[China Glass Network] For many small and medium-sized enterprises, although they want to get a piece of cake in international trade, they are often afraid of being deceived. In the process of foreign trade export, what are the traps that may be stepped on, how can enterprises find and avoid Open these traps?
There are many pitfalls that domestic companies may step on when doing business with foreign buyers:
Trap 1: Foreign buyers request goods
Nowadays, due to overcapacity, many companies are hot when they see foreign merchants, and they do not notice the risk of hidden payment methods. For example, some buyers let companies pick up goods, sell goods and then give money. If they can't sell, they will accumulate and pass the risk on to the company.
Suggestion: The payment method is better to use the L/C L/C, and the letter of credit issued by the reputable bank, because in South America, Central America and other countries, even 3 yuan, 10 yuan can open the bank. Secondly, D/P (payment delivery), D/A (acceptance and delivery), even for customers with close relationship, try not to use the method of stocking.
Trap 2: The buyer conceals the fact of filing for bankruptcy protection
Some buyers have filed for bankruptcy protection, but the company has already shipped the goods out and can't recover the purchase price. After investigation, it is found that the buyer has no repayment ability. But because buyers have filed for bankruptcy protection, companies can't sue such buyers.
Recommendation: Investigate the buyer's credit status and investigate and evaluate the buyer's rating through a lawyer or credit rating agency.
Trap 3: Enterprises should 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, the quality requirements of the products will change, and the company may not be able to meet the credit after delivery. The terms of the license, so the money cannot be recovered
Recommendation: Companies must be careful about all contracts, amendments to the terms of the letter of credit, and legal advice when needed.
Trap 4: The buyer picks up the goods without the original bill of lading
Recommendation: Enterprises should not think that holding the original bill of lading will not be a problem, because the buyer may not get the goods without the original bill of lading, because according to the way the company adopts FOB, the transportation is the buyer's responsibility, and the foreign freight forwarder only takes care of the interests and pays for it. The person of money. The above case of Xintai is like this. American buyers bought a freight forwarder and took the goods without the original bill of lading.
Local freight forwarders often play tricks on several black spots: South America, Central America, Mexico, Middle East, Malaysia, etc.
With the expansion of its own strength and international vision, more and more domestic companies have set up their own international trade department to engage in export business, gradually reducing their dependence on trading companies. However, due to lack of experience, it is often difficult to see through the fraudulent means of foreign buyers or freight forwarders, and thus be deceived. I hope that I can help domestic enterprises to understand the potential pitfalls and risks in the process of export trade and protect their own interests to a large extent.
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