HKR：Collaboration Processes for Factories and employees

For Factory Owners (Settlement Cooperation Model)

Collaboration Process: Precise Exposure, Efficient Supply-Demand Matching

（1） Settlement Application & Review

• Submit factory details (Commercial Qualifications，production scale, main products, certifications: ISO, CE, etc.). Choose membership packages (Basic/Advanced, with the latter including ad promotion and SEO optimization). HKR verifies factory authenticity (on-site inspection or third-party certification) within 3-5 business days, evaluates, and provides feedback. Activate exclusive portfolio pages within 5 business days after approval.

（2） Product Display & Marketing

• Upload product details via email to business@hkricardo.com (subject: “Merchant Settlement”, attachments: technical specs, production capacity, sample info, OEM/ODM capabilities). Mark “wholesale available” or “retail dropshipping supported”. Offer small-batch trial orders to lower cooperation thresholds and participate in platform marketing activities (online industry fairs, new product promotion pages). Note: “No free samples” items are marked, but product descriptions (photos, text, videos) can be obtained via B2C retail or paid services.

（3） Order Processing & Fulfillment

• Receive order notifications (including customization requests) within 1 business day after customer orders (retail/wholesale). Confirm production lead times and arrange shipping (self-delivery or platform logistics network).

（4） Data Feedback & Optimization

• Get real-time sales data (traffic, orders, repurchase rates), user reviews, and market demand analysis reports (popular categories, price sensitivity, etc.) on a regular basis. Advanced package factories can work with HKR consultants to customize market demand reports for adjusting production flexibly (optimizing product design, capacity planning, supply chain efficiency) and mitigating risks (target market policy changes, etc.).

Appendix：

Compliance Guidelines for Partner Factories and Employees

I. General Principles

As a Hong Kong-based international trading company, HKRicardo strictly complies with the General Data Protection Regulation (GDPR), the EU Forced Labor Ban, and International Labour Organization (ILO) Conventions C029 (Forced Labor) and C0182 (Worst Forms of Child Labor). These guidelines ensure compliance with global labor standards and data protection requirements, applying to all partner factories and company employees. Our goal is to safeguard human rights, data privacy, and supply chain transparency without unnecessary restrictions.

II. Requirements for Partner Factories

1. Labor Standards & Prohibition of Forced Labor (Core of EU Forced Labor Ban)

1.1 No Forced Labor

• Ensure all workers engage in employment voluntarily. Prohibit coercion through threats, violence, debt bondage, or retention of identification documents/deposits.
• Workers have the right to freely choose employment and terminate contracts with reasonable notice, in line with local labor laws and ILO Conventions C029/C0105.

1.2 Child Labor Prohibition & Youth Protection

• Ban employment of workers under 15 years old (or the higher legal minimum age in the factory’s host country).
• Provide special protections for young workers (15–18 years old), including restricted working hours and exclusion from hazardous tasks.

1.3 Freedom of Association & Collective Bargaining

• Respect workers’ rights to form or join trade unions. No discrimination or retaliation against employees for union participation.

1.4 Working Hours & Wage Compliance

• Limit weekly working hours to 48 hours (overtime voluntary and compliant with local legal limits), with premium pay for overtime.
• Ensure wages meet or exceed local minimum wage standards. Pay via traceable methods (e.g., bank transfers) and retain records for at least 3 years.

1.5 Occupational Health & Safety

• Maintain workplaces compliant with international safety standards (e.g., ISO 45001). Provide necessary PPE and annual health/safety training.

2. Supply Chain Transparency & Due Diligence

2.1 Labor Risk Assessment

• Conduct annual supply chain risk screenings, focusing on EU-identified high-risk regions for forced labor. Complete the Labor Compliance Self-Assessment Form.

2.2 Documentation Requirements

• Retain employment contracts, attendance records, pay slips, and training documents for 3+ years for audit by clients/regulators.

2.3 Non-Compliance Termination

• Immediately terminate partnerships with factories involved in forced labor or data violations. Report to authorities (e.g., European Commission, Hong Kong Labour Department).

3. Data Processing Compliance (GDPR Requirements)

3.1 Worker Data Protection

• Collect personal data (ID, bank accounts, etc.) only with written consent, limited to employment purposes. Prohibit unauthorized third-party disclosure.

3.2 Data Storage & Cross-Border Transfers

• Store worker data on secure servers. When transferring to the EU, use Standard Contractual Clauses (SCCs) or EU-recognized frameworks (e.g., Privacy Shield where applicable).

III. Requirements for Company Employees

1. Data Handling Compliance (GDPR Core Obligations)

1.1 Customer Data Protection

• When processing EU customer data, clearly state its purpose (e.g., order fulfillment, after-sales support). Collect only necessary information (name, address, payment details).
• Restrict data access to authorized personnel. Revoke system permissions immediately upon an employee’s departure.

1.2 Cross-Border Data Transfers

• Ensure data transfers to the EU comply with GDPR. For non-EU factories, use SCCs or equivalent safeguards before sharing customer data.

1.3 Data Security Measures

• Encrypt sensitive data (bank details, ID numbers). Mandate annual data security training (minimum 1 session per year).

2. Labor Compliance & Supply Chain Accountability

2.1 Forced Labor Screening

• Procurement/supply chain teams must review factory compliance certifications (e.g., SA8000, third-party audits) and reject high-risk partnerships.

2.2 Whistleblowing Mechanism

• Employees may report labor/data violations anonymously via compliance@hkricardo.com. We guarantee strict confidentiality for whistleblowers.

2.3 Training Mandates

• New hires complete a 2+ hour “International Labor & Data Compliance” training. Annual refresher training is required for all staff.

3. Employee Rights & Obligations

3.1 Voluntary Work Principle

• Employees may refuse forced overtime or dangerous tasks beyond contractual terms without penalty.

3.2 Privacy Rights

• Employee personal data (medical records, attendance) is used solely for HR management. Disclosure without consent is strictly prohibited.

IV. Compliance Management & Consequences for Violations

4.1 Internal Audits

• Conduct annual third-party audits for labor and data compliance. Provide a Compliance Assessment Report to EU clients as needed.

4.2 Non-Compliance Consequences

• Factory Violations: Terminate partnership, add to our blacklist, and report to relevant authorities (e.g., EU’s FLOPIDA database).
• Employee Violations: Disciplinary actions range from warnings to termination; legal violations will be referred to law enforcement.

V. Effective Date & Updates

These guidelines take effect upon contract signing and apply to all Hong Kong-based employees, global branches, and partner factories. Updates will be issued promptly following changes to international regulations.

HK Ricardo Trading Industry Chain Services Co., Limited
April 15, 2025

Legal References

1. EU Forced Labor Ban (Regulation (EU) 2024/XXX)
2. General Data Protection Regulation (GDPR) (Regulation (EU) 2016/679)
3. ILO Conventions C029 (1930) and C0182 (1999)
4. ISO 45001 (Occupational Health and Safety Management Systems)

This document is designed for clear compliance communication with EU and US stakeholders, using terminology familiar to Western legal and business contexts while maintaining regulatory precision.