way
There are four main types.
exw .It is the ex-factory price, and generally buyers who use this kind of ** have warehouses in China and procurement personnel.
2.fob.
It is a fee from the factory to the ship, excluding the freight and insurance of the process of shipping abroad.
3.CFR = FOB + Shipping Fee.
4.CIF=FOB + Freight + Insurance.
We generally encounter exw, FOB customers settlement is more difficult to deal with, because we need him to provide logistics bills, but the freight forwarder is the buyer to find, if we want him to provide logistics documents, he needs to the buyer.
Contracts
Contract = PI official statement PI (Proforma Invoice) Proforma Invoice
Then we need them to provide this pi
Payment methods
Payment methods are divided into small and medium-sized payments and large payments.
Small and medium-sized payments are generally sample receipts, or with PayPal handling fees39%, or go to Western Union, MoneyMoney, etc., and the handling fee is basically 1%-3%.
Generally, there are four types of large-value collections.
t/t、dp、da、l/c
The professional term of T Telegraphic Transfer, TT is international wire transfer, which simply means that money is sent between international banks, and the seller sends his company's collection account to the buyer, and the buyer pays the seller through bank transfer. There will be intermediary bank fees in the middle, and the cost mainly depends on how many intermediary lines go through, which is roughly around a few tens of dollars.
TT is divided into the front TT, mixed TT and after TT, the front TT is to play 30% or 50% or 70% before the shipment, and then sent, the exporter gives a copy of the bill of lading to the buyer, the importer pays the balance payment, after paying the balance payment, the exporter mails the original bill of lading to the importer, and the importer can pick up the goods with the original bill of lading, so that the payment is risky that the buyer suddenly says no during the shipment of the goods or during the arrival at the port, he uses this to bargain with you, what about the exporter, or pull back, Either you will be detained, and the demurrage fee is very expensive.
Of course, there are also foreigners who pay the advance payment of the former TT, and then the domestic people run away, which often happened before.
Mixed TT pays a part of the money before, and the bill of lading is directly given to the importer, and the final payment is paid after the importer picks up the goods. In this way, the risk is relatively high, and it is possible that the importer will not pay the balance after picking up the goods.
TT refers to cash on delivery, which has the highest risk, and DA and DP both refer to bank collection, also known as document payment.
DA refers to the acceptance bill, after the goods are issued, the documents are handed over to the domestic bank, and the domestic bank then gives the documents to the foreign bank, and the foreign bank receives it and then opens a usance bill to the domestic bank, that is, 30 days or 60 days after the payment. The risk in this is that the foreign customer may wait for him to get the bill of lading and receive the goods, and he suddenly goes to the bank and says that I have cancelled the bill of exchange, which basically happens in small countries and small banks.
DP is an instant bill of exchange, that is, when a foreign bank receives an order from a domestic bank, it immediately calls the payment.
The letter of credit is also called LC, in fact, the process is the same as the DP, the difference is that it has an additional review, the bank will check whether the PI and the logistics documents are consistent, and if they are consistent, they will pay. It is equivalent to the bank guarding the buyer for the buyer.
LC is also divided into spot and forward, the forward has 30 days, 60 days, and 90 days, and the bank is mainly to earn interest during this period.
Customs clearance
It is necessary to provide an electronic power of attorney for customs declaration, a verification form for foreign exchange receipt, a customs declaration form, a packing list, and PI.