What is foreign trade?

Foreign trade is doing business with foreigners.

What are the requirements for doing foreign trade business?

Know a little English. Are you happy? Keep gambling and knock silly? .. you can read three or five hundred words such as numbers, year, length, quality, "hello, thank you, goodbye", plus some terms related to your products, and then you can buy a Chinese-English dictionary and a computer dictionary software called Kingsoft (if you don't know this software, you can start foreign trade). Of course, the better your English, the more convenient it is to do business, so you should pay attention to accumulation and take time to learn some culture when you are free.

There is a computer with internet access. Doing foreign trade without computers will be looked down upon by peers. Besides, it is much cheaper to collect information and send and receive e-mails on the Internet by computer than to make phone calls, send faxes and write letters.

What is the whole process of foreign trade export?

Talk about business-delivery-taking money-reporting transactions to relevant departments.

Why report the transaction?

Because the international management of foreign trade is strict, goods often go through inspection and approval when they go abroad; The money you get should be declared and so on. In addition, the state encourages exports and can enjoy preferential policies by declaring transactions.

Reporting the transaction status is not final, but runs through the whole foreign trade process. Mainly dealing with four departments:

Import and export commodity inspection and quarantine bureau: ask them to inspect the goods before delivery and issue a quality certificate. This process is called commodity inspection.

Customs: after commodity inspection, declare the export to the customs and then ship it out. This process is called "customs declaration".

Administration of foreign exchange: report to the administration of foreign exchange after receiving the money. This process is called "logout"

Tax official: declare after export and get preferential treatment such as tax refund. This process is called "tax refund".

There is not much difference between foreign trade and domestic trade, but it is necessary to deal with several government departments in foreign trade operation.

Through the preparation of this section, we understand the common whole process of export trade:

Talk about business-stock up-ask the commodity inspection bureau to inspect the goods-declare the export to the customs-ship the goods abroad to customers-get the payment from customers-declare to the State Administration of Foreign Exchange-declare to the State Taxation Bureau-calculate how much money you have earned and save it to build a house in the village and marry a wife.

Actually, you don't have to do everything yourself. There are many professional companies in the market, and they can help you do one or several of them. For example, the freight forwarder can help you with customs declaration and transportation, the bank can help you with payment, and the export agent can help you with commodity inspection and declaration to the foreign exchange bureau and the State Taxation Bureau. In fact, there are many things that export agents can do. You just need to talk about business and then leave everything to them. You give them the goods, and they will convert them into RMB after receiving the payment from abroad. But they will charge 1%~3% of the total value as a handling fee. In addition, you have to build a house and marry a wife yourself. Contractors and matchmakers are generally unreliable ... look at girls' photos and ID cards instead of art photos ... If their ID cards are beautiful, they will be really beautiful ... blood and tears will teach them a lesson.

Of course, like China, there are all kinds of swindlers and traps in foreign trade business, and it is not enough to know the process. Need to know the specific practices and master clear operational ideas, so that there will be no major problems.

Next, we will study each step in detail and learn how to deal with government departments and various professional companies in this process.

Next lesson: How to find customers and negotiate business.

The last section introduces the basic process of export foreign trade. Now you can start working. First, we have to find customers.

How to find customers and negotiate business in the second quarter

Ways to find customers

People engaged in export trade mostly seek customers through various fairs (such as the famous twice-yearly Canton Fair and the East China Fair in Shanghai, etc.). ) and the internet. The effect of attending the fair is faster, and it is more accurate to exchange information with foreigners face to face, but it is expensive. It costs 58,000 yuan to go to an exhibition. The internet is much cheaper, and you can start working anytime and anywhere .. so let's focus on the internet.

There are two ways to find customers online. One is to advertise and shout to let everyone know about you. The second is to search for purchase information to see who looks like a buyer.

practise

1. What's the current exchange rate of RMB against Euro?

Reference answer: Enter "RMB exchange rate" in the search engine.

2. I want to show off in the New Year and fly home for a blind date. I want to know how much the discount ticket from Shanghai to Guangzhou is. Where can I buy it?

Reference answer: Enter "Shanghai and Guangzhou discount air tickets" in the search engine.

3. How to make Mapo tofu?

Reference answer: Enter "Mapo Tofu Recipe" in the search engine.

What does "certificate of origin" mean in foreign trade?

Reference answer: Enter "Certificate of Origin" in the search engine.

Where do foreign trade novices find customers? The last book said that the Internet is the most economical and convenient way at present. There are two ways to find customers online: one is to advertise to let everyone know about you and let buyers come to you themselves; The second is to search the buyer's information and sell it by email. Looking for customers on the Internet is called e-commerce ... In fact, e-commerce doesn't mean this ... Hehe, whatever, as long as they are doing business and contacting the Internet, they all call themselves e-commerce ... It seems that we are also excellent enough.

Then, let's start e-commerce ... hehe. First of all, we should make three preparations:

1. Give yourself an English name so that foreigners can address you. Friends with poor English, don't use their own pinyin as English names .. Because foreigners' pinyin pronunciation is different from ours, they will make mistakes. Just pick a name ... preferably a European-American style name ... A small boss in Yiwu Futian International Trade City is named Muhammad Li ... It's not impossible, after all, it's a bit strange. Ha ha.

Register an email address to let foreigners find you. Free e-mail addresses are also provided. Hotmail is recommended, which is stable and fast, and it is very reliable to send and receive international mail.

3. Write an advertising letter.

Whether you are spreading advertisements everywhere or selling them one by one, you must first prepare a small advertising letter-the jargon is "opening a letter", a letter to open up the market-written in English ... If we want to find a foreigner, of course, it is in English. It is not difficult to write a letter, as long as you clearly state what you are selling and the contact information of your factory/company name and address. Of course, there is nothing wrong with adding a few words like "perennial supply" and "good quality and low price" ... According to experience, if you emphasize that you are a domestic factory/company, the effect will be good ... China has many kinds of goods and low prices, which are quite popular with foreigners.

How to write an open letter

The simplest letter begins:

We are China AOT Co., Ltd. We provide apples with high quality and low price.

Please contact us for details.

We are AOT company in China. We sell apples with good quality and low price.

Please contact us for details. )

(contact information)

Contact: Mr. Octopus

Tel: 86- 2 1-8888888

Fax: 86-02 1-66666666

E-mail :8@888.com

If you don't like to use the word "super cheap" ... and feel ashamed, just use elegant "bidding" ... it's all the same meaning ... but according to experience, using "low price" is more attractive, but don't throw caution to the wind by using "low price" ... foreigners will be quite disgusted.

If your English is not bad ... then add more content ... do it yourself. If you want to add more content to your poor English, you can find some ready-made examples on the Internet. How to find examples? Brother, did you take a nap last class? Just type "foreign trade English" in the search engine and you will see/tsl.jsp.

How to calculate the tax refund? Simply put, it is the tax-free price x tax rebate rate.

However, it should be noted that the price excluding tax here refers to the "pre-tax price" shown on the VAT invoice.

The department responsible for tax refund is the IRS. Before the tax refund, you must give the VAT invoice you got from the factory to the IRS as evidence. You can't get a tax refund without a VAT invoice ... Do you understand the importance of VAT invoice now? ... that's money

Tax refund is very important, because it is a large sum of money and the main source of foreign trade profits. Think about it, if the tax rebate rate is 13%, then the goods you bought with the tax-included price of 1000 yuan (that is, the tax-excluded price of 854.7 yuan) can be obtained from the country even if they are sold to foreigners intact. Furthermore, the goods you got at 1 0,000 yuan were sold to foreigners at the price of 900 yuan, and you lost 1 0,000 yuan, but because you can get1/kloc-0 yuan from the country, you actually earned1/kloc. In fact, due to fierce market competition, "selling at a loss" has almost become the mainstream in many foreign trade industries, and it is compensated by tax rebates.

! ! ! Pay special attention! ! ! The above algorithm is not accurate, and the calculation of real tax refund is more complicated, which we will talk about in future tutorials. Here is a simple explanation (! ) explain the general meaning of tax rebate, and get a concept: even if you sell the goods bought with tax intact to foreign customers, or even sell them at a low price, you can still make money because of the tax rebate given by the state.

Price condition

Price terms are unique to foreign trade. Because it is impossible for us to pay face-to-face with customers and deliver goods face to face, we always have to transport them long distances, so there will be various transportation costs. Of course, these expenses should be taken into account when calculating the price. According to the different delivery places and methods, the freight and miscellaneous fees are naturally different, so we have stipulated some terms to express different delivery methods to measure the price.

In international trade, it is customary to use ports and docks as delivery places, so there are three main price terms:

1. China wharf: the term is FOB.

For example, an agreement to deliver goods at Shanghai Port is called FOB Shanghai.

In this way, in addition to the value of the goods themselves, you have to add the freight for transporting the goods to the Shanghai terminal, the customs declaration and export fees and the miscellaneous fees generated on the Shanghai terminal, which is the total cost price.

FOB is the most basic price.

Simple formula: FOB = price of goods+domestic freight and miscellaneous fees.

2. Delivery at foreign terminals: the term is CNF.

For example, an agreement to deliver goods at new york Port in the United States is called CNF new york.

In this way, in addition to the FOB price, the freight and miscellaneous expenses of the goods shipped to new york, USA are added.

Simple formula: CNF = FOB+ sea freight

3. Deliver goods at foreign docks, and at the same time buy insurance for the goods to avoid damage on the way: the term is CIF.

Similarly, the agreed delivery at new york Port is called CIF new york.

This way is to add a little insurance premium on the basis of CNF price. How much is the insurance premium? It is decided by the insurance company, which varies slightly according to the type of goods and the place of delivery. Call the insurance company and tell them the type, value and destination of your goods, and they will tell you how much the insurance premium needs. There are several types of insurance, but usually all risks are used: the insurance company will cover everything for you-at least that's what the book says ... hehe. ..

The insurance premium is not expensive. Take the goods exported to America as an example, and insure against all risks. The goods worth 65,438+0,000 yuan are 5 yuan insurance premium ... If you want to be safe, just bite the bullet and buy them.

Please refer to/exportbox/ei _ expor.htm for different insurance rates.

Simple formula: CIF = FOB+ sea freight+insurance premium.

Abstract: The three main price terms are FOB, CNF and CIF. The name of the port should be clearly written after the term. FOB is the most basic, equal to the value of goods plus domestic freight and miscellaneous fees. Add foreign freight to become CNF, and add insurance premium to be CIF.

Calculation of freight and miscellaneous fees

Of course, we know the value of the goods ourselves, but how much should the freight and miscellaneous fees be? After learning this, we will make a grand appearance and be good friends of foreign trade freight forwarders.

Freight forwarder is the abbreviation of freight forwarder company. If it's FOB, it's easy to say that the goods will be pulled to China Wharf; if it's CNF or CIF, the freight forwarder will help with ocean transportation. For the convenience of operation, we usually leave the troubles in the dock and customs declaration to the freight forwarder for help and deliver the goods ourselves. Therefore, freight forwarders are the main helpers of our foreign trade and never give up. There is a charge for freight forwarding service (nonsense! ), freight and miscellaneous fees are flexible and can be bargained. Like any industry, freight forwarders have good and bad. Since you are the main helper in business, you should look for more and choose a good one, so that you can stay together for a long time.

Where can I find a freight forwarder? ... old way, search engine ... better way, there is a comprehensive logistics forum on our forum (by the way, logistics is a good name given by freight forwarders), you can go there to find out about the situation.

After finding a freight forwarder, tell the freight forwarder the category, volume, weight, transportation destination and approximate delivery date of the goods, and he will help you calculate the required transportation and miscellaneous expenses. Friends who have just started to do foreign trade may wish to ask carefully what the names of these transportation and miscellaneous fees are and how much they cost, so as to know fairly well. Freight forwarders can also handle insurance on their behalf, so you can also ask them about the insurance fees required for insurance ... Don't be embarrassed to bother freight forwarders, they are pulling your business at the moment, and usually try their best to patiently answer your non-requirements, and only when you give them goods will they show their ferocious face ... So, let's throw them up now ... Hehe.

Additional content 1: About freight forwarders.

Freight forwarders are our important partners, and they can do more than just transport for us, which will be mentioned later in the course. A good forwarder can make our business smooth and safe. Accordingly, after finding a good freight forwarder, we should also fully cooperate with his work so that everyone can prosper and develop in Qixin. How to cooperate well will be explained in detail in the transportation part of the later course.

Overview: Principles of price accounting

To quote foreign investors, the price of RMB must be converted into the price of US dollars;

If you buy domestic goods for re-export, the purchase price is tax-inclusive, and a VAT invoice is required;

After export, you can get the national tax refund with the VAT invoice, which is the main component of foreign trade profits.

According to the different delivery methods, the calculation of the value of goods must include different freight and miscellaneous fees, forming three price terms;

How much transportation and miscellaneous expenses do you need? Just ask the forwarder.

We will actually calculate the price according to different examples.

Introduction to Foreign Trade 10 class hour (4)

The basic concept of tax refund is. You asked a lot of questions, and the representative squid answered as follows:

1. Is the price of tax refund based on the price I got from the factory? For example, the price I got from the factory is 1 1,000 yuan, and the tax rebate rate is 13%. To get a tax refund is to get a refund of this 1000 yuan 13%?

No. For the export of trading companies, the value-added tax is calculated according to the price excluding tax. So the tax refund rate should be multiplied by the amount shown on the VAT invoice (pre-tax amount).

Simple formula: the purchase price includes tax ÷ 1. 17 X tax rebate rate.

That is, if the VAT rate is 17% and the tax refund rate is 13%, the tax-included price of the purchased goods is1000/1.17 x13% = 65438.

2. If some factories are unwilling to issue VAT invoices, the price he gave me will become 854.7 yuan. Isn't this price more cost-effective than returning 13% without tax?

No. Without tax, there will be no VAT invoice, and in general, according to national regulations, it is impossible to export without VAT invoice (and there is no tax refund). Therefore, if the factory sells you goods at a price excluding tax, you have to find a way to get the VAT invoice from other channels, which will cost money. The final cost is the same as buying goods at the price including tax.

In addition, it should be noted that although the provision is 17% value-added tax, factories often don't really need to pay 17% in actual operation, because different places and industries have different tax rates or tax rebate concessions, so the price without tax will not really be 17% lower than the price with tax.

Will it hurt us if the factory doesn't invoice?

Indeed, in practice, many small factories do not issue VAT invoices to you because they are not qualified to issue VAT invoices. It can also be operated in this case, because you can get the same VAT invoice from other channels. So the damage of the factory not invoicing is to increase your workload .. Hehe.

2. About the exchange rate

Q: Why did some friends tell me that the exchange rate should be over 9 o'clock, while your textbook is over 8 o'clock?

A: 8.26 is the basic exchange rate in the industry, which is used by banks and industries for settlement.

So, what did your friend say about the "exchange rate" after 9 o'clock? This usually happens when a foreign trade company acts as an agent for export. As we said, if a foreign trade company acts as an agent for export, it will collect foreign exchange, write off foreign exchange, refund taxes, and finally settle accounts with the factory in RMB.

For example, if you sell a $65,438+000 apple to a customer through a foreign trade company, the capital flow is as follows:

1. The foreign trade company received 100 USD paid by the customer, equivalent to RMB 100X8.26=826 Yuan.

2. In addition, foreign trade companies can get a tax refund of 100 yuan, for example.

When the two items are added together, the foreign trade company has collected a total of 826+ 100=926 yuan. In other words, in this total amount of 100 US dollars of Apple export business, foreign trade companies earned a total income of 926 yuan.

3. Foreign trade companies have to charge a high fee for exporting ... for example, 1% of the total amount of export contracts, then 100 USD X 1%X8.26=8.26 RMB is required to be deducted.

In total, the foreign trade company should pay you 926-8.26=9 17.74 yuan.

That is to say, you sold apples worth $ 100 through a foreign trade company, and the foreign trade company actually paid you RMB 9 17.74, thus obtaining the ratio of 9 17.74: 100, which is the so-called "exchange rate" after 9 o'clock.

In fact, this 9 o'clock is just a "proportion" rather than the real exchange rate. Then why calculate such a ratio of more than 9 o'clock? To avoid trouble. Always like this. We know that the tax rebate rate is fixed for the same product, and the expenses of foreign trade companies are generally the same as the "old price". As long as the two sides cooperate once, the proportion of "more than 9 o'clock" can be calculated, and the same products can be exported later, and foreign exchange can be settled directly after 9 o'clock.

First, you must bid. The scale of the quotation is judged according to the customer's inquiry. The price of conventional products is moderate, and the new products are slightly higher.

For the first time, it is best not to use the word "quote" formally. An understatement of "price" is enough. Even the word "price" does not appear.

Key point: Be sure to leave a tail to "catch" customers.

1. Specify a minimum order quantity (as one of the bargaining chips in the future).

The most important thing is to add a note at the back, "The above prices are for reference. You can understand that the price will vary greatly depending on the order quantity, delivery time and payment method-sometimes even as high as 10% discount. " Yun Yun—Of course, all this is empty.

3. In addition to the quotation, try to attach some information about the product, such as packaging, containers, product pictures and so on.

The concept of squid is to give customers a concept of price and basic information about products first, so that customers can feel strongly that they are in contact with you, and they can understand the product information whether the transaction is completed or not. This is "worth contacting". Secondly, without knowing the psychological price of customers, at the same time, we leave the interest and space for bargaining.

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Second,

1, foreign language negotiation

2. Trade terms (CIF, FOB, CFR)

3. Terms of payment (D/P, T/T, D/A, D/P, L/C)

4. Review, amendment and acceptance of letters of credit.

5. Write-off, customs declaration, chartering and booking, insurance and commodity inspection.

6. Settlement of foreign exchange by D/P (single agreement, consistent documents)

7. International Commercial Law (Anglo-American Law, Continental Law)

8. International market analysis and marketing

9. International finance (foreign exchange rate, buying price, selling price, current price, foreign exchange transactions)

The above is the basic knowledge of foreign trade, which can't be solved by reading a book for a day or two.

The top five are more important.

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Third,

For the choice of foreign trade partners, because I don't know your specific situation, of course I can't point out my opinions for your reference. But for a manufacturer engaged in exporting products, the inspection point of choosing foreign trade partners is nothing more than:

1, basic information such as the company's strength, scale, capital composition, system and foreign trade qualification;

2, the company's business reputation, financial information, bank credit and other further valuable information;

3, the company's foreign trade professional degree, personnel quality, past performance, service attitude;

4. The depth of the company's professional field;

5. Share profits with the company;

The most taboo here is that many manufacturers only value the last point and ask about the commission ratio as soon as they come up. It seems that they are concerned about cost, but in fact they lack understanding of this field, at least they are short-sighted.

Nice foreign trade website, how about this one: bbs.fobshanghai.com.

According to your situation, after choosing a good foreign trade enterprise, the information you should provide to them should include but not limited to:

1. Introduce your company and its products in detail in Chinese and English;

2. Your company locates the external sales price and domestic sales price of the same model products;

3. Various certificates obtained by various products;

4. Photographs and simple descriptions of various industrial and commercial production lines and processing links, and brochures can be made when necessary;

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Four, foreign trade commonly used vocabulary:

Terms of foreign trade price

List of English abbreviations and shipping company abbreviations

Comparison of freight terms between Chinese and English

Abbreviation of English transport terms

English for Foreign Trade: Insurance (2)

English for Foreign Trade: Insurance Insurance

Foreign Trade English: Commission Commission

Commonly used foreign trade terms

Guide to International Trade (Chinese and English)

There are many related ones:) ~

/catalog_2005.html

Commonly used foreign trade vocabulary:

export credits

export subsidy

dumping

exchange dumping

Preferential tariff special preference

bonded warehouse

favourable balance of trade

trade deficit

Import quota system

Free trade area

turnover of foreign trade

International trade value

generalized preferential system

Most-favored-nation treatment -MFNT

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Five,

The following are commonly used foreign trade English words:

Freight charges

Unit price

Wharf fee wharf

total value

Loading fee

Amount amount

tariff

intrinsic value

stamp tax

Price include commission.

harbour/port dues

kickback

port of shipment

Discount discount

port of unloading

wholesale price

Port of destination

retail price

import license

spot price

export license

Futures price forward price

Current price (current price) current price

international market price

ex ship delivery

C & ampc (FOB); F- cost and freight

Cost, insurance and freight.

Letter of credit

By telegraphic transfer

Besides, if there are urgent problems in trade, you can log on to some foreign trade forums, such as www.fobshanghai.com, where you can talk about foreign trade freely.

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General export documents of intransitive verbs

Bill 1 .. bill type (1) bill. A bill of exchange is an instruction issued by the drawer and unconditionally paid by the payer to the designated payee according to the agreed payment period (spot or forward). (2) promissory notes. The drawee of a promissory note is the drawer himself. (3) check. The drawee of this check is a bank. 2. Bill behavior (1) issuing tickets (2) endorsement. Endorsement is the act of the payee signing or making some comments on the back of the bill, indicating the transfer of the bill. The transferor is called an endorser and the transferee is called an endorsee. The transferee can endorse it again and then transfer it, so that a bill can be transferred multiple times. The types of endorsements are: a. Blank endorsements. Endorsers only sign, without comments. B. endorsement by name. The endorser signs and indicates that the ticket is transferred to the designated person. C. restrict endorsement. The endorser signs the ticket and indicates the restrictive conditions. (3) tips. When a bill is issued or accepted for payment or forward, the holder shall present the bill to the drawee. (4) signature. The holder must first ask the drawee to sign the bill. After the drawee sees the bill, in addition to the immediate payment, the time draft must also have its signature, date and some notes, such as "payment 30 days after sight". (5) acceptance. If a time draft needs to be accepted, the holder must ask the drawee for acceptance before payment, that is, the drawee will endorse the word "acceptance" on the front of the draft and then sign it.