The most detailed process of China’s export trade logistics operations

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First : Quotation

In the process of international trade, the first step is the inquiry and quotation of products. Among them, the quotation for export products mainly includes: product quality grade, product specification and model, whether the product has special packaging requirements, the quantity of the purchased product, the delivery time requirement, the transportation method of the product, the material of the product, etc. . The more commonly used quotations are: FOB delivery on board, CNF cost plus freight, CIF cost, insurance plus freight, etc.

Second : Order

After the two parties of the trade reach an intention on the quotation, the buyer's enterprise formally places an order and negotiates with the seller's enterprise on some related matters. In the process of signing the "Purchase Contract", mainly negotiate the product name, specifications, quantity, price, packaging, place of origin, shipment period, payment terms, settlement methods, claims, arbitration, etc., and negotiate the agreement reached after the negotiation. Write in the Purchase Contract. This marks the official start of the export business. Under normal circumstances, the signing of the purchase contract in duplicate will be effective with the official seal of the company stamped by both parties, and each party will keep one copy.

Third : Payment method

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

1. Payment by letter of credit

Letters of credit are divided into two types: bare letter of credit and documentary letter of credit. Documentary credit refers to the letter of credit with the specified documents, and the letter of credit without any documents is called the bare letter of credit. Simply put, a letter of credit is a guarantee document that guarantees the exporter's recovery of the payment for the goods. Please note that the shipment period for export goods should be within the validity period of the L/C, and the L/C presentation period must be submitted no later than the L/C validity date. In international trade, letter of credit is used as the payment method, and the date of issuance of the letter of credit should be clear, clear and complete.

2. TT payment method

The TT payment method is settled in foreign exchange cash. Your customer will remit the money to the foreign exchange bank account designated by 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 payment between the buyer and the seller.

Fourth: stocking

Stocking plays an important role in the entire trade process and must be implemented one by one in accordance with the contract. The main check contents for 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 requirements of the contract or letter of credit are met.

3. Preparation time: according to the provisions of the letter of credit, combined with the arrangement of the shipping schedule, to facilitate the connection of shipments and goods.

Fifth: Packaging

The packaging form can be selected according to the different goods (such as: carton, wooden box, woven bag, etc.). Different packaging forms have different packaging requirements.

1. General export packaging standards: packaging 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 (transportation signs) of the goods should be carefully checked and verified to make them comply with the provisions of the letter of credit.

Sixth: Customs clearance procedures

The customs clearance procedures are extremely cumbersome and extremely important. If the customs clearance is not smooth, the transaction cannot be completed.

1. Export commodities subject to statutory inspection shall be issued an export commodity inspection certificate. At present, my country's import and export commodity inspection work mainly includes four links:

(1) Acceptance of inspection application: Inspection application refers to the application of the foreign trade relations person to the commodity inspection agency for inspection.

(2) Sampling: After the commodity inspection agency accepts the application for inspection, it will promptly send personnel to the storage site for on-site inspection and appraisal.

(3) Inspection: After the commodity inspection agency accepts the inspection application, it carefully studies the inspection items declared and determines the inspection content. And carefully review the contract (letter of credit) regulations on quality, specifications, packaging, clarify the basis for inspection, and determine the inspection standards and methods. (Inspection methods include sampling inspection, instrumental analysis inspection; physical inspection; sensory inspection; microbial inspection, etc.)

(4) Issuance of certificates: In terms of export, all export commodities listed in the [Type Table] will issue a release note after passing the inspection by the commodity inspection agency (or affix a release seal on the export goods declaration form to replace the release sheet) .

2.  Professional personnel with customs declaration certificates must go to the customs with texts such as packing list, invoice, customs declaration power of attorney, export foreign exchange settlement verification form, copy of export goods contract, export commodity inspection certificate and other texts.

(1) Packing list: packing details of export products provided by the exporter.

(2) Invoice: Certificate of export product provided by the exporter.

(3) Customs Declaration Power of Attorney (Electronic): A certificate that a unit or individual without the ability to declare customs entrusts a customs broker to declare the customs.

(4) Export Verification Form: It is applied by the exporting unit to the foreign exchange bureau, which refers to a document that the unit with export capacity obtains the export tax rebate.

(5) Commodity inspection certificate: obtained after passing the inspection of the entry-exit inspection and quarantine department or its designated inspection agency, it is the general name for various import and export commodity inspection certificates, appraisal certificates and other certificates. It is a valid document with legal basis for all parties involved in foreign trade to perform their contractual obligations, handle claims disputes, negotiate and arbitrate, and present evidence in lawsuits.

Sevevth: Shipment

In the process of loading the goods, you can decide the way of loading according to the quantity of the goods, and take out insurance according to the insurance types specified in the Purchase Contract. Choose from:

1. Complete container

Types of containers (also known as containers):

(1) According to the specification and size:

At present, the dry containers (DRYCONTAINER) commonly used internationally are:

The outer dimension is 20 feet X8 feet X8 feet 6 inches, referred to as 20 feet container;

40 feet X8 feet X8 feet 6 inches, referred to as 40 feet container; and more used in recent years 40 feet X8 feet X9 feet 6 inches, referred to as 40 feet high container.

① foot container: the internal volume is 5.69 meters X 2.13 meters X 2.18 meters, the gross weight of the distribution is generally 17.5 tons, and the volume is 24-26 cubic meters.

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

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

④ 45 feet high container: the internal volume is: 13.58 meters X 2.34 meters X 2.71 meters, the gross weight of the goods is generally 29 tons, and the volume is 86 cubic meters.

⑤ foot open-top container: the internal volume is 5.89 meters X 2.32 meters X 2.31 meters, the gross weight of the distribution is 20 tons, and the volume is 31.5 cubic meters.

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

⑦ foot flat-bottomed container: the inner volume is 5.85 meters X 2.23 meters X 2.15 meters, the gross distribution weight is 23 tons, and the volume is 28 cubic meters.

⑧ 40-foot flat-bottomed container: the inner volume is 12.05 meters X 2.12 meters X 1.96 meters, the distribution gross weight is 36 tons, and the volume is 50 cubic meters.

(2) According to the box-making materials: there are aluminum alloy containers, steel plate containers, fiberboard containers, and glass fiber reinforced plastic containers.

(3) According to the purpose: there are dry containers; refrigerated containers (REEFER CONTAINER); clothes hanging containers (DRESS HANGER CONTAINER); open top containers (OPENTOP CONTAINER); frame containers (FLAT RACK CONTAINER); tank containers (TANK CONTAINER) .

2. Assembled containers

For assembled containers, the freight is generally calculated according to the volume and weight of the exported goods.

Eighth: transportation 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 ocean cargo transportation insurance, land and air mail transportation insurance, etc. Among them, the insurance categories covered by the ocean transportation cargo insurance clauses are divided into two categories: basic insurance categories and additional insurance categories:

(1) There are three basic insurances: Free from Paricular Average-F.P.A, WPA (With Average or With Particular Average-W.A or W.P.A) and All Risk-A.R. The scope of responsibility of Ping An Insurance includes: total loss of cargo caused by natural disasters at sea; overall loss of cargo during loading, unloading and transshipment; sacrifice, sharing and salvage costs caused by general average; Total and partial loss of cargo caused by collision, flood, explosion. Water damage insurance is one of the basic risks of marine transportation insurance. According to the insurance terms of the People's Insurance Company of China, in addition to the risks listed in Ping An Insurance, its scope of responsibility also bears the risks of natural disasters such as severe weather, lightning, tsunami, and floods. The coverage of all risks is equivalent to the sum of WPA and general additional insurance.​​

(2) Additional insurance: There are two types of additional insurance: general additional insurance and special additional insurance. General additional insurances include theft and pick-up insurance, fresh water and rain insurance, short-run insurance, leakage insurance, breakage insurance, hook damage insurance, mixed contamination insurance, package rupture insurance, mildew insurance, moisture and heat insurance, and odor. risk, etc. Special additional risks include war risks and strike risks.

Ninth: Bill of Lading

The bill of lading is a document used by the importer to pick up the goods and settle foreign exchange after the exporter has completed the export customs clearance procedures and the customs has released it. ​​
The signed bill of lading is issued according to the number of copies required by the letter of credit, generally three copies. The exporter keeps two copies for tax refund and other business, and one copy is sent to the importer for handling procedures such as delivery.

When shipping goods by sea, the importer must hold the original bill of lading, packing list, and invoice to pick up the goods. (The exporter must send the original bill of lading, packing list and invoice to the importer.)
For air cargo, you can directly use the fax of the bill of lading, packing list, and invoice to pick up the goods.

Tenth: Settlement of foreign exchange

After the export goods are shipped, the import and export company should correctly prepare documents (packaging list, invoice, bill of lading, export origin certificate, export settlement) and other documents in accordance with the provisions of the letter of credit. Within the validity period of the documents stipulated in the L/C, submit the documents to the bank for negotiation and settlement procedures. ​​
In addition to the settlement of foreign exchange by letter of credit, other payment remittance methods generally include telegraphic transfer (TELEGRAPHIC TRANSFER (T/T)), bill transfer (DEMAND DRAFT (D/D)), mail transfer (MAIL TRANSFER (M/T)), etc. , Due to the rapid development of electronic technology, wire transfer is mainly used for remittance. (In China, the export of enterprises enjoys the preferential policy of export tax rebate)

Medoc, a third-party international integrated logistics service provider from China, was founded in 2005 and headquartered in Shenzhen, China. The founding team has more than 10 years of international logistics experience on average.
Since its establishment, Medoc has been committed to become their reliable international integrated logistics service provider for both Chinese factories and international importers to help them better complete their international trade business.

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Post time: Jul-06-2022