General

01

Inquiry

That is to say, inquiries from various international trade platforms, exhibitions, old customers, etc. The contents of inquiry can include: price, specification, quality, quantity, packaging, shipment and sample requirements., And most of them are just asking prices, which can also be called inquiries. When we have an inquiry, we are holding onto the client's clothes. Therefore, if we want to fulfill the order, we must respond strategically to customer inquiries.

02

offer

In the process of international trade, the first step is product quotation, also known as "quotation". The quotation mainly includes: product quality level, product specifications and models, whether the product has special packaging requirements, quantity of purchased products, delivery time requirements, product transportation methods, product materials, etc.

Common quotes include FOB delivery on board, CNF cost plus freight, CIF cost, insurance plus freight, etc.

03

Signing a contract

In international trade, sales contracts do not have a fixed form. Generally, there are formal contracts, as well as confirmation letters, agreements, memorandums, orders, commission orders, and so on. Unless one party declares that 'the contract shall prevail', the above shall be considered as a contract. Confirmation letter, agreement, memorandum, etc They are not as serious as contracts, which simplifies them a lot. Terms such as objection claims, force majeure, arbitration, etc. It will not be included, so it is necessary to choose the appropriate form for signing based on the needs of both buyers and sellers.

04

payment method

There are three commonly used payment methods internationally: letter of credit, wire transfer, and direct payment.

(1) Letters of credit for payment are divided into two types: clean draft letters of credit and documentary letters of credit. A documentary letter of credit refers to a letter of credit with specified documents, and a letter of credit without any documents is called a clean bill of credit. Simply put, a letter of credit is a 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 payment and presentation period of the letter of credit must be no later than the validity period of the letter of credit. In international trade, payment methods are mostly letters of credit, and the date of issuance of the letter of credit should be clear, clear, and complete.

② TT payment method TT payment method is settled in foreign exchange cash. Customers can transfer the funds to your designated foreign exchange bank account and request a certain period of remittance after the goods arrive.

③ Direct payment refers to the direct delivery payment between the buyer and the seller.

05

Stock up

Actually, stocking is about purchasing goods or placing orders with factories to produce goods. After the goods are ready, they must undergo inspection by the National Import and Export Commodity Inspection and Quarantine Bureau, otherwise they cannot be declared for export.

Stock up plays a very important role in the entire foreign trade process and must be carried out in accordance with the contract. Quality, specifications, quantity, packaging, etc. The quality of the goods should meet the requirements of the contract or letter of credit. In addition, attention should also be paid to arranging the shipping schedule to facilitate the connection of ships and cargo. In order to ensure quality and delivery without problems, foreign trade companies generally send dedicated personnel (such as tracking and QC) to the factory to track production and inspect the goods. There are also specialized inspection agencies (third-party) designated by foreigners, such as SGS, OMIS, BV, etc. After the production is completed and the goods are packed, the factory needs to provide the packing list (i.e. how many boxes of goods, size, weight, number of pieces, specifications, etc.) to the foreign trade company

06

declare at customs

When the goods are ready and the inspection of the goods (most international trading companies entrust the inspection process to specialized agencies) has been successfully completed, the next step is to deliver the goods to the customer. The first step is to deal with customs, which is to declare customs and obtain a pass, including procedures such as accepting declarations, checking documents, inspecting goods, paying taxes, and customs clearance. The documents to be submitted 24 hours before loading include:

① Export goods declaration form: The declaration form is the basic voucher for customs to supervise, inspect, levy taxes, and make statistics on export goods.

② Export License: Units with export operation rights should export goods that are not subject to license management within their business scope.

③ Packing list or waybill: The packing list is a document sent by the shipping company to the shipper to notify them of loading. After customs inspection and release, the packing list or waybill will be stamped with a release seal and returned to the customs broker for shipment and export.

④ Commercial invoice: invoice is an important basis for customs duties.

⑤ Packing list: It is a detailed supplement to the invoice content.

⑥ Export Receipt Verification Form: The document provided by the foreign exchange management department, stamped by the customs after completing the customs clearance procedures, and the foreign trade company can settle the foreign exchange verification at the foreign exchange management department (the specific verification process will be discussed later).

⑦ Other relevant certificates: trade contract, certificate of origin and other relevant certificates that the customs deems necessary to inspect.

07

freight transport

After the customs declaration is completed, the next step is the shipping cost. You need to charter a ship and book a warehouse to deliver the goods to the customers. If the contract is FOB, the customer will designate a shipping agent (shipping company). Of course, there are also customers who entrust the seller to help them find it. So it is necessary to contact the freight forwarding company as soon as possible, inform the shipping requirements, and understand the export port and loading date of the goods to be exported. At the same time, the delivery time of the factory must be in line with the delivery date on time (timely warehousing) to achieve the delivery date specified by the customer, and a written booking notice should be sent to the freight company as soon as possible before the delivery date. When booking with a freight company, the booking must be made in writing (such as fax), indicating the scheduled shipping date, container type and quantity, destination port, etc. To avoid errors. After the factory completes loading and the containers leave the factory, a loading notice is required, which lists the departure time and actual loading quantity of the containers., And use the packing number and sealing number as information for the bill of lading, requiring the factory to seal the container after it is loaded.

08

Bill of Lading

The bill of lading is a document used by the exporter when picking up goods and settling foreign exchange. It is issued by the China International Shipping Company after the exporter completes export customs clearance procedures.

The signed bill of lading is issued in three copies according to the number of copies required by the letter of credit. The exporter keeps two copies for tax refund and other business purposes, and one copy is sent to the importer for shipping and other procedures. When shipping goods by sea, the importer must present the original bill of lading, packing list, and invoice for pick-up (the exporter must send the original bill of lading, packing list, and invoice to the importer). If the goods are transported by air, the fax copies of the bill of lading, packing list, and invoice can be directly used for pickup.

09

settlement of exchange

After the goods are shipped for export, the import and export company shall correctly prepare the documents (packing list, invoice, bill of lading, export certificate of origin, export settlement of foreign exchange) according to the provisions of the letter of credit.

Within the validity period specified in the letter of credit, submit to the bank for negotiation and exchange settlement. In addition to letter of credit settlement, other payment and remittance methods generally include wire transfer (T/T), draft (D/D), letter of exchange (M/T), etc. Due to the rapid development of electronics, wire transfer is now the main method of remittance.

ten

Write-off

The first step is to open an account. Before applying for the export receipt verification form for the first time, the applicant should bring the application form, approval documents from the Ministry of Foreign Trade and Economic Cooperation, business license, customs registration certificate, and other materials to the foreign exchange bureau for registration. After the review by the Foreign Exchange Bureau, we will handle the exporter registration procedures for you. The next step is to receive the bill. Before handling export business, the account opening unit's introduction letter and seal card should be presented to the foreign exchange bureau to collect the verification form. The verification form shall be declared valid within two months from the date of receipt, and the exporting unit shall return the unused verification form to the foreign exchange bureau for cancellation within one month from the date of cancellation.

Finally, write off. You should, within one month from the date of foreign exchange collection, present the verification form, the "Special Copy for Export Collection Verification" issued by the bank, and other materials (such as processing contracts for incoming materials and assembly, and the "Registration Manual") to the foreign exchange bureau to handle export collection verification.

eleven

drawback

After obtaining approval from the industrial and commercial administration department and other departments to operate import and export business, the export enterprise tax refund registration must be completed within 30 days. After obtaining the "Export Enterprise Tax Refund Registration Form", fill it out according to the requirements on the registration form, stamp it with the official seal of the unit and relevant personnel, and submit it to the tax authority along with the approval documents for export product management rights, industrial and commercial registration certificates, and other supporting materials. After receiving your enterprise's formal application, the tax authority will review and approve it according to the prescribed procedures, and then issue you the "Export Tax Refund Registration Form" to handle export tax refund. At the same time, The materials you need to hand in roughly include: ① customs declaration form ② commercial invoice ③ purchase invoice (VAT invoice) ④ foreign exchange settlement memo or foreign exchange collection notice of the bank ⑤ self manufactured products directly exported by the factory or entrusted for export ⑥ product tax collection certificate ⑦ verification certificate of export collection ⑧ other materials related to export tax rebate