Service・Solution

Trade Pack (Start-up and Relocation and Closure)

Start-up Pack

SEALS, together with major finance companies, will support our customers in complex export procedures needed for occasions such as, launch of a new factory due to overseas expansion, transfer of equipment from Japan and/or third countries, substitution of licensing agreements, import and export, move-in/out procedures, and tax and legal affairs at origin and destination side.

Equipment price assessment

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Purchase / Procurement purchase

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Transport

+

Acquisition of necessary permits

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Finance

Trade Pack Trade Pack

New equipment investment (cross-border advance payment or lease back)

Needs

  • Concerns
    Not familiar with overseas capital investment and has concerns about export procedures.
  • Finance
    The parent company has introduced equipment of overseas subsidiaries and resells them to subsidiaries.
  • Exporter
    Do not want to become an exporter of equipment that are not made by themselves due to export control issues.
  • Outsourcing
    Would like outsource capital investment.

Advantages of our service

  • We summaries and coordinate all suppliers and adjust any delivery deadlines.
  • As the parent company is out of the commercial flow, our clients can conserve equipment purchase funds, eliminate parent-subsidiary transactions and eliminate transfer pricing risks.
  • Finance services can be applied according to the finance needs of local subsidiaries (Japanese yen, USD or other local currency)
  • We conduct all the import permits needed at import side.
  • Our customers can optimize logistics costs, eliminate the burden of purchase consumption tax and reduce human costs.
  • Our customers can accumulate the know-how without being influenced by personnel changes etc. within the company.

Second-hand equipment relocation (cross border advance payment or lease back)

Needs

  • Export
    Do not understand the difference in export procedures and trade control rules of used equipment and new equipment.
  • Import
    Do not know overseas import restrictions and/or procedures.
  • Schedule
    Do not know how to make an comprehensive schedule (time/manpower needed) needed for delivery
  • Price
    Do not know the selling price of a property to an overseas subsidiary that has no book value.
  • Knowledge
    Assumed that second hand property can not be sold overseas.
  • Experience
    Lack of experience.

Advantages of our service

  • SEALS buys the property after the third-party assessment with more objectivity.
  • Payment for the property directed to the parent company including the consumption tax.
  • Finance services can be applied according to the finance needs of local subsidiaries.
  • Procedures such as licensing at import side and pre-shipment inspection are outsourced to SEALS.
  • Advantages such as: Optimization of logistics costs, elimination of the purchase consumption tax burden, and reduction of human costs.
  • Accumulating know-how that is not influenced by personnel changes etc. within the company.

Relocation Pack

In restructuring oversea production plants from one country to another, SEALS provides our clients with ONE STOP solution for all possible trading concerns.

Closure Pack

We support our customers in closing overseas and domestic factories with effective use of facilities among the group and/or resale of equipment to third parties.

Business Flow

Closure Pack Closure Pack

Needs

  • Busy with withdrawal work with a limited human resources.
  • Looking for a company that do relocation, buy/sale and disposal of the assets.
  • Do not know the necessary import/export procedures of used equipment in relocation of the assets to the subsidiaries overseas.

Advantages of our service

Our "ONE STOP" service will help our customers in all the necessary procedures as below needed for relocation of the idle assets within the group subsidiaries.

  • Logistics management from Move-out to Move-in.
  • Arrangement of necessary permits such as application for import license of used equipment, pre-shipment inspection and tax exemption application for countries such as China, Indonesia, Thailand etc.
  • Assessment of the present value of equipment needed for objective transaction and thus reduction of transfer pricing issues.
  • Japan E/L (Export License Application), USA EAR (Export Administration Regulations).
  • Improvement of cash flow through financing services.

Terminology

  • Parameter sheet

    Parameter sheet is to judge whether cargo and/or technology provided by exporters fall under the list regulation of Foreign Exchange and Foreign Trade Control Law (abbreviation: Foreign Exchange law).

    SEALS provides the service of issuing the Parameter sheets necessary for export. For machine tools, accuracy is measured with a laser measurement device.

  • Application for export license (E/L application), application for service transaction permit

    In case of exporting cargoes and/or technologies that fall under the list regulation of the Foreign Exchange and Foreign Trade Control Law by exporters, it is necessary to apply to the Ministry of Economy, Trade and Industry (METI) and get the permits. If export and/or technology is provided without obtaining the permission, it is treated as a violation of the above mentioned laws and result in criminal punishment, administrative sanctions and social sanctions.

    SEALS provides substitute services for export licenses and service trade permission applications to the Ministry of Economy, Trade and Industry.

  • Transfer pricing issues

    • Purpose: A tax system aimed at regulating tax avoidance behavior by transaction price operation with overseas subsidiaries.
    • There is a possibility of taxation even if not intentional.
    • It will not be completed in only one country, there is a danger of being taxed in each country where the overseas subsidiary is located.
  • Price assessment of used equipment

    Used equipment's objective trading price can be assessed by a third-party in either of the following methods:

    • Sellable price approach calculation method
    • Revenue approach calculation method
    • Cost approach calculation method
  • Re-resale / re-export of E/L property
    Export regulations of the country of origin

    • In case of re-reselling/re-exporting the property that had been previously applied for export permits (E/L application) to Ministry of Economy, Trade and Industry, additional advance consultation/application is required.
    • US products need to comply with EAR (Export Administration Regulations).