1) underwriting
exclusive sales is one of the customary ways in international trade. In China's export business, according to the characteristics of some commodities and the needs of expanding exports, we can choose appropriate customers in appropriate markets or adopt the underwriting method. Exclusive sales refers to the trade practice that the exporter (principal) gives the right to operate a certain commodity or a certain kind of commodity in a certain region and within a certain period to a foreign customer or company 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, it must also sign an exclusive sales agreement in advance. By underwriting, the rights and obligations of the buyer and the seller are determined by the underwriting agreement. The sales contract signed by the two parties must also conform to the provisions of the underwriting agreement.
main contents
1. the name, signing date and place of the underwriting agreement
2. the antecedent of the underwriting agreement
usually in the preceding clause, it is clear that the relationship between the underwriter and the principal is the relationship between myself and myself (principal to principal), that is, the buying and selling relationship.
III. Scope of the goods to be underwritten
There are many kinds of goods that the consignor (exporter) deals in, even the same kind or the same kind of goods, among which there are different brands and specifications. Therefore, in the underwriting agreement, both parties must agree on the scope of underwriting goods.
IV. Underwriting area
Underwriting area refers to the geographical scope where the underwriter exercises sales.
There are usually the following agreed methods:
1. Determine a country or countries;
2. Identify several cities in a country;
3. Determine a city, etc.
To determine the size of the underwriting area, the following factors should be considered:
1. The underwriting scale and capacity;
2. The sales network that the underwriter can control;
3. The nature and types of the goods to be underwritten;
4. the degree of market difference;
5. Topographic position of the underwriting area, etc.
v. underwriting period
the underwriting period can be long or short. In China's export business, the time limit is usually one year when the underwriting agreement is signed. The customary practice in other countries' markets does not stipulate the time limit in the underwriting agreement, but only stipulates the terms of suspension or renewal.
VI. Franchise
Franchise refers to the underwriter's right to exercise monopoly and exclusive purchase, which is an important content of the underwriting agreement. Franchise includes monopoly and exclusive right to buy. The former means that the consignor (exporter) has the right to give exclusive sales to the underwriter within the specified area and time limit. Exporters have the obligation not to sell directly to customers in this area. The latter is the obligation of the underwriter to buy a commodity from the exporter and not from a third party.
VII. Amount or amount to be underwritten
In addition to the above contents, the underwriting agreement shall also specify the amount or amount. This quantity and amount are equally binding on both parties to the agreement. Sometimes the quantity and amount are specified in the agreement, then the underwriter must undertake the obligation to buy the specified quantity and amount from the exporter, and the exporter must undertake the responsibility to export the above quantity and amount to the underwriter.
VIII. Pricing Methods
There are different pricing methods for underwriting goods. One way is to set the price at one time within the prescribed time limit. That is, whether the price of the goods underwritten in the agreement rises or falls, the price stipulated in the agreement shall prevail. Another way is to set the price in batches within the stipulated underwriting period. Because the price in the international commodity market is changeable, it is more common to adopt batch pricing.
IX. Advertising, Publicity, Market Reporting and Trademark Protection
The parties to the underwriting agreement are in a buying-selling relationship, so the principal (exporter) is not actually involved in the sales business in the underwriting area, but he is very concerned about exploring overseas markets. In order to publicize the trademark used in its products, the client often asks the underwriter to be responsible for publishing certain advertisements for his products. For example, some underwriting agreements stipulate: "The buyer is responsible for and contributes to holding exhibitions for the seller's machinery and equipment in its underwriting area, soliciting orders and publishing advertisements in local newspapers." Some agreements stipulate that the underwriter should visit the customers or sellers who are promising to conclude the transaction and ask the underwriter to provide market reports as much as possible.
2) Agency
Agency means that an agent enters into a contract or conducts other legal acts with a third party on my behalf according to the Authorigation of the principal. The rights and obligations arising from this are directly effective for me.
1. the relationship between the agent and the principal
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, receiving payment, etc. He does not participate in the transaction as a party to the contract.
2. Agents usually use entrusted funds for business activities
3. Agents do not sign contracts with third parties in their own names
4. The remuneration earned by agents is commissions.
V. Types of agents
In the capitalist market, there are usually the following kinds of agents:
1. General agency
A general agency is the authorized agent of the principal in a designated area.
he has the right to act as an agent to sign sales contracts, handle goods and other business activities, and he 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. the exclusive agency or sole agency
3. commission agency
commission agency, also known as general agency, refers to an agency in which several agents act on behalf of the principal in the same agency area, time and time limit. The commission agent collects the commission from the client according to the actual amount of the promoted goods and the method and percentage stipulated in the agreement. The client can directly conclude the transaction with the actual buyer in the area without giving the commission agent a commission.
3) consignment
Consignment is a trade method of consignment, and it is also one of the customary practices in international trade. In China's import and export business, consignment mode is not widely used, but in some commodity transactions, in order to promote transactions and expand exports, consignment mode can also be flexibly and appropriately used. "Consignment" is a trade mode different from agency sales. It refers to a trade practice that the consignor (consignor) consigns the goods to the consignment place first, 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.
Consignment mode
Consignment mode adopted in international trade has the following characteristics compared with normal selling mode:
1. Duties of the consignor
The consignor first transports the goods to the destination market (consignment place), and then sells them to local buyers at the consignment place through the consignor. Therefore, it is a typical spot transaction that is bought and sold in kind.
ii. the relationship between the consignor and the consignor
the relationship between the consignor and the consignor is consignment, not sale. The consignor only disposes of the goods according to the consignor's instructions. The ownership of the goods shall remain with the consignor until they are sold at the consignment site.
iii. risks to be borne by consignment
all expenses and risks of the consignment goods before sale, including in transit and after arrival at the consignment place, shall be borne by the consignor.
after the consignment goods are shipped and exported, the method of selling goods by road can also be used before they arrive at the consignment place, that is, when the goods are still in transit, they will be sold if conditions permit, and if they fail to be sold, they will still be shipped to the original destination.
4) Bidding
invitation to tender refers to the behavior that a tenderer issues a tender notice or a tender sheet at the time and place, puts forward the variety and quantity of the goods to be purchased and the relevant trading conditions, and invites the seller to bid. To submit refers to the behavior of bidders to submit bids to the tenderee within a specified time at the invitation of the tenderee according to the specified conditions in the tender announcement or tender sheet.
Actually, bidding and tendering are two aspects of a trade mode.
There are three or four bidding methods adopted internationally, namely,
1. Competitive bidding
Competitive bidding (ICB) means that a tenderer invites several or even dozens of bidders to participate in bidding, and through the competition of most bidders, the bidder who is most beneficial to the tenderer is selected for a transaction, which belongs to the way of exchange.
There are two ways to do international competitive bidding:
1. open bidding. Open bidding is a kind of infinite competitive bidding. When this method is adopted, the tenderee should publish a tender advertisement in major newspapers and periodicals at home and abroad, and anyone who is interested in the tender content will have the opportunity to purchase the tender materials for bidding.
2. selected bidding. Selective bidding, also called invitation bidding, is limited competitive bidding. In this way, the tenderer does not advertise in newspapers and periodicals, but invites merchants according to his specific business relationship and intelligence data, and then bids by them after pre-qualification.
ii. Negotiated bidding
Negotiated bidding
Negotiated bidding, also called negotiated bidding, is a non-public and non-competitive bidding. This kind of tender is directly negotiated by several merchants of the tender, and the negotiation is successful and the transaction is reached. Three. Two-stage bidding
Two-stage bidding refers to a comprehensive way of unlimited competitive bidding and limited competitive bidding. When this way is adopted, public bidding is used and then selective bidding is carried out in two stages.
most of the materials purchased by the government adopt competitive public bidding.
5) auction
Auction is a spot transaction method in which the exclusive auction house accepts the entrustment of the owner, bids by open bidding at a certain place and time according to 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 keep 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 specialized organizations engaged in auction business in a certain auction center market and within a certain period of time in accordance with local laws, regulations and procedures.
The auction procedure is different from the general export transaction, and its transaction process roughly goes through four stages: preparation, goods inspection, bid closing and payment delivery.
bidding method
1. Price-increasing auction
Price-increasing 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, announces the predetermined lowest price, and after evaluation, the bidder bid one after another, competing for price increases, sometimes stipulating the amount of each price increase until the auctioneer thinks that no one can bid higher.
ii. auction at reduced price
auction at reduced price, also known as dutchauction, is a method in which the highest price is first called out by auction, and then the bid price is gradually reduced until a bidder thinks that the price is already acceptable, indicating buying.
iii. sealed bid auction
sealed bid auction, sealed bid (sealed bids; Closes bids) auction is also called tender auction. When this method is adopted, 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 manner within a 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 goods in stock or confiscating goods.
6) Futures trading
Futures trading is a kind of trade mode in which many buyers and sellers bargain with shouts and gestures according to certain rules and reach a deal through fierce competition.
Futures trading is different from spot trading in commodities. As we all know, in the case of spot trading, buyers and sellers can reach a physical transaction in any way, at any place and at any time. The seller must deliver the actual goods and the buyer must pay for the goods. And futures trading is a futures trading in a specific futures market at a certain time, that is, in a commodity exchange, in accordance with the "standard futures contract" formulated in advance by the exchange. 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 the price difference between the date of signing the contract and the date of performing the contract;
3. Futures contracts are standard futures contracts formulated by the exchange, and can only be traded according to the commodity standards and types stipulated by the exchange;
iv. the delivery date of futures trading is determined according to the delivery date stipulated by the exchange. Different goods have different delivery times;
5. Futures contracts must be registered and settled in the clearing house set up by each exchange.
types of transactions
according to the purpose of traders, there are two different types of futures trading: one is pure speculation that uses futures contracts as gambling chips to buy and sell and chase profits from the difference between price fluctuations; One is that people who really engage in physical transactions do hedging. The former is called "short selling" in business habits, which is a gambling speculation carried out 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 rising prices; Once the price of the goods rises, sell the futures and earn the difference. The latter is called "hedging" in business habits, also known as "haiqin".
7) counter trade
Counter trade is also translated as "reverse trade", "offset trade" and "reciprocal trade" in China, and some people call it "barter" or "big barter" in general.
generally speaking, we can understand counter-trade as a general term for various trade modes, including barter, bookkeeping trade, mutual purchase, product repurchase, switch trade, etc., which belong to the category of goods trading and are characterized by the combination of import and export and the export offsetting import.
8) Classification
General trade
General trade refers to goods imported or exported unilaterally by enterprises with import and export rights in China. money for buying/selling goods