Operation process of foreign trade export

2022-12-27 09:47

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


1 quotation


In the process of international trade, the first step is the product inquiry, quotation. Among them, the quotation of export products mainly includes: product quality grade, product specifications and models, whether the product has special packaging requirements, the quantity of purchased products, the delivery time requirements, the transportation mode of the product, the material of the product and so on. More commonly used quotations are: FOB, CNF cost and freight, CIF cost, insurance and freight and other forms.


2 Place an order


After the trading parties reach the intention on the quotation, the buyer enterprise formally orders and negotiates with the seller enterprise on some related matters. After the negotiation and approval of both parties, the Purchase Contract shall be signed. In the process of signing the "Purchase Contract", the main contents of the commodity name, specifications and models, quantity, price, packaging, origin, shipment time, payment terms, settlement methods, claims, arbitration, etc. are discussed, and the agreement reached after the negotiation is written into the "Purchase Contract". This marked the official start of the export business. Under normal circumstances, the purchase contract is signed in duplicate and shall take effect with the company's official seal stamped by both parties. Each party shall keep one copy.


3 Terms of payment


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

Letter of credit

Letters of credit are divided into clean letter of credit and documentary letter of credit. Documentary credit means a credit accompanied by specified documents. A credit without any documents is called a clean letter of credit. To put it simply, a letter of credit is a document of guarantee that the exporter can recover his payment. Please note that the shipment of the export goods shall be effected within the validity date of the credit and the presentation date must be submitted not later than the validity date of the credit. In international trade, L/C is the mode of payment for the majority, the date of L/C should be clear, clear and complete.

TT payment terms

TT payment is settled in foreign currency cash, and your customer will remit the money to the foreign exchange bank account designated by your company. You may request the remittance within a certain period after the arrival of the goods.

 Direct payment

It means direct delivery payment between buyer and seller.


4 Stock up


Stock in the whole trade process, plays a pivotal and important position, must be implemented in accordance with the contract. The main check contents of stock are as follows:

1. The quality and specifications of the goods shall be verified in accordance with the requirements of the contract.

2. Quantity of goods: guarantee to meet the quantity requirements of the contract or letter of credit.

3. Preparation time: It shall be arranged according to the L/C and in conjunction with the shipping date, so as to facilitate the connection between the ship and the cargo.



5 packing

According to the different goods to choose the form of packaging (such as: cartons, wooden cases, woven bags, etc.). Different forms of packaging its packaging requirements are also different.

1. General export packaging standards: Packaging shall be carried out according to the general export standards.

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

3. The packing and shipping mark of the goods shall be carefully checked to make them conform to the stipulations of the letter of credit.


6 Customs clearance procedure

Customs clearance procedures are extremely tedious and extremely important, if not smooth clearance will not be able to complete the transaction.


1. Export commodities subject to statutory inspection shall be subject to export commodity inspection certificate. At present, there are four main links in the inspection of import and export commodities:


Acceptance of application for inspection: Application for inspection means that a party involved in foreign trade submits to the commodity inspection authorities for inspection.


Sampling: After accepting the application for inspection, the commodity inspection authorities shall promptly dispatch personnel to the place where the goods are stored for on-site inspection and appraisal.


Inspection: After accepting the application for inspection, the commodity inspection authorities shall carefully study the declared inspection items and determine the inspection contents. And carefully review the contract (letter of credit) on quality, specifications, packaging, clarify the basis of inspection, determine inspection standards and methods. (Inspection methods include sampling inspection, instrumental analysis inspection; Physical inspection; Sensory examination; Microbiological test, etc.)


Issue of certificate: In the case of export, a release slip (or stamp a release stamp on the declaration of export goods in lieu of a release slip) shall be issued for all export commodities listed in the [list of species] after they have been inspected by the commodity inspection authorities.


2. Professional customs clearance holders shall go to the customs to complete the customs clearance procedures with packing list, invoice, declaration letter, export exchange settlement verification form, copy of export goods contract, export commodity inspection certificate and other texts.


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


Invoice: proof of export products provided by the exporter.


Declaration power of attorney (electronic) : a certificate that a unit or individual without the ability to declare customs entrusts a customs agent to declare customs.


Export verification sheet: it refers to a document used by the exporting unit to obtain the export tax refund by the unit capable of exporting.


Commodity inspection Certificate: After passing the inspection by the entry-exit inspection and quarantine department or its designated inspection agency, it is the general name of the inspection certificate, appraisal certificate and other certificates of import and export commodities. It is an effective document with legal basis for the parties concerned in foreign trade to perform contractual obligations, handle claims, negotiate and arbitration, and provide evidence for litigation. It is also the necessary proof for the customs to check and release, collect customs duties, and reduce or reduce customs duties.



7 shipment

In the process of shipment, you can decide the mode of shipment according to the quantity of the goods, and insure according to the types of insurance stipulated in the Purchase Contract. Optional:

1. Complete the container

Types of containers (also called containers) :

(1) According to specifications and dimensions:

At present, drycontainers commonly used in the world are:

The external size is 20 feet X8 feet X8 feet 6 inches, short for 20 feet container;

40 feet X8 feet X8 feet 6 inches, short for 40 feet container; And the 40 feet X8 feet X9 feet 6 inches, abbreviated as 40 feet high cabinets, which are more commonly used in recent years.

20 feet cabinet: content volume is 5.69 m X2.13 m X2.18 m, gross weight of distribution is generally 17.5 tons, volume is 24-26 cubic meters. 40 feet cabinet: content volume is 11.8 m X2.13 m X2.18 m, gross weight of distribution is generally 22 tons, volume is 54 cubic meters.

40 feet high cabinet: content volume 11.8 m X2.13 m X2.72 m. The gross weight of the distribution is generally 22 tons and the volume is 68 cubic meters.

45 feet high cabinet: the content volume is 13.58 meters X2.34 meters X2.71 meters, the gross weight of distribution is generally 29 tons, and the volume is 86 cubic meters.

20 feet open top cabinet: content volume is 5.89 m X2.32 m X2.31 m, gross distribution weight is 20 tons, volume is 31.5 cubic meters.

40 feet open top cabinet: the content volume is 12.01 m X2.33 m X2.15 m, the gross weight of distribution is 30.4 tons, the volume is 65 cubic meters.

20 feet flat container: 5.85 meters X2.23 meters X2.15 meters, gross cargo weight 23 tons, volume 28 cubic meters.

40 feet flat bottom container: 12.05 m X2.12 m X1.96 m, gross cargo weight 36 tons, volume 50 cubic meters.

(2) According to the box material: aluminum alloy container, steel plate container, fiberboard container, glass steel container.




2. Assemble containers

Assembled container, generally according to the volume of the export cargo weight calculated freight.



8 Transportation insurance

Usually both parties have agreed in advance in the "Purchase Contract" related matters of transportation insurance.

Common insurance includes Marine cargo transportation insurance, land and air mail cargo transportation insurance, etc.

Among them, the risks covered by Marine cargo clauses are divided into basic risks and additional risks:

(1) Basic risks include "Free from Paraverage -F.P.A", "With Average or With Particular Average-W.A or W.P.A" and "All" Risk-A.R.). Fpa covers total loss of goods due to natural disasters at sea; Total loss of the goods during loading, unloading and transshipment; Sacrifice, contribution and salvage costs arising from general average; Total and partial loss of goods due to the collision, grounding, sinking, collision, flood or explosion of the transport vessel. Wpa is one of the basic Marine insurance risks.


According to the insurance clauses of the People's Insurance Company of China, its liability covers the risks of bad weather, lightning, tsunami, flood and other natural disasters in addition to the risks listed in the FPA Insurance. The coverage against all risks is equal to the sum of W.P.A and general additional risks.

(2) Additional risks. Additional risks are of two types: general additional risks and special additional risks. General additional risks include TPND, fresh water rain, risk of short quantity stolen, risk of leakage, risk of breakage and breakage, risk of hook damage, risk of mixed contamination, risk of breakage of packing, risk of mildew, risk of dampness and heat, risk of odor, etc. Special additional risks include war risk, strike risk, etc.


9 Bill of lading

The bill of lading is a document issued by the foreign shipping company for the importer to take delivery of the goods and settle the exchange after the exporter completes the export customs formalities and the customs releases it.

The bill of lading is signed in the number of copies required by the credit, usually three. The exporter keeps two copies for business such as tax refund and sends one copy to the importer for formalities such as taking delivery of goods
When shipping goods, the importer must take delivery of the goods with a correct bill of lading, packing list and invoice. (The exporter shall send the original bill of lading, packing list and invoice to the importer.)

In the case of air freight, the goods may be picked up directly using a faxed copy of bill of lading, packing list or invoice.

10 Exchange settlement

After the export goods are shipped, the import and export company shall correctly prepare documents (packing list, invoice, bill of lading, certificate of export origin, export settlement) and so on in accordance with the provisions of the letter of credit. Submit the documents to the bank for negotiation and settlement within the validity period stipulated in the L/C.
In addition to L/C settlement, other payment methods generally include TELEGRAPHIC TRANSFER(T/T), DEMAND DRAFT(D/D), MAIL TRANDFER(M/T), etc. Due to the rapid development of electronization, Telegraphic transfer is now the main way of remittance. (In China, enterprises enjoy the preferential policy of export tax rebate.)

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