Amber Stellingwerf

Supplier’s Declaration is the document demonstrating the status of preferential origin of a good which is released for free circulation and originating in a member state of the Pan-Euro-Mediterranean Cumulation of Origin or Western Balkans Cumulation of Origin.

The registration procedure is carried out in accordance with the administrative registration standards of the on certification and accreditation administration of the PRC (CNCA).

Once you have classified the item, the next step is to determine whether you need an export license. You begin by determining the “Reason(s) for Control” of the item which is found in the ECCN entry, and crossreferencing the “Reason(s) for Control” with the country of destination in the Commerce Country Chart. An “X” in the box means there is a license requirement for the item. In addition to reviewing the “Reason(s) for Control” against the Commerce Country Chart, a license requirement might exist if you are shipping the item to a prohibited end user or end use.

You can change your company's method of cost in inventory, if you find it necessary, after your first year in business.

There are two cost methods for your financial statements. One method is FIFO (first-in, first-out), which sells the oldest items in inventory first. This method assumes costs associated to manufacture or acquire your current inventory are similar to those of the merchandise recently sold. When using the FIFO method, your inventory generally is represented in lower levels with a higher cost for the items.

An alternative to the FIFO method is LIFO - the last-in, first-out cost of inventory. With LIFO, the most recent merchandise is sold before the products previously sitting on the shelves. The LIFO method generally will represent your inventory lower at the end of the year and your expenses higher than the FIFO system. Therefore, the valuation of your company is different, depending on the cost method you use. Investors need to compare your year-over-year financial statements to determine the viability of your operation, which is why it's important to maintain consistency.

Agency conflict is a problem that arises when a business organization (agent) does not act according to the will of its investors. It is a conflict of interest between management and stockholders. Business organization and its management are hired as an agent by the stockholders. They invest their money in the business organization and expect it to work according to their interest and benefits. When business management does not work in the best interest of its stockholders, then agency conflict arises.