Problem Solving
In 2008, an Australian Wholly Owned Foreign Enterprise (WOFE) encountered various problems with their local Chinese supplier. The Chinese supplier had provided the Australian company with an inferior product which delayed their product delivery process. The Australian company then tried renegotiating with the supplier on future orders to receive compensation for the product inferiority. They also wanted to implement safeguards which would guarantee that the Chinese sourcing partner met their contractual obligations. The outcome of the negotiation was not favorable to the Australian company. The Chinese partner withheld Value Added Tax receipts from the Australian company which resulted in fines and no contractual agreement.
To resolve these problems, Enjoy International Consultants hired and facilitated legal counsel for the Australian company. The Australian company took the Chinese partner to court for breach of contract and sought monetary compensation for fines and loss of revenue. Under the guidance of Enjoy International the law firm also assisted the Australian company in communicating with the National Tax Bureau to reimburse the fines they had paid.
Services Provided:
| • |
Due Diligence on the negligence of the Chinese sourcing company |
| • |
Strategic Assessment of the Australian company’s options |
| • |
Recruited and facilitated a legal firm that specialized in trade laws within the jurisdiction of the Chinese sourcing company |
| • |
Provided legal and accounting consultations to create a standard operating procedure that would ensure safeguards to prevent any future discrepancies. |