Recently, many textile people's circle of friends have been declining in a Brazilian market, and six Brazil-owned households have had four out-of-state articles. Even people engaged in foreign trade for many years cannot avoid export risks. Although it is indispensable to develop foreign market information, it is also necessary to prevent awareness.
Â
Nowadays, trade transactions are more and more frequent and companies must be vigilant. It is not only necessary to take into consideration the economic situation in all countries, but also to guard against various types of foreign trade traps. Here are just a few of the most easily trapped foreign trade traps!
Â
Trap one
Â
Foreign buyers are demanding stockpiling. Now, due to the overcapacity, many companies are hot-headed when they see foreign goods. They do not pay attention to the hidden risks of payment methods. For example, some buyers allow companies to sell goods, sell goods and then give money. If they fail to sell, they will accumulate pressure and transfer the risk to the company.
Suggestion: The best method of payment is to use L/C letters of credit and credit cards issued by reputable banks, because in South America, Central America and other countries, even 3 yuan, 10 yuan can open the bank. The second is D/P (Payment of Payment), and D/A (Acceptance / Payment ). Even if it is a closely related customer, try not to use the method of shipment.
Â
Trap 2
Â
Buyers concealed the fact that they filed for bankruptcy protection. Some buyers have already filed for bankruptcy protection. However, the company has already shipped the goods out and recovered no money. After investigation, it was discovered that the buyers had no repayment ability at all. However, because buyers have already filed for bankruptcy protection, companies simply cannot sue such buyers.
Recommendation: To investigate the buyer’s credit status, you can investigate and evaluate buyer ratings through a lawyer or credit rating agency.
Â
Trap three
Â
Companies need to be careful that some buyers will change the terms of the letter of credit after signing the contract, such as the quantity, difference, quality, etc. of the goods. For example, if the quality requirements of the product are changed, the company may not be able to meet the terms of the credit after delivery. It is therefore impossible to recover the money.
Recommendation: Companies must be careful about all contracts, amendments to the terms of the letter of credit, and legal advice if needed.
Â
Trap four
Â
If the buyer takes the goods away without the original bill of lading, the company should not think that holding the original bill of lading will not cause problems because the buyer may not have the original bill of lading and may also get the goods, because according to the way the company adopts the FOB , the transportation is the responsibility of the buyer. Foreign freight forwarders only care about their interests and are obliged to pay for them. The case of Xintai mentioned above is such that American buyers bought a freight forwarder and removed the goods without an original bill of lading.
Suggestions: There are several black spots where local freight forwarders often make tricks. South America, China, the United States, Mexico, the Middle East, and Malaysia.
Â
At present, the global economic recovery is still weak, and the external environment faced by textile companies is still poor. To prevent mistakes in foreign trade, exporters should learn more about the buyer’s ability to pay, and should not take any light on old buyers’ buyers. Domestic sales companies should also fully understand each other’s economic strength and reputation before trading, and do not blindly trade.
For more content, please follow this site
Easy Care Shirts,Easy Care Plain Fabric Shirts,Men'S Easy - Care Shirts,Autumn Men'S Easy Care Shirts
Shaoxing Moonten Trade Co., Ltd , https://www.sxmoonten.com