Update on CFCFA Activities. Capt.Lin Zhong CFCFA Chairman CFCFA 2015 Annual Meeting August 2015 Ulaanbaatar, Mongolia
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1 1 Update on CFCFA Activities Capt.Lin Zhong CFCFA Chairman CFCFA 2015 Annual Meeting August 2015 Ulaanbaatar, Mongolia
2 Hong Kong Executive Board Meeting-1 2 Held in December 11 th, 2014 The lawyer introduced registration of CFCFA in Hong Kong. Mode of Incorporation in Hong Kong Incorporated on 23 May 2012 A company limited by guarantee without a share capital Each members liability guarantees to pay not exceeding HK$10.00 Constitution: Memorandum and Articles of Association Corporation first and them it will be upgraded to NGO. CFCFA 2015 Annual Meeting
3 Hong Kong Executive Board Meeting-2 3 Filed application for opening a bank account, passed the audit report, prepared for the annual filing in Hong Kong and provided additional documents and information for the annual meeting in Urumqi. Published drivers manual (Azerbaijan) and published drivers map (Uzbekistan) Raised the idea of canceling CFCFA Ltd (by Kazakhstan) How to define the founding members-members who signed in Seoul and Hong Kong. CFCFA 2015 Annual Meeting
4 Hong Kong Executive Board Meeting - the Audit Report 1
5 Hong Kong Executive Board Meeting - the Audit Report 2
6 Hong Kong Executive Board Meeting /2015 Actual Costs Actual costs for 2014 Lawyer attended at EBM on 11 Dec.2014 HK$ 27,500 Lawyer prepared documents for opening bank account with HSBC HK$ 5,000 Evert (Secretaries) Ltd as Company secretary HK$ 20,000 Law firm office as the registered address HK$ 2,500 Auditing firm attended at EBM on 11 Dec.2014 HK$ 6,405 Total: HK$61,405 Actual costs for 2015 (a) Evert (Secretaries) Ltd as Company secretary from 1 st January 2015 to 30 September 2015 HK$20,000 (b) Law firm office as the registered address of the company from 1 st January 2015 to 30 September 2015 HK$2,500 Total: HK$22,500
7 CFCFA Membership State-1 7 Association name Membership status Date of joining CFCFA Afghanistan 1 Association of Afghanistan Freight Forwarder Companies (AAFFCO) CFCFA founding member Azerbaijan 2 Azerbaijan International Road Carriers Association (ABADA) CFCFA founding member China P.R. 3 China International Freight Forwarders Association (CIFA) CFCFA founding member 4 Inner Mongolia Autonomous Region Logistics Association (IMARLA) CFCFA founding member 12 Oct 2009,Seoul, Rep. of Korea 12 Oct 2009, Seoul, Rep. of Korea 12 Oct 2009,Seoul, Rep. of Korea 12 Oct 2009,Seoul, Rep. of Korea 5 Chongqing International Freight Agency Association (CQIFA) CFCFA member 10 Aug 2011, Issyk-Kul, Kyrgyz Republic 6 Xinjiang Uygur Logistics Association (XULA or XLA) CFCFA member 05 Dec 2012, Bangkok, Thailand Kazakhstan 7 Kazakhstan Freight Forwarders Association (КFFA) CFCFA founding member 8 Kazakhstan Association of Carriers and Wagon (Container) Operators (KACWO) CFCFA founding member 12 Oct 2009, Seoul, Rep. of Korea 12 Oct 2009, Seoul, Rep. of Korea 9 Union of International Road Carriers of the Republic of Kazakhstan (KAZATO) CFCFA member 1 Mar 2010, Almaty, KAZ 10 Association of Transport and Logistics "KAZLOGISTICS" CFCFA member 05 Dec 2012, Bangkok, Thailand Kyrgyz Republic 11 Kyrgyz Freight Operators Association (FOA) CFCFA founding member 12 Kyrgyz Association of Road Carriers corporate liquidation 13 Kyrgyz Republic Freight Forwarders Association (KRFFA) CFCFA member 12 Oct 2009, Seoul, Rep. of Korea 12 Oct 2009, Seoul, Rep. of Korea 1 Mar 2010, Almaty, KAZ 14 Association of International Road Carriers of the Kyrgyz Republic (AIRTO-KR) CFCFA member 1 Sept.2014Urumqi,PRC CFCFA 2015 Annual Meeting
8 CFCFA Membership State Mongolian National Chamber of Commerce and Industry (MNCCI) Mongolia CFCFA founding member 12 Oct 2009, Seoul, Rep. of Korea 16 National Road Transport Association of Mongolia (NARTAM) CFCFA founding member 12 Oct 2009, Seoul, Rep. of Korea Pakistan 17 Pakistan International Freight Forwarders Association (PIFFA) CFCFA member 05 Dec 2012, Bangkok, Thailand 18 Association of International Automobile Carriers of the Republic of Tajikistan (ABBAT) Tajikistan CFCFA founding member 12 Oct 2009, Seoul, Rep. of Korea 19 Association of International Automotive Transport of Tajikistan (AIATT) CFCFA member 1 Sept.2014,Urumqi,PRC Uzbekistan 20 Business Logistics Development Association, LLC (ADBL) CFCFA founding member 12 Oct 2009, Seoul, Rep. of Korea 21 Association of International Road Carriers of Uzbekistan (AIRCUZ) withdraw the membership 12 Oct 2009, Seoul, Rep. of Korea 22 Uzbek International Forwarders Association (UIFA) CFCFA member 1 Mar 2010, Almaty, KAZ Turkmenistan 23 Turkmen Association of International Road Carriers (THADA) CFCFA Observer 10 Aug, 2011Issyk-Kul, Kyrgyz Republic CFCFA 2015 Annual Meeting
9 Quotation for Hong Kong Company secretary, accounting and audit services and taxation declaration -1 Service Items Company secretary Company registration address Accounting services (Issue annual financial report) (a) Transaction documents less than 36 a year (b) transaction documents a year (C) transaction documents a year Accounting services (Issue annual audit report) (a) Transaction documents less than 36 a year (b) transaction documents a year (c) transaction documents a year Fees (HK$) 1,800 (Annually) 1,800 (Annually) 10,000 (Annually) 15,000 (Annually) 20,000 (Annually) 10,000 (Annually) 15,000 (Annually) 20,000 (Annually)
10 Quotation for Hong Kong Company secretary, accounting and audit services and taxation declaration -2 Taxation declaration (Issue annual tax calculation form) (a) Transaction documents less than 36 a year (b) transaction documents a year 1,500 (Annually) 2,000 (Annually) (c) transaction documents a year 2,500 (Annually) These services do not include travelling, printing and copying expenses, transportation costs and delivery fees etc., which are reimbursed for the actual expenses. Transaction documents cover transactions like selling, buying, expenditures and income, etc. CFCFA annual maintenance fee: 25,100 HK$
11 About Opening Bank Account Reasons of HSBC Refusal HSBC did not specify the reason. Got some idea from informal channels Hard to verify the backgrounds of the directors and the enterprise Urumqi offshore account requires application to three banks paying application fees paying translation fees of shareholders documents
12 Almaty Executive Board Meeting Discussed secretary fees raised by ADBL Discussed the qualifications of founding members Agreed to reduce the number of board directors temporarily to meet the requirements of opening account in Urumqi and after the account is opened, the number will be resumed. If with temporary reduction of board directors, the account still fails to be opened, the possibility of registering in Kazakhstan can be discussed.
13 About Cancellation of CFCFA Ltd. Disputes cancellation Keep registration in Hong Kong Reregistration Do not register Pros Since the company has been established, it should be kept. cancellation is easy, but establishment is difficult. The legal entity should be maintained so that it can network, which can help CFCFA get support and grow. The cost of keeping it in Hong Kong can be calculated. Without the legal entity, ADB will no longer provide fund and then CFCFA will become a virtual organization. Membership fees can sustain its operation.
14 Reregister as an NGO in Almaty The conditions of KAZLOGISTICS KAZLOGISTICS wrote three letters Support conditions-assist registration and provide registration place KAZLOGISTICS and CIFA will be founders and others will be members Hope to get ADB support for the registration fee. Reasons for cancellation and reestablishment It was thought that registration of CFCFA in Hong Kong was a mistake. High maintenance cost, no bank account and high legal risks. Executive directors questionnaires Issued questionnaires to the executive directors and KAZLOGISTICS with ADB consent Got three reports
15 End of Financial Support from ADB ADB indicated that it had always emphasized ending of financial support by Sep. 30 th. No financial support for registration fees. No financial support for the maintenance fees of CFCFA Ltd in Hong Kong, including the 2014 audit report fees and the expense of registration place and secretariat after Sep. 30 th. Financial support is only for cancellation. Gap between ABD expectations and members expectations New way out New model
16 Attended the CAREC Senior Officials Meeting in Bangkok in June CPMM report Reported the development of CFCFA and the difficulties with government officials of MOF, the Financial Department of Xinjiang Autonomous regions and ADB. Communicated with officials of the CAREC Institute China agreed to considering providing financial support through ADB.
17 Asked China to Provide Financial Support Submitted a 20 page report Applied for US $ 1.5 million for three years Use of fund (budget) Three-year work plan 9 priorities Team building Expected outputs in three years Work independently in three years
18 Cooperation Projects and External Cooperation Turkel Fair Organization ( Istanbul.Turkey)(Twice) JSC Viva Consult (Dnepropetrovsk, Ukraine) Received ADB experts Arranged meetings with enterprises, associations and insurance companies on Dec. 8 th, 9 th and 10 th, Arranged meetings for transit transport experts on March 24 th, Visited Urumqi Visited local competent authorities Had meetings with insurance companies Visited local enterprises
19 Thank you!
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