Common risk

In recent years, the risk accounts and even bad debts in the import and export business have been increasing, which not only causes interest losses, but also increases the risk coefficient with the passage of time, which has a serious impact on the sustainable development of foreign trade enterprises. Therefore, the issue of risk has become more and more a topic of concern. According to the practice of import and export work in recent years, the author makes a brief analysis of the possible risk problems in the business.

Export risk

Under normal circumstances, the risk of export collection mainly has the following six situations:

Shipment specifications and dates do not conform to the contract, resulting in foreign exchange collection risk.

If the exporter fails to deliver the goods according to the contract or letter of credit, the first is the delay of the production plant, resulting in late delivery; The second is to replace the products stipulated in the contract with products of similar specifications; Third, the transaction price is low, shoddy.

The poor quality of documents causes the risk of foreign exchange collection.

Although it is stipulated that the foreign exchange is settled by letter of credit and the goods are shipped on time and with good quality, after shipment, the documents submitted to the negotiating bank do not match only and the documents match, so that the letter of credit promotes the due protection. At this time, even if the buyer agrees to pay, it has paid expensive international communication costs and discrepancy deductions for nothing, and the collection time is greatly delayed, especially for smaller contracts, seven deductions and eight percent will be reduced to a loss.

Risks caused by trap clauses stipulated in letters of credit.

Some letters of credit stipulate that the inspection certificate is one of the main documents for negotiation. The buyer will seize the seller's eagerness to ship the psychology, deliberately picky, but at the same time put forward a variety of payment possibilities, to induce the enterprise to ship. Once the goods are released to the buyer, the buyer is likely to deliberately inspect the goods, delay payment, or even empty the money and goods. The letter of credit stipulates that the shipping document will expire abroad within 7 working days after it is issued. Such terms cannot be guaranteed by negotiating bank and beneficiary and must be carefully verified. Once the trap clause occurs, it should be timely notified to modify, and do not be greedy for a moment to save trouble, and bury risks for the future.

There is no complete business management system.

Export work involves all aspects, and two ends outside, easy to have problems. If the enterprise does not have a complete business management method, once there is a lawsuit, it will cause a situation that you cannot win, especially for those companies that only pay attention to telephone contact. Secondly, as the customer source of the enterprise is expanding every year, in order for the enterprise to have a target in trade, it is necessary to establish business files for each customer, including credit, trade volume and so on, and screen them year by year.

Reduce business risk.

The risk of operating contrary to the agency system.

For the export business, the real practice of the agency system is that the agent does not pay funds to the principal, the profits and losses are borne by the principal, and the agent only charges a certain agency fee. In actual business operations, this is not the case. The first reason is that their own customers are few, the ability to collect foreign exchange is poor, and strive to complete the target; The second is to want more profit, less agency fees.

Risks arising from the use of D/P, D/A usance or consignment methods.

Deferred payment method is a long-term commercial payment method, if the exporter accepts this method is equivalent to giving the importer financing preference, although the issuer voluntarily pays the interest on the delay, on the surface only the exporter advances, loans, in essence, the customer waits for the goods to arrive at the port after checking the quantity of arrival. The importer may apply to the bank for refusal of payment if the market changes and sales fail. Some companies release goods to classmates and friends who do business abroad. I think it is a relationship customer, there is no problem of not receiving remittances. Once there is poor market sales, or customer problems, not only the money can not be returned, but also the goods may not be returned.

Import risk

In terms of import business, common risks are:

Risk caused by seller's default.

It is most common that the specifications and quality of the products supplied by the seller do not conform to those stipulated in the contract. The only way for the buyer to defend itself against the risk of such breach is to lodge a claim against the seller immediately on the basis of the report submitted by the China Commodity Inspection Authority after the inspection.

Risks caused by irregular operation of foreign trade agents.

In the import business, the formal foreign trade agency practice should be that foreign trade companies provide thoughtful and high-quality services to users, for which a certain percentage of agency fees are charged. The actual practice is that foreign trade companies in order to solicit orders, especially self-raised foreign exchange, under the pressure of competition in the industry, generally only require users to provide issuing margin, the balance of the margin by the agency, etc., and then pay when allocated. Once due to market changes or sluggish corporate performance, it will delay payment under various excuses, or pay less or even refuse to pay, forming a default or even a loss of money. Sometimes, even if the user is paid in full, the letter of credit is issued by the foreign trade company, once the seller defaults, the user (client) often requires the foreign trade company (client) to bear the responsibility, forming a situation of small profit and big risk.

Risk caused by seller's delay in delivery or lack of availability.

There are two cases of late delivery: First, the seller delays the delivery date. The second is the improper voyage arrangement. This delay and no goods available will cause losses to domestic users, users will make compensation claims, then the agent should take different risk-off methods for different situations.