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Import and export trade operations that foreign

by:VIPUTRANS     2020-09-04

   Usually, novices in import and export trade do not know how to conduct import and export trade operations. This article will briefly introduce the common knowledge of foreign trade, including trade terms, payment methods, taxation methods, foreign trade documents, logistics customs clearance, credit insurance, etc.



1. Quotation

  International trade generally starts with product inquiry and quotation. Among them, the quotation for export products mainly includes: product quality level, specifications, whether there are special packaging requirements, the amount of products purchased, delivery requirements, product transportation methods, product materials, etc. The more commonly used quotations are: FOB (Delivery on Board), CNF (Cost and Freight), CIF (Cost, Insurance and Freight) and other forms.



2. Order (signature)

   After both parties of the trade have reached an agreement on the quotation, the buyer’s company will formally place an order and negotiate with the seller’s company on some related matters. After the two parties have negotiated and agreed, they need to sign a 'purchase contract.' In the process of signing the 'Purchase Contract', the main items are the name of the product, specifications, quantity, price, packaging, place of production, shipping period, payment terms, settlement methods, claims, arbitration, etc., and the agreement will be reached after the negotiation. Written into the 'purchase contract'. This marked the official start of the export business. Under normal circumstances, the purchase contract is signed in duplicate, and both parties will affix the company's official seal to take effect, and each party will keep one copy.



3. Payment method

There are three commonly used international payment methods, namely letter of credit payment, TT payment, and direct payment.


(1) Payment method of letter of credit
   Letters of credit are divided into two types: clean letter of credit and documentary letter of credit. Documentary credit refers to a letter of credit with designated documents, and a letter of credit without any documents is called a clean letter of credit. Simply put, a letter of credit is a guarantee document that guarantees the exporter to recover the payment. Please note that the shipment period of exported goods should be within the validity period of the letter of credit, and the deadline for presentation of the letter of credit must be submitted no later than the validity date of the letter of credit. In international trade, letters of credit are mostly used as payment methods, and the date of issuance of the letter of credit should be clear, clear and complete. Several state-owned commercial banks in China, such as Bank of China, China Construction Bank, Agricultural Bank of China, Industrial and Commercial Bank of China, etc., are able to issue letters of credit (the issuing fees of these major banks are 1.5 of the issuing amount). ‰).



(2) TT payment method

The TT payment method is settled in foreign exchange cash. The customer remits the money to the foreign exchange bank account designated by the exporter, and can request the remittance within a certain period after the arrival of the goods.


(3) Direct payment method
Refers to the direct delivery and payment by the buyer and the seller.



4. Stocking

Stocking plays an important role in the entire trade process and must be implemented one by one in accordance with the contract. The main check contents of stocking are as follows:

(1) The quality and specifications of the goods: should be verified according to the requirements of the contract.

(2) Quantity of goods: guarantee to meet the quantity requirements of the contract or letter of credit.

(3) Stocking time: According to the provisions of the letter of credit, combined with the shipping schedule to facilitate cargo connection.



5. Packaging

The packaging form can be selected according to the different goods (such as: carton, wooden box, woven bag, etc.), and different packaging forms have different packaging requirements.

(1) General export packaging standards: The packaging shall be carried out according to the general export standards.

(2) Special export packaging standards: export goods packaging according to customers' special requirements.

(3) The packaging and markings (transportation marks) of the goods: careful inspection and verification should be carried out to make them comply with the provisions of the letter of credit.



6. Customs clearance procedures

1. Export commodities subject to statutory inspection must be issued with an export commodity inspection certificate. At present, my country's import and export commodity inspection mainly has four links:

(1) Acceptance of inspection: The application of inspection means that the person concerned with foreign trade applies for inspection to the commodity inspection agency.

(2) Sampling: After the commodity inspection agency accepts the application for inspection, it will promptly send personnel to the cargo storage location for on-site inspection and identification.

(3) Inspection: After the commodity inspection agency accepts the application for inspection, it will carefully study the declared inspection items, determine the inspection content, and carefully review the contract (letter of credit) on the quality, specifications, and packaging requirements, clarify the basis for the inspection, determine the inspection standards, Methods (Inspection methods include sampling inspection, instrument analysis inspection, physical inspection, sensory inspection, microbiological inspection, etc.).

(4) Certificate issuance: In terms of export, all the export commodities listed in the 'Category List' shall be issued after passing the inspection by the commodity inspection agency (or stamping the release seal on the 'export goods declaration form' instead of the release form ).



2. A professional person holding a customs declaration certificate must go to the customs for customs clearance procedures with the packing list, invoice, customs declaration letter of attorney, export settlement verification form, a copy of the export goods contract, and the export goods inspection certificate.

(1) Packing list: the packing details of export products provided by the exporter.

(2) Invoice: Certificate of export product provided by exporter.

(3) Customs declaration power of attorney: A certificate issued by a unit or individual that does not have the ability to declare customs to entrust a customs broker to declare.

(4) Export verification form: It is applied by the exporting unit to the foreign exchange bureau and refers to a document used by an export-capable unit to obtain an export tax refund.

(5) Commodity inspection certificate: obtained after passing the inspection by the entry-exit inspection and quarantine department or its designated inspection agency, it is a collective term for various import and export commodity inspection certificates, identification certificates and other certificates. This is a valid document with a legal basis for the fulfillment of contractual obligations by the parties involved in foreign trade, settlement of claims, disputes, arbitration, and litigation. It is also a necessary proof for customs inspection and release, tariff collection and preferential tariff reduction.
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