10-Q

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM 10-Q

(Mark One)

x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended: June 30, 2012

or

¨ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from ________ to ________

Commission File Number: 333-173873

                   SW China Imports, Inc.                      

 (Exact name of registrant as specified in its charter)

                    Nevada                     (State or other jurisdiction of incorporation or organization)               45-0704149               (I.R.S. Employer Identification Number)

    15800 Crabbs Branch Way, Ste. 310, Rockville, MD  20855    

 (Address of principal executive offices)

            Tel: (240) 477-7738, Fax: (240) 715-9116         

 (Registrant’s telephone number, including area code)

                                                                   N/A                                                                 

 (Former name, former address and former fiscal year, if changed since last report)

 Indicate by check mark whether the registrant (1) has filed all reports to be filed by Section 13 or Section 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

Yes x      No ¨

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Website, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulations S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).

Yes x      No ¨

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company.  See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.  (Check one):

Large Accelerated Filer ¨                                                                                                        Accelerated Filer    ¨

Non-Accelerated Filer   ¨  (Do not check if a smaller reporting company)            Smaller Reporting Company x 

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act).

Yes x      No ¨

The number of shares outstanding of the Registrant's common stock, $0.0001 par value, as of August 14, 2012, was 111,570,000.

TABLE OF CONTENTS

Item			Page
PART I – FINANCIAL INFORMATION			4
	Item 1	Financial Statements	4
	Item 2	Management’s Discussion and Analysis of Financial Condition and Results of Operations	15
	Item 3	Quantitative and Qualitative Disclosures About Market Risk	31
	Item 4	Controls and Procedures	31
PART II – OTHER INFORMATION			32
	Item 1	Legal Proceedings	32
	Item 1A	Risk Factors	32
	Item 2	Unregistered Sales of Equity Securities and Use of Proceeds	32
	Item 3	Defaults Upon Senior Securities	32
	Item 4	(Removed and Reserved)	32
	Item 5	Other Information	32
	Item 6	Exhibits	33
Signatures			33

2

 Forward-Looking Statements

Certain statements made in this Quarterly Report on Form 10-Q are “forward-looking statements” (within the meaning of the Private Securities Litigation Reform Act of 1995) regarding the plans and objectives of management for future operations.  Such statements involve known and unknown risks, uncertainties, and other factors that may cause actual results, performance, or achievements of the Registrant to be materially different from any future results, performance, or achievements expressed or implied by such forward-looking statements.  The forward-looking statements included herein are based on current expectations that involve numerous risks and uncertainties.  The Registrant’s plans and objectives are based, in part, on assumptions involving it continuing as a going concern and executing on its stated business plan and objectives.  Assumptions relating to the foregoing involve judgments with respect to, among other things, future economic, competitive and market conditions and future business decisions, all of which are difficult or impossible to predict accurately and many of which are beyond the control of the Registrant.  Although the Registrant believes its assumptions underlying the forward-looking statements are reasonable, any of the assumptions could prove inaccurate and, therefore, there can be no assurance the forward-looking statements included in this Quarterly Report will prove to be accurate.  In light of the significant uncertainties inherent in the forward-looking statements included herein, the inclusion of such information should not be regarded as a representation by the Registrant or any other person that the objectives and plans of the Registrant will be achieved.

As used in this Quarterly Report, the terms "we", "us", "our", "SW China", “Registrant”, and “Issuer” mean SW China Imports, Inc. unless the context clearly requires otherwise.

3

PART I – FINANICAL INFORMATION

Item 1.  Financial Statements

SW CHINA IMPORTS, INC.

(A DEVELOPMENT STAGE COMPANY)

BALANCE SHEETS

ASSETS

			6/30/12 (unaudited)		12/31/11 (audited)
Current assets:
	Cash	$	3,374	$	14,773
			3,374		14,773
Total assets:		$	3,374	$	14,773

LIABILITIES AND STOCKHOLDERS’ (DEFICIT)

Current liabilities:
	Accounts payable	$	99		-
	Note payable to stockholder		40,750		35,650
			40,849		35,650
	Total liabilities	$	40,849	$	35,650
Commitments and contingencies			-		-
Stockholders’ (deficit):
	Preferred stock, $0.0001 par value, 50,000,000 shares authorized;      no shares issued and outstanding		-		-
	Common stock, $0.0001 par value, 500,000,000 shares authorized;      112,570,000 and 111,570,000 shares issued and outstanding, respectively		11,257		11,157
	Additional paid-in capital		117,850		106,172
	(Deficit) accumulated during the development stage		(156,582)		(138,206)
	Less common stock subscribed		(10,000)		-
	Total stockholders’ (deficit)	$	(37,475)	$	(20,877)
Total liabilities and stockholders’ (deficit)		$	3,374	$	14,773

The accompanying notes to the financial statements are an integral part of these statements.

4

SW CHINA IMPORTS, INC.

(A DEVELOPMENT STAGE COMPANY)

STATEMENTS OF OPERATIONS

(unaudited)

			For the three months ended 6/30/12		For the three months ended 6/30/11		For the six months ended 6/30/12		For the period from 2/23/11 (inception) to 6/30/11		Cumulative from 2/23/11 (inception) to 6/30/12
Revenues, net		$	-	$	-	$	-	$	-	$	-
Cost of revenues			-		-		-		-		-
Gross profit			-		-		-		-		-
Expenses:
	General and administrative		-		-		575		-		652
	Consulting fees		-		-		1,000		50,000		51,000
	Legal fees		750		-		9,575		50,000		7,000
	Accounting fees		1,000		1,000		3,000		2,000		92,075
	Transfer agent fees		372		-		2,448		-		2,448
	Total expenses		2,122		1,000		16,598		102,000		153,175
(Loss) from operations			(2,122)		(1,000)		(16,598)		(102,000)		(153,175)
Other income (expense)
	Interest expense		(889)		-		(1,778)		-		(3,407)
	Total other income (expense)		(889)		-		(1,778)		-		(3,407)
Provision for income taxes			-		-		-		-		-
Net (loss)		$	(3,011)	$	(1,000)	$	(18,376)	$	(102,000)	$	(156,582)
(Loss) per common share,      basic and diluted		$	(0.00)	$	(0.00)	$	(0.00)	$	(0.00)
Weighted average number of common shares outstanding,      basic and diluted			112,570,000		110,000,000		112,307,705		110,000,000

The accompanying notes to the financial statements are an integral part of these statements.

5

SW CHINA IMPORTS, INC.

(A DEVELOPMENT STAGE COMPANY)

STATEMENT OF STOCKHOLDERS’ (DEFICIT)

For the period from February 23, 2011 (inception) to June 30, 2012

(unaudited)

Description	Common Stock				Additional Paid-In Capital		Common Stock		(Deficit) Accumulated During the Development Stage		Total
	Shares		Amount				Subscribed
Balance, February 23, 2011 (inception)	-	$	-	$	-	$	-	$	-	$	-
Issuance of common shares to directors (founder’s shares)	100,000,000		10,000		(10,000)		-		-		-
Issuance of common shares to consultants	10,000,000		1,000		99,000		-		-		100,000
Issuance of common shares for cash	1,570,000		157		15,543		-		-		15,700
Imputed interest on related party loan	-		-		1,629		-		-		1,629
Net (loss) for the period	-		-		-		-		(138,206)		(138,206)
Balance, December 31, 2011 (audited)	111,570,000	$	11,157	$	106,172	$	-	$	(138,206)	$	(20,877)

The accompanying notes to the financial statements are an integral part of these statements.

6

SW CHINA IMPORTS, INC.

(A DEVELOPMENT STAGE COMPANY)

STATEMENT OF STOCKHOLDERS’ (DEFICIT)

For the period from February 23, 2011 (inception) to June 30, 2012

(unaudited)

(continued)

Description	Common Stock				Additional Paid-In Capital		Common Stock		(Deficit) Accumulated During the Development Stage		Total
	Shares		Amount				Subscribed
Balance, December 31, 2011 (audited)	111,570,000	$	11,157	$	106,172	$	-	$	(138,206)	$	(20,877)
Issuance of common shares for cash	1,000,000		100		9,900		(10,000)		-		-
Imputed interest on related party loan	-		-		1,778		-		-		1,778
Net (loss) for the period	-		-		-		-		(18,376)		(18,376)
Balance, June 30, 2012 (unaudited)	112,570,000	$	11,257	$	117,850	$	(10,000)	$	(156,582)	$	(37,475)

The accompanying notes to the financial statements are an integral part of these statements.

7

SW CHINA IMPORTS, INC.

(A DEVELOPMENT STAGE COMPANY)

STATEMENTS OF CASH FLOWS

(unaudited)

				For the six months ended 6/30/12		For the period from 2/23/11 (inception) to 6/30/11		Cumulative from 2/23/11 (inception) to 6/30/12
Cash flows from operating activities:
	Net (loss)		$	(18,376)	$	(102,000)	$	(156,582)
	Adjustments to reconcile net (loss) to net cash (used in) operating activities
		Common stock issued in connection with services provided by consultants		-		100,000		100,000
		Imputed interest on related party loan		1,778		-		3,407
	Changes in operating assets and liabilities:
		Increase (decrease) in accounts payable		99		-		99
	Net cash provided (used) by operating activities			(16,499)		(2,000)		(53,076)
Cash flows from financing activities:
	Increase in notes payable to a stockholder			5,100		2,000		40,750
	Proceeds from issuance of common stock			-		-		15,700
	Net cash provided (used) by financing activities			5,100		2,000		56,450
Net increase (decrease) in cash				(11,399)		-		3,374
Cash – beginning of period				14,773		-		-
Cash – end of period			$	3,374	$	-	$	3,374

The accompanying notes to the financial statements are an integral part of these statements.

8

SW CHINA IMPORTS, INC.

(A DEVELOPMENT STAGE COMPANY)

STATEMENTS OF CASH FLOWS

(unaudited)

(continued)

				For the six months ended 6/30/12		For the period from 2/23/11 (inception) to 6/30/11		Cumulative from 2/23/11 (inception) to 6/30/12
Non-cash investing and financing activities
	Issuance of common shares to directors (founder’s shares)			-		10,000		10,000
	Issuance of common shares for common stock subscribed			10,000		-		10,000
				10,000		10,000		20,000
Supplemental disclosure of cash flow information:
	Cash paid during the period for:
		Interest	$	-	$	-	$	-
		Income taxes	$	-	$	-	$	-

The accompanying notes to the financial statements are an integral part of these statements.

9

SW CHINA IMPORTS, INC.

(A DEVELOPMENT STAGE COMPANY)

NOTES TO FINANCIAL STATEMENTS

June 30, 2012

(unaudited)

NOTE 1 – Summary of Significant Accounting Policies

Unaudited Interim Financial Information

The accompanying Balance Sheet as of June 30, 2012, Statements of Operations for the three months ended June 30, 2012 and June 30, 2011, for the six months ended June 30, 2012, for the period from February 23, 2011 (inception) to June 30, 2011, and cumulative from February 23, 2011 (Inception) to June 30, 2012, Statement of Stockholder’s (Deficit) for the cumulative period from February 23, 2011 (Inception) to June 30, 2012, and the Statements of Cash Flows for the six months ended June 30, 2012, for the period from February 23, 2011 (inception) to June 30, 2011, and cumulative from February 23, 2011 (Inception) to June 30, 2012, are unaudited.  These unaudited interim financial statements have been prepared in accordance with accounting principles accepted in the United States of America (“GAAP”).  In the opinion of the company’s management, the unaudited interim financial statements have been prepared on the same basis as the audited financial statements and included all adjustments necessary for the fair presentation of the Company’s statement of financial position at June 30, 2012 and its results of operations and its cash flows for the period ended June 30, 2012 and cumulative from February 23, 2011 (inception) to June 30, 2012.  The results for the period ended June 30, 2012 are not necessarily indicative of the results to be expected for the fiscal year ending December 31, 2012.

Organization

SW China Imports, Inc. (“Company” or “SW China Imports”) is a development stage company with minimal operations.  SW China Imports was incorporated under the laws of the State of Nevada on February 23, 2011.  The Company’s business plan calls for the Company to import high-end handmade lace wigs and hairpieces, as well as other beauty supplies and products, manufactured in China and South Korea into the United States.  SW China Imports intends to sell these products in bulk to beauty supply stores, hair salons, and independent hair stylists.  SW China Imports also intends to sell its products directly to the retail consumer via the Internet.

Basis of Presentation

The accompanying financial statements have been prepared in accordance with United States Generally Accepted Accounting Principles (US GAAP) for financial information and in accordance with the Securities and Exchange Commission’s (SEC) Regulation S-X.  They reflect all adjustments which are, in the opinion of the Company’s management, necessary for a fair presentation of the financial position and operating results as of and for the period ended June 30, 2012 and for the period February 23, 2011 (inception) to June 30, 2012.

Use of Estimates

The accompanying financial statements of the Company have been prepared in accordance with generally accepted accounting principles in the United States of America.  Because a precise determination of many assets and liabilities is dependent upon future events, the preparation of financial statements for a period necessarily involves the use of estimates which have been made using careful judgment.  Actual results may vary from these estimates.

Cash and Cash Equivalents

For purposes of the statement of cash flows, the Company considers highly liquid financial instruments purchased with a maturity of three months or less to be cash equivalents.  As of June 30, 2012 and December 31, 2011 the Company had no cash equivalents.

10

Investments

The Company accounts for its marketable securities, which are classified as trading securities, in accordance with generally accepted accounting principles for certain investments in debt and equity securities, which requires that trading securities be carried at fair value.  Unrealized gains and losses due to changes in fair value as well as realized gains and losses resulting from sales of securities are reported as Other Income/Expenses in the statement of operations.  Fair value of the securities is based upon quoted market prices in active markets or estimated fair value when quoted market prices are not available.  The cost basis for realized gains and losses is determined on a specific identification basis.  As of June 30, 2012 the Company had no investments.

Fair Value of Financial Instruments

ASC 820, “Fair Value Measurements” and ASC 825, Financial Instruments, requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value.  It establishes a fair value hierarchy based on the level of independent, objective evidence surrounding the inputs used to measure fair value.  A financial instrument’s categorization within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement.  It prioritizes the inputs into three levels that may be used to measure fair value:

Level 1

Level 1 applies to assets or liabilities for which there are quoted prices in active markets for identical assets or liabilities.

Level 2

Level 2 applies to assets or liabilities for which there are inputs other than quoted prices that are observable for the asset or liability such as quoted prices for similar assets or liabilities in active markets; quoted prices for identical assets or liabilities in markets with insufficient volume or infrequent transactions (less active markets); or model-derived valuations in which significant inputs are observable or can be derived principally from, or corroborated by, observable market data.

Level 3

Level 3 applies to assets or liabilities for which there are unobservable inputs to the valuation methodology that are significant to the measurement of the fair value of the assets or liabilities.

As of June 30, 2012 and December 31, 2011 we believe that the recorded values of all of our financial instruments approximate their current fair values because of their nature and respective maturity dates or durations.

Net Loss per Share Calculation

Basic net loss per common share is computed by dividing the net loss attributable to common stockholders by the weighted-average number of common shares outstanding for the period.   Diluted earnings per shares is computed similar to basic loss per share except that the denominator is increased to include the number of additional common shares that would have been outstanding if the potential common shares had been issued and if the additional common shares were dilutive.  During the period ended June 30, 2012 and cumulative from February 23, 2011 (inception) to June 30, 2012 the Company had no dilutive financial instruments issued or outstanding.

Income Taxes

The Company accounts for income taxes pursuant to FASB ASC 740, Income Taxes.  Under FASB ASC 740-10-25, deferred tax assets and liabilities are determined based on temporary differences between the bases of certain assets and liabilities for income tax and financial reporting purposes.  The deferred tax assets and liabilities are classified according to the financial statement classification of the assets and liabilities generating the differences.

The Company maintains a valuation allowance with respect to deferred tax assets.  SW China Imports establishes a valuation allowance based upon the potential likelihood of realizing the deferred tax asset and taking into consideration the Company’s

11

financial position and results of operations for the current period.  Future realization of the deferred tax benefit depends on the existence of sufficient taxable income within the carryforward period under the Federal tax laws.

Changes in circumstances, such as the Company generating taxable income, could cause a change in judgment about its ability to realize the related deferred tax asset.  Any change in the valuation allowance will be included in income in the year of the change in estimate.

Fiscal Year

The Company elected December 31st for its fiscal year end.

NOTE 2 – Development Stage Activities and Going Concern

The Company is in the development stage and has minimal operations,and as such has devoted most of its efforts since its inception to developing its business plan, issuing common stock, attempting to raise capital, establishing its accounting systems and other administrative functions.  The Company plans on importing high-end handmade lace wigs and hairpieces manufactured in China and South Korea into the United States.  After import, the Company intends to sell its products in bulk to beauty supply stores, hair salons, and independent hair stylists.  The Company also intends to sell its products directly to the retail consumer via the Internet.  Additionally, the Company intends to conduct additional capital formation activities through the issuance of its common stock and to achieve these long-term business growth strategies.

While management of the Company believes that SW China Imports will be successful in its planned operating activities under its business plan and capital formation activities, there can be no assurance that it will be able to successfully execute on either of these or that it will be able to generate adequate revenues to earn a profit or sustain its operations.

The accompanying financial statements have been prepared in conformity with accounting principles generally accepted in the United State of America, which contemplate continuation of the Company as a going concern.  The Company has not established a source of revenues sufficient to cover its operating costs, and as such, has incurred an operating loss since its inception.  Further, as of June 30, 2012, the Company had a working capital deficiency of ($37,475).  These and other factors raise substantial doubt about the Company’s ability to continue as a going concern.  The accompanying financial statements do not include any adjustments or classifications that may result from the possible inability of the Company to continue as a going concern.

NOTE 3 – Common Stock

The total number of common shares authorized that may be issued by the Company is 500,000,000 shares with a par value of $0.0001 per share.

During the period February 23, 2011 (inception) to June 30, 2012 the Company issued an aggregate of 112,570,000 shares as follows:

·

100,000,000 shares to its officers as Founder’s Shares;

·

10,000,000 shares to consultants for total consideration of $100,000, or $0.01 per share, based on the value of the services performed;

·

1,570,000 shares to investors for $15,700 in cash ($0.01 per share); and

·

1,000,000 shares to an investor that has subscribed to pay the Company $10,000 in cash ($0.01 per share).

As of June 30, 2012, the Company had 112,570,000 shares of its common stock issued and outstanding.

NOTE 4 – Preferred Stock

The total number of preferred shares authorized that may be issued by the Company is 50,000,000 shares with a par value of $0.0001 per share.

As of June 30, 2012, the Company had no shares of its preferred stock issued and outstanding.

12

NOTE 5 – Income Taxes

The provision (benefit) for income taxes for the period from February 23, 2011 (inception) to June 30, 2012 was as follows, assuming a 35 percent effective tax rate:

				For the six  months ended June 30, 2012		For the period February 23, 2011 (inception) to June 30, 2012
Current tax provision:
	Federal
		Taxable income	$	-	$
		Total current tax provision	$	-	$
Deferred tax provision:
	Federal
		Loss carryforwards	$	6,432	$	19,804
		Change in valuation allowance		(6,432)		(19,804)
		Total deferred tax provision	$	-	$	-

As of June 30, 2012, the Company had approximately $56,582 in tax loss carryforwards that can be utilized in future periods to reduce taxable income through 2031.

The Company provided a valuation allowance equal to the deferred income tax assets for the period from February 23, 2011 (inception) to June 30, 2012 because it is not presently known whether future taxable income will be sufficient to utilize the tax loss carryforwards.

The Company has no uncertain tax positions.

NOTE 6 – Related Party Transactions

As of June 30, 2012, the Company operated out of office space that is being provided to us by our treasurer and secretary, Jae Hwang, free of charge.  There is no written agreement or other material terms relating to this arrangement.

As of June 30, 2012, the Company had a note payable to a related party stockholder in the amount of $40,750.  This note is payable on demand and is non-interest bearing.  As of June 30, 2012 this note has accrued $3,407 in imputed interest that has been recorded in the financial statements as additional paid-in capital.

NOTE 7 – Recent Accounting Pronouncements

In May 2011, the FASB issued ASU 2011-04, “Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements in U.S. GAAP and IFRSs.” This update amended explanations of how to measure fair value to result in common fair value measurement and disclosure requirements in GAAP and International Financial Reporting Standards.  ASU 2011-04 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2011 with prospective application required.  The adoption of this did not have a material effect on the Company`s financial position, results of operations or cash flows.

In June 2011, the FASB issued ASU 2011-05, “Presentation of Comprehensive Income.”  This update amended the presentation options in Accounting Standards Codification (“ASC”) 220, “Comprehensive Income,” to provide an entity the option to present the total of comprehensive income, the components of net income, and the components of other comprehensive income either in a single continuous statement of comprehensive income or in two separate but consecutive statements.  ASU 2011-05 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2011 with retrospective application required.  The adoption of this standard did not have a material effect on the Company`s financial position, results of operations or cash flows.

13

In September 2011, the FASB issued ASU 2011-08 “Intangibles – Goodwill and Other”.  This new guidance on testing goodwill provides an entity the option to first perform a qualitative assessment to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount.  If an entity determines that this is the case, it is required to perform the currently prescribed two-step goodwill impairment test to identify potential goodwill impairment and measure the amount of goodwill impairment loss to be recognized for that reporting unit (if any).  If an entity determines that the fair value of a reporting unit is less than its carrying amount, the two-step goodwill impairment test is not required.  ASU 2011-08 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2011 with prospective application required.  The adoption of this standard did not have a material effect on the Company`s financial position, results of operations or cash flows.

The Company has implemented all new accounting pronouncements that are in effect and that may impact its financial statements and does not believe that there are any other new accounting pronouncements that have been issued that might have a material impact on its financial statements.

NOTE 8 – Subsequent Events

On August 6, 2012 the Company cancelled and returned to its treasury 1,000,000 shares of its subscribed common stock, $0.0001 par value.  A Form 8-K was filed with the Securities and Exchange Commission on August 7, 2012 disclosing this share cancellation.

As of August 14, 2012 the Company had 111,570,000 shares of its common stock issued and outstanding.

No other material events or transactions have occurred during this subsequent event reporting period which required recognition or disclosure in the financial statements.

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Item 2.  Management’s Discussion and Analysis of Financial Condition and Results of Operations

We are a development stage corporation with limited operations and are not currently generating any revenues from our business operations.  Our independent registered public accounting firm has issued a going concern opinion in their audit report dated March 22, 2012, which can be found in our Annual Report on Form 10-K filed with the Securities and Exchange Commission (“SEC”) on March 23, 2012.  This means that our auditors believe there is substantial doubt that we can continue as an on-going business for the next 12 months.  Accordingly, we must raise additional cash to sustain our limited operations.

We presently are exploring other such sources of funding, including raising funds through a second public offering, a private placement of securities, or loans.  If we are unable to raise this additional funding, we will either have to suspend operations until we do raise the cash or cease operations entirely.

The following discussion should be read in conjunction with our Financial Statements and the notes thereto and the other information included in this Quarterly Report as filed with the SEC on Form 10-Q.

Plan of Operations

We plan is to import high-end handmade lace wigs and hairpieces manufactured overseas, as well as other beauty supplies and accessories, into the United States.  We intend to sell our products in bulk to beauty supply stores, hair salons, and independent hair stylists.  We will also offer our products directly to the retail consumer via the Internet.

It is important to note that we are a development stage business with minimal business activity.  As of June 30, 2012 we have not begun importing any lace wigs or hairpieces.  Further, we do not have any formal agreements in place with any beauty supply stores, hair salons or independent hair stylists; our discussions with potential distributors have been limited solely to exploratory talks until we can demonstrate our ability to procure and deliver our products in a timely manner and in sufficient quantities.

Products and Services

Initially we intend to import high-end handmade lace wigs and hairpieces manufactured overseas, as well as other beauty supplies and accessories, into the United States.  These wigs and hairpieces will initially be sold in the greater Washington, D.C. metropolitan area through beauty supply stores, hair salons and independent hair stylists; nationwide will sell them directly to the consumer through our website www.swchinaimports.com, which is currently under development.

We will also be offering free training to our future network of beauty supply stores, hair salons and independent hair stylists.  This training will include general education about lace wigs, how to apply the lace wig on their clients’ head correctly, and how to properly care for the lace wig.  The planned training courses will be offered through interactive on-line classes and prerecorded DVDs.

Lace Wigs and Hairpieces

The lace wigs and hairpieces we will be importing from China and South Korea will primarily be made from human hair and will be fully customizable.  Our customers will be able to choose the style, color, length, size, density and texture of each wig or hairpiece.  The wigs and hairpieces will be made by hand-tying the human hair into a lace sheet in a manner so that when it is properly attached to the customer’s head it will create an invisible hairline.

Future Products

Once we are successful in securing reliable and price competitive sources of high-end handmade wigs and hairpieces and develop a sizeable network of beauty supply stores, hair salons, and independent hair stylists, we intend to expand our product line to include a comprehensive high-end line of hair extensions as well as complementary shampoos and conditioners specially formulated for wigs and hairpieces.

Proposed Milestones to Implement Business Operations

The following milestones are based on estimates made by our management team.  The working capital requirements and the projected milestones are approximations and are subject to adjustments.  Our initial baseline budget is based on our internal projections on minimal capital needs of $125,000 over the next 12 months.  Presently we are seeking sources of financing to

24

commence execution of our business plan.  There is no assurance that we will be able to secure this financing, or if available, on terms that will be acceptable to us.

We estimate generating initial revenues approximately nine to ten months following receipt of adequate funding.  We plan to complete our milestones as follows:

0 - 2 Months

We will establish a formal relationship with a quality manufacturer of custom handmade lace wigs and hairpieces in either China or South Korea.  Our initial inventory purchase order will be for approximately $50,000 in product.  In order to minimize our start-up costs during this period, our treasurer and secretary, Jae Hwang, has agreed to allow us to continue using a portion of his personal offices as our corporate headquarters until we receive our initial inventory and are required to lease warehouse space.

3 – 5 Months

While our initial inventory purchase order is being fulfilled and shipped to us via container ship, we will start formalizing reseller relationships with beauty supply stores, hair salons, and independent hair stylists throughout the greater Washington, D.C. metropolitan area.  Concurrently, we will complete the development of our beta website (www.swchinaimports.com) to enable on-line purchases of our handmade wigs and hairpieces; the website will not go “live” until our inventory has been received and is ready for shipment to the retail consumer.  We anticipate spending approximately $20,000 to accomplish these milestones ($15,000 on purchasing computers, servers and furthering the website development, and $5,000 in general expenses associated with securing reseller relationships).

6 - 8 Months

We will enter into a lease for a small office/warehouse space (~2,000 square feet) in Washington, D.C. and receive our initial inventory of handmade wigs and hairpieces.  Simultaneously we will hire our first outside employee who will be an experienced salesperson in the hair goods industry.  Our salesperson’s focus will be on selling our handmade wigs and hairpieces to local beauty supply stores, hair salons, and independent hair stylists.  We estimate that these activities will cost us an aggregate of approximately $15,000.

9 - 10 Months

We anticipate we will start generating our first revenue around this time frame.  With the generation of initial sales we will hire a part-time (initially) warehouse employee to assist with order fulfillment.

Further, we will embark on a small sales and marketing campaign aimed at building our brand and boosting general awareness of our products.  These activities will include Internet efforts aimed at directing web traffic to our website (www.swchinaimports.com) and in-store displays and promotions.

We estimate that these activities will cost an aggregate of approximately $20,000.

11 - 12 Months

We anticipate we will need to place another purchase order with our selected manufacturer of handmade wigs and hairpieces in order to maintain a sufficient level of inventory.  This purchase order will be similar to the initial order and should be for approximately $50,000.

Note: The amounts allocated to each line item in the above milestones are subject to change without notice.  Our planned milestones are based on the estimated amount of time to complete each milestone following receipt of adequate funding.  Any line item amounts not expended completely as detailed in the milestones above shall be held in reserve as working capital and subject to reallocation as required for ongoing operations.

25

Long-Term Plan (5 Years)

Over the ensuing five years our growth and expansion efforts will include:

·

Increasing the number of salespersons and warehouse personnel;

·

Expanding the size of our warehouse(s);

·

Expanding into new territories, including Philadelphia, New York and Boston;

·

Formalizing relationships with additional manufacturers in China and South Korea capable of providing us with high-end handmade wigs and hairpieces to insure that we maintain a stable and cost competitive level of inventory;

·

Adding new and innovative products, including a comprehensive high-end line of hair extensions as well as complementary shampoos and conditioners specially formulated for wigs and hairpieces.

We estimate that we will need to raise up to an additional $3 million over the next five years to build-up our inventory levels and achieve the foregoing.

Limited Operating History; Need for Additional Capital

There is limited historical financial information about us upon which to base an evaluation of our performance.  We are in the start-up stage of operations and have yet to generate any revenues.  We cannot guarantee that we will be successful in our business operations.  Our business is subject to risks inherent in the establishment of a new business enterprise, including limited capital resources and possible cost overruns, such as increases in marketing costs, increases in administration expenditures associated with daily operations, increases in accounting and audit fees, and increases in legal fees related to filings and regulatory compliance.

To become profitable and competitive, we need to be able to purchase our initial inventory of high-end handmade wigs and hairpieces and commence selling our products through beauty supply stores, hair salons, independent hair stylists, and directly to the retail consumer via the Internet.  We anticipate relying on equity sales of our common stock in order to continue to fund our business operations until we are able to generate sufficient revenues to cover our operating expenses, which may never happen.  Issuances of additional shares will result in dilution to our then existing stockholders.  There is no assurance that we will be able to make any additional sales of our equity securities or arrange for debt or other financing to fund our planned business activities.  We may also rely on loans from our directors.  However, there are no assurances that our directors will provide us with any additional funds.

Currently, we do not have any arrangements for additional financing.  We have no assurance that future financing will be available to us on acceptable terms.  If financing is not available on satisfactory terms, we may be unable to continue, develop, or expand our operations.  Equity financing could result in additional dilution to existing shareholders.

Status as a Shell Company

As of June 30, 2012, because we have nominal operations and minimal assets, we are considered to be a shell company under the Securities Exchange Act of 1934, as amended.  Because we are considered a shell company, the securities sold in previous offerings can only be resold through (i) registration under the Securities Act of 1933, as amended (“Securities Act”), (ii) Section 4(1) of the Securities Act, if available, for non-affiliates, or (iii) by meeting the conditions of Rule 144(i) of the Securities Act.

Results of Operations

Three Months Ended June 30, 2012

Revenues.  As of June 30, 2012, we have not generated any revenues and remain a development stage company.

Net Income (Loss).  We had a net loss of ($3,011) for the three months ended June 30, 2012 compared to a net loss of ($1,000) for the period a year ago.  This represents an increase in net loss of $2,011, or 201.1%.  Our net loss was attributable to complying with our ongoing SEC reporting requirements, which have consisted primarily of legal, accounting and outside consulting fees.

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Operating Expenses.  Our total operating expenses for the three months ended June 30, 2012 were $2,122 compared to $1,000 for the same period a year ago.  This represents an increase in operating expenses of $1,122, or 112.2%.  Our operating expenses were entirely related to complying with our ongoing SEC reporting requirements, which have consisted primarily of legal, accounting and outside consulting fees.

Other income (expenses).  During the three months ended June 30, 2012 we recorded $889 in imputed interest expenses related to a note outstanding payable to a related party.  The imputed interest was recorded in our financial statements under additional paid-in capital.  We incurred similar expenses during the same period a year ago.

Six Months Ended June 30, 2012

Revenues.  As of June 30, 2012, we have not generated any revenues and remain a development stage company.

Net Income (Loss).  We had a net loss of ($18,376) for the six months ended June 30, 2012 compared to a net loss of ($102,000) for the period from February 23, 2011 (inception) through June 30, 2011.  The net loss for the period was the result of ongoing SEC compliance and reporting requirements, which consisted primarily of legal, accounting and outside consulting fees.  The period from February 23, 2011 (inception) through June 30, 2011 included various one-time costs, including $100,000 paid to outside consultants.

Operating Expenses.  Our total operating expenses for the six months ended June 30, 2012 were $16,598, which is an $85,402, or 83.7%, decline compared to operating expenses of $102,000 for the period from February 23, 2011 (inception) through June 30, 2011.  Our operating expenses were entirely related to complying with our ongoing SEC reporting requirements, which have consisted primarily of legal, accounting and outside consulting fees.  The period from March 3, 2011 (inception) through June 30, 2011 included various one-time startup costs, including $100,000 paid to outside consultants.

Other income (expenses).  During the three months ended June 30, 2012 we recorded $1,778 in imputed interest expenses related to a note outstanding payable to a related party.  The imputed interest was recorded in our financial statements under additional paid-in capital.  We incurred similar expenses during the period from February 23, 2011 (inception) through June 30, 2011.

Cumulative During the Development Stage – February 23, 2011 (inception) through June 30, 2012

For ease of reading we refer to the period of February 23, 2011 (inception) through June 30, 2012 as the “Developmental Period”.

Revenues.  We have not generated any revenues during the Developmental Period.

Net Loss.  We have incurred a net loss of ($156,582) during the Developmental Period.  The net loss was primarily attributable to organizational costs related to our formation, an early offering of our common stock, and complying with our ongoing SEC reporting requirements.  These expenses have consisted primarily of legal, accounting, and outside consulting fees.

Operating Expenses.  Our total operating expenses for the Developmental Period were $153,175.  These operating expenses were primarily attributable to organizational costs related to our formation, an early offering of our common stock, and complying with our ongoing SEC reporting requirements.  These expenses have consisted primarily of legal, accounting, and outside consulting fees.

Other income (expenses).  During the Developmental Period we recorded $3,407 in imputed interest expenses related to a note outstanding payable to a related party.  The imputed interest was recorded in our financial statements under additional paid-in capital.

Total Stockholders’ Deficit.  Our stockholders’ deficit was ($37,475) as of June 30, 2012.

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Liquidity and Capital Resources

As of June 30, 2012, we had $3,374 in cash.  We had no other assets.  Our total liabilities were $40,849 which consisted of $99 in accounts payable and $40,750 in a note payable to a related party.  This note is a demand note and does not bear interest.  Further, we had no external credit facilities (i.e. bank loans, revolving lines of credit, etc.).

We expect to incur continued losses over the next 12 months, possibly even longer.  As of June 30, 2012, we had nominal assets consisting of cash on hand and we believe that we need at least $125,000 to commence operations and meet our minimal working capital requirements over the next 12 months.  

We presently are conducting an offering of our common stock and exploring other such sources of funding.  Without limiting our available options, future equity financings will most likely be through the sale of additional shares of our common stock.  It is possible that we could also offer warrants, options and/or rights in conjunction with any future issuances of our common stock.  However, we can give no assurance that financing will be available to us, and if available to us, in amounts or on terms acceptable to us.  If we cannot secure adequate financing, we may be forced to cease operations and you will lose your entire investment.

Going Concern Consideration

Our independent registered public accounting firm has issued a going concern opinion in their audit report dated March 22, 2012, which can be found in our Annual Report on Form 10-K filed with the Securities and Exchange Commission (“SEC”) on March 23, 2012.  This means that our auditors believe there is substantial doubt that we can continue as an on-going business for the next 12 months.  Our financial statements found within this Quarterly Report on Form 10-Q and the aforementioned Annual Report on Form 10-K contain additional note disclosures describing the circumstances that lead to this disclosure by our independent auditors.

Off –Balance Sheet Operations

As of June 30, 2012, we had no off-balance sheet activities or operations.

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CRITICAL ACCOUNTING POLICIES

The accompanying financial statements have been prepared in accordance with United States Generally Accepted Accounting Principles (US GAAP) for financial information and in accordance with the Securities and Exchange Commission’s (SEC) Regulation S-X.  They reflect all adjustments which are, in the opinion of SW China’s management, necessary for a fair presentation of the financial position and operating results as of and for the three months ended June 30, 2012 and June 30, 2011, and cumulative from February 23, 2011 (inception) to June 30, 2012.

Use of Estimates

The accompanying financial statements of SW China have been prepared in accordance with generally accepted accounting principles in the United States of America.  Because a precise determination of many assets and liabilities is dependent upon future events, the preparation of financial statements for a period necessarily involves the use of estimates which have been made using careful judgment.  Actual results may vary from these estimates.

Cash and Cash Equivalents

For purposes of the statement of cash flows, SW China considers highly liquid financial instruments purchased with a maturity of three months or less to be cash equivalents.  As of June 30, 2012, SW China had $3,374 in cash on hand.

Investments

SW China accounts for its marketable securities, which are classified as trading securities, in accordance with generally accepted accounting principles for certain investments in debt and equity securities, which requires that trading securities be carried at fair value.  Unrealized gains and losses due to changes in fair value as well as realized gains and losses resulting from sales of securities are reported as Other Income/Expenses in the statement of operations.  Fair value of the securities is based upon quoted market prices in active markets or estimated fair value when quoted market prices are not available.  The cost basis for realized gains and losses is determined on a specific identification basis.  As of June 30, 2012, SW China had no investments.

Fair Value of Financial Instruments

ASC 820, “Fair Value Measurements” and ASC 825, Financial Instruments, requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value.  It establishes a fair value hierarchy based on the level of independent, objective evidence surrounding the inputs used to measure fair value.  A financial instrument’s categorization within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement.  It prioritizes the inputs into three levels that may be used to measure fair value:

Level 1

Level 1 applies to assets or liabilities for which there are quoted prices in active markets for identical assets or liabilities.

Level 2

Level 2 applies to assets or liabilities for which there are inputs other than quoted prices that are observable for the asset or liability such as quoted prices for similar assets or liabilities in active markets; quoted prices for identical assets or liabilities in markets with insufficient volume or infrequent transactions (less active markets); or model-derived valuations in which significant inputs are observable or can be derived principally from, or corroborated by, observable market data.

Level 3

Level 3 applies to assets or liabilities for which there are unobservable inputs to the valuation methodology that are significant to the measurement of the fair value of the assets or liabilities.

As of June 30, 2012 we believe that the recorded values of all of our financial instruments approximate their current fair values because of their nature and respective maturity dates or durations.

29

Net Loss per Share Calculation

Basic net loss per common share is computed by dividing the net loss attributable to common stockholders by the weighted-average number of common shares outstanding for the period.   Diluted earnings per shares is computed similar to basic loss per share except that the denominator is increased to include the number of additional common shares that would have been outstanding if the potential common shares had been issued and if the additional common shares were dilutive.  During the three months ended June 30, 2012 and cumulative from February 23, 2011 (inception) to June 30, 2012 SW China had no dilutive financial instruments issued or outstanding.

Income Taxes

SW China accounts for income taxes pursuant to FASB ASC 740, Income Taxes.  Under FASB ASC 740-10-25, deferred tax assets and liabilities are determined based on temporary differences between the bases of certain assets and liabilities for income tax and financial reporting purposes.  The deferred tax assets and liabilities are classified according to the financial statement classification of the assets and liabilities generating the differences.

SW China maintains a valuation allowance with respect to deferred tax assets.  SW China Imports establishes a valuation allowance based upon the potential likelihood of realizing the deferred tax asset and taking into consideration SW China’s financial position and results of operations for the current period.  Future realization of the deferred tax benefit depends on the existence of sufficient taxable income within the carryforward period under the Federal tax laws.

Changes in circumstances, such as SW China generating taxable income, could cause a change in judgment about its ability to realize the related deferred tax asset.  Any change in the valuation allowance will be included in income in the year of the change in estimate.

Recently Issued Accounting Pronouncements

In May 2011, the FASB issued ASU 2011-04, “Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements in U.S. GAAP and IFRSs.” This update amended explanations of how to measure fair value to result in common fair value measurement and disclosure requirements in GAAP and International Financial Reporting Standards.  ASU 2011-04 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2011 with prospective application required.  The adoption of this did not have a material effect on SW China’s financial position, results of operations or cash flows.

In June 2011, the FASB issued ASU 2011-05, “Presentation of Comprehensive Income.”  This update amended the presentation options in Accounting Standards Codification (“ASC”) 220, “Comprehensive Income,” to provide an entity the option to present the total of comprehensive income, the components of net income, and the components of other comprehensive income either in a single continuous statement of comprehensive income or in two separate but consecutive statements.  ASU 2011-05 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2011 with retrospective application required.  The adoption of this standard did not have a material effect on SW China’s financial position, results of operations or cash flows.

In September 2011, the FASB issued ASU 2011-08 “Intangibles – Goodwill and Other”.  This new guidance on testing goodwill provides an entity the option to first perform a qualitative assessment to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount.  If an entity determines that this is the case, it is required to perform the currently prescribed two-step goodwill impairment test to identify potential goodwill impairment and measure the amount of goodwill impairment loss to be recognized for that reporting unit (if any).  If an entity determines that the fair value of a reporting unit is less than its carrying amount, the two-step goodwill impairment test is not required.  ASU 2011-08 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2011 with prospective application required.  The adoption of this standard did not have a material effect on SW China’s financial position, results of operations or cash flows.

SW China has implemented all new accounting pronouncements that are in effect and that may impact its financial statements and does not believe that there are any other new accounting pronouncements that have been issued that might have a material impact on its financial statements.

Contractual Obligations

As of June 30, 2012, SW China no contractual obligations.

30

Item 3.  Quantitative and Qualitative Disclosures About Market Risk

Not applicable since we are a smaller reporting company.

Item 4.  Controls and Procedures

Evaluation of Disclosure Controls and Procedures

As of the end of the period covered by this report, we conducted an evaluation under the supervision and with the participation of our chief executive officer and principal accounting officer of our disclosure controls and procedures (as defined in Rule 13a-15(e) and 15d-15(e) of the Exchange Act.

A material weakness is a deficiency, or a combination of deficiencies, in internal control over financial reporting, such that there is a reasonable possibility that a material misstatement of our annual or interim financial statements will not be presented or detected on a timely basis.

Based on management’s assessment, we have concluded that, as of June 30, 2012, our disclosure controls and procedures were not effective in timely alerting management to the material information relating to us required to be included in our annual and interim filings with the SEC.

Our chief executive officer and principal financial officer have concluded that our disclosure controls and procedures had the following material weaknesses:

·

We were unable to maintain any segregation of duties within our financial operations due to our reliance on limited personnel in the finance function.  While this control deficiency did not result in any audit adjustments to our interim or annual financial statements, it could have resulted in a material misstatement that might have been prevented or detected by a segregation of duties;

·

SW China lacks sufficient resources to perform the internal audit function and does not have an Audit Committee;

·

We do not have an independent Board of Directors, nor do we have a board member designated as an independent financial expert to SW China.  The Board of Directors is comprised of two (2) members, both of whom are active executive officers.  As a result, there may be lack of independent oversight of the management team, lack of independent review of our operating and financial results, and lack of independent review of disclosures made by SW China; and

·

Documentation of all proper accounting procedures is not yet complete.

These weaknesses have existed since our inception on February 23, 2011 and, as of June 30, 2012, have not been remedied.

To the extent reasonably possible given our limited resources, we intend to take measures to cure the aforementioned material weaknesses, including, but not limited to, the following:

·

Considering the engagement of consultants to assist in ensuring that accounting policies and procedures are consistent across the organization and that we have adequate control over financial statement disclosures;

·

Hiring additional qualified financial personnel, including a Chief Financial Officer, on a full-time basis;

·

Expanding our current board of directors to include additional independent individuals willing to perform directorial functions; and

·

Increasing our workforce in preparation for exiting the development stage and commencing revenue producing operations.

Since the recited remedial actions will require that we hire or engage additional personnel, these material weaknesses may not be overcome in the near-term due to our limited financial resources.  Until such remedial actions can be realized, we will continue to rely on the limited advice of outside professionals and consultants.

31

Changes in Controls and Procedures

There have been no changes in our internal control over financial reporting that occurred during the period covered by this report that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

PART II

Item 1.  Legal Proceedings

No officer, director, or persons nominated for these positions, and no promoter or significant employee of our corporation has been involved in legal proceedings that would be material to an evaluation of our management.  We are not aware of any pending or threatened legal proceedings involving SW China Imports, Inc.

During the past ten (10) years, Seon Won and Jae Hwang have not been the subject of the following events:

1)

Any bankruptcy petition filed by or against any business of which either Messrs. Won and Hwang were a general partner or executive officer either at the time of the bankruptcy or within two (2) years prior to that time;

2)

Any conviction in a criminal proceeding or being subject to a pending criminal proceeding;

3)

An order, judgment, or decree, not subsequently reversed, suspended or vacated, or any court of competent jurisdiction, permanently or temporarily enjoining, barring, suspending or otherwise limiting Mr. Won’s or Mr. Hwang’s involvement in any type of business, securities or banking activities; and

4)

Found by a court of competent jurisdiction (in a civil action), the Securities and Exchange Commission or the Commodity Future Trading Commission to have violated a federal or state securities or commodities law, and the judgment has not been reversed, suspended or vacated.

Item 1A.  Risk Factors

Not applicable since we are a smaller reporting company.

Item 2.  Unregistered Sales of Equity Securities and Use of Proceeds

None.

Item 3.  Default Upon Senior Securities

None.

Item 4.  (Removed and Reserved)

Not Applicable.

Item 5.  Other Information

None.

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Item 6.  Exhibits

Exhibit Number	Description of Exhibit
3.1*	Articles of Incorporation
3.2*	Bylaws
31.1	Section 302 Certifications under Sarbanes-Oxley Act of 2002
31.2	Section 302 Certifications under Sarbanes-Oxley Act of 2002
32.1	Section 906 Certification under Sarbanes Oxley Act of 2002
32.2	Section 906 Certification under Sarbanes Oxley Act of 2002

* Incorporated by our Registration Statement on Form S-1 filed May 3, 2011.

SIGNATURES

Pursuant to the requirements of Section 13 or 15 (d) of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on behalf by the undersigned, thereto duly authorized on this 14th day of August, 2012.

SW CHINA IMPORTS, INC.

By:

/s/ Seon Won                                                              

Seon Won

President, Chief Executive Officer,

Principal Executive Officer and Director

By:

/s/ Jae Hwang                                                           

Jae Hwang

Secretary, Treasurer, Chief Financial Officer,

Principal Accounting Officer and Director

33

EX-31

EXHIBIT 31.2

CERTIFICATION OF THE PRINICPAL FINANCIAL OFFICER

Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

and Securities and Exchange Commission Release 34-46427

I, Jae Hwang, certify that:

1.

I have reviewed this Quarterly Report on Form 10-Q of SW China Imports, Inc. for the interim period ended June 30, 2012;

2.

Based on my knowledge, this report does not contain any untrue statement of material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.

Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.

The Registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the Registrant and have:

a)

Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the Registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b)

Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c)

Evaluated the effectiveness of the Registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d)

Disclosed in this report any change in the Registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the Registrant’s fourth quarter in the case of an Annual Report) that has materially effected, or is reasonably likely to materially effect, the registrant’s internal control over financial reporting.

5.

The Registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the Registrant’s auditors and the audit committee of Registrant’s board of directors (or persons performing the equivalent functions):

a)

all significant deficiencies and material weaknesses in the design or operation of internal controls over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b)

any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: August 14, 2012

By:

/s/ Jae Hwang                                                           

Jae Hwang

Secretary, Treasurer, Chief Financial Officer,

Principal Accounting Officer and Director

EX-31

EXHIBIT 31.1

CERTIFICATION OF THE PRINICPAL EXECUTIVE OFFICER

Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

and Securities and Exchange Commission Release 34-46427

I, Seon Won, certify that:

1.

I have reviewed this Quarterly Report on Form 10-Q of SW China Imports, Inc. for the interim period ended June 30, 2012;

2.

Based on my knowledge, this report does not contain any untrue statement of material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.

Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.

The Registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the Registrant and have:

a)

Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the Registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b)

Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c)

Evaluated the effectiveness of the Registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d)

Disclosed in this report any change in the Registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the Registrant’s fourth quarter in the case of an Annual Report) that has materially effected, or is reasonably likely to materially effect, the registrant’s internal control over financial reporting.

5.

The Registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the Registrant’s auditors and the audit committee of Registrant’s board of directors (or persons performing the equivalent functions):

a)

all significant deficiencies and material weaknesses in the design or operation of internal controls over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b)

any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: August 14, 2012

By:

/s/ Seon Won                                                       

Seon Won

President, Chief Executive Officer,

Principal Executive Officer and Director

EX-32

EXHIBIT 32.2

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of SW China Imports, Inc. (“Company”) on Form 10-Q for the interim period ended June 30, 2012 as filed with the Securities and Exchange Commission on the date hereof (“Report”), I, Jae Hwang, certify pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that to the best of my knowledge and belief:

1.

The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

2.

The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date: August 14, 2012

By:

/s/ Jae Hwang                                                        

Jae Hwang

Secretary, Treasurer, Chief Financial Officer,

Principal Accounting Officer and Director

EX-32

EXHIBIT 32.1

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of SW China Imports, Inc. (“Company”) on Form 10-Q for the interim period ended June 30, 2012 as filed with the Securities and Exchange Commission on the date hereof (“Report”), I, Seon Won, certify pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that to the best of my knowledge and belief:

1.

The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

2.

The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date: August 14, 2012

By:

/s/ Seon Won                                                    

Seon Won

President, Chief Executive Officer,

Principal Executive Officer and Director

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Note 4 - Preferred Stock

3 Months Ended

Jun. 30, 2012

Note 4 - Preferred Stock:

Note 4 - Preferred Stock

NOTE 4 – Preferred Stock

The total number of preferred shares authorized that may be issued by the Company is 50,000,000 shares with a par value of $0.0001 per share.

As of June 30, 2012, the Company had no shares of its preferred stock issued and outstanding.

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Note 3 - Common Stock

3 Months Ended

Jun. 30, 2012

Note 3 - Common Stock:

Note 3 - Common Stock

NOTE 3 – Common Stock

The total number of common shares authorized that may be issued by the Company is 500,000,000 shares with a par value of $0.0001 per share.

During the period February 23, 2011 (inception) to June 30, 2012 the Company issued an aggregate of 112,570,000 shares as follows:

• 100,000,000 shares to its officers as Founder’s Shares;
• 10,000,000 shares to consultants for total consideration of $100,000, or $0.01 per share, based on the value of the services performed;
• 1,570,000 shares to investors for $15,700 in cash ($0.01 per share); and
• 1,000,000 shares to an investor that has subscribed to pay the Company $10,000 in cash ($0.01 per share).

As of June 30, 2012, the Company had 112,570,000 shares of its common stock issued and outstanding.

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Balance Sheet (USD $)	Jun. 30, 2012	Dec. 31, 2011
Assets, Current
Cash and Cash Equivalents, at Carrying Value	$ 3,374	$ 14,773
Assets, Current	3,374	14,773
Assets	3,374	14,773
Liabilities, Current
Accounts payable	99
Notes payable to stockholder	40,750	35,650
Liabilities, Current	40,849	35,650
Liabilities	40,849	35,650
Stockholders' (deficit)
Common Stock, Value, Issued	11,257	11,157
Additional Paid in Capital, Common Stock	117,850	106,172
(Deficit) accumulated during the development stage	(156,582)	(138,206)
Receivable from Shareholders or Affiliates for Issuance of Capital Stock	(10,000)
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest	(37,475)	(20,877)
Total liabilities and stockholders' (deficit)	3,374	14,773
Stockholders' Equity, Number of Shares, Par Value and Other Disclosures
Preferred Stock, Shares Authorized	50,000,000	50,000,000
Common Stock, Shares Authorized	500,000,000	500,000,000
Common Stock, Shares Issued	112,570,000	111,570,000
Common Stock, Shares Outstanding	112,570,000	111,570,000
Common Stock, Value, Outstanding	$ 11,257	$ 11,157

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Note 1 - Summary of Significant Accounting Policies

3 Months Ended

Jun. 30, 2012

Note 1 - Summary of Significant Accounting Policies:

Note 1 - Summary of Significant Accounting Policies

NOTE 1 – Summary of Significant Accounting Policies

Unaudited Interim Financial Information

The accompanying Balance Sheet as of June 30, 2012, Statements of Operations for the three months ended June 30, 2012 and June 30, 2011, for the six months ended June 30, 2012, for the period from February 23, 2011 (inception) to June 30, 2011, and cumulative from February 23, 2011 (Inception) to June 30, 2012, Statement of Stockholder’s (Deficit) for the cumulative period from February 23, 2011 (Inception) to June 30, 2012, and the Statements of Cash Flows for the six months ended June 30, 2012, for the period from February 23, 2011 (inception) to June 30, 2011, and cumulative from February 23, 2011 (Inception) to June 30, 2012, are unaudited.  These unaudited interim financial statements have been prepared in accordance with accounting principles accepted in the United States of America (“GAAP”).  In the opinion of the company’s management, the unaudited interim financial statements have been prepared on the same basis as the audited financial statements and included all adjustments necessary for the fair presentation of the Company’s statement of financial position at June 30, 2012 and its results of operations and its cash flows for the period ended June 30, 2012 and cumulative from February 23, 2011 (inception) to June 30, 2012.  The results for the period ended June 30, 2012 are not necessarily indicative of the results to be expected for the fiscal year ending December 31, 2012.

Organization

SW China Imports, Inc. (“Company” or “SW China Imports”) is a development stage company with minimal operations.  SW China Imports was incorporated under the laws of the State of Nevada on February 23, 2011.  The Company’s business plan calls for the Company to import high-end handmade lace wigs and hairpieces, as well as other beauty supplies and products, manufactured in China and South Korea into the United States.  SW China Imports intends to sell these products in bulk to beauty supply stores, hair salons, and independent hair stylists.  SW China Imports also intends to sell its products directly to the retail consumer via the Internet.

Basis of Presentation

The accompanying financial statements have been prepared in accordance with United States Generally Accepted Accounting Principles (US GAAP) for financial information and in accordance with the Securities and Exchange Commission’s (SEC) Regulation S-X.  They reflect all adjustments which are, in the opinion of the Company’s management, necessary for a fair presentation of the financial position and operating results as of and for the period ended June 30, 2012 and for the period February 23, 2011 (inception) to June 30, 2012.

Use of Estimates

The accompanying financial statements of the Company have been prepared in accordance with generally accepted accounting principles in the United States of America.  Because a precise determination of many assets and liabilities is dependent upon future events, the preparation of financial statements for a period necessarily involves the use of estimates which have been made using careful judgment.  Actual results may vary from these estimates.

Cash and Cash Equivalents

For purposes of the statement of cash flows, the Company considers highly liquid financial instruments purchased with a maturity of three months or less to be cash equivalents.  As of June 30, 2012 and December 31, 2011 the Company had no cash equivalents.

Investments

The Company accounts for its marketable securities, which are classified as trading securities, in accordance with generally accepted accounting principles for certain investments in debt and equity securities, which requires that trading securities be carried at fair value.  Unrealized gains and losses due to changes in fair value as well as realized gains and losses resulting from sales of securities are reported as Other Income/Expenses in the statement of operations.  Fair value of the securities is based upon quoted market prices in active markets or estimated fair value when quoted market prices are not available.  The cost basis for realized gains and losses is determined on a specific identification basis.  As of June 30, 2012 the Company had no investments.

Fair Value of Financial Instruments

ASC 820, “Fair Value Measurements” and ASC 825, Financial Instruments, requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value.  It establishes a fair value hierarchy based on the level of independent, objective evidence surrounding the inputs used to measure fair value.  A financial instrument’s categorization within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement.  It prioritizes the inputs into three levels that may be used to measure fair value:

Level 1

Level 1 applies to assets or liabilities for which there are quoted prices in active markets for identical assets or liabilities.

Level 2

Level 2 applies to assets or liabilities for which there are inputs other than quoted prices that are observable for the asset or liability such as quoted prices for similar assets or liabilities in active markets; quoted prices for identical assets or liabilities in markets with insufficient volume or infrequent transactions (less active markets); or model-derived valuations in which significant inputs are observable or can be derived principally from, or corroborated by, observable market data.

Level 3

Level 3 applies to assets or liabilities for which there are unobservable inputs to the valuation methodology that are significant to the measurement of the fair value of the assets or liabilities.

As of June 30, 2012 and December 31, 2011 we believe that the recorded values of all of our financial instruments approximate their current fair values because of their nature and respective maturity dates or durations.

Net Loss per Share Calculation

Basic net loss per common share is computed by dividing the net loss attributable to common stockholders by the weighted-average number of common shares outstanding for the period.   Diluted earnings per shares is computed similar to basic loss per share except that the denominator is increased to include the number of additional common shares that would have been outstanding if the potential common shares had been issued and if the additional common shares were dilutive.  During the period ended June 30, 2012 and cumulative from February 23, 2011 (inception) to June 30, 2012 the Company had no dilutive financial instruments issued or outstanding.

Income Taxes

The Company accounts for income taxes pursuant to FASB ASC 740, Income Taxes.  Under FASB ASC 740-10-25, deferred tax assets and liabilities are determined based on temporary differences between the bases of certain assets and liabilities for income tax and financial reporting purposes.  The deferred tax assets and liabilities are classified according to the financial statement classification of the assets and liabilities generating the differences.

The Company maintains a valuation allowance with respect to deferred tax assets.  SW China Imports establishes a valuation allowance based upon the potential likelihood of realizing the deferred tax asset and taking into consideration the Company’s financial position and results of operations for the current period.  Future realization of the deferred tax benefit depends on the existence of sufficient taxable income within the carryforward period under the Federal tax laws.

Changes in circumstances, such as the Company generating taxable income, could cause a change in judgment about its ability to realize the related deferred tax asset.  Any change in the valuation allowance will be included in income in the year of the change in estimate.

Fiscal Year

The Company elected December 31st for its fiscal year end.

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Note 1 - Summary of Significant Accounting Policies: Income Taxes (Policies)

3 Months Ended

Jun. 30, 2012

Income Taxes:

Income Taxes

Income Taxes

The Company accounts for income taxes pursuant to FASB ASC 740, Income Taxes.  Under FASB ASC 740-10-25, deferred tax assets and liabilities are determined based on temporary differences between the bases of certain assets and liabilities for income tax and financial reporting purposes.  The deferred tax assets and liabilities are classified according to the financial statement classification of the assets and liabilities generating the differences.

The Company maintains a valuation allowance with respect to deferred tax assets.  SW China Imports establishes a valuation allowance based upon the potential likelihood of realizing the deferred tax asset and taking into consideration the Company’s financial position and results of operations for the current period.  Future realization of the deferred tax benefit depends on the existence of sufficient taxable income within the carryforward period under the Federal tax laws.

Changes in circumstances, such as the Company generating taxable income, could cause a change in judgment about its ability to realize the related deferred tax asset.  Any change in the valuation allowance will be included in income in the year of the change in estimate.

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Note 5 - Income Taxes: Schedule of Unrecognized Tax Benefits Roll Forward (Tables)

3 Months Ended

Jun. 30, 2012

Schedule of Unrecognized Tax Benefits Roll Forward:

Schedule of Unrecognized Tax Benefits Roll Forward

				For the six  months ended June 30, 2012		For the period February 23, 2011 (inception) to June 30, 2012
Current tax provision:
	Federal
		Taxable income	$	-	$
		Total current tax provision	$	-	$
Deferred tax provision:
	Federal
		Loss carryforwards	$	6,432	$	19,804
		Change in valuation allowance		(6,432)		(19,804)
		Total deferred tax provision	$	-	$	-

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Note 2 - Development Stage Activities and Going Concern

3 Months Ended

Jun. 30, 2012

Note 2 - Development Stage Activities and Going Concern:

Note 2 - Development Stage Activities and Going Concern

NOTE 2 – Development Stage Activities and Going Concern

The Company is in the development stage and has minimal operations, and as such has devoted most of its efforts since its inception to developing its business plan, issuing common stock, attempting to raise capital, establishing its accounting systems and other administrative functions.  The Company plans on importing high-end handmade lace wigs and hairpieces manufactured in China and South Korea into the United States.  After import, the Company intends to sell its products in bulk to beauty supply stores, hair salons, and independent hair stylists.  The Company also intends to sell its products directly to the retail consumer via the Internet.  Additionally, the Company intends to conduct additional capital formation activities through the issuance of its common stock and to achieve these long-term business growth strategies.

While management of the Company believes that SW China Imports will be successful in its planned operating activities under its business plan and capital formation activities, there can be no assurance that it will be able to successfully execute on either of these or that it will be able to generate adequate revenues to earn a profit or sustain its operations.

The accompanying financial statements have been prepared in conformity with accounting principles generally accepted in the United State of America, which contemplate continuation of the Company as a going concern.  The Company has not established a source of revenues sufficient to cover its operating costs, and as such, has incurred an operating loss since its inception.  Further, as of June 30, 2012, the Company had a working capital deficiency of ($37,475).  These and other factors raise substantial doubt about the Company’s ability to continue as a going concern.  The accompanying financial statements do not include any adjustments or classifications that may result from the possible inability of the Company to continue as a going concern.

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Statement of Operations (USD $)	3 Months Ended		4 Months Ended	6 Months Ended	16 Months Ended
	Jun. 30, 2012	Jun. 30, 2011	Jun. 30, 2011	Jun. 30, 2012	Jun. 30, 2012
Expenses
General and Administrative Expense				$ 575	$ 652
Consulting Fees			50,000	1,000	51,000
Legal Fees	750		50,000	9,575	7,000
Accounting Fees	1,000	1,000	2,000	3,000	92,075
Transfer Agent Fees	372			2,448	2,448
Operating Income (Loss)	(2,122)	(1,000)	(102,000)	(16,598)	(153,175)
Other income (expense)
Interest Expense	(889)			(1,778)	(3,407)
Other income (expense), net	(889)			(1,778)	(3,407)
Net (loss)	$ (3,011)	$ (1,000)	$ (102,000)	$ (18,376)	$ (156,582)
Earnings Per Share
Earnings Per Share, Basic	$ 0	$ 0	$ 0	$ 0
Weighted Average Number of Shares Outstanding, Basic	112,570,000	110,000,000	110,000,000	112,307,705
Earnings Per Share, Diluted	$ 0	$ 0	$ 0	$ 0
Weighted Average Number of Shares Outstanding, Diluted	112,570,000	110,000,000	110,000,000	112,307,705

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Note 1 - Summary of Significant Accounting Policies: Use of Estimates (Policies)

3 Months Ended

Jun. 30, 2012

Use of Estimates:

Use of Estimates

Use of Estimates

The accompanying financial statements of the Company have been prepared in accordance with generally accepted accounting principles in the United States of America.  Because a precise determination of many assets and liabilities is dependent upon future events, the preparation of financial statements for a period necessarily involves the use of estimates which have been made using careful judgment.  Actual results may vary from these estimates.

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Document and Entity Information (USD $)	3 Months Ended
	Jun. 30, 2012	Aug. 14, 2012
Document and Entity Information:
Entity Registrant Name	SW China Imports, Inc.
Document Type	10-Q
Document Period End Date	Jun. 30, 2012
Amendment Flag	false
Entity Central Index Key	0001516559
Current Fiscal Year End Date	--12-31
Entity Common Stock, Shares Outstanding		111,570,000
Entity Public Float		$ 975,000
Entity Filer Category	Smaller Reporting Company
Entity Current Reporting Status	No
Entity Voluntary Filers	No
Entity Well-known Seasoned Issuer	No
Document Fiscal Year Focus	2012
Document Fiscal Period Focus	Q2

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Note 1 - Summary of Significant Accounting Policies: Cash and Cash Equivalents (Policies)

3 Months Ended

Jun. 30, 2012

Cash and Cash Equivalents:

Cash and Cash Equivalents

Cash and Cash Equivalents

For purposes of the statement of cash flows, the Company considers highly liquid financial instruments purchased with a maturity of three months or less to be cash equivalents.  As of June 30, 2012 and December 31, 2011 the Company had no cash equivalents.

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Statement of Shareholders' (Deficit) (USD $)	Common Stock	Additional Paid-in Capital	Retained Earnings	Total
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest at Feb. 22, 2011
Stock Issued During Period, Value, New Issues	$ 11,157	$ 104,543		$ 115,570
Stock Issued During Period, Shares, New Issues	111,570,000			111,570,000
Stock Issued During Period, Value, Share-based Compensation, Net of Forfeitures	1,000	99,000		100,000
Stock Issued During Period, Shares, Share-based Compensation, Net of Forfeitures	110,000,000			110,000,000
Comprehensive Income (Loss), Net of Tax, Including Portion Attributable to Noncontrolling Interest			(138,206)	(138,206)
Stockholders' Equity, Period Increase (Decrease)				(20,877)
Stock Issued During Period, Shares, Period Increase (Decrease)	111,570,000			111,570,000
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest at Dec. 31, 2011				(20,877)
Shares, Outstanding at Dec. 31, 2011	111,570,000			111,570,000
Stock Issued During Period, Value, New Issues	100	9,900		10,000
Stock Issued During Period, Shares, New Issues	1,000,000			1,000,000
Comprehensive Income (Loss), Net of Tax, Including Portion Attributable to Noncontrolling Interest			(18,376)	(18,376)
Stockholders' Equity, Period Increase (Decrease)				(16,598)
Stock Issued During Period, Shares, Period Increase (Decrease)	1,000,000			1,000,000
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest at Jun. 30, 2012				$ (37,475)
Shares, Outstanding at Jun. 30, 2012	112,570,000			112,570,000

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Note 7 - Recent Accounting Pronouncements

3 Months Ended

Jun. 30, 2012

Note 7 - Recent Accounting Pronouncements:

Note 7 - Recent Accounting Pronouncements

NOTE 7 – Recent Accounting Pronouncements

In May 2011, the FASB issued ASU 2011-04, “Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements in U.S. GAAP and IFRSs.” This update amended explanations of how to measure fair value to result in common fair value measurement and disclosure requirements in GAAP and International Financial Reporting Standards.  ASU 2011-04 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2011 with prospective application required.  The adoption of this did not have a material effect on the Company`s financial position, results of operations or cash flows.

In June 2011, the FASB issued ASU 2011-05, “Presentation of Comprehensive Income.”  This update amended the presentation options in Accounting Standards Codification (“ASC”) 220, “Comprehensive Income,” to provide an entity the option to present the total of comprehensive income, the components of net income, and the components of other comprehensive income either in a single continuous statement of comprehensive income or in two separate but consecutive statements.  ASU 2011-05 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2011 with retrospective application required.  The adoption of this standard did not have a material effect on the Company`s financial position, results of operations or cash flows.

In September 2011, the FASB issued ASU 2011-08 “Intangibles – Goodwill and Other”.  This new guidance on testing goodwill provides an entity the option to first perform a qualitative assessment to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount.  If an entity determines that this is the case, it is required to perform the currently prescribed two-step goodwill impairment test to identify potential goodwill impairment and measure the amount of goodwill impairment loss to be recognized for that reporting unit (if any).  If an entity determines that the fair value of a reporting unit is less than its carrying amount, the two-step goodwill impairment test is not required.  ASU 2011-08 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2011 with prospective application required.  The adoption of this standard did not have a material effect on the Company`s financial position, results of operations or cash flows.

The Company has implemented all new accounting pronouncements that are in effect and that may impact its financial statements and does not believe that there are any other new accounting pronouncements that have been issued that might have a material impact on its financial statements.

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Note 6 - Related Party Transactions

3 Months Ended

Jun. 30, 2012

Note 6 - Related Party Transactions:

Note 6 - Related Party Transactions

NOTE 6 – Related Party Transactions

As of June 30, 2012, the Company operated out of office space that is being provided to us by our treasurer and secretary, Jae Hwang, free of charge.  There is no written agreement or other material terms relating to this arrangement.

As of June 30, 2012, the Company had a note payable to a related party stockholder in the amount of $40,750.  This note is payable on demand and is non-interest bearing.  As of June 30, 2012 this note has accrued $3,407 in imputed interest that has been recorded in the financial statements as additional paid-in capital.

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Note 1 - Summary of Significant Accounting Policies: Fiscal Year (Policies)

3 Months Ended

Jun. 30, 2012

Fiscal Year:

Fiscal Year

Fiscal Year

The Company elected December 31st for its fiscal year end.

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Note 1 - Summary of Significant Accounting Policies: Investments (Policies)

3 Months Ended

Jun. 30, 2012

Investments:

Investments

Investments

The Company accounts for its marketable securities, which are classified as trading securities, in accordance with generally accepted accounting principles for certain investments in debt and equity securities, which requires that trading securities be carried at fair value.  Unrealized gains and losses due to changes in fair value as well as realized gains and losses resulting from sales of securities are reported as Other Income/Expenses in the statement of operations.  Fair value of the securities is based upon quoted market prices in active markets or estimated fair value when quoted market prices are not available.  The cost basis for realized gains and losses is determined on a specific identification basis.  As of June 30, 2012 the Company had no investments.

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Note 1 - Summary of Significant Accounting Policies: Organization (Policies)

3 Months Ended

Jun. 30, 2012

Organization:

Organization

Organization

SW China Imports, Inc. (“Company” or “SW China Imports”) is a development stage company with minimal operations.  SW China Imports was incorporated under the laws of the State of Nevada on February 23, 2011.  The Company’s business plan calls for the Company to import high-end handmade lace wigs and hairpieces, as well as other beauty supplies and products, manufactured in China and South Korea into the United States.  SW China Imports intends to sell these products in bulk to beauty supply stores, hair salons, and independent hair stylists.  SW China Imports also intends to sell its products directly to the retail consumer via the Internet.

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Note 8 - Subsequent Events

3 Months Ended

Jun. 30, 2012

Note 8 - Subsequent Events:

Note 8 - Subsequent Events

NOTE 8 – Subsequent Events

On August 6, 2012 the Company cancelled and returned to its treasury 1,000,000 shares of its subscribed common stock, $0.0001 par value.  A Form 8-K was filed with the Securities and Exchange Commission on August 7, 2012 disclosing this share cancellation.

As of August 14, 2012 the Company had 111,570,000 shares of its common stock issued and outstanding.

No other material events or transactions have occurred during this subsequent event reporting period which required recognition or disclosure in the financial statements.

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Note 1 - Summary of Significant Accounting Policies: Unaudited Interim Financial Information (Policies)

3 Months Ended

Jun. 30, 2012

Unaudited Interim Financial Information:

Unaudited Interim Financial Information

Unaudited Interim Financial Information

The accompanying Balance Sheet as of June 30, 2012, Statements of Operations for the three months ended June 30, 2012 and June 30, 2011, for the six months ended June 30, 2012, for the period from February 23, 2011 (inception) to June 30, 2011, and cumulative from February 23, 2011 (Inception) to June 30, 2012, Statement of Stockholder’s (Deficit) for the cumulative period from February 23, 2011 (Inception) to June 30, 2012, and the Statements of Cash Flows for the six months ended June 30, 2012, for the period from February 23, 2011 (inception) to June 30, 2011, and cumulative from February 23, 2011 (Inception) to June 30, 2012, are unaudited.  These unaudited interim financial statements have been prepared in accordance with accounting principles accepted in the United States of America (“GAAP”).  In the opinion of the company’s management, the unaudited interim financial statements have been prepared on the same basis as the audited financial statements and included all adjustments necessary for the fair presentation of the Company’s statement of financial position at June 30, 2012 and its results of operations and its cash flows for the period ended June 30, 2012 and cumulative from February 23, 2011 (inception) to June 30, 2012.  The results for the period ended June 30, 2012 are not necessarily indicative of the results to be expected for the fiscal year ending December 31, 2012.

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Note 1 - Summary of Significant Accounting Policies: Basis of Presentation (Policies)

3 Months Ended

Jun. 30, 2012

Basis of Presentation:

Basis of Presentation

Basis of Presentation

The accompanying financial statements have been prepared in accordance with United States Generally Accepted Accounting Principles (US GAAP) for financial information and in accordance with the Securities and Exchange Commission’s (SEC) Regulation S-X.  They reflect all adjustments which are, in the opinion of the Company’s management, necessary for a fair presentation of the financial position and operating results as of and for the period ended June 30, 2012 and for the period February 23, 2011 (inception) to June 30, 2012.

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Note 1 - Summary of Significant Accounting Policies: Net Loss Per Share Calculation (Policies)

3 Months Ended

Jun. 30, 2012

Net Loss Per Share Calculation:

Net Loss Per Share Calculation

Net Loss per Share Calculation

Basic net loss per common share is computed by dividing the net loss attributable to common stockholders by the weighted-average number of common shares outstanding for the period.   Diluted earnings per shares is computed similar to basic loss per share except that the denominator is increased to include the number of additional common shares that would have been outstanding if the potential common shares had been issued and if the additional common shares were dilutive.  During the period ended June 30, 2012 and cumulative from February 23, 2011 (inception) to June 30, 2012 the Company had no dilutive financial instruments issued or outstanding.

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Statement of Cash Flows (USD $)	4 Months Ended	6 Months Ended	16 Months Ended
	Jun. 30, 2011	Jun. 30, 2012	Jun. 30, 2012
Net Cash Provided by (Used in) Operating Activities
Net (loss)	$ (102,000)	$ (18,376)	$ (156,582)
Adjustments to Reconcile Net Income (Loss) to Cash Provided by (Used in) Operating Activities
Common stock issued in connection with services provided by consultants	100,000		100,000
Imputed interest on related party loan		1,778	3,407
Adjustments, Noncash Items, to Reconcile Net Income (Loss) to Cash Provided by (Used in) Operating Activities	100,000	1,778	103,407
Increase (Decrease) in Operating Liabilities
Increase (Decrease) in Accounts Payable		99	99
Adjustments to Reconcile Net Income (Loss) to Cash Provided by (Used in) Operating Activities	100,000	1,877	103,506
Net Cash Provided by (Used in) Operating Activities	(2,000)	(16,499)	(53,076)
Net Cash Provided by (Used in) Financing Activities
Increase in notes payable to a stockholder	2,000	5,100	40,750
Proceeds from Issuance of Common Stock			15,700
Net Cash Provided by (Used in) Financing Activities	2,000	5,100	56,450
Cash and Cash Equivalents, Period Increase (Decrease)		(11,399)	3,374
Cash and Cash Equivalents, at Carrying Value		14,773
Cash and Cash Equivalents, at Carrying Value		$ 3,374	$ 3,374

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Note 5 - Income Taxes

3 Months Ended

Jun. 30, 2012

Note 5 - Income Taxes:

Note 5 - Income Taxes

NOTE 5 – Income Taxes

The provision (benefit) for income taxes for the period from February 23, 2011 (inception) to June 30, 2012 was as follows, assuming a 35 percent effective tax rate:

				For the six  months ended June 30, 2012		For the period February 23, 2011 (inception) to June 30, 2012
Current tax provision:
	Federal
		Taxable income	$	-	$
		Total current tax provision	$	-	$
Deferred tax provision:
	Federal
		Loss carryforwards	$	6,432	$	19,804
		Change in valuation allowance		(6,432)		(19,804)
		Total deferred tax provision	$	-	$	-

As of June 30, 2012, the Company had approximately $56,582 in tax loss carryforwards that can be utilized in future periods to reduce taxable income through 2031.

The Company provided a valuation allowance equal to the deferred income tax assets for the period from February 23, 2011 (inception) to June 30, 2012 because it is not presently known whether future taxable income will be sufficient to utilize the tax loss carryforwards.

The Company has no uncertain tax positions.

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Note 1 - Summary of Significant Accounting Policies: Fair Value of Financial Instruments (Policies)

3 Months Ended

Jun. 30, 2012

Fair Value of Financial Instruments:

Fair Value of Financial Instruments

Fair Value of Financial Instruments

ASC 820, “Fair Value Measurements” and ASC 825, Financial Instruments, requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value.  It establishes a fair value hierarchy based on the level of independent, objective evidence surrounding the inputs used to measure fair value.  A financial instrument’s categorization within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement.  It prioritizes the inputs into three levels that may be used to measure fair value:

Level 1

Level 1 applies to assets or liabilities for which there are quoted prices in active markets for identical assets or liabilities.

Level 2

Level 2 applies to assets or liabilities for which there are inputs other than quoted prices that are observable for the asset or liability such as quoted prices for similar assets or liabilities in active markets; quoted prices for identical assets or liabilities in markets with insufficient volume or infrequent transactions (less active markets); or model-derived valuations in which significant inputs are observable or can be derived principally from, or corroborated by, observable market data.

Level 3

Level 3 applies to assets or liabilities for which there are unobservable inputs to the valuation methodology that are significant to the measurement of the fair value of the assets or liabilities.

As of June 30, 2012 and December 31, 2011 we believe that the recorded values of all of our financial instruments approximate their current fair values because of their nature and respective maturity dates or durations.