding structure, registration changes, beneficiary ownership, financial statements of the last 2 years, litigation records, import & export status, and credit related intelligence, etc. The site visit investigation option would provide pictures of the new factory.
Asked the supplier for proof of the new bank account ownership.

After the KYC review, the CFO found that the supplier was trying to expand its operations, using the old factory for domestic market, and the new factory for overseas market. There was no shareholder change in the supplier’s company registration, and the new bank account was legitimate. The trading company was happy to have a steadier supply from this supplier.

Lessons to learn:

You never know what risks you are facing to if you don’t conduct your KYC review. KYC’s cost is low compared to the cost you may anticipate in a dispute.

]]><![CDATA[Taiwan Credit Insight 9: Taiwan’s “Contractor Mindset.”]]>Tue, 16 Jan 2018 08:53:46 GMThttp://fabutx.weebly.com/blog/taiwan-credit-insight-9-taiwans-contractor-mindset

In recent years, Taiwan has been suffering from economic downturn. Some people pointed out that Taiwan's success caused its downturn. How?

Lately, a school of visionary businesspeople pointed out that Taiwan’s economic downturn was related to a typical contractor mindset in most local management people.

While its education system, business style, and political culture have provided once a valuable platform for contract manufacturing, those golden days were over because the margins in most of the contract manufacturing businesses tended to be around 3% and shrinking these days.

Currently, the economy embraced a weak climate of innovation because of the contractor mindset (to manufacture rather than to create products), the Confucian values (to obey rather than to breakthrough), and the education system (to go after certificates rather than knowledge).

Various commentaries can be found in the following articles:

Are three-letter acronyms holding Taiwan hostage? By Mark Stocker, Managing Director, DDG:
http://www.ddg.com.tw/en/archives/journal/acronym

Taiwan companies must learn to value communications. By David Green, Communications Strategist, DDG:
http://www.ddg.com.tw/en/archives/journal/valuecommunications

Huaren (means Chinese) design must break free of the contractor mindset. By Keng Liu, the Founder of Bito Design Production Studio, and the Winner of ADC Award:
http://designperspectives.org/en/2015/12/15/keng-liu/

This Credit Insight is an extract from the book Happy Customers Faster Cash, Taiwan Edition and it is now on sale at Amazon.

This book is a learning tool for people engaged in the credit process. It contains three extensive chapters about credit management, business culture and communication with the focus in Taiwan. A chapter is dedicated to discussing various aspects of Taiwan company credit reports.

]]><![CDATA[Taiwan Credit Insight 8: Links with China]]>Tue, 16 Jan 2018 08:22:32 GMThttp://fabutx.weebly.com/blog/taiwan-credit-insight-8-links-with-china

Economically, is Taiwan competing with China, or they are helping each other?

The continuing liberalization of links across the Taiwan Strait means that foreign companies are increasingly choosing Taiwan, both as a market in its own right and as a stepping stone into China.

Taiwan has signed 27 agreements with China including the Economic Cooperation Framework Agreement (ECFA):
http://www.mac.gov.tw/public/data/051116322071.pdf

As a result, China has cut tariffs on 539 items exported from Taiwan to China, and further cuts are planned.

Taiwan and China concluded a services agreement in 2013 which needs to be approved by the Taiwan Legislative Yuan (parliament). If this controversial agreement is passed, it should pave the way for even closer economic ties.

]]><![CDATA[Taiwan Credit Insight 7: The United States, China & Taiwan]]>Tue, 16 Jan 2018 07:55:56 GMThttp://fabutx.weebly.com/blog/taiwan-credit-insight-7-the-united-states-china-taiwan

Officially, the United States has supported the One-China policy since WWII, which acknowledged only one Government as the sole legal Government of China. So how does the United States relate to Mainland China and Taiwan?

On January 1, 1979, the Joint Communiqué on the Establishment of Diplomatic Relations, formally announces the commencement of normal relations between the United States and the People's Republic of China (the Mainland China).

In so doing, the United States recognized that the Government of the People's Republic of China was the sole legal government of China instead of the Republic of China (Taiwan). Also, the United States Government declared that it would end the formal political relations with Taiwan while preserving economic and cultural ties.

While Taiwan lost its seat in the UN, it maintained influence because of its steady and high economic growth and close relationship with the United States. Taiwan’s politically weak but economically strong position has changed since Mainland China implemented its economic reform in 1978, launching a period of unprecedented growth. Ever since Mainland China has become one of Taiwan’s largest trading partners (in 2015, US$ 71.1 billion constituted 25.4% of total Taiwan exports), the two regions have taken on a complicated, partly-symbiotic, partly-hostile relationship.

]]><![CDATA[Taiwan Credit Insight 6: The Invoices in Taiwan]]>Tue, 16 Jan 2018 07:27:19 GMThttp://fabutx.weebly.com/blog/taiwan-credit-insight-6-the-invoices-in-taiwan

In Taiwan, if you have a chance to pay in a shop or restaurant, the cashier or waiter will ask you for your business' Government Uniform Invoice Number (GUIN統一編號) before he or she issues you a receipt with the restaurant's GUIN and your GUIN printed on it.

This is because for a business to file a receipt as an expense and to deduct it from its profit tax, the receipt must have the business’ GUIN printed on it.

In Taiwan, a company must report all revenue to the Taiwan tax authority. Government Uniform Invoice (統一發票) is the official value-added tax (VAT) invoice used in Taiwan. Companies must issue Government Uniform Invoices (GUIs) upon the sale of goods or services, for down payments, credit memos, debit memos, and sales returns, as stipulated in the Time Limit for Issuing Sales Documentary Evidence section of Taiwan’s Value-added and Non-value-added Business Tax Act. Shown on the right are two samples of Government Uniform Invoices.

By legislation in Taiwan, every sales invoice, credit memo, debit memo, down payment document, and purchase or sales return document must have a GUI Number. This number’s purpose is to track all the value-added tax (VAT) that a company pays or collects, and so are crucial to the creation of a company’s VAT returns.

Unlike in the Western economies, business invoices that a company usually prints out for their customers are not regarded as official invoices in Taiwan, although they can be considered as payment notices. Instead, Government Uniform Invoices are the ultimate official: the regional tax authorities assign unique numbers to groups of 100 or more to each company to be used in its GUIs, and these numbers must be used in a two-month period.

]]><![CDATA[Taiwan Credit Insight 5: Company Seals]]>Tue, 16 Jan 2018 06:38:41 GMThttp://fabutx.weebly.com/blog/taiwan-credit-insight-5-company-seals

In North America and Western Europe, you seldom see a seal (or stamp, or chop) on an invoice. Yet this is a standard business practice in Taiwan. Legally, what does the seal mean? How many seals must a company have?

To most young Westerners, a company seal is a synonym of antique. However, in Taiwan and most Asian economies, it is the official endorsement of a contract.

Taiwan’s Civic Code, Article 3 states that “If the person uses a seal instead of his signature, the affixing of such seal has the same effect as of his signature.”

Although signatures are a valid method of executing a contract in Taiwan, the gold standard is to have the counter-party stamped a contract by using the registered company seals. There are two of them: the registered seal of a company (often referred to as the “Big Seal”) and the registered seal of the company’s Legal Representative (often called the “Small Seal”).

In the Apple’s case versus Proview Taiwan, failure to verify if the person is an authorized legal representative of the counter-party, including the seals used in the contract, was part of a costly lesson.

More details from the Wall Street Journal about the Apple and Proview case:
http://www.wsj.com/articles/SB10001424052702304211804577501681233676036

]]><![CDATA[Taiwan Credit Insight 4: Minguo Calendar]]>Tue, 16 Jan 2018 03:36:24 GMThttp://fabutx.weebly.com/blog/taiwan-credit-insight-4-minguo-calendar

New visitors to Taiwan quickly find out that, besides the Gregorian calendar and the Chinese calendar, Taiwan has its own calendar system. What is the history? How does it work?

Following the Chinese imperial tradition of using the sovereign's era name and year of reign, official Taiwan documents use the Republic system of numbering years in which the first year was 1912. This system is Minguo (traditional Chinese: 民國). Minguo literally means "The Country of the People." 1912 is the year of the founding of the Republic of China. Thus, 2016 is the 105th "year of the Republic" (add 11 to 105 to get 2016). Months and days are numbered according to the Gregorian calendar.

For example, the titles of the annual SME White Papers released by the Ministry of Economic Affairs (MOEA) begin with a Minguo Year (these documents are not found in the English version of this Government website):
http://www.moeasmea.gov.tw/np.asp?ctNode=676

The Gregorian calendar was adopted by the nascent Republic of China effective January 1, 1912 for official business, but the general populace continued to use the traditional Chinese calendar. The status of the Gregorian calendar was unclear between 1916 and 1921 while several competing warlords controlled China, each supported by foreign colonial powers. From about 1921 until 1928, warlords continued to fight over northern China, but the Kuomintang or Nationalist government-controlled southern China used the Gregorian calendar. After the Kuomintang had reconstituted the Republic of China on October 10, 1928, the Gregorian calendar was officially adopted, effective January 1, 1929. The People's Republic of China has continued to use the Gregorian calendar since 1949.

Despite the adoption of the Gregorian calendar, the numbering of the years was still an issue. Chinese imperial tradition was to use the emperor's era name and year of reign. In the early 20th century, some Chinese Republicans began to advocate such a system of continuously numbered years so that that year markings would be independent of the Emperor's regnal name. This implementation was part of their attempt to delegitimize the Qing Dynasty. As Chinese era names are traditionally two characters long, 民國 (Minguo, "Republic") is employed as an abbreviation of 中華民國 ("Republic of China"). The first year, 1912, is called 民國元年 (Minguo 1st year) and 2010, the "99th year of the Republic" is 民國九十九年, 民國99年, or simply 99.

In addition to the Republic of China's Minguo calendar, Taiwanese continue to use the lunisolar Chinese calendar for certain functions such as the dates of many holidays, the calculation of people's ages, and religious functions. A good reference about the Chinese Calendar can be found here: https://en.wikipedia.org/wiki/Chinese_calendar

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