Like a fine wine, Pu’er tea has particular vintages sought after by tea connoisseurs. Provided to China Daily Pu’er, known as the ‘living tea’ from yunnan province, improves with age High up in the Xishuangbanna (西双版纳) mountains, where the air is crisp and cool, a unique variety of Camellia Sinensis grows. Here, for more than 1,500 years, local farmers have been harvesting the large, soft leaves of the ancient tea trees and compressing them into a cake-like casing, ready to sell to a tea market thirsty for one of the world’s finest brews. But unlike other teas, this one will not be consumed for many, many years. For this is Pu’er (普洱) – the prized tea that, much like a fine wine, improves with age. In contrast to the “fresh is best” rule for most teas, Pu’er – also known as the “living tea” – undergoes secondary oxidization and fermentation caused by active microbes living in the tea. Like a fine wine, Pu’er has particular vintages sought after by tea connoisseurs – “1990 and 1995 are good years,” says an assistant at the Tenfu tea shop in Wangfujing, Beijing. Originating from Yunnan province, the “birthplace of tea” according to some anthropologists, particular areas in the province are also noted for their excellence. During the Three Kingdoms period (AD 220-280), the great Sichuan strategist and Yunnan “Tea God”, Zhuge Liang (诸葛亮, AD 181-234), designated six mountains in the Xishuangbanna region as the finest for growing Pu’er, bestowing on them the informative, though somewhat unimaginative, title of the Six Great Tea Mountains (六大茶山 liù dà cháshān). Like the Chateau Cheval Blanc of the tea world, Pu’er commands a high premium in the tea market, where half a kilogram can cost up to 50,000 yuan ($7,890, 6,255 euros), says the assistant at Tenfu. As a result, it is a beverage goldmine for investors, lured in by its quality, the low supply and high demand tendency, and its ability to appreciate with age. In 2003, speculators in Hong Kong and Guangdong triggered a boom by buying large amounts of Pu’er to restrict its supply and push up the price. By the mid-1990s it had reached a peak, with a tide of workshops, tea merchants and factories opening across China. Yet it also meant the market was flooded with Pu’er imitations, a problem that persists today. Pu’er’s price elasticity was demonstrated in 2007 when an earthquake caused heavy damage to tea factories in Yunnan. It sent tremors through the industry, with the price of Pu’er in Beijing’s Maliandao Tea Street (马连道茶叶街) rocketing by 30-50 percent. Speaking to China Daily, Professor Yang Sizhong from Yunnan University warned: “The price of Pu’er teas has risen too far from its actual value as a result of hype from business and investors.” Compressed Pu’er tea dates back several centuries, to a time when merchants needed a tea that did not spoil along the long, arduous merchant routes. Various fermentation techniques evolved and the compressed tea was transported from Yunnan across the rough terrain of the Ancient Tea Route (茶马古道 chá mǎ gǔdào), which was considered to be the second Silk Road. “The secrets for processing Pu’er tea are carefully guarded. It is said that, in the past, trespassers mistaken as spies have been known to be killed on private tea plantations,” according to Varat Phong, founder of the Pu’er Cha (Pu’er Tea) website. The threat has not been strong enough to repel scientists eager to discover more, though. In 2005, Yunnan Agricultural University opened the world’s first Pu’er tea college, aiming to teach future Pu’er experts and support further research. What fascinates scientists in particular is the health benefits associated with Pu’er, also known as the “wonder tonic” and “medicinal tea”. Though all species of tea contain polyphenolic compounds, offering medicinal and restorative qualities, the broadleaf variety of Pu’er also promotes microbial activity. This suppresses fatty acid synthesis and helps prevent cardiovascular diseases, making the tea particularly popular with neighboring provinces, where residents have fatty, oily diets. High-profile celebrities, including Victoria Beckham, have even been endorsing the tea as a weight loss aide. Perhaps more groundbreaking are the results from 10 years’ worth of research by professors Liang Mingda and Hu Meijing, who find Pu’er has a statistically significant anti-cancer effect. While it has incentives for investors and health nuts, what attracts the true tea connoisseurs? For many, it is the beguiling flavor. Phong describes the taste as both compelling and at times uncompromising, with flavors ranging from light and floral to harsh peat, leather and tobacco. “Black Pu’er has an imposing aroma of heavy earth that is comparable to the sweet fragrance of mineral deposits emerging from deep within the forest floor after a heavy downpour,” he explains on his website. “Good Pu’er tea has excellent clarity and clean flavors that is warming to both the body and soul.” Yet, for Westerners interested in sampling the tea, it is not easy. Aside from the high prices, the tea’s limited supply makes pure unadulterated Pu’er difficult to come by outside of Southeast Asia. A trip to one of the numerous tea markets in China is your best bet. Or, for the more adventurous tea lover, hike up the Xishuangbanna mountains to source your own. Though, if Phong is to be believed, make sure you are not mistaken for a spy.

The yuan’s use worldwide grew by 15.6 percent between July and August this year,compared with an average 0.9 percent decrease in the use of all currencies over thesame period, according to the financial services provider SWIFT. [Photo/China Daily]

 

Currency ranked 14th in payments, with market share rising by 15.6 percent

The Chinese currency has gained a stronger footing in the global arena, having been rankedas the world’s 14th payments currency with its worldwide use expanding to 15.6 percent,according to the financial services provider SWIFT.

According to the RMB Tracker compiled by the SWIFT in September, the yuan as the world’s14th payments currency recorded a market share of 0.53 percent in August this year,improving on its 15th payments currency status in July, when it had a market share of 0.45percent.

In January this year, the yuan was ranked as the world’s 20th payments currency with a marketshare of just 0.26 percent in international trade. This means that the yuan’s use in internationaltrade has significantly improved in the first eight months of 2012.

Overall, the yuan’s use worldwide grew by 15.6 percent between July and August this year,compared with an average 0.9 percent decrease in the use of all currencies over the sameperiod.

“The yuan currency definitively will gain more popularity in international usage in the future,”said Lisa O’Connor, initiative director at SWIFT, at a news conference held on Tuesday.

The SWIFT report on yuan internationalization pointed out that the yuan is currently underusedin relation to the size of the mainland economy.

The mainland economy in 2010 overtook Japan as the world’s second-largest economy,contributing 9.5 percent to the world’s total gross domestic product. However, the Chinesecurrency only contributed to 0.9 percent of the world’s foreign exchange market value over thesame period.

The report suggested that there is ample room for the yuan’s increased use in internationaltrade.

In May 2011, approximately 10.2 percent of the mainland’s foreign trade transactions werecompleted using the yuan. This compared with the 90 percent of US trade using the US dollarand the 70 percent of Japanese trade settled in Japanese yen.

The RMB Tracker compiled by SWIFT also revealed that Taiwan’s use of the yuan currencyhas increased drastically since July 2011 enabling it to position itself as the next offshore yuanclearing center.

Yuan currency payments are increasingly popular in Taiwan, as nearly 24 percent of the totalpayments value with the mainland and Hong Kong was done using the yuan, representing a 15percentage point hike from the start of 2012. Between July to August this year, Taiwan’s yuanpayments value increased by 35.4 percent.

Excluding Hong Kong and the mainland, Taiwan was ranked 7th in terms of yuan paymentsvalue out of the world’s 131 countries and regions involved with yuan payments in August thisyear. A year earlier, Taiwan’s position was 57th.

The People’s Bank of China and the central bank of Taiwan signed a currency-clearingmemorandum of understanding at the end of August, including the intention to appoint a yuansettlement bank in Taiwan.

SWIFT’s O’Connor said that the rise of Taiwan in the offshore yuan clearing business will notexert competitive pressure on Hong Kong and Singapore’s offshore yuan business as theyuan’s popularity in the global arena will “lift all the offshore financial centers up”.

China’s small and medium-sized enterprises have been hit by multiple difficulties asthe overall economy falters and export demand weakens, according to a new report.

The report was jointly released by China International Cooperation Association of SMEs andthe municipal government of Yulin in southern Guangxi Zhuang autonomous region on Sunday.

The report said most of China’s SMEs face difficulties as slowing domestic and overseasmarket demands and soaring consumer costs have aggravated their business environment,especially for labor-intensive sectors such as small suppliers for iron and steel firms andautomobile producers.

Official figures suggested that SMEs made up 97 percent of China’s 12.5 million licensedcompanies by the end of 2011.

The report said the SMEs are facing a tougher financial crunch this year than before.

It cited figures from the National Bureau of Statistics that only 8.6 percent of the SMEs thatneeded bank loans got money they applied for in the first quarter, which was down by 1percentage point from the same period of last year.

The report foresees that a large number of SMEs may shut down during China’s on-goingeconomic restructuring, eliminating high energy-consumption and pollution-yielding firms.

The organizers of the report called on local governments to provide more financial support andtax and regulation fee cuts to help SMEs through the tough period.

They also pointed out that upgrading technology and improving management is a fundamentalway for SMEs to survive the crisis.

Opener Technology business mode is very simple and that is to help SMEs to become a supplier who can meet all the international standards. But it is different from Alibaba.com or Global Sources, IBUonline.com under Opener Technology focused on one-stop foreign trade entrustment.

Alibaba.com and Global Sources offer service to help international buyers and China suppliers to find each other. For example, when you pay 29800 membership fees to Alibaba for registration, you can get digital yellow page service, but the service does not involve in or deepen in transaction details or other processes after getting orders, including production details, documentation, logistics, customs clearance, port service and financial service. Alibaba onlye completes the first part tasks in foreign trade procedures.

IBUonline offers basic service to help international buyers and China suppliers to find each other, besides that, IBUonline offers more services relating to orders, such as product auditing, authentication, production module, raw materials management, logistics, storage, trade and financing. Opener Technology CEO Xujing stated that it will not take any charge to seek buyers and sellers information on the platform, while other platforms need to collect fees for the same kind of service.

Additionally, besides seeking products, buyers and sellers can search other information; such has port information, buyers’ information, industry updates, industry dynamic price, shipping price, exchange rate and other information relevant to foreign trade.

Before setting up Opener Technology, CEO Xujing has worked in a Germany multinational corporation as a China business representative, who has been trained strictly in business for eight years so she knew the whole procedures in cross-border trade in international buyers’ view. Services relating to orders, such as designing, auditing, opening module, marketing estimation, analysis, logistics, storage, documentation, export, shipping, trade records are all valuable. Ten years ago, Alibaba launched salon for international buyers and China suppliers’ meeting. Ten years later, we know we can do more to integrate all the resources on the platform, including yellow page, transaction, logistics, documentation, information, tool, financing etc. It is similar to App Store, which developed gaming at the early stage, later extending to fashion magazine, website and information exchange, the open mode became “Trust” in the end.

E-commerce is different from other platforms, new profit mode will bring new profit increase, but it is just like “a flash in the pan”. Taking Starbucks as an example, the market share and mode is an integral part of the business. The integration needs too much effort to form a business technique. I rejected to use any profit mode or innovation mode to support a company; no matter the mode is how good, it will “land” in the end, which is boring. We need to start from company organization structure and work team structure. Although Opener Technology profit mode is leading in the industry but it is not the only means for us to support company development, we will rely on subject research, data and industry background and updates to gain profit mode.

Opener Technology CEO Xujing says: the profit mode is to collect commission fees after international buyers and sellers reached agreement and completed the whole processes.

In foreign trade e-business field, Opener Technology paved a new way as a leader. It can be called that Opener Technology has provided a market channel with different services through the company’s technology and overseas marketing ability. The profit is to collect commission fees.

Opener Technology CEO Xujing says:all the logistics industry procedures have been moved onto IBUonline platform, which will cost half a year. B2B backstage has loaded professional knowledge, including logistics, documentation, customs clearance, quality audit, and certification. All are based on traditional mode and it has a special demand to allow other platform to access you.

China is likely to fall short of its goal of increasing its trade by 10 percent this year, as demandremains weak both overseas and at home, officials and experts said.

“China will definitely not achieve its 10 percent goal, given that its foreign trade proceededslowly in the first half of the year and the prospects are dim for the second half,” said Li Xunlei,deputy CEO and chief economist at Haitong Securities Co Ltd in Shanghai. “And we maintainour prediction that the country’s foreign trade will increase by about 9 percent year-on-year in2012.”

Xiang Songzuo, chief economist of the Agricultural Bank of China Ltd, said China’s foreigntrade “will increase by less than 7 percent in 2012.

“Because of the continuing global economic downturn, China will see weaker external demandin the next few months of this year than it had seen in the first eight months,” Ministry ofCommerce spokesman Shen Danyang, said at a news conference on Wednesday. “Althoughfaced with a mountain of difficulties, we will still try to achieve our goal of having trade increaseby 10 percent, which we had set at the beginning of this year.”

China’s exports increased by 2.7 percent year-on-year in August, up from 1 percent in theprevious month but still below the 3 percent the market had expected.

The decline in external demand is being blamed on the global economic downturn, especiallythe European Union’s debt troubles, as well as rising costs in China.

“The slowing of exports in August mainly results from the sluggish world economy and the EUdebt troubles, which have significantly reduced international demand,” Shen said.

Xiang said China saw its trade with the EU and Japan decrease in the first eight months of theyear and that trade with emerging markets now tends to be more responsible for increases inthe country’s exports.

China’s trade with the EU, its chief trade partner, declined by 1.9 percent year-on-year in thefirst eight months of 2012 and its trade with Japan decreased by 14 percent in the same period,according to the ministry.

Zhang Rui, the owner of Chuangsi Optical Spectacles in Wenzhou, Zhejiang province, saidoverseas orders usually quickly rise in number in August, as people in Western countriesprepare for the Christmas season. This year, though, the boost hasn’t been as great as it hadbeen.

“As Chinese exports already make up 10 percent of the world’s total exports, the country’sforeign trade will increase at a slower pace in the future, at a pace that more closely tracksincreases in world trade,” Li said. “Meanwhile, China’s exports are also rising in cost, causingthem to lose their chief competitive advantage.”

Karel De Gucht, EU trade commissioner, said China should adopt reforms that prevent it fromrelying so greatly on cheap exports, the development of infrastructure and large government-led enterprises.

In August, the value of China’s imports dropped for the third month, falling 2.6 percent year-on-year to $151.31 billion.

“China’s economic growth slowed and the country’s demand for construction, mining and textilemachinery contracted significantly while the weakness in international demand caused there tobe fewer imports of the materials and parts needed in manufactured goods,” Shen said.

China introduced various measures on Sept 12 intended to bring stability to its exports. Amongother changes, they required faster payment of rebates on export taxes and for more money tobe lent to exporters. The measures’ details are to be published before October, Shen said.

“Although the central government had established certain measures to encourage the exportindustry to expand at a faster pace, we haven’t seen the benefits yet,” said Ye Mingchun,manager of Zhejiang Tianyiqi Shoes, based in Taizhou, Zhejiang province.

Zhang Jianping, director of the Institute for International Economic Research, a think tank underthe National Development and Reform Commission, said “the measures are taking some time toshow their effects, and the important thing is to see how these measures will be put intopractice.”

The government-backed Beijing International Medical Center was launched on Monday, which senior health officials said would become a new model of medical reform to encourage social and foreign investments in the country’s medical market.

 

Minister of Health Chen Zhu is interviewed in Beijing on Monday after a news conference in which he explained national healthcare reform and development over the past decade.HE JUNCHANG / XINHUA

 

Driven mainly by private investments, the center, located in Tongzhou district of Beijing, will become a medical industry hub by 2020 comprising high-end medical facilities, medical research and education institutions, and related industries.

“It’s good to try to diversify the current supply of medical services, particularly the high-end, which can barely meet public demand now, and it will serve as a model to be scaled up nationwide,” said Ma Xiaowei, vice-minister of health, at the project launch.

It’s also part of the medical reform China initiated in 2009 to improve public access to affordable and quality medical care services, he noted.

Currently, private hospitals only have 10 percent of the beds nationally, and the figure is expected to reach 20 percent by the end of 2015, according to the medical service development part of the 12th Five-Year Plan period (2011-2015).

China has more than 6,000 private hospitals, accounting for nearly one-third of the total, but the mainly specialized hospitals provide only 9 percent of medical services supplied on the mainland.

Government departments, including the Ministry of Health and the National Development and Reform Commission, issued a series of policies encouraging non-governmental and foreign investments in the medical market.

Beijing last month issued policies to help private hospitals develop, including favorable taxation policies, simplified registration procedures and giving them priority while planning new hospitals.

Notably, private capital is also likely to invest more in public hospitals and will receive permission to obtain land for new compounds like public hospitals.

Private non-profit hospitals should provide services at prices set by the government, while others are more market-oriented, according to the policies.

Sun Zhigang, director of the medical reform office of the State Council, however, said private hospitals should focus more on special, quality and high-end markets.

Minister of Health Chen Zhu said private hospitals under sound government supervision and management would help better meet public health demands at various levels and improve the country’s general medical service quality via more competition between the private and public hospitals.

In reality, despite favorable policies, private hospitals still face great difficulties to operate, let alone excel, complained He Wei, director of the private He Eye Hospital in Shenyang.

“It’s particularly hard for us in terms of the high threshold of admittance, government research fund applications and tax exemption policy,” He said.

The foreign players are more upset about policy uncertainty.

Tan See Leng, chief executive officer of Parkway Pantai Limited, a high-end private healthcare provider in Singapore, said that the colossal population, an aging trend and a booming economy make China a medical market of great potential.

“We’re interested in that but will remain careful tapping into the market because we are not sure about the related government policy,” he said.

“The coming medical center in Tongzhou will be a government-built platform for quality private and foreign medical investments, featuring transparent and clearly set favorable measures in areas such as taxation and land,” said Yue Peng, chief of the district.

According to the blue map, 10 hospitals – two comprehensive and eight specialized ones – will be built to target mainly high-income groups like skilled workers returning from overseas, foreigners living in Beijing and international medical tourists.

“World renowned hospitals are invited to join,” he said.

The project is also expected to help drive local economic growth via extended development in related research, industries, and infrastructure construction, he added.

Chen agreed, adding that it would create more jobs and help boost domestic consumption.

“China is still short 12 million medical workers to meet international standards,” he noted.

However, Zhuang Yiqiang, deputy general-secretary of the Chinese Hospital Association, suggested that private capital should prepare to enter the market.

“It takes an average of more than 10 years for medical investments to begin making money,” he said.

Wang Yu, director of the medical administration department under the Ministry of Health, conceded that issues like entering the market, profit models and market position remain unclear for private practitioners.

So far, China has more than 200 medical institutions involving foreign capital but only one-third are operating well, according to Wang.

 

Liu Qing, a 37-year-old shop assistant, yawned over her counter selling cosmetics during the lunch hour on a Tuesday in September in a department store in East Nanjing Road, one of the busiest retail streets in Shanghai. It had been three hours since she started working at 10 am, but she hadn’t had a single customer.

 

Various stores in East Nanjing Road. It’s a story of fading glory for traditional stores in downtown Shanghai as non-core retail areas attract many customers, especially young people. Usually they cannot afford apartments in downtown areas and choose to live in suburban areas so commercial complexes on their doorsteps are obviously a more convenient choice than stores in city centers. [Photo/China Daily]

 

Like Liu, a veteran in the industry with more than 20 years of selling various products ranging from makeup and stationery to shoes, salespeople in downtown department stores, especially in State-owned retail businesses in high streets, are struggling amid increasingly fierce competition from online stores and commercial complexes in not so prestigious locations.

Liu says nowadays young customers tend to go to online shops or buy things in department stores with more entertainment facilities.

“My daughter never visits my store. She says it’s old-fashioned, without a proper restaurant or cinema and there is nothing much to attract here,” said Liu.

The retail market in Shanghai is experiencing significant changes, according to Qi Xiaozhai, a researcher with Shanghai Commercial Economic Research Center.

Non-core retail areas are attracting many customers, especially young people. Usually they cannot afford apartments in downtown areas and choose to live in suburban areas so commercial complexes on their doorsteps are obviously a more convenient choice than stores in city centers, said Qi.

Just a stone’s throw away, Spring Department Store in Hongkou district, which has been operating for 16 years in the region, recently suspended its operations for a refurbishment. The 8,000 square meter shopping mall has been struggling for survival because of a sharply declining number of customers. It may provide other services after re-opening, according to an announcement.

New department stores or fashion brands are more inclined to choose to open in non-core retail areas, according to the latest report on retail property by Knight Frank, a property services firm.

In the second quarter of 2012, three shopping centers opened in Shanghai, all of which are located in non-core areas, the report said.

With e-commerce and modern department stores changing the face of consumer behavior, traditional department stores are gradually losing their status. In the second quarter of this year, the First Department Store moved out of Huaihai Road, with BMW 4S taking its place. Meanwhile, the market for modern department stores and specialized stores remains positive.

New moves

Marks & Spencer opened three stores in Shanghai during the second quarter of the year. With Best Buy gone from its Zhongshan Park outlet, American furniture manufacturer and retailer Ashley filled the space and Gloria Department Store will open soon in Mega Plaza. Metro opened its Jiading New City store on June 29, while Decathlon opened its 10th sports outlet in Qibao Town, Minhang district.

A Consumer’s Guide to E-Payments

The Internet has taken its place beside the telephone and television as an important part of people’s lives. Consumers use the Internet to shop, bank and invest online. Most consumers use credit or debit cards to pay for online purchases, but other payment methods, like “e-wallets,” are becoming more common.

The Federal Trade Commission (FTC) wants you to know about these payment technologies and how to make your transactions as safe and secure as possible. Keep these tips in mind as other forms of electronic commerce, like mobile and wireless transactions, become more available.

AND HOW WOULD YOU LIKE TO PAY?

Most online shoppers use credit cards to pay for their online purchases. But debit cards — which authorize merchants to debit your bank account electronically — are increasing in use. Your debit card may be an automated teller machine (ATM) card that can be used for retail purchases. To complete a debit card transaction, you may have to use a personal identification number (PIN), some form of a signature or other identification, or a combination of these identifiers. Some cards have both credit and debit features: You select the payment option at the point-of-sale. But remember, although a debit card may look like a credit card, the money for debit purchases is transferred almost immediately from your bank account to the merchant’s account. In addition, your liability limits for a lost or stolen debit card and unauthorized use are different from your liability if your credit card is lost, stolen or used without your authorization.

Other electronic payment systems — sometimes referred to as “electronic money” or “e-money” — also are now common. Their goal is to make purchasing simpler. For example, “stored-value” cards let you transfer cash value to a card. They’re commonly used on public transportation, at colleges and universities, at gas stations, and for prepaid telephone use. Many retailers also sell stored-value cards in place of gift certificates. Some stored-value cards work offline, say, to buy a candy bar at a vending machine; others work online, for example, to buy an item from a website; some have both offline and online features. Some cards can be “reloaded” with additional value, at a cash machine; other cards are “disposable” — you throw them away after you use all their value. Some stored-value cards contain computer chips that make them “smart” cards: These cards may act like a credit card as well as a debit card, and also may contain stored value.

Some Internet-based payment systems allow value to be transmitted through computers, sometimes called “e-wallets.” You can use “e-wallets” to make “micropayments” — very small online or offline payments for things like a magazine or fast food. When you buy something using your e-wallet, the balance on your online account decreases by that amount. “E-wallets” may work by using some form of stored value or by automatically accessing an account you’ve set up through a computer system connected to your credit or debit card account.

“PAYING” IT SAFE

The FTC encourages you to take steps to make sure your transactions are secure and your personal information is protected. Although you can’t control fraud or deception on the Internet, you can take action to recognize it, avoid it and report it. Here’s how.

• Use a secure browser — software that encrypts or scrambles the purchase information you send over the Internet — to help guard the security of your information as it is transmitted to a website. Be sure your browser has the most up-to-date encryption capabilities by using the latest version available from the manufacturer. You also can download some browsers for free over the Internet. When submitting your purchase information, look for the “lock” icon on the browser’s status bar, and the phrase “https” in the URL address for a website, to be sure your information is secure during transmission.
• Check the site’s privacy policy, before you provide any personal financial information to a website. In particular, determine how the information will be used or shared with others. Also check the site’s statements about the security provided for your information. Some websites’ disclosures are easier to find than others — look at the bottom of the home page, on order forms or in the “About” or “FAQs” section of a site. If you’re not comfortable with the policy, consider doing business elsewhere.
• Read and understand the refund and shipping policies of a website you visit, before you make your purchase. Look closely at disclosures about the website’s refund and shipping policies. Again, search through the website for these disclosures.
• Keep your personal information private. Don’t disclose your personal information — your address, telephone number, Social Security number, bank account number or e-mail address — unless you know who’s collecting the information, why they’re collecting it and how they’ll use it.
• Give payment information only to businesses you know and trust and only when and where it is appropriate— like an order form. Never give your password to anyone online, even your Internet service provider. Do not download files sent to you by strangers or click on hyperlinks from people you don’t know. Opening a file could expose your system to a computer virus or a program that could hijack your modem.
• Keep records of your online transactions and check your e-mail for contacts by merchants with whom you’re doing business. Merchants may send you important information about your purchases.
• Review your monthly credit card and bank statements for any errors or unauthorized purchases promptly and thoroughly. Notify your credit or debit card issuer immediately if your credit or debit card or checkbook is lost or stolen, or if you suspect someone is using your accounts without your permission.

REPORT PROBLEMS IMMEDIATELY

• The Fair Credit Billing Act (FCBA) and Electronic Fund Transfer Act (EFTA) establish protections against lost or stolen credit or debit cards, and procedures for resolving errors on credit and bank account statements that can include:
• credit charges or electronic fund transfers that you — or anyone you’ve authorized to use your account — have not made;
• credit charges or electronic fund transfers that are incorrectly identified or show the wrong amount or date;
• computation or similar errors;
• a failure to properly reflect payments or credits, or electronic fund transfers;
• not mailing or delivering credit billing statements to your current address, as long as that address was received by the creditor in writing at least 20 days before the billing period ended; and
• credit charges or electronic fund transfers for which you request an explanation or documentation, because of a possible error.

For credit

The FCBA generally applies to “open end” credit accounts — that is, credit cards and revolving charge accounts, like department store accounts. It does not apply to loans or credit sales that are paid according to a fixed schedule until the entire amount is paid back, like an automobile loan.

Lost or stolen credit cards: Under the FCBA, your liability for lost or stolen credit cards is limited to $50. If the loss involves only your credit card number (not the card itself), you have no liability for unauthorized use. It’s best to notify your card issuer promptly upon discovering the loss. Many companies have toll-free numbers and 24-hour service to deal with such emergencies. Always follow up with a letter and keep a copy for your records.

Billing errors: The FCBA’s settlement procedures apply to disputes about “billing errors” for open-end accounts, including unauthorized charges (you cannot be liable for more than $50 for unauthorized credit charges); charges for goods or services you didn’t accept or weren’t delivered as agreed; charges that are incorrectly identified or show the wrong amount or date; math errors; a failure to properly reflect payments or credits; not mailing or delivering credit billing statements to your current address, if the address was received by the creditor in writing at least 20 days before the billing period ended; and charges for which you request an explanation or documentation, because of a possible error.

To take advantage of the FCBA’s consumer protections for errors on your account, write to the creditor at the address given for “billing inquiries,” not the address for sending your payments. Include your name, address, account number and a description of the billing error. Send your letter so that it reaches the creditor within 60 days after the first bill containing the error was mailed to you. And if you send your letter by certified mail, return receipt requested, you’ll have proof that the creditor received it. Include copies (not originals) of sales slips or other documents that support your position. Keep a copy of your dispute letter.

The creditor must acknowledge your dispute in writing within 30 days after it is received, unless the problem is resolved within that period. The creditor must con-duct an investigation and either correct the mistake or explain why the bill is believed to be correct, within two billing cycles (but not more than 90 days), unless the creditor provides a permanent credit instead. You may withhold payment of the amount in dispute and any related finance charges and the creditor may not take any action to collect that amount during the dispute.

For debit

The EFTA applies to electronic fund transfers — transactions involving automated teller machines (ATMs), debit cards and other point-of-sale debit transactions, and other electronic banking transactions that can result in the withdrawal of cash from your bank account.

Lost or stolen debit cards: If someone uses your debit card, or makes other electronic fund transfers, without your permission, you can lose from $50 to $500 or more, depending on when you report the loss or theft. If you report the loss within two business days after you discover the problem, you will not be responsible for more than $50 for unauthorized use. However, if you do not report the loss within two business days after you realize the card is missing, but you do report its loss within 60 days after your statement is mailed to you, you could lose as much as $500 because of an unauthorized withdrawal. And, if you do not report an unauthorized transfer or withdrawal within 60 days after your statement is mailed to you, you risk unlimited loss. That means you could lose all the money in your account and the unused portion of your maximum line of credit established for overdrafts.

Some financial institutions may voluntarily cap your liability at $50 for certain types of transactions, regardless of when you report the loss or theft; because this is voluntary, their policies could change at any time. Ask your financial institution about its liability limits.

EFT errors: The EFTA’s error procedures apply to certain problems. This can include:

• electronic fund transfers that you — or anyone you’ve authorized to use your account — have not made;
• incorrect electronic fund transfers;
• omitted electronic fund transfers;
• a failure to properly reflect electronic fund transfers; and
• Electronic fund transfers for whom you request an explanation or documentation, because of a possible error.

To take advantage of the EFTA’s error resolution procedures, you must notify your financial institution of the problem not later than 60 days after the statement containing the problem or error was sent. Although most financial institutions have a toll-free number to report the problem, you should follow-up in writing. For retail purchases, your financial institution has up to 10 business days to investigate after receiving your notice of the error. The financial institution must tell you the results of its investigation within three business days of completing its investigation. The error must be corrected within one business day after determining the error has occurred. If the institution needs more time, it may take up to 90 days, in many situations, to complete the investigation — but only if it returns the money in dispute to your account within 10 business days after receiving notice of the error, while it reviews your concerns.

For stored-value

The FCBA and the EFTA may not cover stored-value cards or transactions involving them, so you may not be covered for loss or misuse of the card. However, stored-value cards still might be useful for micropayments and other small purchases online because they can be convenient and — in some cases — offer anonymity. Before you buy a stored-value card or other form of e-money, ask the issuer for written information about the product’s features. Find out the card’s dollar limit, whether it is reloadable or disposable, if there’s an expiration date, and any fees to use, reload or redeem (return it for a refund) the product. At the same time, ask about your rights and responsibilities. For example, does the issuer offer any protection in the case of a lost, stolen, misused, or malfunctioning card, and who do you call if you have a question or problem with the card?

Source: Federal Trade Commission

LOGISTICS

Logistics is the management of the flow of resources, between the point of origin and the point of destination in order to meet some requirements, i.e. of customers or corporations. The resources managed in logistics can include physical items as food, materials, equipment, liquids and staff as well as abstract items as information, particles and energy. The logistics of physical items usually involves the integration of information flow, material, production, packaging, inventory, transportation, warehousing and oftentimes security. Furthermore the complexity of logistics can be modeled, analyzed, visualized and optimized by dedicated simulation software.

 

Logistics viewpoints

Inbound logistics is one of the primary processes and it concentrates on purchasing and arranging inbound movement of materials, parts and/or finished inventory from suppliers to manufacturing or assembly plants, warehouses or retail stores.

Outbound logistics is the process related to the storage and movement of the final product and the related information flows from the end of the production line to the end user.

Logistics fields

Given the services performed by logisticians, the main fields of logistics can be broken down as follows:

• Procurement Logistics
• Production Logistics
• Distribution Logistics
• After sales Logistics
• Disposal Logistics

Procurement Logistics consists of activities such as market research, requirements planning, make or buy decisions, supplier management, ordering, and order controlling. The targets in procurement logistics might be contradictory – maximize the efficiency by concentrating on core competences, outsourcing while maintaining the autonomy of the company, and minimization of procurement costs while maximizing the security within the supply process.

Production Logistics connects procurement to distribution logistics. The main function of production logistics is to use the available production capacities to produce the products needed in distribution logistics. Production logistics activities are related to organizational concepts, layout planning, production planning, and control.

Distribution Logistics has, as main tasks, the delivery of the finished products to the customer. It consists of order processing, warehousing, and transportation. Distribution logistics is necessary because the time, place, and quantity of production differ with the time, place, and quantity of consumption.

Disposal Logistics’ main function is to reduce logistics cost(s), enhance service(s), related to the disposal of waste produced during the operation of a business.

Business Logistics

Logistics as a business concept evolved in the 1950s due to the increasing complexity of supplying businesses with materials and shipping out products in an increasingly globalized supply chain, leading to a call for experts called supply chain logisticians. Business logistics can be defined as “having the right item in the right quantity at the right time at the right place for the right price in the right condition to the right customer”, and is the science of process and incorporates all industry sectors. The goal of logistics work is to manage the fruition of project life cycles, supply chains and resultant efficiencies.

In business, logistics may have either internal focus (inbound logistics), or external focus (outbound logistics) covering the flow and storage of materials from point of origin to point of consumption The main functions of a qualified logistician include inventory management, purchasing, transportation, warehousing, consultation and the organizing and planning of these activities. Logisticians combine a professional knowledge of each of these functions to coordinate resources in an organization. There are two fundamentally different forms of logistics: one optimizes a steady flow of material through a network of transport links and storage nodes; the other coordinates a sequence of resources to carry out some project.

Production logistics

The term production logistics is used to describe logistic processes within an industry. The purpose of production logistics is to ensure that each machine and workstation is being fed with the right product in the right quantity and quality at the right time. The concern is not the transportation itself, but to streamline and control the flow through value-adding processes and eliminate non–value-adding ones. Production logistics can be applied to existing as well as new plants. Manufacturing in an existing plant is a constantly changing process. Machines are exchanged and new ones added, which gives the opportunity to improve the production logistics system accordingly. Production logistics provides the means to achieve customer response and capital efficiency.

Production logistics is becoming more important with decreasing batch sizes. In many industries (e.g. mobile phones), a batch size of one is the short-term aim, allowing even a single customer’s demand to be fulfilled efficiently. Track and tracing, which is an essential part of production logistics—due to product safety and product reliability issues—is also gaining importance, especially in the automotive and medical industries.

Logistics outsourcing

Logistics outsourcing involves a relationship between a company and an LSP (Logistic Service Provider) which, compared with basic logistics services, has more customized offerings, encompasses a broad number of service activities, is characterized by a long-term orientation, and, thus, has a rather strategic nature.

Third-party logistics

Third-party logistics (3PL) involves using external organizations to execute logistics activities that have traditionally been performed within an organization itself. According to this definition, third-party logistics includes any form of outsourcing of logistics activities previously performed in-house. If, for example, a company with its own warehousing facilities decides to employ external transportation, this would be an example of third-party logistics. Logistics is an emerging business area in many countries.

Fourth-party logistics

The concept of Fourth-Party Logistics (4PL) provider was first defined by Andersen Consulting (Now Accenture) as an integrator that assembles the resources, capabilities and technology of its own organization and other organizations to design, build, and run comprehensive supply chain solutions. Whereas a third party logistics (3PL) service provider targets a function, a 4PL targets management of the entire process. Some have described a 4PL as a general contractor who manages other 3PLs, truckers, forwarders, custom house agents, and others, essentially taking responsibility of a complete process for the customer.

Emergency logistics

Emergency logistics is a term used by the logistics, supply chain and manufacturing industries to denote specific time critical modes of transport used to move goods or objects rapidly in the event of an emergency. The reason for enlisting emergency logistics services could be a production delay or anticipated production delay, or it could be that specialist equipment is needed urgently to prevent instances such as aircraft being grounded (also known as “aircraft on ground”–AOG), ships being delayed, or telecommunications failure. Emergency logistics services are typically sourced from a specialist provider.

As a profession

A logistician is a professional logistics practitioner. Professional logisticians are often certified by professional associations. One can either work in a pure logistics company such as shipping line, airport or freight forwarder or within the logistics department of a company. However, as mentioned previously, logistics is a very broad field encompassing procurement, production, distribution and disposal activities. Hence, the career perspectives are very broad also. New trends in the industry are the 4PL, or Fourth-party logistics – consulting companies offering logistics services. They hire students with a BA or MA in International Logistics.

Some universities and academic institutions train students as logisticians, offering undergraduate and postgraduate programs.

Source: Wikipedia

With the increasing influence of the internet not only good business will come, there are also scammers that lurks around the net finding for potential victims. Some scammers use advanced technology with old tricks to lure people to send money or give out personal information. Many scammers enforce or force you to make important decision on the spot. Don’t fall for such scheme. Below, I will give you some tips to avoid there crooks.

Things that needs to remember:

Know who you’re dealing with.

Try to find as many information about the person you’re dealing with, such as physical address and office number or home number if you’re really in doubt. With sophisticated technology now days, it’s hard to tell where someone is calling from. So the best thing to do is make an internet search, you can use Google and other search engine to help you search for the company name and website. If you find them, you’ll have to decide whether to trust them. After all, it’s only a good deal if you actually get a product that works.

Be aware that wiring money is like sending cash.

Con artists frequently demand that victim wire money, especially out of the country, because it’s almost hopeless to overturn the transaction or track the money. Don’t wire money to strangers, or to sellers/ buyers who demand on wire transfers for payment.

Constantly read your monthly statements.

Scammers steal account information and then run up charges or commit crimes in your name.  Insincere merchants will bill you for monthly “membership fees” and other goods or services without your authorization. If you found out that you have charges you don’t recognize or don’t have your approval, contact your bank, card issuer, or other creditor immediately.

Escrow Service.

Escrow service reduces the potential risk of fraud by acting as a trusted third party that collects, holds and disburses funds according to Buyer and Seller instructions. Escrow services are provided by a licensed and regulated escrow company.

• When to use Escrow.com: Escrow is well-suited for items purchased on auction sites, automobiles, motorcycles, domain names, jewelry, specialized computer equipment, and other high-ticket items.
• When to use another payment service: If you know and trust the other party involved in the transaction.

Protection for both Buyer and Seller

• Buyers receive and inspect the merchandise before the Seller is paid.
• Sellers receive their money if the Buyer accepts the merchandise.

 

Find a company that protects you from scammers.

One of the companies I know that protect their client from possible scam is www.ibuonline.com. IBUonline.com is among the trusted B2B portal that can help you deal with online trade. IBU can also provide customs clearance and logistics services ranging from factories in China to buyers warehouse as other customized services.