How Do I Start an Import Export Business?

Import and export business refers to a series of specific businesses that involve the purchase and sale of goods, including labor services and technology, with foreign parties. The specific contents include: buying and selling of imported and exported commodities and trade methods; transportation and storage of imported and exported commodities; inspection of imported and exported commodities; customs supervision of imported and exported commodities; freight insurance of imported and exported commodities; settlement of payment for imported and exported commodities And providing international settlement and bank credit services for funding, arbitration work and judicial trials to resolve disputes in import and export business; operation and management of import and export business, etc. The procedures of each business can generally be divided into three stages: transaction negotiation, contract performance and delivery. Common risks in import and export business include export risks and import risks.

Import and export business

Refers to the sale of goods through the conclusion of contracts with foreign parties, including

In recent years, the risk account and even bad debt in the import and export business have been increasing, not only causing interest losses, but also over time,

In general,

In the import business, common risks are:

Risks caused by seller default.

It is the most common for the product specifications and quality provided by the seller to be inconsistent with the contract. Regarding the risks caused by this breach of contract, the only way for the buyer to resist is to immediately submit a claim to the seller based on the report submitted by the China Commodity Inspection Agency after inspection.

Risks caused by irregular operation of foreign trade agents.

The formal foreign trade agency practice in the import business should be that the foreign trade company provides users with thoughtful and high-quality services, for which a certain percentage of agency fees are charged. Now, the actual practice is that foreign trade companies, in order to collect the bill of lading, especially self-raised foreign exchange, under the pressure of competition in the same industry, generally only require users to provide a deposit for the issuance of the deposit, the rest of the deposit shall be paid by the agent company, etc. pay. Once due to market changes or corporate economic downturns, payments will be postponed under various pretexts, or payments will be underpaid or even refused, resulting in arrears or even loss. Sometimes, even if the user pays in full, the L / C is issued by the foreign trade company. Once the seller breaches the contract, the user (the client) often requires the foreign trade company (the client) to bear responsibility, resulting in a situation of small benefits and high risks.

Risks caused by the seller's delayed delivery or availability.

There are two cases of delayed delivery: First, the seller has delayed the delivery date. The second is improper voyage arrangements. This delay and lack of availability will cause losses to domestic users, and users will request compensation. At this time, the agent should take different risk-avoidance methods for different situations.