Under normal circumstances, there are six main risks ofimport and export business:

The inconsistency of the shipping specifications and dates with the contract regulations may cause foreign exchange collection risks.

When the import and export business was in progress, the exporter did not deliver the goods in accordance with the contract or the letter of credit. First, the production plant missed work, resulting in late delivery; second, products of similar specifications were used to replace the products specified in the contract; third, the transaction price was low. Shoddy.

Poor quality of documents causes foreign exchange collection risks.

Although it is stipulated that foreign exchange settlement should be settled by letter of credit, and the goods should be shipped on time, but after shipment, the documents delivered to the negotiating bank did not match the bills and the documents, which promoted the protection of the credit. At this time, even if the buyer agrees to pay, the expensive international communication fees and discrepancies are paid in vain, and the collection time is greatly delayed. Especially for contracts with a small amount, losses will occur at a 70% discount.

The risks caused by the trap clauses stipulated in the letter of credit.

When import and export business is in progress, certain letters of credit stipulate that the customer inspection certificate is one of the main documents for negotiation. The buyer will catch the seller's eagerness to ship the goods and deliberately be picky, but at the same time propose various payment possibilities to induce the company to ship. Once the goods are released to the buyer, the buyer may deliberately inspect the goods for discrepancies, delay payment, or even run out of money or goods. The letter of credit stipulates that the shipping documents shall expire abroad within 7 working days after issuance, etc. Neither the negotiating bank nor the beneficiary can guarantee such terms, and must be carefully reviewed. Once the trap clause appears, it should be notified in time to modify it, and don't be greedy for a moment and save trouble, so as to bury hidden risks in the future.

There is no complete business management system.

Export work involves all aspects, and both ends are outside, which is prone to problems. If the company does not have a complete business management method, once a lawsuit arises, it will cause a situation where the lawsuit cannot be won, especially for those companies that only pay attention to telephone contact. Secondly, because the customer base of the company is expanding every year, in order for the company to have a target in trade, it is necessary to establish a business file for each customer, including creditworthiness, trade volume, etc., and screen it year by year.

Reduce business risks.

Risks caused by operations that contradict the agency system.

For export business, the real practice of the agency system is that the agent does not advance funds to the principal, the profit and loss 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 I have fewer customers and poor foreign exchange collection capabilities, and I have to strive to complete the target; second, I want to make more profits, but I think the agency fee is low.

Risks caused by using D/P, D/A forward payment methods or consignment methods.

The deferred payment method is a long-term commercial payment method. If the exporter accepts this method, it is equivalent to financing the importer. Although the issuer voluntarily pays the deferred interest, only the exporter’s advance and loan are required on the surface , In essence, the customer waits for the arrival of the goods to check the quantity of the goods. If the market changes and the sales are not smooth, the importer can apply for the bank to refuse to pay. Some companies release goods to classmates and friends who do business abroad. I thought it was a relationship customer, and there was no problem of not being able to receive foreign exchange. In the event of poor market sales or customer problems, not only the money cannot be collected, but the goods may not be collected.