The basic process of import and export trade is a topic of concern to many friends who have no foreign trade experience. Understanding the basic process of import and export trade can help you better carry out foreign trade business. Today, Liquantity will introduce the process of import and export trade for you. Let's have a look.

1. Develop users. Compared with import, the biggest difficulty in export trade process is to develop users and obtain orders in the early stage. After all, only with the customer can there be a process. The main ways to develop users are as follows:

(1) Platform. Release products on the platform and receive customer inquiries.

(2) Exhibition. Participated in offline exhibitions, contacted foreign trade customers on site, kept customer information through negotiations, and actively developed customers.

(3) Email development. Take the initiative to search through Google or LinkedIn, or use some software to search for clients and then write development emails to find clients.

(4)SEO/SEM promotion. SEM/SEO is mainly around the foreign trade independent station and Google search engine a way to get customers.

(5) Social media marketing. Social media marketing mainly engages in content marketing on famous foreign social media platforms such as Facebook, Twitter and YouTube to gain customers.

2. Quotation. In the process of export trade, we usually start with inquiry and offer, that is, we often say "inquiry", but the actual content includes: the standard grade of the quantity of products to be purchased, quality grade, specifications, models, technical parameters, packing method, delivery time requirement, mode of transportation, and then the price. Common quotations are based on three trade terms: FOB "free on board", CFR "cost and freight", and CIF "cost, insurance and freight".

3. Order. After the two trading parties reach an agreement on the quotation, a "Purchase Contract" is generally required to agree on the name of the commodity, specifications, models, quantity, price, packaging, origin, shipment date, port of destination, terms of payment, claims, arbitration and other contents, which marks the official start of the export business.

4. Terms of payment. Letter of credit (L/C), telegraphic transfer (T/T) and direct payment are commonly used international payment methods.

(1) Letter of credit. Letters of credit are divided into two types: bare letter of credit and documentary letter of credit, but the most commonly used one is documentary credit, that is, a credit with the specified documents attached. To put it simply, a L/C is a document guaranteeing that the exporter can recover the payment.

(2) Payment by telegraphic transfer. The payment method of T/T is foreign currency cash settlement, and the customer will remit the money to the foreign exchange bank account designated by your company. There are T/T before and T after, and the "before and T after" is relative to the shipping date.

(3) Direct payment. The buyer and seller pay directly by delivery, usually by cash or check. Generally, the customer is required to pay at least 30% of the payment before making the bulk goods, and pay the balance before shipment or after shipment. Otherwise, the original bill of lading will not be given.

5. Stock up. Inventory plays a pivotal role in the whole trade process. Technology, quantity and delivery time must be implemented one by one in accordance with the contract, especially under L/C payment terms, delivery time is more important.

6. Packaging. Packaging is an important part of the product and must be compliant and professional in terms of protection and identification.

7. Customs clearance procedures. ① Export commodities that are subject to statutory inspection must have an export commodity inspection certificate, which is the premise of export declaration. ② Some customers will also require third-party agencies to verify the inspection or send their own inspectors to inspect, we also need to timely contact, inspection and obtain a certificate, in L/C payment terms, the inspection certificate is also an important document to submit.

8. Shipment. In the process of export trade, no matter FOB or CIF, we should actively contact the forwarder to book the shipping space, the earlier the better, let the forwarder choose the shipping company with favorable price, good reputation, shipping date and voyage verification, should send a written booking notice to the forwarder two weeks before the delivery date, and then confirm the container drawing date as soon as possible.

(1) Full container (also called FCL shipment).

(2) Assembling containers are generally calculated according to the volume or weight of the exported goods.

9. Transportation insurance. Generally, both parties have realized the relevant matters of transportation insurance agreed in the Purchase Contract. Common types of insurance include sea cargo transportation insurance, land and air mail cargo transportation insurance, etc. The risks covered by Marine cargo clauses are divided into basic risks and additional risks:

(1) There are three basic risks, FPA, WPA and All Risks.

(2) Additional risks There are two types of additional risks: general additional risks and special additional risks.

10. 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 specified in the credit, usually three. The exporter keeps two copies for tax refund and other business, and sends one to the importer for delivery and other procedures.

11. Settlement of foreign exchange. After the shipment of the export goods, the import and export company shall follow the provisions of the letter of credit, transportation documents (packing list, invoice, bill of lading, certificate of export origin, export settlement of foreign exchange) and other documents. Submit the documents to the bank for negotiation and settlement within the validity period stipulated in the L/C. Whether it is import trade process, or export trade process, the overall process is not short, for many foreign trade beginners, each step of the process has not need to pay attention to matters. Therefore, we must carefully check and confirm, and adjust accordingly according to the actual situation. If there are changes, we must first ask for instructions, so as to avoid unnecessary trouble and serious consequences.