6. NOTES RECEIVABLE - BANK ACCEPTANCES

3 Months Ended

Mar. 31, 2014

Receivables [Abstract]

Financing Receivables [Text Block]

6. NOTES RECEIVABLE – BANK ACCEPTANCES

The Company sold goods to its customers and received commercial notes (bank acceptances) from them in lieu of payment for accounts receivable. The Company discounted these notes with a bank or endorsed notes to vendors for payment of its obligations or to get cash from third parties. Most of the commercial notes have a maturity of less than six months. These notes receivable are with recourse and the Company is contingently liable to make the payment to the endorsee in case of a default. As of March 31, 2014 and December 31, 2013, the Company had notes receivable of $0.26 million and $0.59 million, respectively that were endorsed to vendors as payments for the Company’s obligation (contingent liability).