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    What Is The Key To Foreign Trade?

    2010/10/30 16:55:00 136

    Foreign Trade Tax Rebate System Letter Of Credit Paction Computer And English

     

     

    Tax refund system


    Tax refund is

    foreign trade

    The important concept is also the main source of profits in foreign trade.

    In order to facilitate management, the state assumes that all products are domestic circulation and consumption. Therefore, the value added tax is generally levied. The tax rate is as high as 6% to 17% of the selling price.

    Under normal circumstances, the price before domestic purchase or export is tax inclusive, that is, the value added tax has been paid.

    If the product is used for export, this part of the tax should not be levied, and what has been collected can be refunded to the exporter in part or wholly according to the procedure.


    If you buy a batch of color TV sets from domestic factories, the price is 1170 yuan including tax, of which 1000 yuan is net price, and 170 yuan is paid VAT.

    According to the regulations of the state, the export tax rebate rate of color TV products is 17%, that is to say, after the export of color TV, the Inland Revenue Department will withdraw 170 yuan to the exporter.

    In this way, even if the exporter exports at a flat price of 1170 yuan, he can still get a tax refund of 170 yuan as a profit income.

    In this case, if the exporters take part in the price from 170 yuan for competitive consideration, even if they sell at a price lower than the price of 1170 yuan, they will still have profits.


    Foreign trade pactions usually have relatively high value, and the corresponding tax rebate is also considerable.

    Of course, the State Administration of tax refund is also very strict, and closely linked with foreign exchange management.

    Before export, it is necessary to receive the export tax refund verification form from the Department of foreign exchange administration and declare the total export amount.

    The cancellation documents need to be sealed by the customs to confirm that the goods have been exported.

    After receiving the payment from foreign buyers, the bank's receipts, together with the verification form, will be written off to the foreign exchange administration, and then the tax refund will be collected by the value-added tax invoice until the tax bureau issues the tax refund.


    Therefore, the source of foreign trade profit comes from the export tax rebate system in the national export tax rebate system, which is one of the most notable characteristics of foreign trade, and is closely related to the daily operation of most foreign trade operators.

    {page_break}


      

    Letter of credit paction


    In international trade, buyers and sellers are far away from each other, and the background is different.

    Therefore, business credit has become a big problem.


    As exporters, worried about getting ready for the bulk cargo, how did the buyer change the goods? The goods were pported abroad all the way, and what customers did not want to do? Or if they did not want to pay the money, how could they do so?

    As an importer, how can the exporter be unable to deliver the goods on time? What about the quality and quantity of the goods? I hope the seller will deliver the goods first and check the money correctly.


    This contradiction, of course, can be negotiated through buyers' payment in advance or by way of deposit, but after all, it is not the best policy to get a bigger bonus for buyers, but there is really a dispute between them.


    So there is a unique way of operation: letter of credit.

    The emergence of a letter of credit is based on the characteristics of foreign trade "document paction".


    The so-called letter of credit, popularly speaking, is agreed on the terms and conditions of paction, such as name, quantity, quality standard, price, delivery time, etc.

    Then the buyer looks for a bank (usually the buyer's account bank, or a certain guarantee) as the "middleman" and submits these terms to the bank. The bank issues a document as the basis for the paction between the seller and the buyer.

    The responsibility of banks as intermediaries is to supervise pactions.

    The seller delivers the goods according to the documents, and delivers the complete documents representing the goods to the bank.

    After the bank has checked the document, it will pay the money directly.

    With banks as intermediaries, buyers and sellers no longer conduct direct money trading, but deal with banks separately.

    If the seller fails to deliver the goods promptly and according to the quality, he will not get the money. If the buyer does not pay, he will not be able to get the goods.

    On the contrary, there is a bank guarantee, so long as the seller delivers the goods, they will be able to get the money.

    This way does not occupy the buyer's funds, but also gives the seller a good credit guarantee.

    This document, which is used to prove the commercial credit of both parties, is called a letter of credit.

    {page_break}


    Generally speaking, there are four parties to a letter of credit:


    1. the importer is responsible for opening a letter of credit to his bank, which is called a letter of credit applicant.


    2. the importer's Bank is responsible for opening a letter of credit and checking the documents and appropriating payment, which is called the letter of credit issuing bank.


    3. the exporter, who is responsible for the payment of L / C under the letter of credit, is called the beneficiary of the letter of credit.


    4. the exporter's Bank is responsible for collecting letters of credit, forwarding documents and contacting the issuing bank for exporters, which is called notice bank.


    In addition, the bank responsible for the final allocation is called the reimbursement bank of letters of credit, usually the issuing bank. It can also be advanced by other banks and charged a small fee, which is called the negotiating bank of letters of credit, generally known as the advising bank.


    Letter of credit is the most important and common tool in foreign trade.

    In order to standardize the use of letters of credit, the International Chamber of Commerce has formulated a uniform standard "UCP500", that is, the uniform provisions of international documentary credits, as the basis for the use and arbitration.


    With regard to the actual operation of the letter of credit, we will give an example to explain in the fifth section of this book, the master's letter: the letter of credit strategy.


    Through understanding the three key secrets of foreign trade: document trading, tax rebate system and letter of credit settlement, we basically master the essence of foreign trade.

    Now we can finally understand a standard export operation case clearly.


    To find a customer --- to sign a contract -- to open a letter of credit, that is, to open a letter of credit by the client, to prepare the goods according to the letter of credit, that is, to deliver the goods after the commodity inspection, to deliver the goods to the shipping company, and to obtain the bill of lading, that is, to prepare a complete set of documents according to the letter of credit, that is, the documents to be delivered to the foreign banks, and the foreign banks to check the money to the domestic banks after the audit is correct.


    With the basic knowledge of foreign trade, the next step is to create two necessary tools for foreign trade: computer and English.

    {page_break}


     

    Quick weapon method ---

    Computer and English


    Because buyers and sellers do not meet each other in foreign trade, it is self-evident that computers and Internet as the most convenient and effective office tools and contacts in modern times.

    Good command of computer knowledge and skills can save you a lot of money in developing foreign trade smoothly.

    Office documents and tabulation software are the most basic ones. In addition, there are the most common pictures and software ACDSee, Photoshop, the PDF format (e-Book) file browser, AdobeReader, etc., which is the biggest advantage of e-books. It is not easy to modify, deform, omit or infect computer viruses in file network pmission.


    The most important thing is to learn to find information and collect information on the Internet.

    This work runs through the whole foreign trade process and is the key.

    This book will also introduce skills in accordance with the progress of the tutorial.

    The first thing to understand is the search engine.

    The so-called search engine is the "guide software" for online information.

    This software is based on what people want to know, such as "Keywords", such as "hardware tools", "pport companies", "foreign trade skills", "export inspection declaration", etc., and search for relevant information pages in the vast Internet world. The addresses of these web pages tell you that you browse and find the information you need.

    There are many such software online, which are currently free of charge, such as the most famous Google.

    Fill in the Internet address


    Skillful use of search engine can enlarge your ability infinitely and make a new person quickly become a master of omniscience.


    Another key point is foreign language, mainly in English.

    This is also a question that many non international trade professionals intend to engage in when they are engaged in foreign trade.

    English can not be done, can foreign trade be done? Or how much English must be achieved? This problem should be viewed from two aspects.

    On the one hand, doing business itself is an art of communication. Bargaining, competition and cooperation, and deeper communication and understanding are more helpful to business.

    From this point of view, the more fluent English is, the better.

    But it does not mean that foreign language majors must be as high as English majors.

    English is itself a tool for business purposes.

    Think of those hawkers who do business directly with foreigners, such as Beijing's early Silk Street, Sino Vietnamese, Sino Soviet border trade, and the Wenzhou people who run around the world. How good can they be in foreign languages?

    After all, it's a businessman. Language exchange can be understood basically. First, we should learn to learn together, and learn from it now. Progress is much faster than eating books in school.

    In this respect, there is no need to retreat because of English.

    In spoken language, you should master a few greetings, such as quantity, time, date, quality, and so on. You can start working with hundreds of quantifier adjectives, plus some nouns related to your product.

    Anyway, important things will fall on paper and be written in writing. If you do not understand, you can check the dictionary temporarily.


    Written in a better way to solve problems with computers.

    The famous plation software Kingsoft and Jinshan fast plation can accurately plate the word, and the latter can roughly plate sentences and articles. Although there are many mistakes in the grammatical pattern, they can know the general meaning at any time, and make some minor modifications themselves.

    People who are not good at English often make the mistake of "Chinglish", that is, to stack up the English words that are found in Chinese grammar, which is indeed a joke. But what about it? "Your conscience is very bad" is a shit Japanese style Chinese, but everyone knows what it says.

    This is the "practical" art.


    Of course, contracts and other important documents need to be very cautious.

    Fortunately, the contract of foreign trade has a relatively fixed format. After years of using it, its terms have basically been watertight. Only the corresponding changes in the name, quantity, and time of delivery can be made.

    With regard to the format of these commonly used foreign trade documents, the book will give a model.


    In fact, the foreign trade colleagues have summed up almost all the English model examples that you may encounter.

    In daily written and oral communication, it can be copied.

    Such examples can be found in the search engine by entering the key words "foreign trade English" or "commonly used foreign trade English".

    In the foreign trade industry specialized forum, such as Alibaba website merchants forum http://club.china.alibaba.com, more detailed and detailed classification.


    Therefore, there is no need to be afraid of language barrier.

    Good English is good, but the level is bad.


    Computer and English are two essential tools for foreign trade.

    The higher the level, the better the way.


    In order to obtain foreign trade "pass" by applying for export rights or agency, affiliation, filing, etc., choose the products to be sold, understand the principles of foreign trade, and prepare the necessary tools, so that they can cross the sea.

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