外贸流程Procedure of Export

Items of expense
Water and electricity Fixed tax
Property and security
Amount/month (yuan)
250 200 100 30 3000 2000 5580/month 100/pair 20 pairs/day
Hygiene and cleaning Personal Wages House rent Above fixed expense Purchasing price of shoes Selling Volume each day Minimum selling price of one pair
Granite
6000
350
2500
8000
16850
• a. Tax • b. Personal travelling and administration • c. Domestic transportation • To decide the port of loading and think about the shipping route and transportation device you have to hire. • d. Customs formalities handling • You can ask the specialized customs formality handling company to help you for the customs clearance and pay them fees in return.
•
• • • • • •
Major terms and conditions in the contract a) An offer; b) An acceptance c) A promise to perform; d) A time or event when performance must be made (meet commitments);
Loss and profit
• Loss=the selling price is less than the BEP • Profit=the selling price is greater than BEP • Calculate the monthly profit at the selling price 125 and 135 each pair. • Calculate the lost amount at the selling price 105 each pair.
• Contracts can be either written or oral, but oral contracts are more difficult to prove and in most jurisdictions the time to sue on the contract is shorter (such as two years for oral compared to four years for written). In some cases a contract can consist of several documents, such as a series of letters, orders, offers and counteroffers.
The export price
• 1. Marine engine= • 2. Generator set= • 3. Granite=
The price setting for export is completely different from domestic selling. The price setting for engine export is much more complicated than that of shoes selling at home. The factual elements to be considered for export.
General expense
Item
Domestic transport
customs
Load Int’l &unload freight
Total expense
Marine engine
6000 800
350 350
2000 200
8000 500
16350 1050
Generator set
Procedure of Export (I)
Learning Objectives: 1. Knowing the general procedure of export 2. Negotiation, export contract making 3. Key Terms in the export contract 4. Price setting in the export contract 5. Fulfillment of export contract
Domestic purchasing prices
No Commodity Works price 1 Marine engine 2,400,000.00 2 Generator set 40,000.00 3 Granite 100,000.00 Their total expense including freight are separately: 1. 16350 2. 1050, 3. 16850 Just guess the export price.
Manufacturer
Commodity Inspection Bureau
Shipping Agent
Taxation Bureau
Foreign Currency Administration Bureau
Exporting Company/ Manufacturer
Customs House
1. Business Negotiation
• Negotiation is a voluntary process where both parties amend their offer and counter offer, modify their expectations so as to come closer each other to get a satisfactory result or outcome, accepted by both parties. Negotiation is an essential part of each transaction. The negotiation often proceeds through four stages:
Export price setting
1. How to set the price for export? 2. What things do you need to consider concerning the export price? 3. Examples of commodity export
• • • •
Non-task sounding ( enquiry ) Task-related exchange of information Argument/negotiation and persuasion Negotiation, Concession and agreement
Question
• d. Insurance: • For international shipping, you are often required to buy shipping insurance for CIF terms, the amount insured covers 110% of the total contract price. The insurance rate is normally: 3%o • Shipping insurance policies are designed to provide compensation if loss occurs when goods are shipped. Available policies cover a broad range of situations.
Price setting
• Shoes selling example: • You start up your own business of shoes retail, You need to rent a house in a street and the relative expense are as follows: • Calculate minimum shoes selling price of each pair
?
Minimum price=BEP
• • • • • • • • 1. 5580÷30=186 2. 186÷20=9.3 3. purchasing price is 100 Minimum selling price for each pair = 100+9.3=109.3 The price 109.3 is the point to break even. It is called Break even point (BEP) (盈亏平衡点 )
Insurance Company
Bank
Importing Company
The Procedure of Export
• • • • • 1.Market survey 2.Offer to an enquiry 3.Negotiation-to reach an agreement 4.Contract signing 5.Fulfillment of contract.
• f. Other items to be considered
based upon negotiation such as: • packing or not, certificate, technical service, after saleal shipping • For large and big equipments, you have to hire the whole container to carry them. For small items, you can just hire only a small room of a container for shipping(拼箱).
• Do you have any experience in bargain when you buy something? • Do you know how to protect your offer in selling something? • What is the most import thing to negotiate in a transaction?
Profit and loss calculation
Profit 1: (125-109.3)×20(pairs)×30(days) • =15.7× 600 = 9420/M Profit 2. (135-109.7) ×20 ×30 • =25.7× 600 = 15420/M Loss: (105-109.3) ×20 ×30 • = -4.3×600 = 2580/M
• e) Terms and conditions for performance, including fulfilling promises; • f) Performance. A unilateral contract is one in which there is a promise to pay or give other consideration in return for actual performance.