International Trade

» qingpetras - Tips On International Trade with China

Relationship is essential to Success on starting an import export business with China. A former Executive Director of World Trade Center Association in Guangzhou China will tell you HOW...
It was at 76 floor in South Tower of World Trade Center(it was collapsed in 2001) where I first met my customer, who was from Long Island New York and he is a wholesaler on microscopes business for years.
I could never forget how he bargained with me at that short, limited moment. We negotiated Microscope which he intended to import from China. It was a very hard negotiation, I just could not sign the contract as the price was too low to be accepted. In addition, the payment term was not I expected which must be L/C, a term we say Letter of Credit issued by bank. Instead, he wanted me to accept D/P payment method. There was a big gap between two, if he agreed to change the payment term, probably I would make that deal. There was no conclusion at that time, so we change the name card, and we both agreed to think about it.
Not long after I back to China, my customer wrote me a letter that he changed his mind and agreed to open an L/C only for the first shipment. From this response I knew he was eager to make deal that not only for this one contract, he needed to test my company and the merchandise as well, and eager to put his food print to China for future's long term marketing.
In exchange, I responded him almost right away as I was also, wanted to get an opportunity for a future business run, even the deal won't be profitable.
I signed the contract, and he opened the L/C according with the Sales Confirmation. We shipped the goods accordance with the L/C, and our company received the first payment from this buyer very smoothly.
That's how I got started in import export business with this customer. It was lucky that after a short period of our contract, Chinese currency had been changed from 5.6 RMB Chinese Yuan per U.S.dollar to 6.8 RMB Yuan per U.S. dollar, which means we gained a little for exporting microscopes. And again after a certain time, I didn't remember what exactly the year was that Chinese yuan drooped again from 6.8 to 7.5 per U.S.dollar and then 8.3 per dollar and was hooked with the later one for years.
So our microscopes business was making a nice profits because of Chinese Yuan devaluation.(it has been raised from 8.3 Chinese yuan per U.S. Dollar to 7.993 from late 2005 until now) And this product kept steady for over 15 years until my former company had been capital reorganized in 2005.
Tips You Must Know On Starting An Import Export Business
1. For most Chinese suppliers, the payment term is a major concern to be considered instead of price, specially negotiating with a new importer or buyer on their first contract. I think this is reasonable fair to both side.
2. It will be easier to conclude a contract by using L/C payment term instead of D/P payment when Starting An Import Export Business with China, especially negotiating with your new exports or sellers. You may change the terms at a certain period later when your both side mutually feel need it and understand each other so well.
3. Do not concern yourself whether or not you appear polite or are sensitive to the foreign culture. Americans are generally considered the most polite and generous of visitors in foreign countries. Do not ask for references of other US customers of this supplier, they will likely not be helpful.
4. Do not expect your first contract be profitable. You plan to deal with a foreigner, a Chinese partner, facing a new but very different culture.
So don't expect you win all the things. You will pay your time at learning curve, and pay for lessons, mistakes when Starting An Import Export Business. NO PAIN NO GAIN! But you might gain your connection, your relationship, even more, your long term marketing - that's a big win! Don't forget this is your Foot Print in China, a 1.3 billion population country.

For further detail information please visit:http://www.for-your-dream-career.com

-- posted by qingpetras

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» Daniel Workman - Tips On International Trade with China

In response to Tips On International Trade with China posted by qingpetras:

Fascinating. See our article China's Wine Treasure and consider the possibilities...

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» qingpetras - Top China Import Export - Guangdong Import Export

Guangdong Province - Well known as a "capitalist state" in China, is the top import and export state in the nation for over two decades.

Guangdong Import Export Value From Jan to Nov,2006:

Guangdong Import& Export Value US$47,636,023
Import Value US$20,429,890.
Export Value US$27,206,133

China Import Export Value From Jan to Nov,2006:

China Import & Export Value US$159,355,746
Import Value US$71,851,499
Export Value US$87,504,247

Guangdong Import Export is one third of the whole China's Import and Export value for over two decades. Being one of earliest foreign trade port in Chinese modern history and the starting point of the well-known "Sea Silk Road", Guangdong enjoys not only a long history of commerce and trade, but also a mature market economy at present. Taking a forward position in opening market and economic reform, Guangdong is one of the most vigorous and developed regions in China. Its comprehensive economic strength ranks the first in China:

· The total volume of import & export is 1/3 of China
· The GDP is 1/8 of China
· The local financial revenue is 1/7 of China
· The accumullative adoption of foreign investment is 1/4
of China

Guangdong has establishing long-term and stable economic relationship with more than 200 countries and regions in the world. It has become a promising land of foreign investors. Over half of them have come for investment and world top 500 corporations have set up 581 enterprises in Guangdong. The number of the approved foreign invested enterprises in nearly 120,000.

To learn more about how the Department of Foreign Trade and Economic Cooporation of Guangdong Province (FTEC) can help both Chinese and foreigners handling their international trade business in Guangdong China.

The Department of Foreign Trade and Economic Cooperation of Guangdong Province (FTEC) is a component department of the People's Government of Guangdong Province, in charge of foreign trade and economic cooperation and port management.

The defining purpose of FTEC is helping to create economic opportunity for Guangdong Import Export enterprises as well as foreign investors over the world. The major function of FTEC is as following aspects:

. Administrative Office
The Procedures of Applying for Establishment of Resident Representative Office of Foreign Investors

. Planning and Financial Division
Examination and approval of Special Fund for Export Credit Insurance.Fund for small and medium-size enterprises to develop international markets. Application for Quota of Import Duty on Agricultural Products·

. Foreign Trade Development Division
Application for Self-Support Import & Export Rights and Alteration of Enterprise Name. Application for the Management Right of Foreign Trade Circulation. Application filed by productive enterprises for Self-Support Import & Export Rights

. Foreign Trade Administration Division
Administration of Import & Export License for Guangdong Import Export enterprises. Textile Export License. Handling of Exporter Identification (EID) for textile. Handling of Manufacturer Identification (MID) for textile .

. Electromechanical Products Import and Export Division(Guangdong Import Export Office of Electromechanical Products)
Application procedure for the funding of Export Research and Development Project of Electromechanical Products.
Import License for Electromechanical Products for Guangdong Import Export Enterprises

. Foreign Investment Administration Division Establishment of Sino-Foreign Joint Venture or Cooperation Enterprise. Establishment of Foreign Investment Enterprises Confirmatory paper of applying for foreign investment project encouraged by state for development. Certification of foreign investment enterprise applying for importing equipment, technology and fittings

. Processing Trade Division
Approval for processing trade contract. Approval of automatic import license and specially supervised and registered goods for foreign investment enterprises. Examination and approval for importing and exporting chemical products liable to producing narcotic

Foreign Economic Cooperation Division
Guidelines for procedure of foreign direct investment statistics. Application procedure for financing of Foreign Aid Joint Venture and Cooperation Projects. Application for the Qualification Certificate for Foreign Economic Corporation Management Preferential Policies

. Division of Scientific and Technological Development and Trade in Technology
Technology Import for Guangdong Import Export Enterprises. Technology Export for Guangdong Import Export Enterprises. Software Export. Applying for international aid. Export Control

For more detail of this article,please visit http://www.for-your-dream-career.com/Gua...

-- posted by qingpetras

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