Exclusive sales is one of the usual ways in international trade. In China's export business, according to the characteristics of some commodities and the needs of expanding exports, we should choose the right customers in the right market or adopt the way of underwriting.
Exclusive sale refers to the trade behavior that the exporter (principal) grants the right to operate a certain commodity or a certain type of commodity to foreign customers or companies in a certain region and within a certain period of time through agreement. Although underwriting is also fixed, underwriting is different from the usual unilateral export. In addition to the sales contract signed by both parties, an exclusive sales agreement must be signed in advance. Through underwriting, the rights and obligations of the buyer and the seller are determined by the underwriting agreement. The sales contract signed by both parties must also conform to the provisions of the exclusive sales agreement. The underwriting agreement includes the following main contents:
1. Name, signing date and place of exclusive sales agreement.
Second, the underwriting agreement.
Usually, in the above clauses, it is clear that the relationship between the underwriter and the principal is the principal-to-principal, that is, the buying and selling relationship.
Third, the scope of underwriting goods
Shippers (exporters) handle a wide variety of goods, even the same kind or goods of the same kind have different brands and specifications. Therefore, in the underwriting agreement, both parties must agree on the scope of underwriting goods.
IV. Coverage
Underwriting area refers to the geographical scope where the underwriter exercises sales.
There are usually the following conventions:
1, identify one or more countries;
2. Identify several cities in a country;
3. Determine a city, etc.
In order to determine the size of the underwriting area, the following factors should be considered:
1, underwriting scale and capacity;
2. The sales network that the underwriter can control;
3, the nature and types of underwriting goods;
4. Degree of market difference;
5. Topographic location of the insured area, etc.
Verb (abbreviation for verb) underwriting period
The underwriting period can be long or short. In China's export business, the term is usually one year when the underwriting agreement is signed. The customary practice in other countries' markets is that the underwriting agreement does not stipulate the term, but only stipulates the terms of suspension or renewal.
Six, franchising
Franchising refers to the underwriter's exercise of monopoly right and exclusive purchase right, which is an important content of underwriting agreement. Exclusive right includes monopoly right and exclusive purchase right. The former means that the principal (exporter) has the right to give the exclusive sales right to the underwriter within the specified area and within the specified time limit. Exporters are obliged not to sell directly to customers in this area. The latter is the underwriter's obligation to buy goods from exporters rather than third parties.
7. Quantity or amount of underwriting.
In addition to the above, the underwriting agreement shall also specify the quantity or amount. The quantity and amount are equally binding on both parties to the agreement. Sometimes the quantity and amount are stipulated in the agreement, then the underwriter must bear the obligation to buy the specified quantity and amount from the exporter, and the exporter must bear the responsibility to export the above quantity and amount to the underwriter.
VIII. Pricing Methods
There are different ways to determine the price of exclusive goods. One way is to set the price at one time within the specified time limit. That is, no matter whether the commodity price insured by the agreement is rising or falling, the price stipulated in the agreement shall prevail. Another way is to price in batches within the stipulated underwriting period. As the price of international commodity market is changeable, it is more common to adopt batch pricing.
IX. Advertising, Publicity, Market Report and Trademark Protection
The parties to the underwriting agreement are buyers and sellers, so the principal (exporter) does not actually participate in the sales business in the underwriting area, but he is very concerned about the development of overseas markets. In order to promote the trademarks used in their products, customers often ask the underwriters to be responsible for publishing certain advertisements for their products. For example, some underwriting agreements stipulate: "Where the buyer is responsible for and contributes to become the seller in its underwriting area? Machinery and equipment hold exhibitions, solicit orders and advertise in local newspapers. " Some agreements stipulate that underwriters should provide market reports as far as possible at the request of customers or sellers who expect to conclude transactions during this period.
agency
Agency means that an agent enters into a contract with a third party or carries out other legal acts on my behalf according to the authorization of the principal. The rights and obligations arising from this are directly effective for me.
1. The relationship between the agent and the principal belongs to the entrusted sales relationship. In the agency business, the agent only acts on behalf of the principal, such as soliciting customers, soliciting orders, signing sales contracts on behalf of the principal, handling the goods of the principal, collecting payment, etc. He didn't participate in the transaction as a party to the contract.
2. Agents usually use the entrusted funds for business activities.
3. Agents generally don't sign contracts with third parties in their own names.
The remuneration earned by the agent is the commission.
Agent type
In the capitalist market, there are usually the following agents:
1. The general agent is the authorized agent of the principal in the designated area.
He has the right to sign sales contracts, handle goods and other commercial activities as an agent, and can also engage in some non-commercial activities. He has the right to appoint a sub-agent and share the commission of the agent.
2. Exclusive agent or exclusive agent.
3. Agency trade
Commission agency, also known as general agent, refers to the agency behavior of several agents acting on behalf of the principal in the same agency area, time and time limit. The commission agent collects the commission from the principal according to the actual amount of the promoted goods and the way and proportion agreed in the root agreement. The client can directly reach a deal with the actual buyers in the region without giving the commission agent a commission.
Consignment (consignment)
Consignment is a trade mode of consignment, and it is also one of the customary practices in international trade. In China's import and export business, consignment is not widely used, but in some commodity transactions, in order to promote transactions and expand exports, consignment can also be used flexibly and appropriately.
"Consignment" is a trade mode different from agency sales. It refers to a trade practice that the consignor (consignor) sends the goods to the consignment place first and entrusts a foreign consignment agent (consignor), and the consignment agent replaces the consignor according to the conditions stipulated in the consignment agreement. After the goods are sold, the consignment agent settles the payment with the consignor.
Compared with the normal sales mode, the consignment mode adopted in international trade has the following characteristics:
1. The consignor first transports the goods to the destination market (consignment place) and then sells them to local buyers at the consignment place. Therefore, it is a typical spot transaction of physical sale.
2. The relationship between the consignor and the consignor is consignment, not sale. The consignor only handles the goods according to the consignor's instructions. The ownership of the goods shall belong to the consignor before they are sold at the consignment place.
3. All expenses and risks before the consignment goods are sold, including in transit and after arriving at the consignment place, shall be borne by the consignor.
After the consignment goods are shipped and exported, before the goods arrive at the consignment place, the method of selling the goods by road can also be adopted, that is, when the goods are still in transit, if conditions permit, they will be sold, and if they cannot be sold, they will still be transported to the original destination.
tendering and bidding
Invitation to bid refers to the behavior that a tenderer issues a tender notice or a tender sheet at a specified time and place, puts forward the variety, quantity and related trading conditions of the goods to be purchased, and invites the seller to bid.
Bidding refers to the behavior that the bidder submits the bidding documents to the tenderer within the specified time at the invitation of the tenderer in accordance with the conditions specified in the tender announcement or instructions.
In fact, bidding and tendering are two aspects of a trade mode.
At present, there are three or four international bidding methods, namely
Dd> 1, competitive bidding (ICB) means that the tenderer invites several or even dozens of bidders to participate in the bidding, and through the competition of most bidders, the most favorable bidder is selected for trading, which belongs to the way of anti-selling.
There are two ways of international competitive bidding:
A. open bidding. Open bidding is an unrestricted competitive bidding. In this way, the tenderee should publish the tender advertisement in major newspapers and periodicals at home and abroad, and anyone interested in the tender content will have the opportunity to purchase the tender materials for bidding.
B. selective bidding. Selective bidding, also known as invitation bidding, is a limited competitive bidding. In this way, bidders do not advertise in newspapers and periodicals, but invite merchants according to their specific business relations and intelligence materials, and they will bid after passing the pre-qualification.
2. Negotiation and bidding
Bidding negotiation, also called negotiation bidding, is a non-public and non-competitive bidding. This kind of bidding is a direct negotiation between several merchants, and the negotiation is successful and a transaction is reached.
3. Two-stage bidding
Two-stage bidding refers to a comprehensive way of unlimited bidding and limited bidding. In this way, public bidding is adopted, and then selective bidding is carried out in two stages.
Most of the materials purchased by the government adopt competitive public bidding.
auction
Auction is a spot transaction in which the exclusive auction house accepts the entrustment of the client, bids in public at a certain place and time in accordance with the established articles of association and rules, and finally the auctioneer gives the goods to the highest bidder.
Most of the commodities traded by auction are commodities whose quality is easy to standardize, or which are difficult to survive for a long time, or which are customarily conducted by auction. Such as tea, tobacco, rabbit hair, fur, wood and so on. Some commodities, such as mink and Australian wool, are mostly traded through international auctions.
Auctions are generally conducted by institutions specializing in auction business in a certain auction center market and within a certain period of time in accordance with local laws and regulations.
The auction procedure is different from the general export transaction, and its transaction process generally goes through four stages: preparation, inspection, transaction price and payment.
There are three auction bidding methods:
1, price increase auction, also known as buyer's bid auction. This is the most commonly used auction method. At auction, the auctioneer puts forward a batch of goods and announces the predetermined minimum price. After evaluation, bidders bid one after another and compete for price increases, sometimes stipulating the amount of each price increase until the auctioneer thinks that no one can bid higher.
2. The auction in reduced price, also known as dutchauction, is a way to bid the highest price by auction, and then gradually reduce the bid price until a bidder thinks the price is acceptable, indicating buying.
3, sealed auction, sealed bid (sealed bid; Auction is also called bidding auction. In this way, the auctioneer first announces the specific conditions and auction conditions of each batch of goods, and then each trainee submits his bid to the auctioneer in a sealed way within the specified time, so that the auctioneer can review and compare the bids and decide which bidder to sell the goods to. This method is not open bidding, and the auctioneer sometimes has to consider other factors besides price. In some countries, the government or customs often use this auction method when dealing with inventory materials or confiscating goods.
forward business
Futurestransaction is a trading method in which many buyers and sellers bargain by shouting and gestures according to certain rules and reach a transaction through fierce competition.
Futures trading is different from commodity spot trading. As we all know, in the case of spot trading, buyers and sellers can reach a physical transaction at any time, anywhere and in any way. The seller must deliver the actual goods and the buyer must pay for the goods. Futures trading is a futures trading in a specific futures market, that is, in a commodity exchange, in accordance with the "standard futures contract" formulated by the exchange in advance. After the transaction, the buyer and the seller do not transfer the ownership of the goods. Because futures trading has the following characteristics:
1. Futures trading does not require both parties to provide or accept actual goods;
2. The result of the transaction is not to transfer the actual goods, but to pay or take away the price difference between the contract signing date and the contract performance date;
3. Futures contracts are standard futures contracts formulated by the exchange and can only be traded according to the commodity standards and varieties stipulated by the exchange;
4. The delivery date of futures trading shall be determined according to the delivery date stipulated by the exchange. Different goods have different delivery dates;
5. Futures contracts must be registered and settled in the clearing house established by each exchange.
Types of futures trading
Futures trading, according to the purpose of traders, has two different types: one is pure speculation in which futures contracts are used as gambling chips to chase profits from the price difference; One is that people who really engage in physical transactions do hedging. The former is called "short selling" in business habits, which is a kind of gambling speculation conducted by speculators according to their own judgment on market prospects.
The so-called "short selling", also known as "long selling", refers to speculators buying futures in anticipation of price increases; Once the price rises, sell futures and earn the difference. The latter is called "hedging" or "Qin Hai" in business habits.
antitrades
Counter trade in China is also translated into "reverse trade", "offset trade" and "reciprocal trade", and some people generally call it "barter" or "big barter".
Generally speaking, we can understand counter-trade as the general term of various trade modes that belong to the category of goods sales, including barter trade, bookkeeping trade, mutual purchase, product repurchase, transshipment trade, etc., which is characterized by the combination of import and export and the export offsetting import.