General

"Recently, our company's Bengali customer had a letter of credit overdue for more than two 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 distressed. There is more than one international trading enterprise in Garcia. Recently, due to factors such as government foreign exchange control or insufficient bank foreign exchange reserves caused by the increase of US dollar interest rate, many Chinese international trading enterprises have encountered the situation that the payment for goods cannot be recovered on time. The enterprises are facing the risk of capital flow fracture, and the normal operation and operation are seriously affected.

China Chamber of Commerce for Import and Export of Mechanical and Electrical Products, after learning of the above difficulties encountered by international trade enterprises, promptly sent a letter to the overdue L/C issuing bank, explaining the impact of the failure to collect the payment on time on China's mechanical and electrical foreign trade enterprises, and urging the L/C issuing bank to fulfill its payment obligations as soon as possible. Through the efforts of the Chamber of Commerce, many electromechanical foreign trade enterprises have successfully received the payment remittance, and Garcia is one of them. The safe return of the loan funds has finally put down the heart that has been hanging in the head of the company.

In the face of 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 head of the Legal Department of the China Chamber of Commerce for Import and Export of Mechanical and Electrical Products suggested that it is important to enhance the awareness of enterprise credit risk management. "Foreign trade enterprises should pay attention to maintaining a certain amount of cash flow and try their best to avoid the situation that the normal operation and operation cannot be carried out due to the fracture of capital flow; foreign trade enterprises should strengthen the contact with business associations, obtain policy information from customs and the State Administration of Foreign Exchange through multiple channels, and reduce the risk of operation and management caused by information asymmetry; foreign trade enterprises should also make effective use of financial instruments, purchase export credit insurance, etc., and ensure the income through insurance Exchange security, avoid economic losses and reduce the risk of accounts receivable. " The person in charge said.

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. They can also further standardize export trade contracts and ensure that the foreign trade contracts signed are legal and effective. The project contents, arbitration clauses and default clauses in export foreign trade contracts must be clear to ensure the timely and safe foreign exchange collection Carefully review the letter of credit and submit documents in strict accordance with the provisions of the letter of credit to ensure that the exchange can be collected within the time specified in the letter of credit. "The person in charge said.

Timely improve customer file management and strengthen customer credit investigation are also the countermeasures for international trade enterprises to prevent transaction risks. Foreign trade enterprises can establish a special archives management department 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 for customers with low credit rating to avoid risks. "First, we can limit the number of traded products, second, we can strictly set the terms of payment for the transaction, and third, we can effectively avoid the loss of the company by taking delivery in batches during the delivery process," said the person in charge above.

In addition, international trade enterprises can also complain to the Chamber of Commerce of Machinery and Electronics in case of fraud, malicious default of payment, etc. The Chamber of Commerce for Machinery and Electronics will issue an early warning notice to relevant industry enterprises according to the situation, reminding them 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 Legal Center of the Chamber of Commerce for Machinery and Electronics. Relevant information will be included in the database of non-performing transactions to ensure the safety of subsequent transactions of enterprises.