The first step is the work before and after signing the foreign trade contract.
1. Business investigation and establishment of business relationship before signing foreign trade contract. .
When doing business with foreign businessmen, we have to bear greater risks, especially credit risks, due to the limitations of language and geographical space. In addition, ignorance of the law, customs and habits of importing areas and long transportation routes will greatly increase the occurrence of uncertainty, thus doubling the risk cost. Therefore, export investigation is particularly important. Before doing foreign trade business, we must make a detailed investigation of the export market to understand the details of importers and local market conditions.
With our understanding of foreign businessmen negotiating and signing foreign trade contracts, our initiative will be obviously enhanced.
However, a business transaction often requires several or even dozens of rounds of oral or written inquiry, quotation and counter-offer between suppliers and buyers, and ends with final acceptance or confirmation of acceptance. The correspondence between these rounds constitutes the basic terms of foreign trade contracts. However, before signing a foreign trade contract, what important terms need our repeated consideration? This mainly includes seven items: name, quantity, packaging, price, shipment, payment and insurance:
A. Product name
The choice of commodity names is also learned, and different commodity names have different tariffs. Good product name choice can avoid tax reasonably. For example, frozen French fries, we can use potato products or frozen vegetables instead, so that we can choose a lower tariff name.
B. quantity
The quantity clause needs to pay attention to the use of units and the maneuvering range of different products.
C. packaging
Need to combine the actual experience of the factory with the requirements of customers.
D. price
Price should be the focus of attention of buyers and sellers. It is very important for exporters to quote properly, and we must master a principle: "the cost calculation cannot be missed."
Export quotations usually use FOB, CFR and CIF. When making an external quotation, we should follow the following steps: defining the price composition, determining the calculation of cost, expense and profit, and then reasonably summarizing all parts.
FOB: cost+domestic expenses+expected profit
CFR: cost+domestic expenses+expected profit+export freight.
CIF: cost+domestic expenses+expected profit+export freight+export insurance premium.
accounting cost
Actual cost = purchase cost-tax refund amount (note: tax refund amount = purchase cost /( 1+ VAT rate) x tax refund rate)
Accounting expenses
(1) Domestic expenses = packing expenses+(transportation and miscellaneous expenses+commodity inspection fees+customs declaration fees+port miscellaneous expenses+other expenses)+total payment x loan interest rate/12X loan month.
(2) Bank handling fee = quotation × handling fee rate
(3) customer commission = quotation × commission ratio
(4) Export freight
(5) export insurance premium = quotation X 1 10%X insurance premium rate.
Accounting profit (profit = quotation x expected profit rate)
Accounting of C3 FOB;
Commission: FOBC3 quotation = actual cost+domestic expenses+customer commission+bank commission+expected profit.
Commission is not included in the contract price.
E. shipment
Pay attention to the question:
(1) Ship age
(2) Send the shipping notice in time, especially under FOB and CFR conditions. Shipping advice should be made in strict accordance with the requirements of the letter of credit (if it is a letter of credit business).
F. Payment
At present, international trade mainly adopts three payment methods: telegraphic transfer, letter of credit and collection.
telegraphic transfer
Divided into pre-delivery telegraphic transfer and post-delivery telegraphic transfer.
T/T before delivery, mainly as deposit, advance payment, etc.
Wire transfer after delivery, and wire transfer all or part of the balance after delivery to complete the payment.
letter of credit (L/C)
At present, letters of credit are generally irrevocable, confirmed and documentary.
The letter of credit business is more complicated, and the existing format is generally applied, with slight changes according to the specific situation. After signing a foreign trade contract, the importer must be urged to open an effective letter of credit in a timely and reasonable manner in strict accordance with the terms of the contract.
Store goods as soon as you get a valid letter of credit or sign a domestic procurement contract with the factory; If the company is short of funds and meets the requirements, it can take a valid letter of credit to the bank to package loans, or apply to the bank for export bills after obtaining all the documents stipulated in the letter of credit.
collection
Including D/A, D/P and D/P under D/P,
In the future, there will be trust business under D/P, that is, the importer obtains the freight documents from the bank with the trust receipt and picks up the goods at the dock on behalf of the bank.
G. insurance
Problems needing attention:
(1) Insurance coverage and rate
(2) the place of compensation,
(3) The insured amount, depending on different situations, is generally 1 10% of the contract amount.
(4) The date of insurance shall be at least one day before or equal to the date of shipment.
2. After signing the foreign trade contract, Cui Zheng, Shen Zheng and Gaizheng.
Cui Zheng, Shen Zheng and Gaizheng.
After signing a foreign trade contract, the buyer should be urged to open a valid letter of credit in strict accordance with the terms of the contract. After receiving the buyer's letter of credit, we will immediately organize an audit to see if the letter of credit conforms to the contract terms, if there are any clauses that we can't do, and if there are any additional soft clauses. Upon receipt of the letter of credit, the following inspections shall be carried out immediately:
A. Are the names and addresses of the companies of the buyer and the seller exactly the same as those printed on the invoice?
Does the payment guarantee mentioned in the letter of credit meet the requirements of the beneficiary? Is the amount in the letter of credit correct?
The total amount of the letter of credit shall be consistent with the contract, including all the expenses payable under the contract.
D. do the payment terms meet the requirements? Exporters usually demand immediate payment unless they are targeting certain countries or certain importers. Under the condition of usance letter of credit, the term of the draft should be the same as that stipulated in the contract. There is a letter of credit that requires a time draft, but it can be paid at sight. This kind of letter of credit is called "false forward letter of credit" and has the same effect as sight letter of credit for the beneficiary.
E. Do the trade terms mentioned in the letter of credit meet the original requirements of the beneficiary?
F can the shipping documents be delivered to the bank within the validity period and time limit?
G. can you provide the required shipping documents?
H. Are the insurance clauses consistent with those in the sales contract? The expenses beyond the insurance scope stipulated in the sales contract shall be borne by the insured. Insurance amount. Most letters of credit require CIF prices.
Insurance of invoice value 1 10%.
1. Is the description (including free items) and quantity of goods correctly written?
If any omissions or errors are found during the inspection according to the above items, the following points shall be determined immediately and necessary measures shall be taken:
-Can you change the plan or document content accordingly to match it?
Should the buyer be required to amend the letter of credit, and who should pay the amendment fee?
In case of doubt, please consult the contact bank or advising bank of our company. However, please remember that only when the applicant, beneficiary and relevant bank agree with each other can they decide to modify it.
Step 2: Prepare the goods, consign them and apply for inspection.
# Purchase goods
1. Sign a supply contract with the factory.
2. We should strictly control the supply quality according to our requirements.
3. Head-end transportation problem,
That is, the transportation from the factory to the dock. If this transportation arrangement is improper, it will be a cost point. Especially in the case of trading under FOB terms, it is necessary to contact the designated shipping company in advance to confirm all fees in writing. It is best to arrange these things before signing the contract. If a written document cannot be reached with the designated shipping company, you can negotiate with the buyer to change the shipping company.
# Commodity inspection
Inspection work is generally arranged by the factory.
Inspection procedure:
Inspection application-payment of inspection fee-sampling inspection or technical appraisal by the commodity inspection bureau-obtaining commodity inspection renewal-exchanging customs clearance forms for outbound goods-(issue quality certificates when necessary)
Check the required documents:
Inspection power of attorney, inspection sheet, invoice, packing list, copy of contract and letter of credit and other certificates.
# Consignment
At the same time, arrange shipping, send shipping instructions to freight forwarders, and arrange chartering and booking space.
Pay attention to get in touch with the freight forwarder in advance, arrange the first shipment, make all the work closely linked, save time and cost, prepare foreign exchange to pay the freight of the shipping company and get the bill of lading in time.
Step 3: Customs declaration and shipment.
Customs declaration is generally done by freight forwarders.
Customs declaration procedure: customs declaration procedure: declaration-inspection-tax payment-release-customs clearance.
Documents required for customs declaration:
1. Export goods declaration form (stamped with company seal and legal person seal)
2. Shipping bill or waybill (stamped with long stamp)
3. Commercial draft (stamped with long seal)
4. Write-off form of export proceeds (write down the number of the write-off form)
5. Power of attorney for customs declaration (for customs declaration)
(The first five items are necessary documents for customs declaration. )
6. Purchase contract (commodity inspection without commodity inspection or commodity inspection without electronic bill exchange)
7. Various licenses
8. Foreign trade contracts, certificates of origin and other relevant certificates (such as insurance policies, copies of letters of credit, commodity inspection and customs clearance forms, etc.). The customs shall submit it when necessary.
Step 4: Settlement and collection of foreign exchange.
After paying the freight, you can get the original bill of lading, the verification form (tax refund form) and the customs declaration form (tax refund certificate form) from the shipping company or the freight forwarding office.
After receiving the bill of lading, you can send the following documents directly to foreign importers or related banks according to different payment methods:
1. Original bill of lading
2. Commercial paper
3. Box list
4. Certificate of origin of goods
5. Insurance policy
6. Other required documents
Under normal circumstances, if the documents sent to foreign customers are sent to non-exporters, exporters should endorse the documents. Just stick a long stamp. )
# T/T before delivery
Submit the invoice and verification form to the bank for settlement of foreign exchange, and obtain the verification form of export proceeds issued by the bank for tax refund in the future.
Then send the original bills of lading, invoices, packing lists, certificates of origin, insurance policies, etc. Directly handle customs clearance and delivery to customers. This is the safest way to collect foreign exchange.
# T/T after delivery
The exporter will send the original bill of lading, invoice, packing list, certificate of origin, insurance policy and so on. Customs clearance and delivery to customers. After delivery, the importer will remit money by wire transfer. After receiving the foreign exchange payment, the exporter will go to the bank to settle the foreign exchange with the invoice and the verification form, and get the verification form issued by the bank for tax refund later. This is the most unsafe way to collect foreign exchange.
# Payment by letter of credit
Under the business of letter of credit (especially long-term letter of credit), if there is a shortage of funds after obtaining the original bill of lading, you can take the documents stipulated in the bill of lading and letter of credit to the bank for negotiation, or you can go directly to the bank for negotiation.
Documents to be submitted in general (according to the provisions of the letter of credit):
Invoice,
Box list,
Bill of lading,
Certificate of origin,
License,
Documentary draft,
Other beneficiary certificates may be needed.
Submit the documents stipulated in the above letter of credit to the bank for negotiation (the negotiating bank is usually the advising bank),
Or send a complete set of documents to the issuing bank-the negotiating bank passes the examination, and negotiate the advance payment-the negotiating bank sends the documents to the issuing bank-and the issuing bank pays after the examination. Payment by the issuing bank is final and there is no recourse.
# Collection (French fries business)
It is the settlement method that the seller entrusts the local bank to entrust the import bank to collect money from the buyer by draft and/or other documents. It mainly includes D/A,
D/P collection is a kind of commercial credit, which is risky for both buyers and sellers, but still less risky than direct remittance. But generally speaking, collection is not good for sellers, because after the seller's goods are delivered, the buyer has the initiative to pay.
Once the price falls and the exchange rate fluctuates, the buyer may refuse to pay the redemption bill. Therefore, customers with poor credit should use collection with caution and do a full investigation and study.
Operation process:
The seller submits documents and drafts to the entrusted bank, and the entrusted bank entrusts the import bank as the collection bank, and the collection bank at the place of import issues a notice to the buyer with the power of attorney for collection.
When the buyer confirms that the payment is due or accepts the payment, the collecting bank informs the collecting bank at the export place that the payment has been received, and the collecting bank pays the seller.
For D/Paftersight, the bank can independently lend the documents to the importer in advance and pick up the goods with the trust receipt, but at this time, the ownership of the goods still belongs to the bank. Without the authorization of the exporter, the collecting bank shall bear the trust risk, otherwise, it shall be borne by the exporter.
Step 5: Cancel the tax refund.
# Logout
After receiving the payment, the bank will notify the exporter to settle foreign exchange and issue a special seal for verification of export proceeds. The export enterprise holds the following documents:
1. Special seal for verification of export proceeds issued by the bank.
2. The foreign exchange bureau's export receipt verification form
3. There is a clear connection between the export receipt and the declaration documents.
4. Commercial tickets
5. Cancellation Report Form
Go to the State Administration of Foreign Exchange for verification, and affix the "written off" seal on the special seal for verification of export proceeds and the clear seal for export proceeds report issued by the bank.
# Tax refund
Submit tax refund documents to IRS:
1. customs declaration form (export tax refund certificate)
2. Export commercial bills
3. Settlement form or notice of receipt of foreign exchange (special copy of verification form of export receipt issued by the bank)
4. Product tax certificate (payment document)
5. Verification certificate of export proceeds (special form for tax refund of export proceeds verification form)
6. Purchase VAT invoice deduction
7. Information related to export tax rebate