Compared with ordinary domestic trade, foreign trade is indeed a completely different industry. The complicated procedures and various kinds of technical terms are daunting. However, as long as we start from the three most important characteristics of foreign trade, you can crack the full secret of foreign trade.
Imagine real trade operations, a foreign trade salesman at a Shenzhen factory, Miss Wang, doing business with a British London businessman, Johnson. We can easily imagine the problems we will meet:
1, usually buyers and sellers do not meet each other. Negotiate deals by telephone, fax, mail, etc. Fortunately, the development of computers and the Internet has made this process more and more simple. Through websites, e-mail, QQ or MSN instant messenger software, digital photos, cameras, etc., we can easily communicate, display products, bargain, just as everyone sits at the conference table.
2, the transaction cycle is very long. A shipment of goods from Shenzhen to London is usually sold in the most cost-effective way, namely in an ocean freighter from a Shenzhen port to a London port (if a party is not a seaport, some railway or highway fortune must be added). This process is currently only about 25 days on the sea, plus the time for stocking, unloading and inland transportation, which is often more than a month. Therefore, it is often the goods negotiated by buyers that they can receive after one month or more. Correspondingly, it takes time for the seller to recover the payment. In fact, for some seasonally strong home products or targeted holiday consumer products, there are usually months or even a year ahead of time to negotiate and conclude long-term contracts.
3, high transaction costs. Even shipping is still very expensive. The sea freight for a container cargo (approximately 30 cubic meters or 20 tons) will cost more than 10,000 yuan from Shenzhen to London. Remote, remote, or smaller ports have higher prices. In addition, some fees for import and export formalities are still needed to settle bank charges for payment, which are often fixed and have little to do with transaction volume. This way, it is obviously uneconomical for small transactions. For the purpose of sharing the expenses, the transaction volume is obviously more cost-effective. This is also a feature of international trade &mdash&mdash volume. Most of the international trade goods are bulk wholesale, and they often use "container" as trading volume unit.
4, more intermediate links. From Shenzhen to London, the goods will go through several links. For example, many commodities must be subject to compulsory inspection before export, which is operated by the State Import and Export Commodity Inspection and Quarantine Bureau; they must report to the buyers and sellers of the import and export customs; they must be transported by ocean shipping companies; they must collect money from banks; they must pay taxes to the tax authorities; Our country also controls foreign exchange in particular, and is under the unified management of the State Administration of Foreign Exchange through foreign exchange receipts and payments.
Since foreign trade has not met the two sides, the long period of delivery and collection of money, long distances, large amount of money, and many intermediate links, the natural risks will be relatively large, once the loss of the problem is also large. For this reason, for hundreds of years, the international trade industry has also formulated trade practices and agreements accordingly, including the international prevailing quality standards for goods, price calculations, and the responsibilities and powers of buyers and sellers, with a view to maximizing the protection of trade order. At the same time, the banking industry, the international freight industry, the insurance industry, etc. also have very mature and perfect cooperative operations.
However, there is also an important issue - the transportation and storage of large quantities of goods are expensive. From the factory to the customer to receive goods, there are many links involved, and it is impossible for the owner to supervise the storage from beginning to end. In particular, most of the international trades have changed hands at different levels, and batch reselling. If they are all handed over in kind, they will not only greatly increase the cost of transportation and warehouses, but will also increase the loss of goods during loading and unloading. The best way is to simplify the process of physical transport, so that the goods only go through the factory--loading dock warehouse--unloading dock warehouse--customer four links. As a result, evolved the most optimized, most efficient, and also the biggest key point of foreign trade: document trading.
One of the key secrets of foreign trade: The document transaction The so-called document transaction is the use of a set of document documents to represent the goods. The transaction is targeted at this set of documents. Whoever receives this set of documents is the owner of the goods. As a result, the goods are not moved as much as possible, and the documents are arbitrarily traded and changed. The holder of the document decides when and how to finally process the goods. This set of documents usually includes several core files:
1. Bill of Lading (Billfloading Bill of Lading, abbreviated as B/L)
2. Invoice. Different from the concept of ordinary invoices, "Invoice" in foreign trade refers to a signed document which is made by the manufacturer and lists the name, quantity and price of the goods.
3, packing list (PackingList). A self-made signature document listing the volume and weight of the shipment.
4. Other documents that describe the condition of the goods, such as certificates of inspection to prove the quality of the goods, certificates of origin of the certificate of origin, etc.
Among the full set of documents, the bill of lading is the most important because it is the proof of ownership of the goods—a proof of property rights that have internationally recognized legal effects. Invoices and packing lists can be controlled by themselves. Other inspection certificates, certificate of origin, etc. are issued by the corresponding state agencies such as the Import and Export Commodity Inspection and Quarantine Bureau or other organizations recognized by both parties, such as private inspection companies and freight companies, based on the characteristics of the goods and the requirements of the buyers.
In a sense, foreign trade operators are not dealing with piles of goods, but a stack of pieces of paper. Therefore, it is not surprising that a foreign salesman completes a transaction and never sees the appearance of goods from beginning to end. He only needs to handle the stack of paper carefully. We can easily imagine that because trade is mostly based on documents rather than physical transactions, even if the goods themselves are perfect and the documents are flawed—such as data errors, lack of a relevant supporting document, etc.— It is very likely that the transaction will fail. In turn, even if there are problems with the goods and the documents are complete, they can still be traded smoothly. Of course, this brings some risks, such as forged documents for fraud. However, fraud itself is a criminal act in all countries of the world and there are corresponding measures for investigation.
In short, the role of documents in foreign trade is decisive. Establishing the concept of “trade in foreign trade†is actually a set of documents and rdquo. It is necessary to understand many special and professional operations in international trade.
Market competition is fierce. In many cases, prices have become the only factor in the transaction. We often see foreign traders exporting goods at lower prices than domestic sales. Are they crazy? Do not. Even if it sells at a price lower than the purchase price, it still has profits. This is the second most important secret of foreign trade: the tax rebate system.
The second key secret of foreign trade: Tax refund system Tax refund is an important concept in foreign trade, and it is also the main source of profit in current foreign trade business. For ease of management, the state assumes that all products are domestically circulated and consumed. Therefore, VAT is generally levied and the tax rate ranges from 6% to 17% of the selling price. Under normal circumstances, the prices before domestic purchase or export are all tax-inclusive prices, that is, they have already paid the value-added tax. If the product is used for export, this part of the tax should not be levied. The already collected tax can be returned to the exporter in part or in full according to the procedure.
If you purchase a batch of color TV sets from a domestic factory, the price is taxable price of 1170 yuan, of which 1,000 yuan is the net price and 170 yuan is the value-added tax. According to the regulations of the country, the export tax rebate rate for color TV products is 17%. In other words, after the color TV is exported, the tax bureau will refund 170 yuan to exporters. In this way, even if exporters export at a flat price of 1,170 yuan, they can still get a tax refund of 170 yuan as profit income. Under this circumstance, if the exporter takes out part of the 170 yuan for price adjustment due to competition, even if it is sold at a price lower than the purchase price of 1170 yuan, it will still be profitable.
Foreign trade transactions usually have relatively high value, and the corresponding tax refunds are also considerable. Of course, the state also rigorously manages the tax rebates and closely integrates with foreign exchange management. Before exporting, it is necessary to obtain the “Export Tax Relief Verification Form†from the Department of Foreign Exchange Administration and declare the total amount of export. The verification slip must also be stamped by the customs to confirm that the goods have indeed been exported. After receiving the payment from the foreign buyer, the bank receipt, along with the verification form, will be applied for verification and write-off with the foreign exchange administration. The VAT invoice will then be issued to the Inland Revenue Department to handle the tax refund and receive the tax refund.
Therefore, the source of foreign trade profits comes from export rebates in the national export tax rebate system. This is one of the most significant features of foreign trade, and it is also closely related to the daily operations of most foreign trade clerk.
Third, the key secrets of foreign trade: In the international trade of letters of credit, buyers and sellers are far away from each other, and there are long-term payment cycles for preparations for delivery of goods of various backgrounds and payment of goods. Therefore, commercial credit has become a big problem.
As an exporter, I am worried that after the bulk cargo has been prepared, what will happen to the buyer? What should I do if the goods are shipped to foreign countries? Or how to do if you want to give up money? Naturally, it is hoped that the buyer can pay the purchase price first, and then guarantee delivery and delivery. As an importer, what if you are concerned that the exporter cannot deliver on time? What if the quality and quantity of the goods are not qualified? Naturally, it is hoped that the seller will deliver the goods first, and the money will be given after verification.
This contradiction can, of course, be negotiated through the buyer’s payment of some advance payment or deposit, but after all, it is not the best policy. Once the buyer’s bonus is taken up, there is really a dispute. Whatever the right or wrong, the two parties will lose. fair.
So there is a unique operation mode of foreign trade: the letter of credit. The birth of a letter of credit is based on the characteristics of foreign trade &ldquo.
The so-called letter of credit, popularly speaking, means that the buyer and seller agree in advance on the terms of the transaction, such as the name, quantity, quality standards, price, and delivery time. Then the buyer finds a bank (usually the buyer's bank, or has a certain guarantee) as "intermediary," and submits these transaction conditions to the bank. The bank will then issue a document as the basis for the transaction between the buyer and the seller. The responsibility of the bank as a middleman is to supervise the conduct of transactions. The seller prepares the goods according to the documents and then delivers the full set of documents representing the goods to the bank. After the bank has verified the document, it will directly pay the purchase price. With banks as middlemen, buyers and sellers no longer deal directly with money and goods, but deal with banks separately. Sellers can't get the money if they don't deliver it in time, quality, quantity, and delivery; if the buyer doesn't pay, they can't get the goods. On the contrary, there are banks for insurance, as long as the seller has delivered the goods, they will be able to get the money. In this way, it neither takes up buyer's money nor gives the seller a good credit guarantee. This document to prove the commercial credit of both parties is called a letter of credit.
The most basic of a letter of credit generally has four parties:
1. The importer ---- is responsible for applying for the opening of a letter of credit to his bank account, called the applicant for the letter of credit.
2. The importer's bank ---- responsible for opening a letter of credit and reviewing documents and making payment items is called the L/C issuing bank.
3, exporters - responsible for shipping under the letter of credit, enjoy the payment of letters of credit protection, known as the beneficiary of the letter of credit.
4. The bank of the exporter ---- is responsible for obtaining the letter of credit for the exporter, handing over the document and contacting the issuing bank, which is called the advising bank.
In addition, the bank ultimately responsible for the allocation of funds is called the credit reimbursement bank, which is usually the issuing bank; it may also be advanced by another bank and charged a small amount of fees, which is called the letter of credit negotiation bank, which is generally the advising bank.
Letter of credit is the most important and common tool in foreign trade. In order to standardize the use of letters of credit, the International Chamber of Commerce has established a unified standard “UCP500â€, which is the Uniform Provisions for International Documentary Credits, as a basis for use and arbitration.
Through the understanding of the three key secrets of foreign trade: document transaction, tax refund system and letter of credit settlement, we have basically grasped the essence of foreign trade. Now we can finally understand the process of a standard export operation case more clearly:
Looking for customers ---- signing contracts - customers open letter of credit - according to the letter of credit stocking - goods for commodity inspection, customs declaration and delivery of goods and transport companies and obtain a bill of lading - according to the letter of credit Full set of documents --- documents are delivered to foreign banks, after the foreign bank audits without errors, the money is transferred to the domestic bank --- according to the receipt certificate of the domestic bank to the Foreign Exchange Administration for verification --- to the Inland Revenue Department for tax refund - ---End.
With basic knowledge of foreign trade, the next step in preparation is to create two essential tools for foreign trade: computer and English.
Imagine real trade operations, a foreign trade salesman at a Shenzhen factory, Miss Wang, doing business with a British London businessman, Johnson. We can easily imagine the problems we will meet:
1, usually buyers and sellers do not meet each other. Negotiate deals by telephone, fax, mail, etc. Fortunately, the development of computers and the Internet has made this process more and more simple. Through websites, e-mail, QQ or MSN instant messenger software, digital photos, cameras, etc., we can easily communicate, display products, bargain, just as everyone sits at the conference table.
2, the transaction cycle is very long. A shipment of goods from Shenzhen to London is usually sold in the most cost-effective way, namely in an ocean freighter from a Shenzhen port to a London port (if a party is not a seaport, some railway or highway fortune must be added). This process is currently only about 25 days on the sea, plus the time for stocking, unloading and inland transportation, which is often more than a month. Therefore, it is often the goods negotiated by buyers that they can receive after one month or more. Correspondingly, it takes time for the seller to recover the payment. In fact, for some seasonally strong home products or targeted holiday consumer products, there are usually months or even a year ahead of time to negotiate and conclude long-term contracts.
3, high transaction costs. Even shipping is still very expensive. The sea freight for a container cargo (approximately 30 cubic meters or 20 tons) will cost more than 10,000 yuan from Shenzhen to London. Remote, remote, or smaller ports have higher prices. In addition, some fees for import and export formalities are still needed to settle bank charges for payment, which are often fixed and have little to do with transaction volume. This way, it is obviously uneconomical for small transactions. For the purpose of sharing the expenses, the transaction volume is obviously more cost-effective. This is also a feature of international trade &mdash&mdash volume. Most of the international trade goods are bulk wholesale, and they often use "container" as trading volume unit.
4, more intermediate links. From Shenzhen to London, the goods will go through several links. For example, many commodities must be subject to compulsory inspection before export, which is operated by the State Import and Export Commodity Inspection and Quarantine Bureau; they must report to the buyers and sellers of the import and export customs; they must be transported by ocean shipping companies; they must collect money from banks; they must pay taxes to the tax authorities; Our country also controls foreign exchange in particular, and is under the unified management of the State Administration of Foreign Exchange through foreign exchange receipts and payments.
Since foreign trade has not met the two sides, the long period of delivery and collection of money, long distances, large amount of money, and many intermediate links, the natural risks will be relatively large, once the loss of the problem is also large. For this reason, for hundreds of years, the international trade industry has also formulated trade practices and agreements accordingly, including the international prevailing quality standards for goods, price calculations, and the responsibilities and powers of buyers and sellers, with a view to maximizing the protection of trade order. At the same time, the banking industry, the international freight industry, the insurance industry, etc. also have very mature and perfect cooperative operations.
However, there is also an important issue - the transportation and storage of large quantities of goods are expensive. From the factory to the customer to receive goods, there are many links involved, and it is impossible for the owner to supervise the storage from beginning to end. In particular, most of the international trades have changed hands at different levels, and batch reselling. If they are all handed over in kind, they will not only greatly increase the cost of transportation and warehouses, but will also increase the loss of goods during loading and unloading. The best way is to simplify the process of physical transport, so that the goods only go through the factory--loading dock warehouse--unloading dock warehouse--customer four links. As a result, evolved the most optimized, most efficient, and also the biggest key point of foreign trade: document trading.
One of the key secrets of foreign trade: The document transaction The so-called document transaction is the use of a set of document documents to represent the goods. The transaction is targeted at this set of documents. Whoever receives this set of documents is the owner of the goods. As a result, the goods are not moved as much as possible, and the documents are arbitrarily traded and changed. The holder of the document decides when and how to finally process the goods. This set of documents usually includes several core files:
1. Bill of Lading (Billfloading Bill of Lading, abbreviated as B/L)
2. Invoice. Different from the concept of ordinary invoices, "Invoice" in foreign trade refers to a signed document which is made by the manufacturer and lists the name, quantity and price of the goods.
3, packing list (PackingList). A self-made signature document listing the volume and weight of the shipment.
4. Other documents that describe the condition of the goods, such as certificates of inspection to prove the quality of the goods, certificates of origin of the certificate of origin, etc.
Among the full set of documents, the bill of lading is the most important because it is the proof of ownership of the goods—a proof of property rights that have internationally recognized legal effects. Invoices and packing lists can be controlled by themselves. Other inspection certificates, certificate of origin, etc. are issued by the corresponding state agencies such as the Import and Export Commodity Inspection and Quarantine Bureau or other organizations recognized by both parties, such as private inspection companies and freight companies, based on the characteristics of the goods and the requirements of the buyers.
In a sense, foreign trade operators are not dealing with piles of goods, but a stack of pieces of paper. Therefore, it is not surprising that a foreign salesman completes a transaction and never sees the appearance of goods from beginning to end. He only needs to handle the stack of paper carefully. We can easily imagine that because trade is mostly based on documents rather than physical transactions, even if the goods themselves are perfect and the documents are flawed—such as data errors, lack of a relevant supporting document, etc.— It is very likely that the transaction will fail. In turn, even if there are problems with the goods and the documents are complete, they can still be traded smoothly. Of course, this brings some risks, such as forged documents for fraud. However, fraud itself is a criminal act in all countries of the world and there are corresponding measures for investigation.
In short, the role of documents in foreign trade is decisive. Establishing the concept of “trade in foreign trade†is actually a set of documents and rdquo. It is necessary to understand many special and professional operations in international trade.
Market competition is fierce. In many cases, prices have become the only factor in the transaction. We often see foreign traders exporting goods at lower prices than domestic sales. Are they crazy? Do not. Even if it sells at a price lower than the purchase price, it still has profits. This is the second most important secret of foreign trade: the tax rebate system.
The second key secret of foreign trade: Tax refund system Tax refund is an important concept in foreign trade, and it is also the main source of profit in current foreign trade business. For ease of management, the state assumes that all products are domestically circulated and consumed. Therefore, VAT is generally levied and the tax rate ranges from 6% to 17% of the selling price. Under normal circumstances, the prices before domestic purchase or export are all tax-inclusive prices, that is, they have already paid the value-added tax. If the product is used for export, this part of the tax should not be levied. The already collected tax can be returned to the exporter in part or in full according to the procedure.
If you purchase a batch of color TV sets from a domestic factory, the price is taxable price of 1170 yuan, of which 1,000 yuan is the net price and 170 yuan is the value-added tax. According to the regulations of the country, the export tax rebate rate for color TV products is 17%. In other words, after the color TV is exported, the tax bureau will refund 170 yuan to exporters. In this way, even if exporters export at a flat price of 1,170 yuan, they can still get a tax refund of 170 yuan as profit income. Under this circumstance, if the exporter takes out part of the 170 yuan for price adjustment due to competition, even if it is sold at a price lower than the purchase price of 1170 yuan, it will still be profitable.
Foreign trade transactions usually have relatively high value, and the corresponding tax refunds are also considerable. Of course, the state also rigorously manages the tax rebates and closely integrates with foreign exchange management. Before exporting, it is necessary to obtain the “Export Tax Relief Verification Form†from the Department of Foreign Exchange Administration and declare the total amount of export. The verification slip must also be stamped by the customs to confirm that the goods have indeed been exported. After receiving the payment from the foreign buyer, the bank receipt, along with the verification form, will be applied for verification and write-off with the foreign exchange administration. The VAT invoice will then be issued to the Inland Revenue Department to handle the tax refund and receive the tax refund.
Therefore, the source of foreign trade profits comes from export rebates in the national export tax rebate system. This is one of the most significant features of foreign trade, and it is also closely related to the daily operations of most foreign trade clerk.
Third, the key secrets of foreign trade: In the international trade of letters of credit, buyers and sellers are far away from each other, and there are long-term payment cycles for preparations for delivery of goods of various backgrounds and payment of goods. Therefore, commercial credit has become a big problem.
As an exporter, I am worried that after the bulk cargo has been prepared, what will happen to the buyer? What should I do if the goods are shipped to foreign countries? Or how to do if you want to give up money? Naturally, it is hoped that the buyer can pay the purchase price first, and then guarantee delivery and delivery. As an importer, what if you are concerned that the exporter cannot deliver on time? What if the quality and quantity of the goods are not qualified? Naturally, it is hoped that the seller will deliver the goods first, and the money will be given after verification.
This contradiction can, of course, be negotiated through the buyer’s payment of some advance payment or deposit, but after all, it is not the best policy. Once the buyer’s bonus is taken up, there is really a dispute. Whatever the right or wrong, the two parties will lose. fair.
So there is a unique operation mode of foreign trade: the letter of credit. The birth of a letter of credit is based on the characteristics of foreign trade &ldquo.
The so-called letter of credit, popularly speaking, means that the buyer and seller agree in advance on the terms of the transaction, such as the name, quantity, quality standards, price, and delivery time. Then the buyer finds a bank (usually the buyer's bank, or has a certain guarantee) as "intermediary," and submits these transaction conditions to the bank. The bank will then issue a document as the basis for the transaction between the buyer and the seller. The responsibility of the bank as a middleman is to supervise the conduct of transactions. The seller prepares the goods according to the documents and then delivers the full set of documents representing the goods to the bank. After the bank has verified the document, it will directly pay the purchase price. With banks as middlemen, buyers and sellers no longer deal directly with money and goods, but deal with banks separately. Sellers can't get the money if they don't deliver it in time, quality, quantity, and delivery; if the buyer doesn't pay, they can't get the goods. On the contrary, there are banks for insurance, as long as the seller has delivered the goods, they will be able to get the money. In this way, it neither takes up buyer's money nor gives the seller a good credit guarantee. This document to prove the commercial credit of both parties is called a letter of credit.
The most basic of a letter of credit generally has four parties:
1. The importer ---- is responsible for applying for the opening of a letter of credit to his bank account, called the applicant for the letter of credit.
2. The importer's bank ---- responsible for opening a letter of credit and reviewing documents and making payment items is called the L/C issuing bank.
3, exporters - responsible for shipping under the letter of credit, enjoy the payment of letters of credit protection, known as the beneficiary of the letter of credit.
4. The bank of the exporter ---- is responsible for obtaining the letter of credit for the exporter, handing over the document and contacting the issuing bank, which is called the advising bank.
In addition, the bank ultimately responsible for the allocation of funds is called the credit reimbursement bank, which is usually the issuing bank; it may also be advanced by another bank and charged a small amount of fees, which is called the letter of credit negotiation bank, which is generally the advising bank.
Letter of credit is the most important and common tool in foreign trade. In order to standardize the use of letters of credit, the International Chamber of Commerce has established a unified standard “UCP500â€, which is the Uniform Provisions for International Documentary Credits, as a basis for use and arbitration.
Through the understanding of the three key secrets of foreign trade: document transaction, tax refund system and letter of credit settlement, we have basically grasped the essence of foreign trade. Now we can finally understand the process of a standard export operation case more clearly:
Looking for customers ---- signing contracts - customers open letter of credit - according to the letter of credit stocking - goods for commodity inspection, customs declaration and delivery of goods and transport companies and obtain a bill of lading - according to the letter of credit Full set of documents --- documents are delivered to foreign banks, after the foreign bank audits without errors, the money is transferred to the domestic bank --- according to the receipt certificate of the domestic bank to the Foreign Exchange Administration for verification --- to the Inland Revenue Department for tax refund - ---End.
With basic knowledge of foreign trade, the next step in preparation is to create two essential tools for foreign trade: computer and English.
Genuine Synchronizer Ring OEM, Genuine Synchronizer Ring, Santana Synchronizer Inner Ring, 1988 Santana Synchronizer Ring
ShaoXing Change Auto Synchronizer Ring Co.,Ltd , https://www.sxcjautoparts.com