The Rebirth of a Genius
Chapter 47 – Importing used luxury cars (Sponsored by darkmeepking)

The next day, Kirilenko and his team went to the Tai Hua Trading Company. Kirilenko and Feng Yu signed a trade agreement. The agreement stated the terms and responsibilities of both parties, such as the Soviet Union being responsible for the transport of goods from Moscow to Bing City, payment terms, delivery time, etc. However, there was no mention of the type of goods in the agreement.

"Sister Ki, what do you want this time?"

"Do you have a good recommendation?" Kirilenko asked casually.

Feng Yu flicked his finger and Wu Zhigang entered the room, holding two Wind and Rain fans and placed them on the table.

"try to see. It is currently the most popular electric fan in China. Electric Wind and Rain Fans. Safe, light, beautiful, and economical. I've intentionally saved some for you. "Said Feng Yu.

A group of Soviet eyes grew large when they saw electric fans could be clamped on tables, chairs, cabinets, etc. They were even surprised because Feng Yu stuffed his fingers into the fan blade and did not injure himself.

The Soviet Union as Feng Yu had suspected. They produce electric fans but they are the same as Chinese. They produce metal fans that are expensive, thick, noisy, and poorly designed.

14 To 15 Rubles units? That's too cheap! Kirilenko immediately ordered 20,000 units! If it wasn't because they didn't have enough money, they'd want more.

The rest of the main items are food products, such as ham sausage, canned food, candy, Jianlibao drinks, and the rest are textile products.

The Soviet Union was one of the world leaders in heavy industry but their light industry is now defeated by China.

Feng Yu calculated the total price. He added 5% more to the wholesale price of electric fans and with fans, the total was added up to almost 600,000 rubles. Kirilenko and his partner did not have enough money.

But Feng Yu waved his hand: "It was only 100,000 rubles. I believe you . If you still have the carriage, I can even send you more stuff! This trade does not even need to use a lot of money. You can convey the things that I want while simultaneously offsetting the differences. We can barter! "

Barter trade?

The Soviets looked at each other.

Based on their past experience, they had to pay Feng Yu full payment first before Feng Yu loaded and delivered the item. After they received the item, they would then load the item that Feng Yu wanted and send it to Bing City. At the same time, Feng Yu needed to transfer the full payment to them before they delivered the goods.

But Feng Yu only said to have them send the goods he wanted from the Soviet Union, as payment for the difference. But, those in charge of transportation and Feng Yu still had to pay a portion of the transportation costs. Feng Yu was not afraid that they would deceive him?

Feng Yu might not trust others, but he still trusted Kirilenko. As long as Kirilenko still wanted to make money, Feng Yu was an important business partner.

Quite sure, Kirilenko agreed on behalf of the others. In the Soviet Union, they would use a 20% to 30% down payment to get the goods first. The balance can be settled two months later. The Soviets soon began discussing what goods they wanted.

When they had ordered 1 million rubles, Kirilenko asked Feng Yu what he wanted from the Soviet Union.

"Used car . Used car made in Europe. As long as there are no problems with vehicle performance and affordable prices, I will buy everything you can find! ”Jawab Feng Yu's.

In that era, tariffs for imported cars were very high. But for used cars, the rates are like normal goods. It is very cheap compared to a new car. In China, there are many people who like imported cars but can not afford them. They can only afford domestic cars.

Feng Yu remembered in his previous life, there was a rich woman from Shanghai who made her fortune from importing used luxury cars. He made several billion in ten years. He had sent the cars in by sea and it took a long time for one delivery.

Feng Yu, on the other hand, would import these cars through the railway line. The advantage of using the train was fast and Bing City was very close to the border. Feng Yu was very confident that he could quickly capture the Northeast market and gradually expand to the entire Northern region.

They have no supplies on their hands. If the number was large, it would be very troublesome. But they had already promised Feng Yu that they could get whatever he wanted.

They have no supplies on their hands. If the number was large, it would be very troublesome. But they had already promised Feng Yu that they could get whatever he wanted.

“Feng, we can get used car for you but not in bulk. "Kirilenko said with embarrassment.

Feng Yu raised his eyebrows and said: "It's over. You just choose the luxury cars that will be done. Mercedes, BMW, Volga, or sports cars such as Ferrari, Lamborghini, etc. I just want expensive ones! ”

If Kirilenko got Pepper or something, there would be no profit for Feng Yu.

European countries have lower tariffs on each other. The price difference for BMW in the Soviet Union and China could more than double. Feng Yu will bring used luxury cars from the Soviet Union, and he will update and repair these cars in China. He would then sell it at twice the cost. He was not worried that there would be no market for these cars.

“Feng, besides used cars, you want something else? The machines produced in our country are very good and advanced. You interested? "Ask Kirilenko.

Feng Yu thought for a while and said, "Then I want some spare parts. For example, spare parts for machinery used in agriculture and spare parts for tractors. I am still doing market research. I'll let you know when I need other things. ”

“No problem, we can easily get these things. "Kirilenko. They're all relieved. With their background and connections, they could easily obtain spare parts for Feng Yu.

This time they only had 500,000 rubles and bought goods worth 1 million rubles. Feng Yu had 1 million Rubles and asked for 1. Goods worth 5 million rubles.

This way of doing business allows both parties to buy more goods at once. The transaction will still be recorded in the bookkeeping but only a portion of the money will be deposited into their account.

This way of doing business allows both parties to buy more goods at once. The transaction will still be recorded in the bookkeeping but only a portion of the money will be deposited into their account.

After finishing their trade details, Feng Yu asked curiously, "Every time you haul so many items back, how do you pay taxes?"

The items Kirilenko bought at all times were very diverse and were stacked together in the carriage of the train. Feng Yu was very curious about how Kirilenko passed through customs and how he paid taxes.

Kirilenko winked at Feng Yu and said: "The items are military equipment. We don't have to pay taxes! "

These people are more shameless than he imagined. Transporting these items back as military equipment and benefitting oneself.

Could Feng Yu also avoid taxes? Of course not! The company is a private company and is required to pay taxes. Although the rates are much cheaper for used cars than new ones, they are still very expensive. Feng Yu also asked about the tax rates for metal parts and the taxes were also not low. How can you avoid taxes legally?

Feng Yu had been thinking about this matter when he wanted to do the used luxury car business. He had discussed with the lawyer and concluded that he could import these cars as other goods. Although he still had to pay taxes, the tax would be 90% cheaper and legitimate.

Importing a car has to pay taxes but what about importing auto parts or importing scrap metal? If all tires and seats are removed from the car, the car will be considered scrap metal. Tires and seats can then be imported as parts. Once the "used metals" and "parts" arrive, they can be reassembled into the car.

Taxes of 50% or 60% will be lowered to below 20%. That's gap.

As long as he was able to do it 3 to 5 times, Feng Yu's 1 million rubles would be several million or even more than 10 million! When that happens, he will have the funds to enter the Chinese financial markets as one of the big boys.