What is the process of doing foreign trade?

Foreign trade process: 1. Customer inquiry:

Generally speaking, before customers place a formal Purchase Order, they will send a relevant Order Inquiry to the business department to understand some details.

2. Quotation:

The quotation for export products mainly includes: the quality level of the product, the specifications and models of the product, whether the product has special packaging requirements, the quantity of the product purchased, Delivery time requirements, product transportation methods, product materials, etc.

The more commonly used quotation methods include: FOB "free on board", CFR "cost and freight", CIF "cost, insurance and freight" and other forms.

The business department should promptly respond to customer inquiries, determine the product name, model, manufacturer, quantity, delivery date, payment method, packaging specifications and cabinet type, etc., and issue a ProformaInvoice to the customer for a formal quotation.

3. Order/Sign Order:

After the trading parties reach an intention on the quotation, the buyer's company formally places an order and negotiates with the seller's company on some related matters. After both parties negotiate and approve, A "Purchase Contract" needs to be signed.

In the process of signing the "Purchase Contract", we mainly discuss the product name, specifications and models, quantity, price, packaging, origin, shipping period, payment terms, settlement method, claims, arbitration, etc. And write the agreement reached after the negotiation into the "Purchase Contract". This marks the official start of export operations. Under normal circumstances, a purchase contract signed in duplicate shall be valid with the official seal of the company stamped by both parties, and each party shall keep one copy.

4. Place a production order:

After receiving the customer's order confirmation (PurchaseOrder), place an order with the factory and arrange the production plan.

5. Business approval:

After receiving the order, the business department will first make a business approval form. Fill in the "Export Contract Review Form" truthfully and list all expected expenses as much as possible. For contract approval, a fax of the customer's order and the purchase contract with the factory must be attached.

The audit form must be signed by the salesperson, approved by the department manager, and then submitted to the management department for review before execution. If the amount is relatively large, or if there are terms such as advance payment and commission, it must be approved by the general manager of the company. After the contract is approved, the PO will be turned into a sales order and handed over to the department supervisor for follow-up.

6. Implement payment method (letter of credit)

There are three commonly used international payment methods, namely remittance payment method, collection payment method and letter of credit payment method.

1. If you are a customer paying by T/T, please confirm that the deposit has been received. The TT payment method is settled in foreign exchange cash. The customer will remit the money to the foreign exchange bank account designated by the company. You can request the remittance within a certain period of time after the goods arrive.

2. If you are a customer who lends money, or collects foreign exchange through bank D/P, D/A, etc., confirmation by the manager is required.

3. If it is a customer who pays by L/C, it is usually confirmed one month before the delivery date that the L/C has been received. After receiving the L/C, the salesperson and the document clerk should respectively Review the letter of credit to see if there are any errors, whether the delivery date can be guaranteed, and other possible problems. If there are any problems, ask the customer to change the certificate immediately.

Here we focus on the payment method of the letter of credit. The implementation of the letter of credit usually includes three contents: urging, reviewing and modifying the certificate:

1. Urging the issuance of the letter of credit, if in the export contract The buyer and seller agree to use a letter of credit. The buyer should strictly follow the provisions of the contract and open the letter of credit on time. This is a prerequisite for the seller to perform the contract. However, in actual business, sometimes foreign importers often delay the issuance of certificates when the market changes or there is a shortage of funds. In order to ensure the timely performance of the contract, it is necessary for us to remind the other party to issue a letter of credit in accordance with the contract at the appropriate time, and urge the other party to quickly complete the issuance procedures. Especially for bulk commodity transactions or commodity transactions specially made at the buyer's request, reminders should be carried out in a timely manner based on the stocking situation. If necessary, you can also ask our overseas offices or the Bank of China to assist you in urging the certificates on your behalf.

2. When reviewing the letter of credit, focus on reviewing the shipping terms in the letter of credit.

The letter of credit is a bank credit guarantee document, but the bank’s credit guarantee is based on the beneficiary The documents submitted must comply with the terms of the letter of credit. Therefore, the credit standing of the issuing bank and the various contents of the letter of credit are related to the security of foreign exchange collection. In order to ensure the safety of foreign exchange collection, after receiving a letter of credit issued by a foreign customer through a bank, it should be carefully checked and reviewed immediately. A letter of credit is issued based on a contract, and the content of the letter of credit should be consistent with the terms of the contract. However, in actual operations, it often happens that the terms of the letters of credit issued are inconsistent with the provisions of the contract. In order to ensure the smooth execution of foreign exchange collection and contracts, banks and export enterprises should immediately deal with the letters of credit issued by foreign customers through banks after receiving them. It is carefully checked and reviewed. The bank focuses on reviewing the issuing bank's credit standing, payment responsibility, remittance request route, etc. Exporters focus on reviewing whether the contents of the letter of credit are consistent with the sales contract.

After receiving the letter of credit, the exporter should carefully review the relevant terms in the letter of credit, such as shipping period, port of shipment, port of destination, date of exchange settlement, etc. In particular, the exporter should pay attention to some special terms, such as whether batch shipments are possible, Whether transhipment is possible, etc., depends on the actual situation before shipment of the goods to decide whether to accept, modify or reject the relevant transportation terms in the letter of credit.

3. Modification of a letter of credit is the act of modifying certain terms in an already issued letter of credit. Modifications to a letter of credit can be made by the applicant or the beneficiary.

In actual business, after an export enterprise conducts a comprehensive and detailed review of the letter of credit, when problems are discovered, they usually need to distinguish the nature of the problem and deal with it. In some cases, they must also communicate with banks, transportation, Appropriate decisions can be made only after contacting and conducting joint research with insurance, inspection and other relevant departments. Generally speaking, for any issue that is not in compliance with my country's foreign trade policies and affects the performance of the contract and the security of foreign exchange collection, foreign customers must be required to modify it through the issuing bank, and must insist on receiving the bank's approval of the modified L/C notification before shipment. Goods; for goods that may or may not be changed, or that can be done with appropriate efforts, they may be handled as appropriate, or no changes shall be made, and shall be handled in accordance with the provisions of the letter of credit.

It is common for multiple clauses in a letter of credit to be modified. This should be raised with the issuer once, otherwise it will not only increase the procedures and costs for both parties, but also have a bad impact on the outside world. Secondly, any letter of credit modification notice received must be carefully reviewed. If the modification content is found to be incorrect or we cannot agree to it, we have the right to refuse to accept it, but we must promptly make a notification of rejection of the modification and send the notification so as not to affect the smooth performance of the contract.

In order to prevent forgery and facilitate the beneficiary's full performance of the obligations stipulated in the terms of the letter of credit, the notice of modification of the letter of credit should be forwarded or notified through the advising bank of the original credit. If it is sent by the issuer or issuing bank directly, it should be submitted to the original advising bank for confirmation.

For an acceptable letter of credit modification or an accepted letter of credit, it should be immediately attached to the original letter

and the number of modifications should be noted, so as to prevent confusion when using it. The original certificate is out of touch, resulting in incomplete terms of the letter of credit, affecting the timely and safe collection of foreign exchange.

7. Issuance of production notice/stock preparation:

Stock preparation means that the export company places an order with the manufacturer or warehousing department in accordance with the provisions of the contract or letter of credit, requiring them to count the goods according to the order. , checking, processing and sorting, etc. After determining the delivery date, the business department can issue a production notice and notify the factory to produce on time if the above conditions are met:

The main verification contents for stock preparation are as follows:

1. Goods quality and specifications, It should be verified according to the requirements of the contract.

2. Quantity of goods: Ensure that the quantity requirements of the contract or letter of credit are met.

3. Preparation time: It should be arranged according to the letter of credit and combined with the shipping schedule to facilitate the ship and cargo title.

8. Packaging/Brushing wheat

Select the packaging form (such as cartons, wooden boxes, woven bags, etc.) according to the different goods. Different packaging forms have different packaging requirements.

1. General export packaging standards: Packaging according to common standards for trade exports.

2. Special export packaging standards: Export goods are packaged according to the special requirements of customers.

3. The packaging and marking (transportation mark) of the goods should be carefully inspected and verified to ensure that they comply with the provisions of the letter of credit.

9. Inspection 1. One week before the delivery date, the company’s inspector must be notified to inspect the goods.

2. If the customer wants to inspect the goods by himself or the designated inspection personnel, he must make an appointment with the customer to inspect the goods one week before the delivery date and inform the planning department of the inspection date.

3. If the customer specifies a third-party inspection company or an impartial bank to inspect the goods, he must contact the inspection company two weeks before the delivery date to make an appointment for the inspection time to ensure that the goods are inspected within the delivery date. Arrange your time in advance. After confirmation, the factory will be notified of the inspection time.

10. Preparation of basic documents:

According to the packing information provided by the PO and the factory, prepare export contracts, export commercial invoices, packing lists and other documents (should be prepared by the business merchandiser produced and handed over to the document clerk).

11. Commodity inspection/inspection application:

Complete the application for inspection and certification. All goods listed in the "category list" specified by the commodity inspection agency and trade under the letter of credit The contract stipulates that goods inspected and certified by the China Import and Export Commodity Inspection Bureau must fill in the "Export Inspection Application Form" to apply for commodity inspection before export customs declaration. After the goods are ready, you should apply to the Commodity Inspection Bureau for inspection. Only after obtaining the certificate issued by the Commodity Inspection Bureau The customs will only release the goods if they receive a qualified inspection certificate

. Any goods that fail to pass the inspection will not be allowed to be exported.

It should be noted that when placing an order with the factory, the commodity inspection requirements must be stated. Provide export contracts, invoices and other information required for commodity inspection. In addition, the factory must be notified of the future export port of the product to facilitate the factory to handle commodity inspection. The commodity inspection certificate replacement voucher/slip should be obtained one week before shipment.

12. Chartering, warehousing and stowage

1. If the contract signed with the customer is on FOB CHINA terms, usually the customer will designate a transportation agency or shipping company.

You should contact the freight forwarder as early as possible to inform your shipping intention, understand the export port to be arranged, shipping schedule, etc., confirm whether the factory's delivery can be at least one week earlier than the shipping date, and whether the shipping schedule can meet the customer's delivery requirements. Expect. A written SHIPPING ORDER should be sent to the freight company two weeks before the delivery date. The SHIPPING ORDER can usually be obtained one week before sailing.

2. If the seller pays the freight, you should consult the freight company or shipping company as soon as possible about the shipping date, freight rate, departure port, etc. After comparison, select a shipping company with favorable price, good reputation and suitable shipping date, and inform the salesperson to inform the customer. Determine the position in writing two weeks before sailing, the procedure is the same as above.

3. If the goods are not enough for one container and bulk cargo needs to be shipped, reserve bulk cargo space from the freight forwarding company. When you get the warehousing paper, you also need to know the customs cut-off time, customs declaration requirements for warehousing, etc.

4. When booking a warehouse with the transportation company, be sure to fax the written warehouse booking document, indicating the scheduled shipping date, container type and quantity, destination port, etc. to avoid errors.

5. Check the shipping schedule and fill in the export cargo consignment note. You can go through the entrusted booking procedures with the freight forwarder.

6. The freight forwarder will promptly book space with the shipping company or its agent after classifying and sorting the cargo according to the specific requirements of the cargo owner. When the shipping company or its agent signs the loading order, the booking work is completed, which means that the transportation contract between the shipper and the carrier has been concluded.

13. Insurance

After the cargo has been booked into a space and is insured by the seller, you can go through the insurance procedures for cargo transportation insurance. When performing a CIF export contract, the seller should promptly go through insurance procedures in accordance with the provisions of the sales contract or letter of credit before shipment. Insurance for exported goods is generally handled on a case-by-case basis. When applying for insurance, the name of the goods, insured amount, transportation route, insurance type, etc. should be listed one by one. After the insurance company accepts the insurance application, it issues an insurance policy or insurance certificate.

Usually both parties have agreed on matters related to transportation insurance in advance when signing the "Purchase Contract". Common insurances include marine cargo transportation insurance, land and air mail transportation insurance, etc. Among them, the risks covered by marine cargo insurance clauses are divided into two categories: basic risks and additional risks:

(1) Basic risks include Ping An Insurance (Free from Paricular Average-F.P.A), There are three types of water damage insurance (With Average or With Particular Average-W.A or W.P.A) and All Risk-A.R.

(2) Additional risks. There are two types of additional insurance: general additional insurance and special additional insurance.

14. Arrange towing the container:

1. After the goods are ready and inspected, entrust a towing company to pick up the container and load it. Towing companies should choose safe, reliable and reasonably priced companies to sign long-term cooperation agreements to ensure safety and punctuality.

The following information must be faxed to the towing company: confirmation of warehouse placement/paper for placing the container, shipping company, warehouse booking number, towing authorization letter, indicating the loading time, container type and quantity, and the loading address. , customs brokers, and shipping ports, etc. If there is an inspection company inspecting the container, please make a special statement and don't be late. And request a copy of the loading information to be sent back, listing the container number, license plate number, driver and contact number, etc.

2. Fax a copy of the loading information to the factory, listing the loading time, cabinet type, Booking number, order number, license plate number and driver’s contact number.

3. The factory is required to fax a loading notice to the business department as soon as possible after the container leaves the factory, listing the time when the container leaves the factory, the actual loading quantity, etc., and recording the box number and seal number as the bill of lading. data of. The factory is required to remember to put a seal after loading the cabinet.

15. Concentrated Port Area

After negotiating the ship or space, the cargo party shall send the export goods that meet the loading conditions to the designated port in the port area within the specified time. warehouse or cargo yard for smooth shipping operations.

When the ship arrives at the port and the loading plan is determined, the shipper will complete the consolidation procedures according to the port area purchase notice and within the specified period, and transport the export goods to the port area for collection in a timely manner, waiting for loading. Ship, make sure the batches are clear, the number of pieces is clear, and the marks are clear. Special attention should be paid to maintaining close contact with the port area, shipping companies and relevant transportation companies or railways.

When concentrating to the port area, shipments should be made in accordance with the order of the unloading port and the order of cargo stowage, so that the goods can be shipped in sequence. Order shipment. For export bulk goods, you can contact the port area for advance shipment. For goods that are in ready-to-ship condition at the ship's edge, there may also be problems with the goods being shipped directly according to the loading time. After loading is completed, the tally team leader and the ship's first mate must sign the receipt note and hand it over to the shipper. Loading supervision personnel must keep abreast of the situation at any time during the shipside unloading and direct loading of Class 1 dangerous goods, heavy items, valuables, special commodities and barge cargo to prevent the disconnection between unloading and loading.

20. Issuing a shipping notice

If the contract stipulates that a shipping notice needs to be issued at the time of shipment, it should be issued in a timely manner, especially if the buyer is responsible for its own insurance. If the seller delays or fails to issue a shipping notice, resulting in the buyer's failure to timely or failure to purchase insurance, the seller shall bear liability. After the goods are shipped, the exporter should promptly issue a "shipping notice" and relevant certificates to the foreign party so that the other party can prepare payment, redemption orders, and handle import customs declaration and delivery procedures.

Shipping notice: It is generally required to notify the customer of the details of the shipment within a few days after sailing. The contents of the shipping notice generally include: order number or contract number, letter of credit number, quantity, total amount Value, mark, number of packages, destination port agent, ship name, voyage number, estimated sailing date and scheduled arrival date, etc.

21. Payment of freight

In order to correctly collect freight, the shipping company applies to the commodity inspection agency to measure the export goods after they are concentrated in the port warehouse or warehouse. For export goods that require prepaid freight, the shipping company or its agent must issue a bill of lading with prepaid freight to the shipper after collecting the freight. If the goods are freight collect, the freight collect shall be indicated on the bill of lading, and the shipping company's unloading port agent will collect it from the consignee before the consignee picks up the goods.

Twenty-two. Acquisition of the bill

Immediately obtain the transportation documents:

1. Fax the supplementary information of the bill of lading within two days after sailing at the latest To the shipping company or freight forwarder. The replenishment of materials must be done according to the requirements of L/C or the customer, and the correct quantity of goods must be given, as well as some special requirements, including requiring the shipping company to issue a shipping certificate along with the bill of lading.

2. Urge the shipping company to issue a sample bill of lading and freight bill as soon as possible. After carefully checking that the sample is correct, confirm the contents of the bill of lading in writing to the shipping company. If the bill of lading requires customer confirmation, you must first fax the bill of lading sample to the customer, and then ask the shipping company to issue the original copy after confirmation.

3. Pay the freight and miscellaneous charges in a timely manner, and after payment, notify the shipping company to obtain the bill of lading and other transportation documents in a timely manner. Payment of freight should be registered.

After loading is completed, the captain or first mate will issue the first mate's receipt based on the actual situation of the loading. The receipt issued by the first mate will be handed over to the original shipping unit. The export enterprise can present this document to the shipping company. or its agent in exchange for ocean bill of lading.

1. The bill of lading is a document issued by the foreign shipping company after the exporter has completed the export customs clearance procedures and the customs has released it for the importer to pick up the goods and settle foreign exchange.

2. The signed bill of lading is issued according to the number of copies required in the letter of credit, usually three. The exporter keeps two copies to handle tax refund and other services, and one copy is sent to the importer for handling procedures such as picking up the goods.

3. When shipping goods by sea, the importer must present the original bill of lading, packing list, and invoice to pick up the goods. (The exporter must send the original bill of lading, packing list, and invoice to the importer.)

23. Document preparation and settlement of foreign exchange

The presentation of documents refers to the exporter (the beneficiary of the letter of credit) person) submits documents that comply with the terms of the letter of credit to the designated bank before the expiry of the letter of credit and within the period for presentation of documents. After these documents are confirmed to be correct by the bank, the bank will handle the export settlement according to the foreign exchange payment conditions stipulated in the letter of credit.

After the goods are shipped, the import and export company should prepare and prepare various documents in accordance with the provisions of the letter of credit, including bills of exchange, export invoices, transport documents and insurance policies, as well as all other documents stipulated in the contract or letter of credit. Exchange settlement documents are required. Within the validity period of presentation stipulated in the letter of credit, various documents and necessary vouchers shall be sent to the designated bank for payment, acceptance or negotiation procedures, and exchange settlement shall be made to the bank after receiving the payment. There are three methods of export settlement in my country: settlement on receipt, advance settlement and regular settlement.

(1) If L/C is used to collect foreign exchange, all documents should be prepared within the specified time for presentation, and the documents should be reviewed strictly to ensure that there are no errors before submitting them to the bank for negotiation.

(2) If T/T is used to collect foreign exchange, immediately fax the bill of lading to the customer for payment after obtaining the bill of lading. After confirming receipt of the balance, the original bill of lading and other documents will be sent to the customer.

(3) If T/T is required to receive the full payment before the cabinet can be made, you must wait for payment before arranging to move the cabinet. After getting the bill of lading, you can immediately send the original bill of lading to the customer.

*Due to the rapid development of electronics, telegraphic transfer (TELEGRAPHIC TRANSFER (T/T)), draft (DEMAND DRAFT (D/D)), letter transfer (MAIL TRANDFER (M/T)), etc. method, now remittances mainly use wire transfer

* In my country’s export business, negotiation letters of credit are more commonly used. There are three main methods for export settlement of this letter of credit: "exchange settlement on receipt", "regular settlement" and "payment settlement".

"Settlement upon receipt", also known as "receipt first and settlement later", means that the negotiating bank receives the documents submitted by the beneficiary and, after reviewing and confirming that they are consistent with the provisions of the letter of credit, sends the documents to Request foreign exchange from the foreign paying bank. After the paying bank transfers the foreign exchange to the negotiating bank, the negotiating bank will settle the foreign exchange into RMB according to the foreign exchange quotation rate of the day and deliver it to the beneficiary.

"Regular foreign exchange settlement" means that after receiving the documents submitted by the beneficiary and verifying them, the negotiating bank will send the documents to the foreign bank to claim for compensation, and transfer the payment in foreign exchange within a pre-specified period starting from the date of presentation of the documents. The settlement will be credited to the beneficiary's account in RMB or delivered to the beneficiary.

"Payment and settlement of foreign exchange", also known as export bill advance or negotiation, refers to the case where the negotiating bank confirms that the documents submitted by the beneficiary comply with the terms of the letter of credit after reviewing the documents. Purchase the beneficiary's bill of exchange and/or documents, deduct the interest from the negotiation date to the estimated date of receipt of the bill based on the face amount, convert the net amount into RMB based on the RMB market exchange rate on the negotiation date, and pay it to the beneficiary of the letter of credit. people.

24. Business registration:

Each export business must be registered promptly after completion, including computer registration and written registration, to facilitate future inquiries, statistics, etc.

Twenty-five. Document archiving:

A complete set of all documents including PO, L/C and negotiation documents must be retained for future reference.