- The quotation
In international trade, the inquiry and quotation of products are generally used as the beginning of trade. Among them, the quotation for export products mainly includes: the quality grade of the product, the specification model of the product, whether the product has special packaging requirements, the quantity of the purchased product, the delivery time requirement, the transportation mode of the product, the material of the product, etc. .
The more commonly used quotations are FOB “ship on board”, CNF “cost plus freight”, CIF “cost, insurance and freight” and other forms.
FOB: Onboard delivery (designated port of shipment) means that the seller must deliver the goods to the ship designated by the buyer at the designated port of shipment on the date or period specified in the contract, and bear all costs and loss of or damage to the goods as they pass the ship’s rail. risks of.
CIF: Freight and insurance premiums paid to (…designated destinations) means that the seller must deliver the goods to the ship designated by the buyer at the named port of shipment on the date or period specified in the contract, and bear all costs of the goods over the ship’s rail. And the risk of loss or damage to the goods, responsible for chartering or booking, paying the freight from the cargo port to the port of destination, and handling insurance and paying insurance premiums.
CNF: cost plus freight (…designated port of destination) means that the seller must deliver the goods to the ship designated by the buyer at the designated port of shipment on the date or period specified in the contract, and bear all costs and goods of the goods over the ship’s rail. The risk of loss or damage, responsible for chartering or booking, paying for shipping from the port of shipment to the port of destination.
- Order (signing)
After the two parties have reached an agreement on the quotation, the buyer’s enterprise will formally place an order and negotiate with the seller’s enterprise on some related matters. After the two parties have agreed and approved, they need to sign the “purchase contract”. In the process of signing the “purchase contract”, the main discussion is on the name of the product, the specification and model, the quantity, the price, the packaging, the place of origin, the shipping period, the payment terms, the settlement method, the claim, the arbitration, etc., and the agreement reached after the negotiation. Write the “purchase contract”. This marks the official start of the export business. Under normal circumstances, the signed purchase contract will be in duplicate by the two parties to the official seal of the company, and each party will keep one copy.
- The payment method
There are three types of international payment methods that are commonly used, namely, the letter of credit payment method, the T/T payment method, and the direct payment method.
1. Letter of credit payment method
The letter of credit is divided into two categories: light ticket letters of credit and documentary letters of credit. A documentary credit refers to a letter of credit with a specified document, and a letter of credit without a document is called a letter of credit. Simply put, a letter of credit is a guarantee document that guarantees the exporter to recover the purchase price. Please note that the shipping period of the exported goods shall be carried out within the validity period of the letter of credit, and the time limit for the delivery of the letter of credit must be submitted no later than the effective date of the letter of credit.
In international trade, the letter of credit is the most common form of payment, and the date of issuance of the letter of credit should be clear, clear and complete.
2. T / T payment method
The TT payment method is settled by foreign exchange cash, and your customer will remit the money to the designated foreign exchange bank account of your company, and you can request the remittance within a certain period of time after the goods arrive. Before the delivery, the wire transfer payment is commonly known as “pre-T/T” in the trade industry. After the delivery, the wire transfer payment is commonly called “post-T/T”, and the wire transfer payment at the time of delivery, that is, the importer sends the payment after receiving the fax of the bill of lading. Also known as “pre-T/T.”
3. D / P collection (payment delivery), D / A collection (acceptance delivery)
D/P collection (payment delivery): forward payment delivery and spot payment delivery. The conditions for the delivery of forwarding payment orders and spot payment documents are the same, that is, the importer must pay in order to obtain documents representing the ownership of the goods. However, the payment time is different.
1) Spot payment delivery: After the collecting bank prompts the importer for the receipt, the importer will see the ticket (and the receipt) to pay the redemption immediately;
2) Forward payment delivery: After the collection bank prompts the importer for the receipt, the importer will accept the ticket (and the receipt) and accept the redemption order on the due date of the draft.
Stocking plays an important role in the entire trade process and must be implemented one by one according to the contract. The main check contents of the stocking are as follows:
1. The quality and specifications of the goods shall be verified in accordance with the requirements of the contract.
2. The number of goods: Guarantee to meet the requirements of the contract or letter of credit.
3. Stocking time: in accordance with the provisions of the letter of credit, combined with the schedule of the ship, in order to facilitate the connection of cargo.
You can choose the package type according to the goods (eg carton, woven bag, color box, etc.). The packaging requirements vary from package to package.
1. General export packaging standards: packaging according to the general standards of trade exports.
2. Special export packaging standards: according to the special requirements of customers for export goods packaging.
3. Packing and steaming of goods (transportation mark): It should be carefully checked and verified to conform to the provisions of the letter of credit.
- Customs clearance procedures
Customs clearance procedures are extremely cumbersome and extremely important. If you cannot pass the customs clearance, you will not be able to complete the transaction.
1. Export commodities subject to statutory inspection shall be subject to export commodity inspection certificates.
At present, there are four main links in China’s import and export commodity inspection work:
- Acceptance of inspection: The inspection means that the foreign trade relations person submits the inspection to the commodity inspection agency.
- Sampling: After the commodity inspection agency accepts the inspection, it will dispatch personnel to the cargo storage site for on-site inspection and appraisal.
- Inspection: After the commodity inspection agency accepts the inspection, it carefully studies the declared inspection items and determines the inspection contents. And carefully review the contract (letter of credit) on the quality, specifications, packaging provisions, clarify the basis of inspection, determine the inspection standards, methods. (Inspection methods include sampling inspection, instrument analysis, and inspection; physical inspection; sensory inspection; microbiological examination, etc.)
- Issuance certificate: In terms of export, if the export goods listed in the [Type List] have passed the inspection by the commodity inspection agency, the issuance of the issuance order (or the release of the “Export Goods Declaration Form” to replace the release order).
2. Must be professionally held by the customs clearance personnel, holding the box list, invoices, customs declaration, export settlement verification form, export goods contract copy, export commodity inspection certificate and other texts go to the customs to go through customs formalities.
- The list of boxes is the packing details of the export products provided by the exporter.
- Invoice is a certificate of export product provided by the exporter.
- The customs declaration letter is a certificate for the declaration of the customs declaration by the unit or individual who has no customs declaration ability.
- The export verification form is applied by the exporting unit to the foreign exchange bureau, which means that the unit with export capability obtains a document for an export tax rebate.
- The commodity inspection certificate is obtained after passing the inspection by the entry-exit inspection and quarantine department or its designated inspection agency. It is a general term for various import and export commodity inspection certificates, identification certificates and other certificates. It is a valid document with the legal basis for the parties involved in foreign trade to perform their contractual obligations, handle claims disputes, negotiation and arbitration, and litigation evidence. It is also a necessary proof of customs clearance, customs duties, and preferential tariff reductions.
In the process of loading the goods, the shipping method can be determined according to the quantity of the goods, and the insurance is carried out according to the type of insurance specified in the Purchase Contract. Assemble the container, generally, calculate the freight according to the bulk weight of the exported goods.
- Transportation insurance
Usually, the two parties have agreed in advance on the relevant matters of transportation insurance in signing the “purchase contract”. Common insurances include marine cargo transportation insurance, land, and air cargo transportation insurance, etc. Among them, the risks covered by the marine transport cargo insurance clause are divided into two categories: basic insurance and additional insurance:
1. There are three types of basic risks: free from particular average-f.p.a, with average or with particular average-w.a or w.p.a and all risk-a.r. The scope of FPA’s liability includes: total loss of goods due to natural disasters at sea; overall loss of goods during loading and unloading and transshipment; sacrifice, sharing and salvage costs due to general average; due to transport vessels hitting the rocks, stranding, sinking, Total loss and partial loss of cargo caused by collision, flood, and explosion. WPA is one of the basic risks of marine transportation insurance. According to the insurance provisions of the People’s Insurance Company of China, in addition to the risks listed in the Ping An Insurance, it also bears the risks of natural disasters such as severe weather, lightning, tsunamis, and floods. The coverage of all risks is equivalent to the sum of WPA and general additional risks.
2. Additional risks. There are two types of additional risks: general additional insurance and special additional insurance. General additional risks include stealing and picking up goods, fresh water and rain, smuggling short-term insurance, leakage risk, damage and breakage risk, hook damage insurance, mixed contamination insurance, packaging rupture risk, mildew risk, moisture and heat risk, and odor Insurance and so on. Special additional risks include war risk and strike insurance.
- Bills of lading
The bill of lading is the document used by the exporter to check out the export customs clearance procedures and the customs clearance.
The bill of lading signed is issued in accordance with the number of copies required by the letter of credit, usually three. The exporter will leave two copies, handle the tax refund and other services, and send one copy to the importer for handling the goods.
When carrying out seaborne cargo, the importer must take the original bill of lading, bill of lading, and invoice to pick up the goods. (The original bill of lading, bill of lading, and invoice must be sent to the importer by the exporter.)
If it is air cargo, you can use the bill of lading, the bill of lading, and the fax of the invoice to pick up the goods.
After the export goods are loaded, the import and export company shall correctly control the documents such as the bill of lading, invoice, bill of lading, export certificate of origin, and export settlement. Submit the bank to negotiate the settlement of foreign exchange within the validity period of the letter of credit.