Abstract
New regionalism is sweeping the world making regional trade integration an irreversible global trend that countries like Taiwan must meet head on. A significant problem for Taiwan is that its competitors, such as Japan, South Korea, and ASEAN countries, enjoy a host of tariff preferences. All the above poses a very real threat of trade diversion and thus unfavorable economic outcomes for Taiwan. By using a case study, this article investigates how Taiwanese firms can develop new tax strategies through Chinese suppliers’ VAT (Value Added Tax) refunds by introducing business process reengineering (BPR), which will reintegrate current cross-strait trade routes and efficiently integrate Taiwanese corporations with the commercial flow and logistics of mainland-based trade. The main research objectives are 1. Explore the current situation for trade routes and logistics distribution of an individual company that does procurement on the mainland. 2. Under the influence of ECFA (Economic Cooperation Framework Agreement), analyze how Taiwanese companies can effectively integrate commercial flow and logistics. The result of this study shows that reengineering the trade flow with a trade procurement platform allow case company significantly lower procurement-related costs, compared to direct trading, a 13.9% costs reduction for import prices makes the advantage quite clear. The main contribution of this study is helping trade managers to reintegrate a company’s internal trade process(es) and build a trade procurement platform that complies with current trade policy restrictions to reduce business operations-related costs, and raise the competitiveness of a product’s price.
Highlights
In 1985, the People’s Republic of China started implementing policies that involved value-added tax(VAT) and exporttax rebates
The result of this study shows that reengineering the trade flow with a trade procurement platform allow case company significantly lower procurement-related costs, compared to direct trading, a 13.9% costs reduction for import prices makes the advantage quite clear
This study focuses on the advantages and disadvantages of current trade routes when it carries out assessments and improvements; integrates different types of resources in an advantageous way; implements logistics integration; and manages financial affairs, customs processes, and manufacturing demand
Summary
In 1985, the People’s Republic of China started implementing policies that involved value-added tax(VAT) and exporttax rebates. It is up to Taiwanese corporations to decide on how to adapt to regional integration They can take advantage of mainland Chinese suppliers’ VAT refunds and carry out business procurement process reengineering (BPPR), which will reintegrate current cross-strait trade routes as well as efficiently integrate Taishang with the ijbm.ccsenet.org. The following needs to be analyzed: how to take advantage of ECFA tariff preferences and mainland China’s VAT refunds system, as well as how to carry out process reengineering that involves tax plans and integrating commercial flow and logistics. 3) Based on empirical results, the study will provide both feasible process reengineering solutions and related advice that will help raise the competiveness of Taiwanese corporations, which are currently suffering from different types of trade restrictions in the Asia Pacific economic region Build a more convenient and efficient framework for a trade platform that will increase the performance of business operations. 3) Based on empirical results, the study will provide both feasible process reengineering solutions and related advice that will help raise the competiveness of Taiwanese corporations, which are currently suffering from different types of trade restrictions in the Asia Pacific economic region
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