Excerpt from: China Supply Chain and Logistics Strategy
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| November 07, 2005 | | Lingang Logistics Park to be Premier Remanufacturing Center | The process of remanufacturing consists of collecting a used product or component from the field, assessing its condition, and replacing worn, broken, or obsolete parts with new or refurbished parts. The resulting "remanufactured" product is then inspected and tested, with the goal of meeting or exceeding the quality standards of new products. The unique advanate of remanufacturing is that, unlike recycling and re-use, the process of remanufacturing does not degrade the overall value of the materials used.
Caterpillar Logistics Services China Limited (CLS China) was formed in 2003 as a joint venture with LSH Logistics Limited, a subsidiary of Caterpillar Inc.’s largest dealer in China. In 2004, CLS China and the Lingang Group formed the joint venture company called Caterpillar Logistics (Shanghai) Co. Ltd. (CL Shanghai). In August 2005, CL Shanghai signed three non-binding memorandums of understanding (MOUs) with the Lingang Group to further develop services in China, including remanufacturing.
Caterpillar and CL Shanghai will set up Caterpillar Remanufacturing Services in the Lingang logistics park in order to provide remanufacturing services to it’s customers as well as other companies. Since remanufacturing poses new Customs issues in China, Caterpillar entities are working with the Shanghai government on writing new customs rules to establish duties for remanufactured products. Currently, China’s Customs regulations only categorize products as new or used, thus problems arise when Customs tries to figure out what tariff to levy on remanufactured goods.
Source: Vision Volume 2*3 October-Nov 2005 Caterpillar Logistics | | |
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