U.S.-based Amber Road has acquired EasyCargo, a Shanghai-based global trade management solutions provider specializing in Chinese trade regulations, for an undisclosed amount.
EasyCargo is a cloud-based solutions company with a specific focus on a subset of global trade management called China Trade Management, or CTM. EasyCargo's CTM solution provides extensive automation to support the Chinese government's regulations for an import regime called Processing Trade.
Processing Trade affects companies that import materials and components into China and use those materials and components to manufacture finished goods for export to foreign markets. When properly administered, Processing Trade transactions are exempt from import duties and value-added-taxes on export.
Because Processing Trade can reduce product costs by 25% or more, qualifying goods for the program has become increasingly popular. Goods qualifying for the Processing Trade program now account for more than 30% of all Chinese imports.
Financial terms of the acquisition were not released.