International-Trade-Procedures

1InternationalTradeProcedures1.ClassificationofInternationalTradeTherearevariousformsofinternationaltradeandtheycanbeclassifiedintovariouscategoriesaccordingtoanumberofdifferentcriteria.1.1.Fromthedirectionofcargoflow,internationaltradecanbeclassifiedintoexporttrade,importtradeandtransittrade(过境贸易)。Exporttrademeanstotransportthegoodswhichareproducedandprocessedindomesticmarkettointernationalmarketforsale.Ontheotherhandimporttradeismadeinthereversedirection;itreferstothetransactiontotransportthegoodsfromforeigncountriestodomesticmarketsforsaleoruse.Ifthegoodsaretransportedfromtheproducingcountrytotheconsumingcountryviaathirdcountry‘sborder,thisisknownastransittrade.Transittradecanbefurtherdividedintodirecttransittradeandindirecttransittrade.Directtransittrademeansthegoodsarenotplacedinthebondedwarehouse(保税仓库)ofthethirdcountry,butfurthertransportedtowardoutsidealongthedomestictransportationlineundersupervisionofthecustomsofthethirdcountry.Incontrast,indirecttransittradereferstothefactthatgoodsarefirstplacedinthebondedwarehouseofthethirdcountryandthentransportedfurthertotheimportingcountry.1.2.Accordingtotheformofthegoods,internationaltradecanbeclassifiedintovisiblegoodstradeandinvisiblegoodstrade.Visiblegoodstrade,alsoknownastangiblegoodstrade,referstotheexchangeofphysicallytangiblegoodssuchascars,winesshoesbetweencountries.Itisdistinguishedfrominvisiblegoodstradewhichinvolvestheexportandimportofintangibleitemssuchasservicesandtechnology.1.3.HereIwanttointroducetoyouentrepottrade（转口贸易）.Itreferstothetransactionwhichinvolvesimportinggoodsfromoverseasforfurtherprocessingorassemblingandthere-exporting2thegoodsabroad.ExportandImportProceduresGenerallyspeaking,fromthebeginningtotheendofatransaction,thewholeoperationundergoesfourstages,namelythepreparationofatransaction,thenegotiationofacontract,theperformanceofthecontractandfinallythesettlementofdisputes(ifany).1.PreparationofaTransactionSupposeyouwanttostartyourbusinessbysellingcolorTVsetstotheworldmarket.Youmaywonderwhichmarketisprofitabletoenterintoandwhoisapotentialpartnerinthatparticularmarket.Evenifyouhavealreadyfoundtherightmarketandthepotentialpartner,youwillhavetoevaluatethetargetmarketandmakecreditenquiresofthepotentialpartner.Sotherearealotofstepstotakebeforeyoucanstarttodobusiness.SelectingtherightmarketToselecttherightmarket,oneneedstodosomemarketresearch.Itincludestheculturalbackgroundandeconomicsituation,infrastructure,politicalclimate,currentimportandexportstatistics,informationontradebarriersandrestrictionbeforedecidingtoenterthetargetmarket.FindingthepotentialpartnersAfterfindingtherightmarket,thenextstepistofindthepotentialpartners.Therearevariouschannelsthroughwhichonecanmakecontactswiththepotentialforeignpartners:tradefairs,directsales,directmail,wholesalers,distributors,etcpersonalcontacts.StudyingcreditabilityofthepartnersInordertoensureyourrightsandbenefits,youneedtoknowthefollowinginformationaboutyourpotentialpartners:1.creditreferencefromlocalbankorcorrespondentbank2.businessrangeandannualsalesvolume3.salesliteratureandpricelist4.majorcustomers5.businesscultureApplyingforexportlicense3Whentherightcustomerisdetermined,youhavetomakesurewhethertheproductsyouintendtosellarewithinsomecertainexportcontrols.Ifsoyouhavetodealwiththembeforethenegotiationoftradetermsandconditionsofthetransaction.2.NegotiationofaSalesContractAfterthemarketresearchhasbeenconducted,thetradermayinitiatetonegotiateonrelevanttermsandconditionsfortheformationofacontractfortheexportorimportbusiness.Businessnegotiationmayconsistoffoursteps:enquiry,offer,counter-offerandacceptance.Anenquiryasksforthepossibilityofsellingacertaincommodityintheimportingcountryorbuyingacertaincommodityfromtheexportingcountry.Anoffercanbeananswertotheenquiryorcanbeinitiatedbyeithersellerorbuyerwithoutenquirybeingmadefirst.Anofferhasthebindingforceupontheoffererwithinthevalidityandcanberefusedbytheofferee,inthiscase,therefusaliscalledthecounter-offerandservesastheofferofanewround.Iftheofferorcounter-offerisacceptedbytheofferee,anagreementisreachedbetweenthesellerandthebuyerandacontractisconcludedatthesametimewhenanacceptancebecomeseffective.3.PerformanceoftheContractAfterpreparationandsigningofthecontract,theordersshallbeprocessed.ProcedureAscontractsforexportinChinaaremostlyconcludedonL/C,weshallusethistypetoillustratetheexportprocedure.ExaminingL/CGettinggoodsreadyApplyingformandatoryinspection(theexporterpresentcommercialinvoice,thecopyofsalescontract,letterofcredit,andinspectionreportsuppliedbythemanufacturer.BookingshippingspaceClearinggoodsforexportGettingthegoodsloadedObtaininginsurance,ifanyPresentingdocumentsforbanknegotiation4Homework:translatethesentencesmarkedred