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    What Are The Characteristics Of Traps In Textile Import And Export Business?

    2016/5/13 10:46:00 56

    TextileTransnational TradeIndustrial Cluster

    This year, Shengze Spin The opening of the industry is just beginning to brighten up, the market is rising, fabric sales are getting warmer, and the foreign trade of Shengze textile enterprises is also gradually warming. However, risks and pitfalls are still everywhere in textile foreign trade.

    To prevent mistakes in foreign trade, we should first understand what traps are in the textile import and export business and what are the characteristics of these traps. The reporter interviewed senior professionals in textile import and export to understand how to identify these traps so as to achieve the purpose of prevention.

      The bill of lading is not omnipotent.

    In today's textile import and export trade, bill of lading is a very important "certificate of title", which plays a key role in the whole transaction process. However, the bill of lading is not everything.

    "In the current foreign trade trap, bill of lading is a common form of fraud." Pu Jianrong, general manager of Wujiang soda import and Export Co., Ltd., told reporters that the form of bill of lading fraud varied in form, mainly forged bills of lading, replacing clean bills of lading with insurance letters, signing bills of lading, prelading bills of lading, and goods without bills of lading.

    "In the above acts, the delivery of goods without the lading is the most dangerous." Pu Jianrong said that under certain circumstances, the consignor colluded with the carrier and would take the goods away without the original bill of lading, which would cause heavy losses to the shipper.

    "If we want to avoid such risks effectively, we must first have a thorough understanding of the trade targets." Pu Jianrong said that in foreign trade, enterprises should first attach importance to credit investigation and choose a good trading object. At the same time, a reliable and strong shipping company should be selected to carry goods and monitor the whole logistics process.

    Now, all Transnational trade You can login.

      The difference between "ashore" and "offshore"

    "At present, there are usually two ways of dealing with foreign trade: CIF and FOB." Pu Jianrong told reporters that CIF is "CIF", which means that the shipper is responsible for all the costs of cross-border transportation, while FOB is "FOB". The shipper is only responsible for the shipment of the goods, and the subsequent transport process is the responsibility of the buyer.

    "If the seller chooses the way of CIF transaction, then the carrier can choose the trustworthy carrier." Pu Jianrong said, in the transaction of FOB, the buyer is responsible for the cost of the shipping side. For some shipping companies, the buyer is "God". They only care about their interests and are likely to collusion with the buyer to harm the interests of the seller.

    "In the cases we have contacted, such situations often occur in South America, Mexico and the Middle East." Pu Jianrong said that if the enterprise chooses the form of FOB, it should consult with the client in advance, ask not to designate the freight forwarding company, or to issue a letter of guarantee to the domestic freight forwarding company issuing the bill of lading, so as to reduce the risk.

      Trap of advance payment

    At present, the trading objects of Shengze trading enterprises are mainly concentrated in India, Vietnam and other Southeast Asian countries and regions. These countries and regions are mostly new textiles. Industrial Cluster Their development is shallow and the industrial foundation is weak. Most of the transactions will require payment in advance.

    "For example, the buyer will pay 20% to 30% of the deposit first, and then ask the seller to deliver the goods first, so that the buyer can make up the remaining sum after the goods are digested." Pu Jianrong said that in recent years, due to the impact of the overall environment, many enterprises are in a weak position in foreign trade, so long as they have orders, they fail to pay attention to the risks that may exist.

    "In this mode, the buyer can wait until the goods are sold and then give the money, and transfer the risk to our enterprises." Pu Jianrong said that some buyers did not take the goods after receiving the goods, but after a period of backlog, they suddenly demanded a price reduction, otherwise they would cancel the transaction. In order to avoid greater losses, many enterprises can only swallow up their voices.

    "Therefore, we generally advise enterprises to choose letters of credit first when they trade with Southeast Asian countries." Pu Jianrong said.

      When the letter of credit is "broken"

    The so-called letter of credit, simply speaking, is that the buyer and the seller agree on the terms of the transaction in advance. Then the buyer looks for a bank as "middleman" and gives the terms of the transaction to the bank. The bank issues a document as the basis for the transaction between the two parties.

    "Banks act as intermediaries to supervise the whole transaction. The seller will prepare the goods according to the documents, and then deliver the full set of documents representing the goods to the bank. After the bank has checked the document, it will pay the money directly. There is a bank guarantee, so long as the seller delivers the goods, they will be able to get the money. Pu Jianrong said that this way does not occupy the buyer's funds, but also gives the seller a good credit guarantee. One of the key points is the choice of the bank.

    "Enterprises in some Southeast Asian countries and regions prefer to choose small local banks as intermediaries, which should be avoided as far as possible." Pu Jianrong said that those small banks lack the ability to resist risks and adopt more time delayed letters of credit. There are too many uncertainties.

    "It is best to choose multinational banks with good international reputation, such as Citibank of the United States and Bank of China." Pu Jianrong said that if a trading partner persists in choosing a small bank, an enterprise can also find a large bank that has business relationship with the bank to make a confirmation in order to protect its rights and interests.

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