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The difference between export mode and collection mode
Export mode of foreign trade:

Mode of import and export trade: general trade; Compensation trade; Processing and assembly trade with supplied materials; Feed processing trade; Consignment and consignment trade.

General trade refers to the unilateral import or export trade of enterprises with import and export rights in China.

Compensation trade is a way of international trade in which products are used to pay for imported equipment and technology.

Processing and assembly trade with supplied materials means that foreign businessmen provide all raw materials, auxiliary materials, spare parts, components, accessories and packaging materials, and provide equipment when necessary, and the processing unit of the contractor processes and assembles according to the requirements of foreign businessmen.

Feed processing trade refers to the transaction form in which we buy imported raw materials, auxiliary materials, spare parts, components, supporting parts and packaging materials with foreign exchange, process them into finished or semi-finished products and then export them.

Consignment and consignment trade means that the consignor delivers the goods to a pre-agreed consignment agent, and the consignment agent sells on behalf of the local market according to the pre-agreed conditions or the conditions stipulated in the consignment agreement.

Payment method for foreign trade export:

1, letter of credit

There are many kinds of letters of credit, which are written guarantees issued by the issuing bank to the beneficiary (exporter) according to the requirements and applications of the applicant (importer), with bills of exchange and export documents, to pay at the designated place within a certain period of time.

Letter of credit is a payment promise made by the issuing bank to the beneficiary to ensure that the beneficiary receives the payment, so it is a favorable payment method for the beneficiary. However, the beneficiary can only get the payment if he provides the documents required by the letter of credit according to the provisions of the letter of credit. Therefore, the letter of credit is a conditional payment commitment of the bank.

Step 2 remit money

Remittances mainly include telegraphic transfer, letter transfer and sight draft.

3. Collectibles

Collection mainly includes D/P and D/A..

The above is the introduction of foreign trade export methods and related aspects.