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 will process and assemble 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, auxiliary materials 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, who sells them in the local market according to the pre-agreed conditions or the conditions stipulated in the consignment agreement.

What are the ways of trade financing?

The main ways of trade financing are: factoring, letter of credit, Forfeite court, packaged loans, export bills of exchange and import bills of exchange.

factoring

Factoring financing refers to the accounts receivable generated by the seller's application for factoring bank to buy goods sold on credit between him and the buyer. The seller shall be jointly and severally liable for the payment due by the buyer, and shall be liable for the repurchase of accounts receivable at the request of the factoring bank. Simply put, it refers to the seller's transfer of its legally owned accounts receivable to the bank to obtain financing, which can be divided into two types: recourse and non-recourse.

letter of credit (L/C)

A letter of credit means that a bank (issuing bank) pays a third party (beneficiary) or its designee, or accepts and pays a draft issued by the beneficiary, at the request and instruction of the customer (applicant) or in its own name under the conditions consistent with the terms of the letter of credit. Authorize another bank to pay, or accept and pay bills of exchange; Authorize another bank to negotiate.

Forfaiting

Forfaiting refers to the business that merchants and employers buy accepted long-term bills or promissory notes from exporters without recourse, which is usually guaranteed by the bank where the importer is located. It's called a package purchase order, transliterated as forfaiting.

packing credit

Packaged loan, also known as letter of credit mortgage loan, means that the exporter receives a foreign letter of credit, and when the exporter is short of funds when purchasing or producing export commodities related to the letter of credit, he applies to the bank for a working capital loan in local and foreign currencies with the letter of credit as collateral to make up for the capital gap in the process of processing, packaging and transportation of export commodities.

Purchase of export bills

Export bill refers to the business that banks provide exporters with complete shipping documents under letters of credit as collateral before receiving payment from the issuing bank.

import bill advance

Import bill refers to the bill that represents the rights of goods under the letter of credit and provides necessary mortgage/pledge or other guarantees, and the bank pays in advance when the applicant of the letter of credit cannot pay in time due to cash flow after receiving the order under the letter of credit and verifying it correctly.

What are the ways of export trade?