Xiaofeng Tutorial | Operational Procedures for Foreign Trade Export

Source: admin Time: 2022-10-24

The export goods process mainly includes: quotation, ordering, payment method, stocking, packaging, customs clearance procedures, loading, transportation insurance, bill of lading, and settlement of exchange.

 1QuoteIn the process of international trade, the first step is to inquire about and quote the product. Among them, the quotation for export products mainly includes: product quality grade, product specifications, whether the product has special packaging requirements, the quantity of the purchased product, the delivery period requirements, the product transportation method, the product material, etc. The more commonly used quotations are: FOB delivery on board, CNF cost and freight, CIF cost, insurance and freight, etc.

2OrderAfter the two parties reach an agreement on the quotation, the buyer company will formally place an order and negotiate with the seller company on some related matters. After the two parties have negotiated and agreed, they need to sign a "Purchase Contract". In the process of signing the "Purchase Contract", the main contents are negotiated on the name of the product, specifications, quantity, price, packaging, origin, shipping period, payment terms, settlement method, claims, arbitration, etc., and the agreement reached after the negotiation will be written into the "Purchase Contract". This marks the official start of the export business. Usually, the purchase contract is signed in duplicate and the official seals of both parties are stamped to take effect, and each party keeps one copy.

3Payment MethodsThere are three commonly used international payment methods, namely letter of credit payment, TT payment and direct payment.1. Payment by letter of creditLetters of credit are divided into two categories: clean letters of credit and documentary letters of credit. A documentary letter of credit is a letter of credit with specified documents attached, and a letter of credit without any documents is called a clean letter of credit. Simply put, a letter of credit is a guarantee document that guarantees that the exporter can recover the payment for the goods. Please note that the shipment period of the exported goods should be within the validity period of the letter of credit, and the letter of credit must be submitted no later than the validity date of the letter of credit. In international trade, letters of credit are mostly used as a payment method, and the opening date of the letter of credit should be clear, clear and complete.2.TT payment methodThe TT payment method is settled in foreign currency cash. Your customers will remit the funds to the foreign currency bank account designated by your company. You can request the payment to be made within a certain period of time after the goods arrive.3. Direct payment methodIt means that the buyer and seller deliver the goods and pay for them directly.

4StockingStocking plays a vital role in the entire trade process and must be implemented one by one according to the contract. The main contents of stocking are as follows: 1. The quality and specifications of the goods should be verified according to the requirements of the contract. 2. The quantity of goods: ensure that the quantity requirements of the contract or letter of credit are met. 3. The time of stocking: according to the provisions of the letter of credit, combined with the ship schedule, to facilitate the connection between ship and cargo.

5PackageYou can choose the packaging form (such as cartons, wooden boxes, woven bags, etc.) according to the different goods. Different packaging forms have different packaging requirements. 1. General export packaging standards: Packing is carried out according to the general standards for trade exports. 2. Special export packaging standards: Packing of export goods is carried out according to the special requirements of customers. 3. The packaging and marks (transportation marks) of goods: They should be carefully checked and verified to ensure that they comply with the provisions of the letter of credit.

6Customs clearance proceduresCustoms clearance procedures are extremely complicated and extremely important. If customs clearance cannot be completed smoothly, the transaction cannot be completed.

1. Export commodities subject to statutory inspection must obtain an export commodity inspection certificate. At present, there are four main links in the inspection of import and export commodities in my country:

Acceptance of inspection:Application for inspection refers to the foreign trade parties applying to the commodity inspection agency for inspection.

sampling:After accepting the declaration, the commodity inspection agency will promptly send personnel to the goods storage location to conduct on-site inspection and identification.

test:After receiving the inspection report, the commodity inspection agency will carefully study the inspection items reported and determine the inspection content. It will also carefully review the contract (letter of credit) regulations on quality, specifications, and packaging, clarify the basis for inspection, and determine the inspection standards and methods. (Inspection methods include sampling inspection, instrument analysis inspection, physical inspection, sensory inspection, microbiological inspection, etc.)

Issuance of certificate:In terms of export, all export commodities listed in the "Category Table" will be issued with a release note (or a release stamp will be affixed on the export goods declaration form as a substitute for the release note) after being inspected and qualified by the commodity inspection agency.

2. A professional person holding a customs declaration certificate must go to the customs to handle customs clearance procedures with the packing list, invoice, customs declaration power of attorney, export exchange settlement verification form, copy of the export goods contract, export commodity inspection certificate and other documents.

Packing list:The packing details of export products provided by the exporter.

bill:Certification of export products provided by the exporter.

Customs declaration letter of entrustment (electronic):A certificate issued by a unit or individual without customs declaration capabilities who entrusts a customs declaration agency to do the declaration.

Export Verification Form:The document is applied for by the exporting units at the State Administration of Foreign Exchange and is used by units with export capabilities to obtain export tax rebates.

Commodity Inspection Certificate:It is a general term for various import and export commodity inspection certificates, appraisal certificates and other certificates obtained after passing the inspection by the entry-exit inspection and quarantine department or its designated inspection agency. It is a valid document with legal basis for the parties involved in foreign trade to fulfill their contractual obligations, handle claims, disputes, negotiations and arbitration, and provide evidence in litigation. It is also a necessary certificate for customs inspection, customs collection and preferential tariff reduction and exemption.

7shipmentDuring the cargo loading process, you can decide the loading method according to the amount of cargo and purchase insurance according to the insurance type specified in the Purchase Contract. You can choose:1. Full containerTypes of containers (also known as cargo containers):(1) According to specifications and dimensions:At present, the dry containers commonly used internationally are: External dimensions are 20 feet x 8 feet x 8 feet 6 inches,Referred to as 20-foot container;40 feet x 8 feet x 8 feet 6 inches, referred to as 40 feet container; and 40 feet x 8 feet x 9 feet 6 inches, which is more commonly used in recent years,Referred to as 40-foot high cabinet. 20-foot container:The internal volume is 5.69m x 2.13m x 2.18m, the gross weight of the cargo is generally 17.5 tons, and the volume is 24-26 cubic meters. 40-foot cabinet: The internal volume is 11.8m x 2.13m x 2.18m, the gross weight of the cargo is generally 22 tons, and the volume is 54 cubic meters.40-foot high cabinet:The internal volume is 11.8m x 2.13m x 2.72m. The gross weight of the cargo is generally 22 tons and the volume is 68 cubic meters.45-foot high cabinet:The internal volume is: 13.58m x 2.34m x 2.71m, the gross weight of the cargo is generally 29 tons, and the volume is 86 cubic meters.20-foot open top cabinet:The internal volume is 5.89m x 2.32m x 2.31m, the gross weight of the cargo is 20 tons, and the volume is 31.5 cubic meters.40-foot open top cabinet:The internal volume is 12.01m x 2.33m x 2.15m, the gross weight of the cargo is 30.4 tons, and the volume is 65 cubic meters.20-foot flat-bottom container:The internal volume is 5.85m x 2.23m x 2.15m, the gross weight of the cargo is 23 tons, and the volume is 28 cubic meters.40-foot flat-bottom container:The internal volume is 12.05m x 2.12m x 1.96m, the gross weight of the cargo is 36 tons, and the volume is 50 cubic meters.(2) According to the box material:There are aluminum alloy containers, steel plate containers, fiberboard containers, and fiberglass containers.(3) By purpose:There are dry containers; refrigerated containers (REEFER CONTAINER); clothing hanging containers (DRESS HANGER CONTAINER); open top containers (OPENTOP CONTAINER); flat rack containers (FLAT RACK CONTAINER); tank containers (TANK CONTAINER).2. Assembled containersFor assembled containers, freight is generally calculated based on the volume or weight of the exported goods.

  8Shipping InsuranceUsually, both parties have agreed on the relevant matters of transport insurance in advance when signing the "Purchase Contract". Common insurances include marine cargo insurance, land and air mail insurance, etc. Among them, the types of risks covered by the marine cargo insurance clauses are divided into two categories: basic risks and additional risks: (1) Basic risks include free from paricular average (FPA), water damage insurance (with average or with particular average-WA or WPA) and all risks (all risks-AR). The scope of liability of free from paricular average insurance includes: total loss of goods caused by natural disasters at sea; total loss of goods during loading and unloading and transshipment; sacrifice, sharing and salvage costs caused by general average; total loss and partial loss of goods caused by the transport vessel running aground, stranding, sinking, collision, flooding, explosion. Water damage insurance is one of the basic risks of marine transport insurance. According to the insurance terms of the People's Insurance Company of China, its scope of liability not only covers the risks listed in free from paricular average insurance, but also covers the risks of natural disasters such as bad weather, lightning, tsunamis, floods, etc. The scope of liability of all risks insurance is equivalent to the sum of water damage insurance and general additional risks.

(2) Additional risks. Additional risks include general additional risks and special additional risks. General additional risks include theft and failure to pick up goods, fresh water and rain damage, theft and shortage, leakage, breakage, hook damage, mixing and contamination, packaging rupture, mildew, moisture and heat damage, and odor contamination. Special additional risks include war risk and strike risk.

9Bill of LadingThe bill of lading is a document issued by the shipping company for the importer to pick up the goods and settle the exchange after the exporter has completed the export customs clearance procedures and the customs has released the goods. The bill of lading is issued according to the number of copies required by the letter of credit, usually three copies. The exporter keeps two copies to handle tax refunds and other businesses, and sends one copy to the importer to handle the procedures for picking up the goods. When shipping goods by sea, the importer must take the original bill of lading, packing list, and invoice to pick up the goods. (The exporter must send the original bill of lading, packing list, and invoice to the importer.) If it is air freight, the faxed copy of the bill of lading, packing list, and invoice can be used to pick up the goods directly.

 10Exchange SettlementAfter the export goods are loaded, the import and export company should prepare the documents (packing list, invoice, bill of lading, export origin certificate, export settlement) correctly according to the provisions of the letter of credit. Within the validity period of the delivery of documents stipulated in the letter of credit, submit them to the bank for negotiation and settlement procedures.

In addition to the use of letters of credit for settlement, other payment methods generally include telegraphic transfer (T/T), debt draft (D/D), mail transfer (M/T), etc. Due to the rapid development of electronicization, telegraphic transfer is now the main method of remittance. (In China, enterprises enjoy preferential export tax rebate policies for export)

The pictures and texts are from the Internet. If there is any infringement, please contact us to delete them.