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How Do Your Goods Get Out Of China?

A few years ago, I would have read this recent New York Times article “Weak Link in an Export Chain” and not thought much of it.

But then in November 2010 there was a $236 million joint DOJ/SEC enforcement action involving numerous companies (one I have called CustomsGate). See here for a prior post of all the enforcement actions. The enforcement actions were mostly about use of freight forwarding and logistics services, expediting delivery of goods and equipment into a country, local processing fees, express courier services, and the like.

The New York Times article is about the trucking industry in China that takes goods from the factory floor to China’s seaports. The article depicts a highly disorganized, inefficient … and yes corrupt … industry. According to the article, logistics firms usually hire small Chinese trucking companies and these companies routinely “pay bribes to ward off highway inspectors” and to “avoid heavy fines and transportation restrictions.”

The article states as follows. “Corruption is also a major problem. Chinese truck drivers say highway and port inspectors routinely demand payoffs or bribes.”

What does this have to do with “obtain or retain business?”

Point taken, yet this is the same question raised in connection with the CustomsGate enforcement actions as well. See here.

So the question remains – how do your goods get out China?

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