Legal Question in International Law in California

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?

Asked on 9/30/15, 11:53 am

1 Answer from Attorneys

Timothy McCormick Haapala, Thompson & Abern, LLP

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.

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Answered on 9/30/15, 12:02 pm

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