Our company is the North America HQ of a company in Shanghai, China, we have a customer in United States asked for the FOB Shanghai term for our business but they will need to make a
Master Sales Agreement with our Shanghai office. If it is illegal to place the order to China and then pay the payment to the US company?
1 Answer from Attorneys
No, that is not illegal. However, you will need to draft up the contract documents carefully and if it is a significant order you should consult accountants who can make sure you don't create avoidable tax expenses either in China or the U.S.