Detailed explanation of the whole process of import trade business: from market research to dispute resolution

In the import trade business, importers usually need to go through four main stages of work: Import preparation, Import negotiation and signing, Import performance >AndImport aftermath. Each stage of work includes a number of specific tasks. The main work content of these four stages will be introduced in detail below.

Import preparation

Carry out market research

Importers first need to conduct market research, including domestic market research and international market research, to familiarize themselves with the products and understand the market conditions. Determine the feasibility of imported goods in the domestic market through research and estimate their import costs and profit margins.

Establish a company and build a team

After completing the market research, you need to register a company, obtain a business license, apply for various company qualifications, and obtain a business license; at the same time, recruit personnel to form a team and build a company structure.

Find suppliers and establish business relationships

Importers can find overseas suppliers or manufacturers through domestic and foreign trade fairs, online resources, third-party introductions, advertisements, etc., and conduct research on their production capacity, product quality, service quality, etc., and then select a number of ideal overseas suppliers.

Carry out credit investigation

Importers can check the credit status of exporters through domestic banks or third-party professional institutions as a basis for whether to continue business.

Import negotiation and signing

Inquiry and price comparison

In international trade, importers usually receive many quotations, catalogs, samples, etc. for similar goods. They need to compare prices and select a few exporters who are interested in further negotiations to respond.

Bargaining

Quality and price are the most important factors in the basic conditions of the transaction. Importers generally require high quality and low price. The buyer and seller have to go through several rounds of bargaining before they can finally reach an agreement and determine the transaction conditions.

Sign the contract

After the buyer and seller reach an agreement, the importer needs to sign an international goods sales contract with the overseas supplier and a sales contract with the domestic purchaser.

Import compliance

Apply for import license

According to the “Measures for the Administration of Goods Import Licenses”, the country implements a unified goods license system. Import licenses are issued by the Ministry of Commerce and provincial-level local commerce authorities, and inspection and quarantine licenses are issued by the customs.

Prepare payment

After signing the contract, the importer needs to prepare funds and apply for opening an import L/C or handle external advance payment. Under the L/C settlement method, after the importer obtains the import license, he should apply to the supplier for issuance of L/C through the bank where the account is opened or make payment via bank wire transfer within the issuance time specified in the contract.

Chartering and booking

According to the delivery time agreed by the overseas exporter, the importer handles chartering and booking matters with the shipping company through the freight forwarding company.

Apply for insurance

After receiving the shipment notification from the overseas exporter, the importer should go through the insurance procedures with the insurance company in a timely manner. After paying the insurance fee, the insurance company will issue an insurance document.

Import aftermath

Import foreign exchange payment verification

Under the new system, enterprises do not need to go through verification procedures for foreign exchange receipts and payments, export foreign exchange collections do not need online verification, and enterprises do not need to frequently travel between foreign exchange bureaus and banks.

Dispute handling

In the import business, if unexpected events such as contract breach or cargo distress occur, the importer still needs to handle disputes and claims. Dispute resolution methods usually include negotiation, mediation, arbitration and litigation.

Domestic sales

Importers sell goods domestically. After obtaining customer orders, they sign domestic sales contracts and issue sales outbound orders, notify customers of payment, and after confirming receipt of customer payment, issue sales invoices with import customs declaration certification documents and arrange logistics companies. Transported to customer designated location.