The process of international trade is a very complex business process. Taking the export trade process as an example, it can be divided into four different stages:

The first stage of pre-transaction preparations

Mainly include: preparation of export plans, carried out as planned Acquire or allocate sources of export goods, conduct research on international markets and customers through various methods and channels, and select appropriate markets and customers; formulate export marketing plans, publicity, etc.

The second stage is export transaction negotiation. That is to discuss the specific matters of each export through correspondence or negotiation. Generally, there are four steps: inquiry, offer, counter-offer and acceptance.

The third stage is signing the contract. According to Chinese government regulations, if a company does not have direct import and export rights, the transaction must find an importer and exporter to act as an intermediary.

The fourth stage is the performance of the contract. This stage will involve stocking, obtaining certificates, loading, customs declaration, inspection, shipment, insurance, negotiation, foreign exchange settlement, tax refund, claim, etc.

The information flow in the entire economic and trade activities will be monitored by multiple functional agencies such as trade authorities, production departments, transportation, customs, commodity inspection, banks, taxation, foreign exchange management, insurance and the Council for the Promotion of International Trade.

They include the buyer company system, import and export company system, customs system, tax system, financial institution system, security inspection system, transportation system, as well as the seller company system, supply company system, customs system, tax system, Financial institution systems, transportation company systems, etc.

The scope of this part of the business includes: import and export management, customs, commodity inspection/security inspection, finance, insurance and international transportation, etc. Therefore, for an international trade practical operation process, the two stages of pre-transaction preparation and trade negotiation are not much different from the domestic trade practical operation process.

The most unique thing in the practical operation of international trade is the actual document processing process after the willingness of supply and demand is basically consistent and the trade negotiation is initially completed. Relevant agencies include: customs, taxation, import and export management agencies, commodity inspection/security inspection, insurance, banking, transportation and other departments of various countries.

Documents include: purchase order, delivery order, customs declaration form, bonded warehousing form, inspection form, cargo shipping bill, import and export license, certificate of origin or quota indicator, tax bill, insurance policy, Payment slips etc.

Extended information:

The export process is an orderly combination of a series of activities performed by foreign trade export staff during export work. Including activities such as quotation, ordering, payment, packaging, customs clearance procedures, stocking and shipment.

Signing the order

After the two parties reach an agreement on the quotation, the buyer company formally places an order and negotiates with the seller company on some related matters. After both parties negotiate and approve, they need to sign a "Purchase Contract" . In the process of signing the "Purchase Contract", we mainly discuss the product name, specifications and models, quantity, price, packaging, origin, shipping period, payment terms, settlement method, claims, arbitration, etc., and the agreement reached after the negotiation Write the "Purchase Contract". This marks the official start of export operations. Normally, a purchase contract is signed in duplicate and becomes effective with the official seal of the company stamped by both parties, and each party keeps one copy.

Payment

There are three commonly used international payment methods, namely letter of credit payment method, TT payment method and direct payment method.

Letter of Credit

Letter of credit is divided into two categories: clean letter of credit and documentary letter of credit. A documentary letter of credit refers to a letter of credit with specified documents attached, and a letter of credit without any documents is called a clean letter of credit. Simply put, a letter of credit is a guarantee document that guarantees the exporter to recover the payment for the goods. Please note that the shipment period of export goods should be within the validity period of the L/C, and the L/C presentation period must be submitted no later than the validity date of the L/C.

Letter of credit is the most common method of payment in international trade. The issuance date of the letter of credit should be clear, clear and complete. Several state-owned commercial banks in China, such as Bank of China, China Construction Bank, Agricultural Bank of China, Industrial and Commercial Bank of China, etc., are all able to issue letters of credit (the issuance fees of these major banks are 1.5% of the issuance amount) ‰).

TT

TT payment method is settled in foreign exchange cash. Your customer will remit the money to the foreign exchange bank account designated by your company. You can request that the goods arrive within a certain period of time. money transfer.

Direct payment

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

Baidu Encyclopedia: Export Process