Foreign trade skills

First, the international buyers believe that you Boring through a period of difficult international market network development work, or the opportunity to participate in trade fairs, and so on, and gradually there will be of interest to ask customers to products and price details, foreign trade, thus entered a substantive stage. Foreign asked price, called the term Price (Inquiry), reported to the customer to a price, called the pricing terms (Quote). Said earlier, foreign trade risks more, corresponding to the high demand for commercial credit. Therefore, the foreign trade of quote requests, more cautious, so to speak Operator And should not be hastily changed, otherwise, at a price of arbitrary changes Fanlianburen, how to get behind the transactions in the millions, far outside the international buyers rest assured First, the international buyers believe that you In international trade buyers and sellers from all countries, although there are legal, arbitration, but the businessman, after all reluctant to easily lawsuit ---- especially the high costs of international trade lawsuits. In most cases depend on the individual or the credit. So Commercial Credit in international trade of significance far greater than ordinary domestic trade. Both sides credit, and perhaps even the contract are not, just a piece of paper fax / e-mail or a phone call on the deployment of hundreds of thousands of value of goods and money; credit Well, we act cautiously stereotypes, the two sides of the transaction cost will be greatly increased. Therefore, we should cherish their reputation. Transient business opportunities in international trade, but also often error or market price changes in the circumstances, this time, would also breach of contract Laizhang Is not no way, but since then has ruined the reputation. So for the conservative foreign trade credit, would prefer not to earn money or even slightly loss to the implementation of commitments by example, than ordinary domestic trade much more common. In addition to the contract, and other official documents, fax and E-mail, if a "confirmation" (confirm) the words, habits should also be regarded as equivalent to the validity of the contract. Having said that, after all, quack sinister, international fraud and rogue traders countless years old unless the client and a number of business, otherwise must not be naive credulity. Particularly since the world day and night different, different routines, messaging often delay This deliberate fraud to provide a more convenient conditions. In short, there is no harm gentleman's heart, not forgetting the dense population of Italy, is about foreign trade credit business in foreign trade is the best it Notes. Second, foreign trade, commodity prices, the method of calculation Next, foreign trade clerk must be a thorough understanding of the accounting of foreign trade prices, strict and meticulous, in fact, in a real foreign trade, prices of the most important. We can even say that is far beyond what the quality of service and the most important factor. So, how Price, how to bargain, foreign trade is a key to victory. The price of foreign trade goods, a unique pricing. As mentioned, the vast majority of foreign trade transactions are conducted through offshore mode of transport. As many intermediate links, the costs accordingly clutter many. In addition to the purchase price, there are transported miscellaneous fees, customs Declaration (the declaration) of the costs, commodity inspection fees, terminal handling charges, and this in the cost of dealing with different countries also do not like to take into account international trade brokers, is likely to purchase from country A, B transported to State port, and then sold to country C, which is more troublesome, it is difficult to trade with the general approach to calculate the price. Specifically, your products from the factory to transport by ocean-going container delivered to foreign customers designated foreign port terminal or a location, may have some or all of the following costs: 1. Product prices. 2. Import and Export Commodity Inspection and Quarantine Bureau declaration issued by quality inspection and that the cost of that commodity inspection fees. 3. Declaration of the cost of exports of Chinese Customs, the export declaration charges. 4. Leased containers loaded and shipped to China the costs of the Harbour Ferry Terminal in China and the various miscellaneous expenses (in this fifth day of a handbook ocean freight will also elaborate on). Over the goods to the Chinese port terminals pre-export procedures and costs. 5. Transported by ocean-going ship to harbour foreign freight terminals, sea freight. 6. For the international transport of goods insurance premium. Over the goods to the foreign port formalities and charges. 7. Container terminal port of discharge in a foreign country and other miscellaneous fees collected on the pier. 8. Declaration of the cost of imports of foreign customs, import declaration fee, and sometimes also required to pay import tariffs. 9. Harbour terminals from foreign goods shipped to customers the cost of designated sites. Over the hands of customers for the goods delivered before the formalities and costs. In addition, because the money collected to go through banks, the banks will charge a handling fee. Analysis of the cost component, we can easily find, can harbour the cost of the terminal as a reference point. There are advantages to do so is the distinction between responsibility, for example, to the Chinese port as the base point, we assumed that the first 4:00, Responsible for the integrity of the goods shipped to China's commodity inspection and customs terminals, other things from customers themselves, if the goods were damaged in the ocean shipping, customers find their own shipping companies and insurance companies claim. If a foreign port as the base point, we assume Go to 6:00, will be responsible for the arrival of foreign cargo terminals intact. The vast majority of businesses here, only a handful of us to do is to ask the first 9:00, after all, as the locals are familiar with the situation on the ground, operating from 7 to 9:00 than we are to facilitate, costs are also cost-effective. However, due to the development of international trade , And foreign trade have penetrated into every corner of the world, who are not familiar with foreign trade or for a certain inconvenience Our reasons for the operation of foreign buyers, and hope that something directly in the province "at the door of his" receipt and thus demands that we arranged a full set of circumstances than Before the more. But the mainstream is still be the first to the first 4:00 or 6:00 so far. Based on "the harbour terminals as a reference point" principle, international trade had a unique pricing and price terms (reference: - Foreign trade business standards manual -): 1. Export to the port (Loading Port) as the base point: FOB (Free on Board). More precisely, FOB pricing benchmark is the export of the ship's rail cargo ship to port. Goods arrived in port, loading the need to ship, FOB that is to hook across the ship's rail as precise demarcation point. In other words, the hook over Before the ship's rail all the costs, FOB pricing is included in cost. So FOB also translated as "the ship's rail-delivery prices." Turn relative to the buyer and that this price is the "foreign port," the delivery price, the under English "Off shore" is translated as "FOB." 2. To the port of destination (Destination Port) as the base point: CNF and CIF. CNF (), also known as C & F, that is, the cost (FOB) plus shipping. Similarly, in turn, relative to the buyer, this is after arrival at the price, it called the "price to the shore". CNF A further increase on insurance premiums become a CIF (cost, insurance, freight). Said earlier, FOB, CNF, CIF price in addition to the value of their own, but also including commodity inspection, customs, port, insurance and other miscellaneous fees. It is not difficult to understand, since the cost to pay for this, of course have to handle these procedures, so these prices Terminology is not only pricing, buyers and sellers is the responsibility and risk the basis for the division. For example, under the conditions of FOB, the seller should be responsible for the export commodity inspection, customs, exports of goods across the ship's rail before any damage to bear. After the shipment of goods to the buyer in order to promptly notify the buyer for insurance; buyer will need to charter the ship and booking ---- Notice period is usually the seller from the buyer to the freight forwarding operations, so "buyer's designated freight forwarding," has become a synonym for FOB. In CNF / CIF conditions, in addition to the seller under FOB has done things, to assume the corresponding booking, insurance and so on. But in the port of shipment of goods across the ship's rail, ship, arrived in the port of destination before all the risks are still right The buyer is responsible for the buyer, the buyer is to pay some costs less!. In order to facilitate the understanding of all different prices term "risk of responsibility", so often a textbook case humor: Lifting the export of goods in the port when the hook loose inadvertently led to the collision of goods into the sea. Terminal does have a responsibility, but Who the back of this buck-passing Heiguoqugen terminal term answer depends on the price and cargo into the sea in an instant whether the ship's rail. If the FOB, and has been freeboard, the purchaser Zirendaomei otherwise by the seller to pay. Prices corresponding to a particular term means of expression, the format is "the amount of currency units + + + terminology name of the port", such as the USD50 FOB Ningbo means "priced at 50 dollars, the Ningbo port of delivery"; Also USD90 CIF Newyork, that is, "Priced at 90 dollars, the New York port of delivery, has been for insurance." Expression, the name of the port is very important and should be specific, if the FOB CHINA PORT (the Chinese port of delivery) is not correct, because China's vast and different ports for inland freight delivery vary widely. Actual operation have pan - Means, such as the CIF EMP (Europe main port, the European basic Hong Kong). Hong Kong is the basic foreign trade terminology, refers to several well-known major European ports such as Rotterdam, Hamburg, and so on. Because from China to these major ports transported almost miscellaneous fees, In order to facilitate the nearest pricing and customer choice, this is also the price of expression, "European basic port of delivery, insurance has been handling." But this is not very accurate, do not advocate random use. As mentioned above, there are occasionally asked us to "package" of customers. Correspondingly have more price terms such as DDP (Delivered Duty Paid contraband after delivery, that is, we responsible for the location of the goods shipped to customers, clients and arranged import declaration And the payment of import duties), but, FOB, CNF, CIF is still the most commonly used terms, but other terms plus an additional fee of deformation and extension. It can be understood, the so-called FOB, is to add value before export costs. Coupled with the ocean freight will become CNF, coupled with the premium becomes a CIF.CIF with other procedures and the corresponding costs, it becomes DDP, such as the extension of terms. However, these extended terms of the actual operation is still small, not to repeat them here. There is also a special trade terms, commission Commission. International traders is that many people in the public brokers, on behalf of his clients to purchase products and an agreement, express or covert means from the commission. Expressly commission called the commission, is In the price to add initials C figures show that the proportion of commission, for example, CNF NEW YORK C3 USD9.00/CTN U.S. dollars, meaning 9 / me, the New York port of delivery, not including insurance, the price includes a three percent commission. As a result , Brokers can Pingci prices to end-buyers obtain three percent of the commission. If the commission is dark, not in the price, but by the end of trading exporters be paid in accordance with the agreement. International trade in the general U.S. dollars (abbreviated as USD) as a settlement currency, the price of natural should also be the U.S. dollar price, then the ex-factory price to 117 yuan a tax-inclusive price of the product, how is converted into U.S. dollars FOB and CIF price? Obviously, Terms of different prices under the conditions of the export total cost of the RMB, according to the U.S. dollar and the RMB exchange rate (exchange rate) was converted to U.S. dollars, with your anticipated profits, the price is U.S. dollars. RMB total cost of exports, in addition to the above-mentioned costs of 1 to 9, must also take into account the particular trade: a tax rebate. We have in front of foreign trade in a brief introduction of tax rebate system. Accordance with the current state regulations, according to the different products, the tax rebate rate of Yingtuishuie 5% to 17%. Specific products corresponding to the tax rebate rate of State Revenue General enquiries boost to the official website (http://www.chinatax.gov.cn/tsl.jsp), taking into account the majority of traditional products in international trade but also the profit margins of 10% within the tax rebate to offset the cost of it Too important to. Often in competition, commodity export prices are low, a tax rebate instead become a source of profits (of course, this is not strict, but sales for understanding the algorithm. But from a financial point of view, the arrival Deducted the cost of the tax rebate is the real cost of exports). Let us take the "ex-factory price of 117 yuan tax-inclusive price of the product" to the actual accounting. The so-called "rebate", mainly referring to the withdrawal "of value-added tax." When we tax-inclusive price to 117 yuan from domestic procurement sources, including the price of 117 yuan a manufacturer 17 without paying the value-added tax (VAT assumption that the commodity rate of 17 %), While domestic supply manufacturers will be issued the corresponding value-added tax invoices, receipts indicate on the selling price of 100 yuan, 17 yuan and taxes. Then, when we put this commodity exports, the Inland Revenue Department will be in accordance with the provisions of the tax rebate rate -- -- The assumption that the commodity tax rebate rate was 13 percent, to cost 100 yuan for the purchase of base conversion tax rebates retreat back to us, which is 13 yuan. As a result, sales from the point of view, the purchase cost In fact, we would not be 117 yuan, while only 117-13 = 104 yuan. In other words, 117 yuan to buy things, sold 104 yuan, still - This can be. We will use this 104 yuan as the price-to calculate the assumption that customers want to buy 1,000 products terminal and transported to Rotterdam, the Netherlands, assuming an exchange rate of the renminbi and the U.S. dollar 1:8, a related costs: 1. Export 1,000 products, offset the tax rebate at this time after the security of the price of 104,000 yuan, or USD13000.00 2. Commodity inspection, customs, container loading, the terminal charges totalling 2,000 yuan, or USD250.00 3. Sea freight 1,500 U.S. dollars 4. Premium 250 yuan, equivalent to USD31.25 Bao is the price for the simple algorithm: FOB = export cost of miscellaneous fees + = USD13000 + USD250 = USD13250 Apportion to the unit price which is USD13.25 / a CNF = FOB + sea freight = USD13250 + USD1500 = USD14750 To apportion priced at USD14.75 / a CIF = CNF + premium = USD14750 + USD31.25 = USD14781.25 Apportion to the price that is USD14.78 / a These are the export tax rebate and foreign trade companies accounted for the simple method of understanding. For the export of their own production factory, the method is slightly different from a tax rebate, because their products are, there was no need to open themselves to their own value-added tax invoices, for ease of operation, the state provides for import-export factory rebate "for deductions "System, that is against the factory output tax-free, touch-input and retreat input. Output tax, 100 yuan refers to products sold to domestic companies if it should pay 17 yuan of value-added tax, because it is their direct exports, this one on a free. Referring to the factory in the procurement of input materials and artificial, and other expenses already paid the capital gains tax , In accordance with the regulations can be deducted from the output tax, because the output tax-free, no deductions, then from the other non-export business in the output tax deductible. If you can not output tax deduction, Direct retreat back to the Inland Revenue Department. Assumptions input in equal shares to a single product is 8 yuan, no deductions, the plant exports the actual cost is 100 yuan -8 dollar = 92 yuan. Other FOB, CNF and CIF algorithm Ibid. Factory pricing, usually assisted by the accounting accounting, and for foreign trade companies or individual sales agents / calling foreign trade, more time needs its own calculation. In order to simplify operations, the industry would normally adopt a relatively simple formula film , Come directly from the domestic procurement of the yuan to U.S. dollar conversion price, called the "costs on exchange rate algorithm." Note that this "cost on exchange rate algorithm" applies only to trading companies or individuals. The following formula: CP Price = factory prices / CP costs on exchange CP = costs on exchange rate × (1 + tax rebate rate) The purpose of this formula is calculated the "capital preservation" Under the circumstances, should the number of reported U.S. dollar prices. Obviously, this is the price we have to bargain the bottom line, is more than some of our profits. How should we understand this formula it was the assumption that the current exchange rate of 1:8, that is, eight yuan to one U.S. dollar can change. In other words, from foreign customers receive one dollar, we can change to eight yuan. If not consider a tax rebate More on the simple, direct use of the RMB exchange rate between the price and the price converted to U.S. dollars. But because of the existence of the export tax rebate, in fact our exports of U.S. goods, received more than eight yuan: If we bought from the factory The product is not tax-inclusive price of eight yuan, the original price to sell, Ertui tax rate is 13%, or a tax rebate 8 × 13% = 1.04, that is to say, one dollar in exports of goods, we have been 8 +1.04 = 9.04 yuan. Out of consideration for the calculation, we may wish to be understood as, when we used 9.04 yuan Quhuan one dollar a time, we do not make no losses. This has more on the simple, such as factories acquired from 100 yuan things The number of dollar selling 100/9.04 = dollar was 11.06 U.S. dollars .11.06-Line. According to a translation of 9.04 is the so-called security of the exchange rate costs. The advantage of this formula, the majority of foreign trade are mainly engaged in the same category of products, and the tax rebate rate of similar products are the same, but also relatively stable. So this exchange money-cost roughly the same, so do not have to every time the complexity of the tax rebate, direct With capital preservation costs on exchange to be converted. But bearing in mind that the formula is only a theoretical simplify operation, do not forget to practice in the actual factory prices on the basis of the Yun-plus miscellaneous fees. Win miscellaneous fees do not attract much attention, but slightly Bu Liuxin will exceed the budget, you ultimately affect the actual profits. In addition to these basic prices, in actual operation to pay special attention to some hidden costs. Third, the prevention of cost trap Some hidden costs, if the accounting of the time ignored the price will rise to a small loss, particularly those transactions than smaller or thinner profit business, slightly Buliu Xin is likely to profit from a loss. First, the cost of these traps bank charges. From the funds into the country foreign exchange, foreign banks and domestic banks will be deducted from fees. In other words, foreign customers while giving you the 10 dollars, you may very likely become the hands of 950 U.S. dollars a. If you expect the profit is 3 percent or 30 dollars, let alone a bank charges a profit Paotang. Therefore, in order to avoid similar situations. In addition, foreign customers should be allowed to transfer their commitment to customer foreign bank charges Otherwise, we should this cost is expected to cost. Letter of credit operations of the bank charges a higher, sometimes in the normal state action can also reach hundreds of dollars. In addition the most common extra-budgetary cost is terminal operators. Mingmufanduo terminal charges, the shipper or the consignee by the commitment is ambiguous. FOB conditions, the importer is responsible for booking, CNF and CIF conditions by exporters Responsible for booking. Accept the booking of shipping companies, Lan out of business considerations, often the only person responsible for booking the costs passed on to the other party. For us the export side, the operation of the FOB, if initial cooperation The shipping company, it is necessary to check the advance related costs. If it is found that cost-sharing obvious injustice, to communicate and consult with foreign customers require adjustment. 4, quotes, skills To understand the price structure and method of calculation, we will be able to be aware of, can use the skills to bargain with customers. The pricing of foreign trade has its special requirements. Theory, a formal trade Price, not only should have the full price of expression terms, should also include the names, prices effective time, the number of supply, delivery time. For example: Canned whole mushroom 24 × 800g Dia. 2.5cm ~ 3cm ---------- description of the goods USD16.50/CTN CNF ROTTERDAM ----------------------------- prices MIN ORDER 2FCL ----------------------------------------- minimum order quantity Delivery after 30th Dec -------------------------------- delivery time Offer valid before 20th Dec --------------------------- Price valid This is called the pricing "is set" (firm offer), theoretically has a considerable effect, once the customer acceptance, pricing changes, not because it offers almost cover the basic elements of the contract. The reason why prices provided an effective time, is considered To the international market fluctuations. On the other hand, also helps urging an early decision. However, for flexibility and counter-denominated consider, in addition to the initial contact to show that the informal, practical in most cases will intentionally or unintentionally left out some of the elements so that the format is incomplete, become the ultimate effectiveness of the "virtual disk" (non - firm offer). a virtual set can give the two sides left more room for bargaining. Flexibility in the use of virtual disk, external trade negotiations is the basic skills, such as in pricing, if the customer does not have a positive response, may wish to lower the price of a virtual disk, in a bid to test the idea. If customers are interested, for further adjustment of the ship Volume, small profits but quick turnover, the situation may also deliberately extended or shortened delivery times, so that our arrangement, saving transaction costs, price cuts make up for losses. Can also quote a few product portfolio, from surplus Bukui, mutual swap. In turn, customers will test us, especially in the initial contact, customers will often ask a bunch of products, in fact only want one or several, this time to carefully pricing, unless the number of clear, or else Do not use with pricing. Because usually with pricing, we will not tell the true intention, and the final event, not just low-cost high-value, we take a the Yaba Kui. There is also a situation that, obviously Xingjialishou, familiar with the market, but deliberately asked everywhere can buy some of the old traditional products. This time the two sides are likely to test our side in the operating style and pricing of water -- -- Because these products easily to other suppliers receive Price, to make than the right. Old products are generally not high profit, if we feel lucky, the active trading of these products, or that our prices are empty and desperately Bargain, were difficult. Price can be a virtual set, but the final confirmation of when the price is certain if it was the format, that is, price and quantity, delivery time and money clearing way bundled with confirmation, and so on. Otherwise, the large number of customers to low-price orders, Finally is the delay in shipments, China's warehousing costs and increase the burden on production costs, small profits but quick turnover of mind completely lost its significance.