What does foreign trade do?

2023-04-19
325
Author: Going to sea is easy
Source: overseadia

                                                   

Under the influence of the normalization of the epidemic, many bosses engaged in domestic trade are not only deeply cultivating the domestic market, but also slowly turning their attention to a broader overseas market, hoping to gain a share in the vast overseas market. So what is foreign trade specifically for? Is foreign trade worth doing? Below, the editor will take you to understand.

 

Foreign trade, also known as "foreign trade" or "import and export trade", also known as "foreign trade", refers to the exchange of goods, services, and technology between a country (region) and another country (region). This trade consists of two parts: import and export.


General business process of foreign trade:


1. Customer inquiry: Generally, before the customer places a purchase order, the relevant Order Inquiry is provided to the business department to gain some detailed understanding. For example, customers will have a deep understanding of the product's price, performance, manufacturing process, technical principles, product configuration, product details, and videos.

 

2. Quotation: The business department promptly responds to customer inquiries, determines the product name, model, manufacturer, quantity, delivery time, payment method, shipping cost, packaging specifications, and container type, and provides formal quotations and formal invoices to customers.

 

3. Obtaining an order: After negotiation, the customer and salesperson reached an agreement on the details of the order, and received the customer's formal purchase order.


4. Place production order: After receiving confirmation from the customer, place an order with the factory and arrange a production plan.


5. Business approval: After receiving the order, the business department first prepares a business review form. Fill in the "Export Contract Review Form" truthfully and list all expected expenses as much as possible. Contract approval requires attaching a fax copy of the customer's order and the acquisition contract with the factory. The audit form must be signed by the salesperson, approved by the department manager, and then submitted to the management department for review before execution. If the amount is large or there are clauses such as advance payment and commission, approval from the company's general manager is required. After the contract is approved, a sales order is made and submitted to the department process manager for follow-up.


6. Issuance of production notice: After determining the delivery date, the business department can issue a production notice to notify the factory to produce on time if the following conditions are met:

6.1: If the customer is making an L/C payment, it is usually confirmed that the L/C has been received one month before the delivery date. After receiving the L/C, the salesperson and the document clerk should review the letter of credit separately to check for any errors, whether the delivery date can be guaranteed, and other possible issues. If there are any problems, the customer should be immediately asked to change the letter of credit.

6.2: If it is a T/T payment customer, it is necessary to confirm that the deposit has been received.

6.3: If it is a lending customer or collecting foreign exchange through bank D/A or other methods, confirmation from the manager is required.


7. Inspection:

7.1: Notify the company's inspector to inspect the goods one week before the delivery date.

7.2: If the customer wants to inspect the goods themselves or by designated inspectors, they should arrange for the customer to inspect the goods one week before the delivery date and inform the planning department of the inspection date.

7.3: If the customer designates a third-party inspection company or impartial agency to inspect the goods, they should contact the inspection company two weeks before the delivery date to schedule an inspection time and ensure that the time is arranged before the delivery date. Notify the factory of the inspection time after confirmation.


8. Prepare basic documents. The packing information provided by the factory, the export contract, the export commercial invoice, the packing list and other documents shall be prepared by the business documentary clerk and handed over to the documentary clerk.


9. Commodity inspection: If it is a national statutory commodity inspection product, when placing an order with the factory, it is necessary to explain the commodity inspection requirements and provide export contracts, invoices, and other necessary information for commodity inspection. And it is necessary to inform the factory of the future export port of the products, so that the factory can handle the commodity inspection. We should obtain the inspection certificate/certificate replacement certificate one week before shipment.


10. Charter a ship and book a warehouse:


10.1. If the contract signed with the customer is on FOB terms, the customer usually designates a transportation agent or shipping company. We should contact the freight forwarder as soon as possible, inform them of the shipping intention, understand the export port and shipping schedule to be arranged, and confirm whether the factory's delivery can be at least one week before the departure date, and whether the shipping schedule can meet the customer's required delivery time. A written booking notice should be sent to the freight company two weeks before the delivery date, and usually the booking receipt can be obtained one week before the departure of the ship.

10.2. If the freight is to be paid by the seller, it is necessary to consult with the freight company or shipping company as soon as possible regarding the shipping schedule, freight rates, port of departure, etc. After comparison, choose a shipping company with favorable prices, good reputation, and suitable shipping schedule, and inform the salesperson to notify the customer. If the customer disagrees, they should choose a shipping company that is recognized by the customer. Two weeks prior to the departure of the ship, the warehouse shall be booked in writing, and the procedure shall be the same as above.

10.3. If the goods are not enough for a small container and need to be shipped in bulk, please book a bulk storage space with the freight forwarding company. When obtaining the warehouse entry paper, it is also necessary to understand the customs clearance time, warehouse entry customs declaration requirements, and other contents.

10.4. When booking with the transportation company, it is necessary to fax a written booking paper indicating the scheduled shipping date, container type and quantity, destination port, etc. to avoid errors.


11. Arrange drag cabinet:


11.1. After the goods are ready and inspected, entrust the trailer company to pick up and load the containers. Trailer companies should choose safe, reliable, and reasonably priced companies to sign long-term cooperation agreements to ensure safety and punctuality. To fax the following information to the towing company: confirmation letter/container placement paper, shipping company, warehouse number, towing authorization letter, indicating the loading time, container type and quantity, loading address, customs broker, and loading port. If there is an inspection company checking the container loading, they should make a special statement and cannot arrive late. And request to send back a copy of the listing information, listing the container number, license plate number, driver and contact phone number, etc

11.2. Fax a copy of the loading information to the factory, listing the loading time, container type, warehouse number, order number, license plate number, and driver's contact number.

11.3. Require the factory to fax a loading notice to the business department as soon as possible after the container leaves the factory, specifying the departure time of the container, the actual loading quantity, etc., and record the packing number and seal number as information for the bill of lading. Require the factory to remember to seal the container after loading.


12. Entrusted customs declaration: At the same time as dragging the container, the required documents for customs declaration are submitted to the cooperating customs broker, and the export customs declaration and commodity inspection customs exchange are entrusted. Usually, two days are allowed for customs clearance (before the ship closes). When entrusting customs declaration, a container loading information should be provided, including the loaded goods and quantity, port, shipping company, warehouse number, container number, ship opening and closing time, towing company, container type and quantity, contact person and phone number of our company, etc.


13. Obtain transportation documents:


13.1. At the latest, within two days after the departure of the ship, the supplementary information on the bill of lading should be faxed to the shipping company or freight agent. The replenishment should be done according to the requirements of L/C or the customer, and the correct quantity of goods should be provided, as well as some special requirements, including requiring the shipping company to provide the ship certificate along with the bill of lading.

13.2. Urge the shipping company to issue a sample bill of lading and freight bill as soon as possible. After carefully verifying the sample, confirm the content of the bill of lading in writing with the shipping company. If the bill of lading needs to be confirmed by the customer, it is necessary to first fax the bill of lading sample to the customer, and then request the shipping company to issue the original after obtaining confirmation.

13.3. Pay the freight and miscellaneous fees in a timely manner, and notify the shipping company to obtain the bill of lading and other transportation documents in a timely manner after payment. Payment of freight should be registered.


14. Preparation of other documents


14.1. commercial invoice: among the documents required by L/C, the requirements for commercial invoice are the most stringent. The date of the invoice should be determined after the issuance date and before the delivery date. The description of the goods in the invoice should be exactly the same as on the L/C, and the amounts in figures and words should be correct and accurate. The terms of the invoice should be displayed on the L/C, and the shipping mark should be displayed. If the invoice needs to be authenticated by the other party's embassy, it usually needs to be processed 20 days in advance.

14.2. FORMA certificate of origin: FORMA certificate of origin shall be applied for by the Inspection and Quarantine Bureau before shipment. It should be noted that the transportation date should be before the delivery date and sailing date of L/C, and after the invoice date. If it cannot be processed before shipment, a certificate must be issued after processing, and documents such as customs declaration and bill of lading must be provided. For goods transshipped through Hong Kong, the FORM A certificate usually needs to be signed by a Chinese inspection company in Hong Kong to prove that the goods have not been reprocessed in Hong Kong.

14.3. Ordinary certificate of origin: Ordinary certificate of origin can be handled at the China Council for the Promotion of Trade, with lower requirements. It can be reissued within a short period of time after shipment. If the certificate of origin needs to be countersigned by the embassy, it should be handled 20 days in advance, just like the invoice.

14.4. Shipping Notice: It is generally required to notify the customer of the details of the shipment within a few days after the departure of the ship, including the ship name, flight number, departure date, estimated arrival date, goods and quantity, amount, number of packages, shipping marks, destination port agent, etc. Sometimes L/C requires proof of transmission, such as a fax report, letter of return, etc. Please handle it within the time requested by the customer.

14.5. Packing list: The packing list should clearly indicate the packing status of the goods. To display the quantity packed in each box, the gross weight, net weight, and outer box size of each box. The total volume calculated based on the outer box size should match the indicated total volume. To display the shipping mark and box number for easy customer search. The weight and volume of the packing list should match the bill of lading.


15. Presentation:


15.1. For L/C collection, all documents should be prepared within the specified delivery time and strictly reviewed to ensure that there are no errors before submitting to the bank for negotiation.

15.2. For T/T collection, after obtaining the bill of lading, immediately fax the bill of lading to the customer for payment, confirm receipt of the balance, and then send the original bill of lading and other documents to the customer.

15. If T/T collection is required, full payment is required before making the container, and the container can be towed after receiving payment. Once you receive the bill of lading, you can immediately send the original bill of lading to the customer.


16. Business registration: Each export business should be registered in a timely manner after completion, including computer registration and written registration, for future reference and statistics.


17. File archiving: All documents, L/C, and negotiation documents must be retained in a complete set for future reference.


18. Documenters should pay attention to collecting information on changes in freight rates, shipping schedules, routes, and other information to assist salespeople in quoting prices.


19. Handling of after-sales issues


After receiving the sample order, the customer usually conducts the first round of testing. If the customer discovers some defects in the product or some parts are damaged during transportation that require replacement of parts, or if the customer is unfamiliar with the installation process and needs assistance from the salesperson, the salesperson should respond promptly and cooperate with technical personnel and after-sales department to help the customer solve after-sales problems, To avoid product returns or disputes arising from claims, and provide customers with a good shopping experience.


The above is the complete process of an order in the foreign trade process. If you are still interested in foreign trade or cross-border e-commerce, you can follow Baidu Haihaiyi. The editor will continue to share more industry information and dry goods for you!

 

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