When Kiwi businesses look to dip their toes in export markets, the majority follow the well-worn path across the Tasman. Exporter offers some insight into this hugely attractive ‘first-step’ marketplace.
In March 2013, Zespri Management Consulting Corporation was found guilty by a Shanghai court of “smuggling” due to under-declaration of the dutiable value of kiwifruit. Sanctions imposed included an assessment of underpaid duties, financial penalty, confiscation of “illegal gains” and imprisonment for the relevant persons involved.
Many say that China is a relationship-based economy, with contracts not being worth the time it takes to create them. Exporter asked Nestor Gounaris of Shanghai-based advisory firm China Solutions, for his view on if, and how, contracts matter.