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Key Points in Trade

By Jim on 2016-12-16 9:18:11 posted in Trade Skills

As the saying goes: "There are masters in all walks of life." If decide to work on foreign trade, you should have confidence and courage to conquer all difficulties. No matter experienced or inexperienced, accumulating experiences step by step is a must to achieve success.
1.As to foreign trade, we focus on the spot exchange buying rate because the banks use RMB to buy foreign exchange, so, that is the spot exchange buying rate.
2.How do you express the amount of money and decimal point? Such as 988.90, is it right if some people express as US dollars nine hundred eighty-eight point nine? It is just not professional but right, and it should be US DOLLARS NINE HUNDREDAND EIGHTY-EIGHT AND CENTS NINETY ONLY.
3.What a industry practice is that the amount of money cannot appear in bill of lading(B/L) and the shipping company may refuse when receiving a B/L with that. For B/L is an ownership license, the amount of money on it means the products value is recognized which equivalent to the shipment company has to compensate such value when losing or missing happened about the goods due to the shipment company.
4.PI is not equal to make a bargain. Customers will require a PI, price, payment terms, deliver time and some other terms when you confirm all prices information in writing. All information should be involved so as to compare quotations.
5.In some circumstance, we cannot assure we could get the payment though we are doing the terms of payment against B/L copy. It is useless to threat customers if they delay to pay because ports in almost countries stipulate that shipment return rely on "No Objection Certification on Return" of original consignee after arrival of goods. After a certain time, the custom will audit the good for port charges while the rights of priority hold by the original purchaser.
6.The issuing bank always is the first person on letter of credit(LC).
7.The tax rebate in trading companies is according to invoice instead of FOB price, which means the invoices from suppliers are the evidence of tax rebate when buying goods.
8.Appearing on LC, USD79.230,00-seems wrong but actually right, that is 79,230.00 because it must add comma to express decimal point on LC.
9.The issuing bank is always the first payers on LC. Under no circumstance should the issuing bank pay if the documenets are perfect. That's why LC is riskless.
10.Does 3/3 bill of lading equal to three originals and three copies? No, that is three originals. It means providing and submitting three originals in total.
11.The insurance of CIF is that a 110% markup of the CIF price multiplies by insurance expense rate and 10% are customers'profit.
12.Never quarrel with customers! The most common answer to the different ideas with customers is: yes, I think in your side, it is right. But for us……
13.We can get 80% customers by the means of tracking for many times. As a result, we should make full use of our customer resources instead of seeking mail address all the time.
14.It is wrong that the letter for developing customers is the easier the better. To some large companies, properly introducing your company is beneficial to the cooperation.
15.In order to get more chance to cooperation when discussing business, you should express the hint that you are seeking for an opportunity which both of you can make money but not making profit from him.
16.Generally, most customers will stop cooperation if you tell them that it is our company that decides this.
17.Finally, what I want to remind you is that Hongkong, Taiwan, Macao are not included in the range of China in international trade for economic entity are regarded as main parts. Not splitting China, Hongkong, Taiwan and Macao are economic entity which are of different definitions in economy and politics.

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