INCOME TAXES (Tables)

9 Months Ended

Sep. 30, 2013

Income Tax Disclosure [Abstract]

Components of Income Tax Provision

Significant components of the income tax provision were as follows for the three and nine months ended September 30, 2013 and 2012:

	For the Three Months Ended September 30,				For the Nine Months Ended September 30,
	2013		2012		2013		2012
Current tax provision
Federal	$	-	$	-	$	-	$	-
State		-		-		-		-
Foreign		3,402,482		3,016,059		8,197,780		9,280,633
		3,402,482		3,016,059		8,197,780		9,280,633
Deferred tax provision (benefit)
Federal	$	-	$	-	$	-	$	-
State		-		-		-		-
Foreign		830,419		-		(471,468)		-
		830,419		-		(471,468)		-
Income tax provision	$	4,232,901	$	3,016,059	$	7,726,312	$	9,280,633

Income from Continuing Operations Before Income Taxes

Income from continuing operations before income taxes was allocated between the U.S. and foreign components for the three and nine months ended September 30, 2013 and 2012:

	For the Three Months Ended September 30,				For the Nine Months Ended September 30,
	2013		2012		2013		2012
United States	$	(669,423)	$	(521,809)	$	(1,821,093)	$	(2,099,653)
Foreign		15,897,019		14,134,604		29,900,996		24,737,341
		15,227,596		11,382,676		28,079,903		34,542,173

Reconcilation of United States Statutory Rates to Effective Rate

The following table reconciles the U.S. statutory rates to the Company’s effective rate for the three and nine months ended September 30, 2013 and 2012:

	For the Three Months Ended September 30,						For the Nine Months Ended September 30,
	2013			2012			2013			2012
US Statutory rate		34	%		34	%		34	%		34	%
Foreign income not recognized in USA		(34)	%		(34)	%		(34)	%		(34)	%
China income tax		25	%		25	%		25	%		25	%
Non-deductible expenses		3	%		1	%		3	%		2	%
Effective tax rate		28	%		26	%		28	%		27	%