Export trade, also known as export trade, refers to the export of goods produced or processed in China to foreign markets for sale. Pen? Interesting? Pavilion wWw. ｂiquge。 Imports from abroad that are not consumed in the country and are re-exported abroad without being processed in the country are called re-export or re-export.

General steps

Collapse the preparatory stage before the transaction

The main work to be completed in this stage is: market research and formulation of plans.

(1) Market research

Market research: In order to obtain various information related to trade. Through the analysis of information, the characteristics of the international market are obtained, the feasibility of trade is determined, and then the trade plan is formulated.

The scope and content of market research include: economic research; market research; Customer research.

1. Economic research

The purpose of economic research is to understand the overall economic situation, the level of development of productive forces, the characteristics of the industrial structure, the country's macroeconomic policies, monetary system, economic laws and treaties, consumption levels and basic characteristics, etc. In short, it is to have a general understanding of the economic environment and estimate the possible risks and benefits. Foreign trade should always be carried out with countries and regions with a good overall environment as much as possible.

2. Market research

Market research is mainly aimed at a specific selected commodity, investigating its market supply and demand, domestic production capacity, production technology level and cost, product performance, characteristics, consumer class and climax consumption period, product life cycle stage, product market competition and monopoly degree, etc. The purpose is to determine whether the trade in the commodity is feasible and profitable.

3. Customer research

Customer research is to understand the basic situation of foreign manufacturers who want to establish trade relations. Including its own overall situation such as its history, capital scale, business scope, organization, and credit rating, as well as its history and current situation of foreign economic and trade relations with other customers around the world and with Chinese customers. Only with a certain understanding of foreign manufacturers can we establish foreign trade contacts with them. In the actual work of China's foreign trade, there are often incidents that cause heavy losses due to unclear information about the other party's situation and hastily carrying out foreign trade transactions with them. Therefore, before the transaction negotiation, it is necessary to have a full grasp of the foreign customer's capital and credit status, and not to rush.

The main sources of research information are: (1) general data, such as the general data and data of the national economy officially released by a country, including the gross national product, the balance of payments, the total foreign trade, the inflation rate and the unemployment rate. (2) Comprehensive publications at home and abroad. (3) Entrust a foreign consulting company to conduct a market survey. (4) Collect data abroad through the overseas branches of China's foreign trade companies and commercial counselors' offices. (5) Take advantage of trade fairs, various fairs and opportunities for customers to do business in China to learn about information. (6) Send special export delegations, sales teams, etc. to conduct direct international market research and obtain first-hand information.

(2) Formulate a plan

The formulation of a plan refers to the business plan and arrangement made by the relevant import and export company for the export commodities it handles in accordance with the policies and laws of the state. It is a prerequisite for a smooth and planned transaction. The export commodity business plan generally includes the following:

1. The domestic supply of the goods

Such as the place of production, the main place of sales, the main place of consumption; Characteristics, quality, specifications, packaging, price, output, and inventory of goods.

2. Foreign market situation

For example, the basic situation of market capacity, production, consumption and trade, the transaction situation of major import and export countries, the trend of possible development and change in the future, the requirements for commodity quality, specifications, packaging, performance, price and other aspects, and the basic practices and sales channels of the commodity in foreign markets.

3. Determine the export area and customer

On the basis of the first step of market research and information analysis, the most favorable export regions and partners are selected.

4. Business history

For example, the current position of China's export commodities in the international market, the main sales areas and sales situation, the main competitors, and the main experience and lessons learned in operating this kind of commodity.

5. Business plan arrangement and implementation of measures

Such as the number and amount of sales, the growth rate, the trade method used, the means of payment, the settlement method, the sales channel, the mode of transportation, etc.

Collapse the negotiation and contract stages of the transaction

At this stage, the first thing to do is to advertise, so that foreign customers can understand the performance of our products, and then negotiate and conclude a contract on this basis.

(1) Advertising

Advertising includes: commercial advertisements in newspapers and magazines; disseminate information through radio, television, etc.; Organize special trade fairs; Consumers can quickly understand their products directly and quickly by giving away samples; Dispatch a special marketing team to the country to carry out direct propaganda activities. Advertising should be carried out in a flexible and diverse manner according to the characteristics of different commodities and different market habits.

Advertising should not only be novel, targeted, attractive, and able to stimulate the purchase impulse of potential consumers, but also pay special attention to the authenticity of advertising. Consumers cannot be deceived through false advertising, which can only be said to be a short-sighted behavior, and the gains outweigh the losses. At the same time, we should also pay attention to saving in advertising, and we should skillfully choose the way of publicity, carefully design the advertising content, and obtain the most extensive publicity effect with the least investment.

Doing a good job in advertising and publicizing export commodities is an important means to enable commodities to smoothly enter the market and expand sales. According to the statistics of several developed countries such as Western Europe, Japan, and the United States, advertising expenses alone account for about 1% of GDP every year.

(2) Transaction negotiation

The main process of transaction negotiation is: establishing a business relationship; inquiry; offer; Counter-offer and acceptance.

1. Establish a business relationship

2. Inquiry, also known as inquiry, refers to the process of one party to a transaction to inquire about the terms of the transaction orally or in writing to the other party in order to buy or sell a certain commodity. The content can be complex or simple, and it can only ask about the price, or it can ask about other relevant trading conditions.

The inquiry is not binding on both the buyer and the seller, and the party who accepts the inquiry may or may not reply. However, as a starting point for negotiation of a transaction, it is customary for the party receiving the inquiry to respond promptly.

(1) Buyer's inquiry

It is a letter sent by the buyer to inquire about the required goods from foreign manufacturers. In practice, inquiries are generally sent by buyers to sellers. Buyer's inquiry, such as:

Please call the lowest price of grey duck down.

Please send 50 metric tons of extra light amber honey.

The issues that should be paid attention to during the buyer's inquiry are:

(1) For most large road goods, we should inquire to different regions, countries and manufacturers at the same time to understand the international market situation and strive for the best trade terms

(2) For commodities with complex specifications or a large number of items, not only ask for the price, but also ask the other party to inform the detailed specifications and quantity, so as to avoid back and forth negotiation and waste of time.

(3) Although the inquiry is not legally binding on the sender, it is necessary to try to avoid the practice of inquiry without purchase sincerity, otherwise it is easy to lose credibility.

(4) For commodities with strong monopoly, more varieties should be put forward and the other party should be asked to quote one by one, so as to prevent the other party from taking the opportunity to raise prices.

(2) Seller's inquiry

It is a letter sent by the seller to the buyer to solicit his opinion on the purchase. As:

Available for soybeans in Northeast China, please submit the plate.

Most of the inquiries issued by sellers to foreign customers are in the case of turbulent changes in the market and abnormal supply and demand, listening to the reality of the market, choosing the timing of the transaction, and actively looking for favorable trading conditions.

3. Offer

An offer, also known as an offer, refers to an oral or written expression that one party to a transaction proposes certain trading conditions to the other party and expresses its willingness to conclude a transaction and sign a contract for the sale of the goods in accordance with the proposed transaction conditions.

The offeror can be either a buyer or a seller. There are real and virtual offers, the former is binding, the latter is non-binding, and the details will be introduced in the first section of Chapter 4.

4. Counteroffer

A counter-offer, also known as a counter-offer, is an expression that the offeree does not agree or does not fully agree with the content or conditions in the offer and puts forward his own amendments or conditions. Any change in the counter-offer means a rejection of the original offer.

The counter-offer can only be made by the offeree within the validity period of the original offer, and no other person has the right to counter-offer. The offeror should carefully analyze the counter-offer of the offeree, find out the substantive changes and the true intention of the other party, and make corresponding answers.

If the original offeror makes new changes to the contents and conditions of the counteroffer, it becomes a re-offer, and sometimes constitutes a new offer. The establishment of a transaction often has to go through the process of multiple counteroffers and counter-offers.

5. Acceptance

Acceptance refers to an oral or written expression that the offeree unconditionally agrees to all the contents of the offer within the validity period of the offer and is willing to sign the contract.

Acceptance may be made by the buyer or by the seller, but it must be the lawful offeree and must be served on the offeror within the validity period of the offer. The indication of acceptance must be clear.

(3) Conclude a contract

The conclusion of the contract is the final written confirmation of the agreement reached between the two parties in the course of the previous negotiation and the mutually accepted terms of the transaction. The contract has the force of law, and once concluded, all subsequent trade activities should be consistent with the terms of the contract.

Although the offer is binding on both parties, it should still be confirmed by contract. China's foreign-related economic contract law stipulates that "a contract shall be established when the parties reach an agreement on the terms of the contract in writing and sign." If an agreement is made by letter, telegram or telex, and one of the parties requests the signing of a confirmation, the contract shall be concluded only when the confirmation is signed. “

Collapse the organization of the supply stage

The main work at this stage is to organize production, acquisition, allocation, transportation, warehousing and storage in accordance with the trading commodities and trading conditions stipulated in the contract.

(1) Production or acquisition

In the case of self-exporters, production should be organized immediately after the conclusion of the contract. The quality, performance, packaging, specifications, and appearance of the product are required to be consistent with the terms of the contract. It is necessary to ensure the timely supply of raw materials and intermediate products and ensure on-time delivery.

For the agency export business, after the exporter signs the contract, it should do a good job in domestic acquisition and allocation. There are two ways of acquisition: commercial supply and direct foreign trade supply.

(2) Transportation

It is the transportation of organized export goods to the selected place of export. Such as ports, stations, airports. In the process of transportation, it is necessary to reasonably arrange the flow direction and choose the most convenient and time-saving transportation path from the place of origin to the place of export.

(3) Warehousing and storage

When the goods cannot be shipped immediately to the place of export, they should be properly kept. The storage time should be shortened as much as possible, because the value of the stored goods cannot be realized immediately, which is a kind of capital occupation, and at the same time, it is necessary to pay storage fees, which is a double loss. To this end, it is necessary to get in touch with the Sinotrans company in time so that the goods can be shipped for export as soon as possible.

Collapse the performance of the contract and deal with the dispute stage

(1) Performance of the contract

The main content of performance can be summarized by "goods, certificates, ships and payments".

1. Goods

It refers to the preparation of goods for shipment according to the requirements of the contract, which has been basically completed in the stage of organizing the source of goods.

2. Certificate

The main methods of international trade settlement are: collection, wire transfer and letter of credit. Letters of credit are the most common, and the first two methods are rarely used anymore. The "certificate" here refers to the letter of credit. Activities related to letters of credit include:

(1) Reminder: The seller urges the buyer to issue the letter of credit as soon as possible and send it to the seller through the issuing bank and the negotiating bank. Non-performance events often occur in foreign trade, and only when the letter of credit is obtained, the transaction has the possibility of basic success, and the seller is likely to receive the payment.

(2) Verification: The relevant content of the letter of credit must be completely consistent with the terms of the contract, that is, the so-called "consistency of the certificate". This is because the bank only pays according to the contents of the letter of credit, regardless of the terms of the contract. The seller should ensure that the certificate is consistent and prevent the buyer from incurring losses by changing the terms of the transaction stipulated in the contract through the letter of credit.

(3) Alteration: When it is found that the L/C is inconsistent with the contract, the seller shall promptly request the buyer to modify the L/C in accordance with the provisions of the contract.

(4) Proof-of-display: The requirement for proof-of-sale is made by the buyer when amending the letter of credit. to avoid a default on the extension.

3. Boats

International trade transportation methods include sea, land, air, etc. Mainly by sea. "Ship" refers to the process of transportation and customs declaration of goods.

First it is chartering and booking, then shipping, and finally arriving at the destination and customs clearance.

International trade transportation is long, long, and risky, so it must be insured.

4

Refers to the process of foreign exchange settlement of bills. The main documents for the settlement of international trade vouchers are: goods documents centered on invoices, transport documents centered on bills of lading and insurance documents centered on insurance policies. The contents of each set of documents should be consistent, i.e., "consistent with each other", and should be the same as the content of the letter of credit, i.e., "consistent with the documents". When the bank settles foreign exchange, as long as it is reviewed as consistent with the single document and the documents are consistent, the payment will be made regardless of the actual situation of the goods (this is one of the main characteristics of L/C settlement).

(2) Handling disputes

There are generally three types of dispute resolution:

1. Friendly negotiation

2. Arbitration

The result of the arbitration is no longer subject to change by any person and must be enforced. The contract generally contains clauses on the place and manner of arbitration.

3. Judicial proceedings

Judicial litigation is mainly used to handle cases that are not subject to arbitration. Because the litigation time of foreign trade disputes is too long (generally more than two years), and the product is not allowed to enter the market of the country during the litigation period, the general foreign trade disputes are not resolved in this way, and the arbitration method is generally adopted.

Fold the accounting benefits and summarize the gains and losses

This stage is often ignored by foreign trade enterprises, and it is an important factor for the sustainable and stable development of foreign trade.

Accounting efficiency refers to the measurement of the ratio between inputs and outputs. Inputs are the sum of the cost of the exported commodity and the direct trade-related costs; Output refers to foreign exchange earnings. The main indicators of accounting efficiency are the ratio of input to output; profit and loss of export commodities; Exchange costs, exchange rate creation, etc. Export trade should not only pursue an increase in the absolute quantity and amount of exports, but also strive to improve economic efficiency, so that the development of exports can be of positive significance. Loss-making export trade is not good for economic development.

The review of gains and losses should include a summary of the experience of the various stages of the entire trade process, so that it can be carried out more skillfully and confidently in subsequent trade.

Collapse and edit the general flow of this paragraph

The flow of China's import and export trade (map)

The flow of China's import and export trade (map)

Collapse the quote

In international trade, it is generally the inquiry and quotation of products as the beginning of trade. Among them, the quotation for export products mainly includes: the quality level of the product, the specification and model of the product, whether the product has special packaging requirements, the amount of the purchased product, the requirements of the delivery time, the transportation method of the product, the material of the product, etc.

The more commonly used quotations are: FOB "Free on Board", CNF "Cost & Freight", CIF "Cost, Insurance & Freight" and other forms.

Folding order (contracting)

After the two parties reach an intention on the quotation, the buyer formally orders and negotiates with the seller on some related matters, and after the two parties negotiate and approve, they need to sign the "Purchase Contract". In the process of signing the "Purchase Contract", the main negotiation is on the commodity name, specification and model, quantity, price, packaging, origin, shipment period, payment terms, settlement methods, claims, arbitration and other contents, and the agreement reached after negotiation is written into the "Purchase Contract". This marked the official start of the export business. Under normal circumstances, the signing of the purchase contract in duplicate shall be effective by both parties stamping the company's official seal, and each party shall keep one copy.

Collapse payment methods

There are three commonly used international payment methods, namely letter of credit payment method, TT payment method and direct payment method.

1. Payment method of L/C

Letters of credit are divided into two types: light bill letter of credit and documentary credit. Documentary credit refers to a letter of credit with specified documents, and a letter of credit without any documents is called a light letter of credit. To put it simply, a letter of credit is a guarantee document that guarantees the exporter to recover the payment for the goods. Please note that the term for shipment of export goods should be made within the validity period of the letter of credit, and the term of the letter of credit must be submitted no later than the validity date of the letter of credit.

In international trade, the letter of credit is the majority of the payment method, and the date of issuance of the letter of credit should be clear, clear and complete. Several state-owned commercial banks in China, such as Bank of China, China Construction Bank, Agricultural Bank of China, Industrial and Commercial Bank of China, etc., are able to open letters of credit (the issuance fee of these major banks is 1.5‰ of the issuance amount).

2. TT payment method

TT payment method is settled in foreign exchange cash, and your customer will remit the money to your company's designated foreign exchange bank account, and you can request the remittance within a certain period of time after the goods arrive.

3. Direct payment method

It refers to the direct delivery payment between the buyer and the seller.

Folded and stocked

Stocking plays a pivotal role in the entire trade process and must be implemented on a contract-by-contract basis. The main checks for stocking are as follows:

1. The quality and specifications of the goods shall be verified according to the requirements of the contract.

2. Quantity of goods: ensure that the quantity requirements of the contract or letter of credit are met.

3. Stocking time: according to the provisions of the letter of credit, combined with the shipping schedule, in order to facilitate the connection of the cargo.

Folded packaging

According to the different goods, you can choose the packaging form (such as: cartons, wooden boxes, woven bags, etc.). Different packaging forms have different packaging requirements.

1. General export packaging standards: packaging is carried out according to the general standards for trade exports.

2. Special export packaging standards: export goods are packaged according to the special requirements of customers.

3. The packaging and shipping marks of the goods (transport mark): should be carefully inspected and verified to make them comply with the provisions of the letter of credit.

Collapse customs clearance procedures

Customs clearance procedures are extremely cumbersome and extremely important, and the transaction cannot be completed without smooth customs clearance.

1. Export commodities subject to statutory inspection must apply for export commodity inspection certificates.

At present, there are four main links in the inspection of import and export commodities in China:

Acceptance of inspection: inspection refers to the foreign trade relationship to the commodity inspection agency for inspection.

Sampling: After the commodity inspection agency accepts the inspection, it will send personnel to the goods storage site for on-site inspection and appraisal in a timely manner.

Inspection: After the commodity inspection agency accepts the inspection, carefully study the declared inspection items and determine the inspection content. And carefully review the contract (letter of credit) on quality, specifications, packaging regulations, find out the basis of inspection, determine the inspection standards, methods. (The inspection methods include sampling inspection, instrumental analysis inspection; physical inspection; sensory inspection; microbial testing, etc.)

Issuance of certificates: In terms of export, all export commodities included in the "List of Types" shall be issued after passing the inspection by the commodity inspection agency (or stamped with a release seal on the "Customs Declaration Form for Export Goods" in lieu of the release form).

2. Professional personnel holding customs declaration certificates must go to the customs for customs clearance procedures with packing lists, invoices, customs declaration power of attorney, export foreign exchange settlement verification form, copies of export goods contracts, export commodity inspection certificates and other texts.

A packing list is a packing list of export products provided by the exporter.

An invoice is a certificate of export products provided by the exporter.

The power of attorney for customs declaration is a certificate that a unit or individual without the ability to declare customs entrusts a customs declaration agency to make a customs declaration.

The export verification form is applied for by the exporting unit to the foreign exchange bureau, which refers to a document for the unit with export capacity to obtain export tax rebate.

The commodity inspection certificate is obtained after passing the inspection by the entry-exit inspection and quarantine department or its designated inspection agency, and is the general term for various import and export commodity inspection certificates, appraisal certificates and other certificates. It is a valid document with legal basis for the parties involved in foreign trade to perform their contractual obligations, handle claims and disputes, negotiate and arbitrate, and present evidence in litigation, and it is also a necessary proof for customs inspection and release, collection of tariffs and preferential tariff reduction.

Folded for shipment

During the loading process, you can decide the loading method according to the amount of goods, and insure according to the type of insurance specified in the purchase contract. Optional:

1. Complete containers

Types of containers (also known as containers):

(1) According to the size of the specification: at present, the dry container (DRYCONTAINER) commonly used in the world is:

The outer dimensions are 20 feet X 8 feet X 8 feet 6 inches, referred to as 20 feet container;

40 feet X 8 feet X 8 feet 6 inches, referred to as 40 feet container; and the 40 ft x 8 ft x 9 ft 6 inch which has been used more often in recent years, referred to as the 40-foot high cube container.

20-foot container: the internal volume is 5.69 m X 2.13 m X 2.18 m, the gross weight of the distribution is generally 17.5 tons, and the volume is 24-26 cubic meters.

40-foot container: the internal volume is 11.8 m X 2.13 m X 2.18 m, the gross weight of the distribution is generally 22 tons, and the volume is 54 cubic meters.

40-foot high container: the internal volume is 11.8 m x 2.13 m x 2.72 m, the gross weight of the distribution is generally 22 tons, and the volume is 68 cubic meters.

45-foot high container: the internal volume is: 13.58 m X 2.34 m X 2.71 m, the gross weight of the distribution is generally 29 tons, and the volume is 86 cubic meters.

20-foot open-top cabinet: the internal volume is 5.89 m x 2.32 m x 2.31 m, the gross weight of the distribution is 20 tons, and the volume is 31.5 cubic meters.

40-foot open-top cabinet: the internal volume is 12.01 m X 2.33 m X 2.15 m, the gross weight of the distribution is 30.4 tons, and the volume is 65 cubic meters.

20-foot flat-bottom container: the internal volume is 5.85 m X 2.23 m X 2.15 m, the gross weight of the distribution is 23 tons, and the volume is 28 cubic meters.

40-foot flat-bottom container: internal volume 12.05 m x 2.12 m x 1.96 m, gross weight of 36 tons, volume 50 cubic meters.

(2) According to the material of box making: aluminum alloy containers, steel containers, fiberboard containers, and FRP containers.

(3) According to the use: there are dry containers; REEFERCONTAINER; DRESSHANGERCONTAINER; OPENTOPCONTAINER; FLATRACKCONTAINER; TANKCONTAINER.

2. Assemble containers

For consolidated containers, the freight is generally calculated according to the volumetric weight of the export goods.

Foldable shipping insurance

Usually, the two parties have agreed in advance on the relevant matters of transportation insurance in the signing of the purchase contract. Common insurances include marine cargo transportation insurance, land and air mail transportation insurance, etc. Among them, the risks covered by the marine cargo insurance clause are divided into two categories: basic insurance and additional insurance:

(1) There are three types of basic insurance: Ping An Insurance (FreefromParticularAverage-F.P.A), Water Damage Insurance (WithAverageWithParticularAverage-W.AorW.P.A) and AllRisk-A.R. The scope of liability of Ping An Insurance includes: total loss of goods caused by natural disasters at sea; the overall loss of the cargo during the loading and unloading and transshipment of the ship; sacrifice, contribution and salvage costs arising from general average; Total loss and partial loss of cargo caused by shippering, grounding, sinking, collision, flooding, and explosion of the transport vessel. Water damage insurance is one of the basic insurances of marine transportation insurance. According to the insurance terms of the Chinese People's Insurance Company, its liability scope not only bears the risks listed in Ping An Insurance, but also bears the risks of natural disasters such as severe weather, lightning, tsunamis, and floods. The coverage of all risks is equivalent to the sum of the water damage and general riders.

(2) Additional risks. There are two types of riders: general riders and special riders. General additional insurance includes theft and delivery of goods, fresh water and rain insurance, theft and short-term insurance, leakage insurance, damage and breakage insurance, hook damage insurance, mixed contamination insurance, packaging rupture insurance, mildew insurance, moisture and heat insurance, cross-smell insurance, etc. Special riders include war insurance, strike insurance, etc.

Collapse bill of lading

The bill of lading is a document signed by Sinotrans after the exporter has completed the export customs clearance procedures and customs clearance, and is used by the importer to pick up the goods and settle foreign exchange.

The signed bill of lading is issued according to the number of copies requested by the letter of credit, which is generally three. The exporter retains two copies for tax rebate and other business, and one copy is sent to the importer to handle the procedures such as picking up the goods.

When shipping goods by sea, the importer must pick up the goods with the original bill of lading, packing list, invoice. (The exporter must send the original bill of lading, packing list and invoice to the importer.) ）

If the cargo is transported by air, the goods can be picked up directly with the fax of the bill of lading, packing list and invoice.

Folded settlement

After the export goods are loaded, the import and export company shall correctly prepare the documents (packing list, invoice, bill of lading, export origin certificate, export foreign exchange settlement) and other documents in accordance with the provisions of the letter of credit. Within the validity period of the documents specified in the L/C, submit it to the bank for negotiation and settlement of foreign exchange.

IN ADDITION TO THE USE OF LETTER OF CREDIT SETTLEMENT, OTHER PAYMENT REMITTANCE METHODS ARE GENERALLY TELEGRAPHIC TRANSFER (T/T), BILL TRANSFER (DEMAND DRAFT (D/D), MAIL TRANSFER (M/T)) AND OTHER METHODS, DUE TO THE RAPID DEVELOPMENT OF ELECTRONIC, NOW REMITTANCE MAINLY USES TELEGRAPHIC TRANSFER. (In China, enterprises enjoy preferential export tax rebate policies for exports)

Collapse and edit this paragraph in various ways

Trade methods refer to the various methods employed in international trade. With the development of international trade, trade methods are becoming more and more diversified. In addition to the method of selling one by one, there are also underwriting, agency, consignment, auction, bidding and bidding, futures trading, countersale trade, etc. Underwriting (exclusivesales) is one of the methods commonly used in international trade.

Folding underwriting method

In China's export business, according to the characteristics of certain commodities and the need to expand exports, in the appropriate market, select appropriate customers, and can also adopt the underwriting method. Underwriting refers to the trade practice of the person (principal) who gives the right to operate a certain commodity or a certain type of commodity in a certain region and within a certain period of time to a foreign customer or company through an agreement. Although underwriting is also a sale, underwriting is different from the usual unilateral one-by-one export. In addition to the sales contract signed by both parties, it must also have an underwriting agreement signed in advance. With the underwriting method, the rights and obligations of the buyer and the seller are determined by the same underwriting agreement. The sales contract signed by the two parties must also comply with the provisions of the underwriting agreement. The underwriting agreement includes the following key elements:

1. The name, date and place of the underwriting agreement.

2. The preceding clause of the underwriting agreement usually specifies in the preceding clause that the relationship between the underwriter --- the principal is the relationship between the underwriter and the principal (principal-to-principal), that is, the relationship between the buyer and the seller.

3. The scope of underwriting commodities is that the client (exporter) operates a wide variety of commodities, even if it is the same type or the same kind of commodity, among which there are different grades and specifications. Therefore, in an underwriting agreement, the parties must agree on the scope of the goods to be underwritten.

4. Underwriting areaThe underwriting area refers to the geographical scope of the underwriter's exercised sales. In general, there are the following conventions:

1. Identify one or several countries;

2. Determine how many cities in a country;

3. Determine a city, etc.

The following factors should be taken into account in determining the size of the underwriting area:

1. The scale and capacity of underwriting;

2. The sales network that the underwriter can control;

3. The nature and type of underwritten goods;

4. The degree of market differentiation;

5. The topography and location of the underwriting area, etc.

5. Underwriting periodThe underwriting period can be long or short. In China's export business, the term is often clearly specified when signing the underwriting agreement, usually one year. It is customary practice in other markets that there is no term in the underwriting agreement, but only a suspension clause or a renewal clause, etc.

6. Franchise Franchise refers to the underwriter's right to exercise monopoly and monopoly, which is an important part of the underwriting agreement. Franchises include monopoly and exclusive rights. The former is the right of the consignor (exporter) to give the underwriter the exclusive right to sell the goods in a specified area and for a specified period of time. The exporter is obliged not to sell directly to customers in the region. The latter is the obligation of the underwriter to purchase the goods from the exporter and not from a third party.

7. In addition to the above-mentioned contents, the underwriting agreement shall also stipulate the quantity or amount. The amount and amount of this amount shall be equally binding on both parties to the agreement. Sometimes the quantity and amount specified in the agreement must be obliged by the underwriter to purchase the specified quantity and amount from the exporter, and the exporter must be liable to export the said quantity and amount to the underwriter.

8. There are different methods for underwriting the pricing of commodities. One way to do this is to make a lump sum price within a specified period. That is, regardless of the price increase or decline of the underwritten goods in the agreement, the price specified in the agreement shall prevail. Another approach is to price in instalments over a specified underwriting period. Due to the volatile nature of prices in the international commodity market, it is common to use batch pricing.

9. The parties to the advertising, publicity, market reporting and trademark protection underwriting agreement are in a buyer-seller relationship, so the client (exporter) is not actually involved in the sales business in the underwriting area, but he is very concerned about developing overseas markets. In order to advertise the trademark used in its products, the principal often requires the underwriter to be responsible for placing certain advertisements for his goods. For example, some underwriting agreements provide that "the buyer is responsible for and contributes to the seller's ...... in its underwriting territory" Machinery and equipment are exhibited, orders are solicited, and advertisements are placed in local newspapers. "Some agreements stipulate that the underwriter shall visit the customer or seller who is expected to conclude the transaction, and the underwriter shall provide market coverage as much as possible.

Collapse proxies

Agency refers to the agent who enters into a contract or performs other legal acts with a third party on behalf of the principal in accordance with the authorization of the principal. The rights and obligations arising therefrom shall be directly effective against the person.

1. The relationship between the agent and the principal belongs to the entrusted buying and selling relationship. In the agency business, the agent only acts on behalf of the principal, such as soliciting customers, soliciting orders, signing sales contracts on behalf of the principal, handling the principal's goods, receiving payment, etc., and he does not participate in the transaction as a party to the contract.

2. Agents usually use entrusted funds to carry out business activities.

3. Agents generally do not sign contracts with third parties in their own names.

4. The remuneration earned by the agent is the commission. Types of AgentsIn the capitalist market, there are usually the following types of agents:

1), the general agent (generalagency) is the full agent of the principal in the designated area. In addition to the right to carry out business activities such as signing sales contracts and handling goods on behalf of the client, he can also carry out some non-commercial activities. He has the right to appoint sub-agents and share in the commission of the agents.

2) Exclusive agency (theexclusiveagencyorsoleagency)

3) Commission agency (commissionagency) commission agency, also known as general agency, refers to the same agency area, time and period, at the same time several agents on behalf of the principal's behavior of the agent. The commission agent collects commissions from the client according to the actual amount of the promoted goods and according to the method and percentage specified in the agreement, and the principal can directly deal with the actual buyer in the area without paying the commission agent.

Collapse consignment

Consignment is a trade method of consignment and consignment, and it is also one of the practices commonly used in international trade. In China's import and export business, the use of consignment is not common, but in the transaction of some commodities, in order to promote the transaction and expand the needs of exports, the consignment method can also be used flexibly and appropriately. "Consignment" is a different form of trade than agent sales. It refers to a trade practice in which the entrusted (consignor) first transports the goods to the place of consignment, entrusts a foreign consignee (consignee), and replaces the consignor for the consignor in accordance with the conditions stipulated in the consignment agreement, and after the goods are sold, the consignee settles the payment to the consignor.

Compared with the normal outright sale method, the consignment method adopted in international trade has the following characteristics: 1. The consignor first transports the goods to the destination market (consignment place), and then sells them to local buyers through the consignment place. Therefore, it is a typical spot transaction in which physical goods are bought and sold.

2. The relationship between the consignor and the consignee is a consignment relationship, not a buying and selling relationship. The consignee disposes of the goods only according to the consignor's instructions. Title to the goods remains with the consignor until they are sold at the place of consignment.

3. All costs and risks of the consignment goods before they are sold, including during transportation and after arriving at the consignment place, shall be borne by the consignor. After the consignment goods are shipped for export, the method of selling road goods can also be used before arriving at the consignment place, and the goods are sold first, that is, when the goods are still in transit, if there are conditions, they will be sold in a transaction, and if they are not sold, they will still be transported to the original destination.

Collapse Tenders & Bids

Bidding and bidding (invitationtotender) refers to the act of inviting the seller to bid at the time, place, and issue a tender announcement or tender form, proposing the variety, quantity and relevant buying and selling conditions of the goods to be bought. Bidding (tosubmittender) refers to the bidder's invitation to submit the tender to the tenderer within the specified time according to the conditions specified in the tender announcement or tender order. In fact, tendering and bidding are two aspects of a trade method.

At present, there are three types and four types of bidding methods used in the world, namely:

1. Competitive bidding (intenationalcompetitivebidding, ICB) refers to the tenderer inviting several or even dozens of bidders to participate in the bidding, through the competition of the majority of bidders, and selecting the bidder who is most beneficial to the tenderer into a transaction, which belongs to the way of redemption and sale. There are two approaches to international competitive bidding: a. open bidding. Open bidding is a type of unlimitedcompetitive. When this practice is adopted, the tenderer should publish the bidding advertisement in the main newspapers and periodicals at home and abroad, and all those who are interested in the bidding content have the opportunity to purchase the bidding materials for bidding. b. Selective bidding. Selective bidding, also known as invitation bidding, is limited competitive bidding. When adopting this method, the tenderer does not advertise in newspapers and periodicals, but invites merchants by the tenderer according to their specific business relationships and intelligence information, and then they bid after pre-qualification.

2. NegotiatedbiddingNegotiation bidding, also known as negotiation, is non-public and is a kind of non-competitive bidding. This kind of bidding is directly negotiated by several merchants of the tendering person, and the negotiation is successful and the transaction is reached.

3. Two-stage bidding (two-stage bidding) Two-stage bidding refers to the comprehensive method of unlimited competitive bidding and limited competitive bidding. Most of the government procures materials through competitive public bidding.

Collapse Auction

Auction is a spot transaction method in which a franchised auction house accepts the entrustment of the owner of the goods, at a certain place and time, in accordance with the regulations and rules, by the method of open bidding, and finally the auctioneer gives the goods to the buyer with the highest bid. Most of the goods traded through auctions are of easy quality to standardize, or difficult to store for a long time, or are customarily auctioned. Such as tea, tobacco, rabbit hair, fur, wood, etc. Some commodities, such as mink and Australian wool, are mostly traded through international auctions. Auctions are generally conducted by special organizations engaged in auction business, in a certain auction center market, and within a certain period of time, in accordance with local laws and regulations. The auction procedure is different from the general export transaction, and the transaction process generally goes through four stages: preparation, inspection, bidding and delivery.

There are three ways to bid in an auction:

1. Auction of increased price, also known as buyer's bidding auction. This is one of the most commonly used auction methods. At the time of the auction, the auctioneer proposes a batch of goods, announces the predetermined minimum price, and after the valuation, the bidder bids the price one after another, competing to increase the price, sometimes specifying the amount of each price increase, until the auctioneer believes that no one can make a higher price.

2. Reduced price auction, also known as Dutch auction (dutchauction), this method first calls out the highest price from the auction, and then gradually lowers the bid price until a bidder thinks that it is low enough to acceptable price, indicating buying.

3. Sealed bids; closesbids) auctions are also known as tender-style auctions. In this method, the auctioneer first announces the specific situation and auction conditions of each batch of goods, and then each party submits its bid to the auctioneer within the specified time, so that the auctioneer can review and compare the goods and decide which bidder to sell the goods to. This method is not an open bid, and auctioneers sometimes have to consider factors other than price. In some countries, this auction method is often used by Governments or customs authorities when dealing with stockpiles or confiscating goods.

Folding futures trading

Futures trading (futurestransaction) is a trade method in which many buyers and sellers bargain with the help of gestures in accordance with certain rules, and reach a transaction through fierce competition. Futures trading is different from spot trading in commodities. As we all know, in the case of spot trading, buyers and sellers can enter into physical transactions in any way, at any place and at any time. The seller must deliver the actual goods and the buyer must pay for the goods. Futures trading, on the other hand, is the trading of futures in a specific futures market at a certain time, that is, in the commodity exchange, in accordance with the "standard futures contract" pre-formulated by the exchange. After the transaction, the buyer and seller do not transfer ownership of the goods.

Because futures trading has the following characteristics: 1. Futures trading does not stipulate that both parties provide or accept actual goods; 2. The result of the transaction is not the transfer of the actual goods, but the price difference between the date of signing the contract and the date of performance of the contract; 3. Futures contracts are standard futures contracts formulated by the exchange, and can only be traded in accordance with the commodity standards and types specified by the exchange; 4. The delivery time of futures trading is determined in accordance with the delivery time stipulated by the exchange. Different goods, the delivery time is different; 5. Futures contracts must be registered and settled in the clearing house set up by each exchange. Types of Futures TradingFutures trading, depending on the purpose of the trader, has two different types: one is the pure speculative activity of using futures contracts as gambling chips, buying and selling, and chasing profits from the difference in price fluctuations; One is that people who are really engaged in physical transactions do hedging. The former, known in business practice as "buying and selling", is a gambling speculation carried out by speculators based on their own judgments about the market prospects. The so-called "short buying", also known as "long", refers to the speculation that the price is going to rise and buy futures; Once the price of the delivery period increases, sell the futures and earn the difference. The latter is called "hedging" in business customs, also known as "Haiqin". Countertrade is also translated as "reverse trade", "counter-trade" and "reciprocal trade" in China, and some people generally refer to it as "barter" or "big barter". Generally speaking, we can understand counter-trade as a general term for various trade methods that include barter, bookkeeping trade, mutual purchase, product repurchase, and resale trade, which belong to the category of goods trading and are characterized by the combination of import and export, and the combination of exports and the offset of imports.