The concept of international trade: International (International) refers to countries; Trade (Trade) refers to transactions, exchanges or buying and selling activities. The so-called international trade refers to the behavior of buyers and sellers in different countries or regions engaging in transactions of goods, services or technology. The parties negotiated and agreed that the seller should transfer the ownership or use rights of the subject matter of the sale to the buyer, and the buyer should deliver the price of the goods or items of equivalent value to the seller. The reason why countries can engage in international trade to exchange what they need is because countries (or regions) in the world have different natural resources, people's endowments, and production skills, which must be effectively allocated through international trade. , division of labor and utilization. When goods are sold from one country to another, it is called export; when goods are bought into the country from other countries, it is called import.

Types of international trade:

According to the movement of goods:

(1) Export Trade (Export Trade): The products produced in the country When products are sold to foreign countries, what they get is the foreign currency paid by the foreign countries. Export trade is not necessarily goods, but may be technology, patents, knowledge, etc. (2) Import Trade: The purchase of products produced in other countries from foreign countries, regardless of whether the products are produced in the exporting country. Import trade and export trade are actually two sides of the same coin. The establishment of a transaction must have a buyer and a seller. From the buyer's perspective, the transaction is an import trade; from the seller's perspective, it is an export trade. (3) Transit Trade: When goods are transported from the exporting country to the importing country, they must pass through a third country. For the third country, the transaction is regarded as transit trade. (4) Intermediary Trade: refers to the process in which goods are transported from the exporting country to the importing country. They must be unloaded, stored, reorganized or modified through a third country or place, and then transferred to the importing country. This kind of transaction This method is called entrepot trade.

According to the form of goods:

(1) Visible Trade: If the traded goods are tangible goods with volume and weight, such as ready-made clothes, food, cement, etc., Called tangible trade, tangible trade must go through customs import and export clearance. (2) Invisible Trade: If the goods traded are intangible labor or provision of services, such as transportation, insurance, finance, etc., it is called invisible trade.

According to trade channels:

(1) Direct Trade: Refers to direct transactions between import and export buyers and sellers, without the intervention of a third party, and the goods or payments are not involved. Not passing through a third place. (2) Indirect Trade: Refers to the fact that the import and export buyers and sellers do not conduct transactions directly, but indirectly complete the trade between the two countries through the intermediary of a third party (commission agent). Commission merchants exchange services for commissions and are not responsible for profits or losses. (3) Triangular Trade: Refers to the fact that the exporter of the exporting country does not directly enter into a contract with the importer of the importing country. Instead, an intermediary in a third country enters into a purchase contract with the exporter as a buyer, and then The seller's position is to enter into a sales contract with the importer and earn the difference in profit from the payment for the goods, but the goods are shipped directly from the exporting country to the importing country.

International trade transaction methods:

One type is pure sales methods, such as case-by-case sales, Exclusive Sale, Agency, Invitation to Tender & Submission of Tender), Consignment, Auction, Fairs and Sales, etc.; the other is a method that combines sales and production financing, such as Processing Trade, Counter Trade), compensation trade (Compensation Trade), leasing trade (Renting Trade), commodity futures trading (Futures Trading), etc. With the increasing development of international trade, trade methods are constantly changing, and many new trade methods have emerged that adapt to the development of the times. (1) International market research:

With the in-depth development of economic globalization or regional integration, as well as the innovation and progress of science and technology, global commodity trade competition is becoming increasingly fierce. On the whole, the international commodity market has formed a "buyer's market", which is a severe test for manufacturers, sellers and exporters. How to meet the changing needs of different consumers around the world is what they have to solve. Fundamental problem. Therefore, before engaging in trading activities, it is necessary to conduct in-depth international market research, collect extensive foreign market data, understand the consumption level and consumption habits of consumers in a specific market, and find out whether specific products are marketable in the market and whether similar products exist. competition, whether similar products have competitive advantages and price change trends, etc.

In addition, it is necessary to carefully analyze the import control, foreign exchange control and customs systems of the market location before selecting a more appropriate sales market and completing the transaction.

(2) Looking for trading partners:

After conducting international market research and mastering the basic situation and consumer needs of the target market, the next step is to find trading partners from this market. , proposed establishing trade relations. The selection of trading partners is the beginning of the transaction and an important link in the trade.

(3) Do a good job in advertising:

The purpose of advertising is to introduce the company itself or the products it operates to foreign customers and consumers, so that they can understand the company’s information and products. performance, features, etc., in order to expand sales volume, increase selling price, and obtain more trade opportunities. (1) Basic concepts of transaction negotiation:

Transaction negotiation refers to the negotiation between buyers and sellers on transaction conditions, coordinating the common interests of both parties, seeking consensus, and reaching a deal. In international trade, transaction negotiations have clear content and standardized procedures. The process of transaction negotiation is a process in which both parties establish a contractual relationship through offers and commitments. Both parties bear certain legal responsibilities for their actions during the transaction negotiation process, that is, before the transaction is concluded. The legality of the procedure ensures the legal validity of the contract reached.

(2) General aspects of transaction negotiation:

Transaction negotiation can be oral (face to face or telephone) or written (fax, telex or letter). The process of transaction negotiation can be divided into four links: inquiry, offer, counter-offer and acceptance. Offer and acceptance are essential links. The United Nations Convention on Contracts for the International Sale of Goods stipulates that offer and acceptance are necessary to reach a transaction. legal steps.

(3) Application of transaction negotiation in POCIB:

Transaction negotiation is mainly conducted through the messaging system in POCIB. The prerequisite for sending emails is that a trade relationship must have been established with the trading partner. . (1) Form of contract: In international trade, there are no specific restrictions on the name of a written contract. In my country’s foreign trade practice, two forms are mainly used: contract and confirmation. In addition, agreement (Agreement) and memorandum (Memorandum) are mainly used. Memorandum) is also useful. Sometimes foreign customers will also ask us to sign their draft orders or orders.

(2) Content of the contract: A written contract generally consists of three parts, namely the beginning of the contract, the text and the end of the contract, and each of these three parts contains different content.

(3) Application of contract signing in POCIB: In POCIB, when business enters the business negotiation stage, the exporter can draft the contract and send it to the importer for signature and confirmation. Before signing a contract, both the import and export parties need to open a general account at a bank (only required if the transaction currency is not the domestic currency). Transaction preparation: Transaction preparation mainly refers to the general term for a series of preparatory activities carried out by buyers and sellers before signing a transaction contract. Among the various work aspects of import and export trade, preparation before the transaction is the most basic preliminary work. Whether it is export trade or import trade, whether the preparation work is sufficient and meticulous will directly affect the process of international trade and the benefits of international trade. Usually, preparatory work before a transaction mainly includes international market research, finding trading partners and establishing trade relationships, and doing advertising and publicity.

Transaction negotiation: Transaction negotiation means that buyers and sellers negotiate on transaction conditions, coordinate the economic interests of both parties, seek consensus, and conclude a deal. In international trade, transaction negotiations have clear contents and standardized procedures, and can generally be divided into four links: inquiry, offer, counter-offer and acceptance. Signing a contract: After the buyer and seller negotiate the transaction, pass export quotations and import calculations, and reach agreement on the conditions or terms of the transaction, they can sign a written contract.

Apply for issuance of L/C: Under the L/C method, after the contract is signed, the importer should fill out the "Irrevocable Documentary Credit Application" and apply to the foreign exchange bank with which it has dealings. Open a letter of credit.

Audit the letter of credit: After the bank at the place of import issues a letter of credit and notifies the exporter of the letter of credit through the advising bank at the place of export, the exporter should carefully review the letter of credit. If the L/C is verified to be correct, you can start stocking, shipping and other matters; if the L/C is incorrect, you can ask the importer to modify the L/C in a timely manner.

Preparing goods: After the exporter and the importer sign a contract (if the payment method of the contract is a letter of credit, usually the exporter will wait until the exporter receives the letter of credit and the verification is correct), he should start preparing the goods and follow the instructions. Ship the goods on the agreed date (before the final shipping deadline specified in the letter of credit). The production process of goods often takes some time, so exporters should make proper arrangements in advance to meet the shipment deadline.

Booking: After completing the preparation of goods, the exporter should book space according to the corresponding shipping schedule and the shipping period (under FOB terms, the importer should first designate the shipping company), and then ship the goods through the shipping company. After acceptance, the company will issue a space allocation notice (sea freight) or warehouse entry notice (air freight), with which to fill in other documents and handle export customs declaration and shipping procedures.

Export inspection: The exporter fills out the "Application for Certificate of Export Inspection" and prepares commercial invoices, packing lists and other relevant documents to apply for export to the Entry-Exit Inspection and Quarantine Bureau. test. After the inspection agency passes the inspection of the goods, it will issue an "outbound goods customs clearance form"; and according to the exporter's requirements, it will issue corresponding commodity inspection certificates, such as quality certificates, health certificates, etc.

Insurance: Under CIF terms, insurance is handled by the exporter. The exporter must fill out the "Cargo Transportation Insurance Application" and attach a commercial invoice to the insurance company for insurance. After the insurance company provides underwriting, it will issue a "Cargo Transportation Insurance Policy" to the exporter. Under FOB or CFR terms, insurance should be handled by the importer.

Export declaration: The exporter completes the "Export Goods Declaration Form" and prepares relevant documents to submit the declaration to the customs. After the customs verifies that the documents are correct, the customs will go through the export customs clearance procedures and issue a stamped verification form, customs declaration form (green foreign exchange collection verification form) and customs declaration form (export tax refund form) to the exporter so that they can handle verification and cancellation. Tax refund. Shipping After customs clearance procedures are completed, the goods will be loaded onto the ship and shipped. The exporter should send a shipping notice to the importer in a timely manner. Presentation of documents/export bill payment: After the goods are shipped for export, the exporter prepares relevant documents, issues a bill of exchange (Bill of Exchange) with the importer as the payee, and presents the documents (Negotiation) to the bank at the place of export. In addition, under the usance letter of credit or collection method, the export documents can also be used as pledge, and the export bill can be applied to the bank to collect foreign exchange in advance and obtain financing.

Verification and write-off of export receipts: After the exporter collects the foreign exchange, he shall go to the State Administration of Foreign Exchange for verification and write-off with the export receipts (special copy) and other relevant documents. After the application is completed, the State Administration of Foreign Exchange will issue the refund. Verification Form for Export Collection of Foreign Exchange (Third Page).

Export tax rebate: After the verification is completed, the exporter will go to the State Administration of Taxation to apply for export tax rebate with the export foreign exchange collection verification form (third page), customs declaration form (export tax refund page) and commercial invoice.

Import foreign exchange settlement: After the importer receives the document arrival notification from the bank, he should go to the bank within the specified period for payment or acceptance and receive the shipping documents. Due to different payment methods, the procedures for import foreign exchange settlement are also different.

Import Inspection Application: After the importer obtains the shipping documents and picks up the bill of lading, he fills out the "Application for Certificate of Import Inspection" and prepares the bill of lading, commercial invoice, and packing Apply for import inspection to the Entry-Exit Inspection and Quarantine Bureau with single-class documents. After the inspection agency passes the inspection of the goods, it will issue a "Customs Clearance Form for Entry Goods".

Import declaration: The importer prepares relevant documents, submits a bill to the customs for declaration and pays all taxes. The customs review document is passed and the import customs clearance procedures are handled. Picking Up the Goods After the customs releases the goods, the importer can pick up the goods at the dock or cargo storage place. After picking up the goods, the goods can be sold.

Writing-off of import payment of foreign exchange: After the importer makes payment, the importer shall go to the Administration of Foreign Exchange to handle the verification of import payment of foreign exchange with the verification form of arrival of import payment of foreign exchange, customs declaration form of imported goods and verification form of import payment of foreign exchange.