the BASF Asia Pacific Trading Centre in Singapore looks to centralise deliveries into the Asia-Pacific region as wll as inter-regional trading by using one focal point. The centre handles short payment terms for maufacturing companies using their home currency. customised payment terms for manufacturing companies using their home currency.
The system also allows for customised payment terms as well as invoicing in local currency according to customer needs or market requirements.
Today, the re-invoicing centre covers 16 Asia Pacific counties, all BASF companies and 2,200 different products that the companies produce.
The objectives of the centre were to simply administrative processes and transfer them closer to the customers in the region., and to reduce the costs of the adminstrative proceses of the BASF Group. Other targets of the re-invoicing centre along the lines of optimizing financial flows
The concept of re-invoicing involves the establishment of an offshore company as an international intermediary between, usually, exporters and their customers. The offshore company then buys the products from the exporter either on a discounted price or at cost, thereby creating a very small profit in the exporting country with tax liability and sell, or re-invoice, these same prodcts at market value prices to overseas buyers, thereby accumulating profits offshore where there is no tax liability.