The export goods process mainly includes: quotation, ordering, payment method, stocking, packaging, and customs clearance procedures.
The first step in the process of international trade is the inquiry and quotation of products. Among them, the quotation for exported products mainly includes: the quality level of the product, the specifications and models of the product, whether there are special packaging requirements for the product, the quantity of the purchased product, the delivery time requirements, the transportation method of the product, the material of the product, and other contents. The commonly used quotations include FOB FOB FOB, CNF cost plus freight, CIF cost, insurance and freight, and other forms.
After the trading parties reach an agreement on the quotation, the buyer's enterprise officially places an order and negotiates with the seller's enterprise on some related matters. After mutual agreement, a "Purchase Contract" needs to be signed. In the process of signing the "Purchase Contract", negotiations are mainly conducted on the product name, specifications, quantity, price, packaging, place of origin, shipping date, payment terms, settlement method, claims, arbitration, and other contents, and the agreement reached after negotiations is written into the "Purchase Contract". This marks the official start of the export business. Normally, two copies of the purchase contract are signed and stamped with the company seal by both parties, with each party keeping one copy.
3 Payment Methods
There are three commonly used international payment methods, namely letter of credit payment, TT payment, and direct payment.1. Payment method by letter of credit
Letters of credit are divided into two categories: draft letters of credit and documentary letters of credit. Documentary letter of credit refers to a letter of credit with specified documents attached, while a letter of credit without any documents attached is called a clean bill of credit. Simply put, a letter of credit is a guarantee document that guarantees the exporter's collection of payment. Please note that the shipment deadline for exported goods should be within the validity period of the letter of credit, and the presentation deadline of the letter of credit must be submitted no later than the validity date of the letter of credit. In international trade, letter of credit is the predominant payment method, and the opening date of the letter of credit should be clear, concise, and complete.
2. TT payment method
The TT payment method is settled in foreign exchange cash, and your customer will remit the funds to the designated foreign exchange bank account of your company. 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 and payment between the buyer and seller.
Stocking plays a crucial role in the entire trade process and must be implemented one by one according to the contract. The main verification 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. Quantity of goods: Ensure that the quantity meets the requirements of the contract or letter of credit.
3. Stocking time: It should be based on the provisions of the letter of credit and combined with the shipping schedule to facilitate the connection between the ship and the goods.
The packaging form can be selected according to the different types of goods, such as cardboard boxes, wooden boxes, woven bags, etc. Different packaging forms also 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 customers' special requirements.
3. Packaging and shipping marks of goods: Careful inspection and verification should be carried out to ensure compliance with the provisions of the letter of credit.
The customs clearance procedures are extremely complicated and important, and if they cannot be cleared smoothly, the transaction cannot be completed.
Acceptance of inspection: Inspection refers to the process in which foreign trade relations parties apply to the inspection agency for inspection.
Sampling: After receiving the inspection report, the inspection agency shall promptly send personnel to the storage location of the goods for on-site inspection and appraisal.
Inspection: After accepting the inspection report, the inspection agency carefully studies the inspection items declared and determines the inspection content. And carefully review the provisions of the contract (letter of credit) regarding 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.)
Issuing certificates: In terms of exports, for all export goods listed in the "Type Table", after passing inspection by the inspection agency, a release form shall be signed (or a release seal shall be affixed to the export goods declaration form to replace the release form).
2. Professional personnel holding customs declaration certificates are required to handle customs clearance procedures at the customs with documents such as packing lists, invoices, customs declaration authorization letters, export settlement verification forms, copies of export goods contracts, and export commodity inspection certificates.
Invoice: Certificate of export product provided by the exporter.
Customs declaration power of attorney (electronic): a certificate issued by a customs declaration agency commissioned by a unit or individual without the ability to declare customs.
Export Verification Form: A document issued by an exporting unit to the State Administration of Foreign Exchange, which refers to a document obtained by a unit with export capability to obtain export tax rebates.
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 all parties involved in foreign trade to fulfill contractual obligations, handle claims and disputes, negotiate and arbitrate, and provide evidence in litigation. It is also a necessary proof for customs clearance, tariff collection, and preferential tariff reduction and exemption.