General

"Recently, our Bangladeshi customer had a letter of credit that was overdue for more than 2 months. The business manager and the customer repeatedly urged, but the other bank has not paid." The relevant person in charge of Zhejiang Garcia Electronics Co., Ltd. was very upset about this. Garcia is not the only international trade enterprise that has encountered similar problems. Recently, many Chinese international trade enterprises have encountered the situation that the payment for goods cannot be recovered on time due to factors such as government foreign exchange control or insufficient foreign exchange reserves caused by US dollar interest rate increase. Enterprises are facing the risk of capital flow disruption, and their normal operation and operation are seriously affected.

After knowing the above difficulties encountered by international trade enterprises, the Chamber of Commerce for Import and Export of Mechanical and Electrical Products sent a letter to the issuing bank of the overdue letter of credit in a timely manner, explaining the impact of the failure to recover the payment on Chinese mechanical and electrical foreign trade enterprises, and urging the issuing bank of the letter of credit to fulfill its payment obligations as soon as possible. Through negotiation with the Chamber of Commerce, many electromechanical foreign trade enterprises have successfully received the payment remittance, and Garcia is one of them. The safe withdrawal of loan funds has finally let the company's responsible person down.

Facing the current complex international trade situation, how can Chinese foreign trade enterprises avoid the situation that the payment for goods cannot be recovered on time? In this regard, the relevant person in charge of the Legal Department of China Chamber of Commerce for Import and Export of Mechanical and Electrical Products suggested that it is important to enhance the enterprise's awareness of credit risk management. "Foreign trade enterprises should pay attention to maintaining a certain amount of cash flow, and try to avoid the situation that the normal operation and operation cannot be carried out due to the break of capital flow; foreign trade enterprises should strengthen the contact with business associations, obtain policy information from the customs and the national foreign exchange administration through multiple channels, and reduce the operation and management risks caused by information asymmetry; foreign trade enterprises should also make effective use of financial instruments, buy export credit insurance, etc., and guarantee the income through insurance Exchange security, avoid economic losses, and reduce the risk of accounts receivable. " Said the above responsible person.

At the same time, adopting diversified international settlement methods and standardizing export trade contracts can also reduce the risk of accounts receivable of international trade enterprises. "Foreign trade enterprises can adopt diversified international trade settlement methods according to the characteristics of the export market, customer credit, mode of transportation, transaction amount, exchange rate policy and other actual conditions, and can further standardize export trade contracts to ensure that the signed foreign trade contracts are legal and effective; the project content, arbitration clauses, breach clauses, etc. in the export foreign trade contracts must be clear to ensure the timely and safe collection of foreign exchange. In addition, they should be careful The L/C shall be carefully reviewed and the documents shall be presented in strict accordance with the L/C provisions to ensure that the exchange can be collected within the time specified in the L/C. "The above responsible person said.

Timely improving customer file management and strengthening the credit investigation of customers are also the countermeasures for international trade enterprises to prevent transaction risks. Foreign trade enterprises can establish special archives management departments to set up and evaluate the credit rating of customers' payment and credit status according to the receipt and payment of transactions. In the transaction, necessary measures should be taken to avoid risks for customers with low credit rating. "First, the number of traded products can be limited. Second, the terms of payment for transactions can be strictly set. Third, the company can effectively avoid losses by shipping goods in batches." The above person in charge said.

In addition, international trade enterprises can also complain to the Chamber of Commerce of Electromechanical Industry in case of fraud, malicious default of payment, etc. The Chamber of Commerce of Electromechanical Industry will issue an early warning notice to relevant industry enterprises according to the situation, prompt to prevent similar fraud means, and establish a complaint handling mechanism for non-performing transactions. In addition, the Chamber of Commerce has also created a database of non-performing transactions. Enterprises can complain about dishonest enterprises and non-performing transactions to the Law Center of the Chamber of Commerce. Relevant information will be included in the database of non-performing transactions to ensure the safety of subsequent transactions of enterprises.