Bank Notes Payable

12 Months Ended

Dec. 31, 2016

Bank Notes Payable [Abstract]

BANK NOTES PAYABLE

NOTE 9 – BANK NOTES PAYABLE

Short-term bank notes payables are lines of credit extended by banks that can be endorsed and assigned to vendors as payments for purchases. The notes payable are generally payable within six months. These short-term notes payable are guaranteed by the bank for their full face value. In addition, the banks usually require the Company to deposit a certain amount of cash (usually range from 30% to 100% of the face value of the notes) at the bank as a guarantee deposit, which is classified on the balance sheet as restricted cash.

The Company had the following bank notes payable as of December 31, 2016:

	December 31,  2016
ICBC, due various dates from January 12, 2017 to June 29, 2017	$	1,564,479
CMBC, due April8, 2017 and April 24, 2017		345,584
ABC, due various dates from March 28, 2017 to April 28, 2017		283,315
CITIC, due various dates from February 5, 2017 to June 27, 2017		363,390
Total	$	2,556,768

The Company had the following bank notes payable as of December 31, 2015:

	December 31, 2015
ICBC, due various dates from January 17, 2016 to June 23, 2016	$	2,409,055
CITIC, due various dates from January 28, 2016 to June 29, 2016		430,728
Total	$	2,839,783

As of December 31, 2016 and 2015, $1,461,632 and $1,153,444 cash deposits were held by banks as a guaranty for the notes payable, respectively. In addition, as of December 31, 2016 and 2015, notes payable totaling $1,095,136 and $2,409,055 were secured by the personal properties of the Company’s principal shareholders and third party individuals, respectively.