INCOME TAXES (Tables)
 6 Months Ended
Jun. 30, 2012
Local and Foreign Components of Income (Loss) before Income Taxes

For the six months ended June 30, 2012 and 2011, the local (“United States of America”) and foreign components of income (loss) before income taxes were comprised of the following:

  

    Six months ended June 30,  
    2012     2011  
Tax jurisdiction from:                
- Local   $ (42,265 )   $ (362,898 )
- Foreign     107,482       1,309,643  
                 
Income before income taxes   $ 65,217     $ 946,745  
Reconciliation of Income Tax Rate to Effective Income Tax Rate

25%. The reconciliation of income tax rate to the effective income tax rate for the six months ended June 30, 2012 and 2011 is as follows:

 

    Six months ended June 30,  
    2012     2011  
             
Income before income taxes from PRC operation   $ 107,482     $ 1,309,643  
Statutory income tax rate     25 %     25 %
Income tax expense at statutory rate     26,871       327,411  
                 
Effect from non-deductible items     19,381       1,464  
Effect from tax holiday     -       (163,744 )
Tax adjustments     -       (9,342 )
                 
Income tax expense   $ 46,252     $ 155,789