Is General Trade a Sure Win? You May Be Thinking Too Simply

Mr. Zhang recently received an inquiry email from Germany. The other party showed a strong interest in the environmentally friendly packaging materials produced by his factory. This made him both excited and nervous - as an entrepreneur who is in contact with import and export trade for the first time, how should he seize this opportunity? Today, we will delve into the mysteries of general trade in imports and exports to help more entrepreneurs like Mr. Zhang open the doors to the global market.

General Trade refers to the trading method of unilateral import or export of goods, which is different from other forms such as processing trade and entrepot trade. Its core characteristics are the complete transfer of ownership of the goods and the complete and independent trading process.

• Complete Tax Payment: General trade is required to pay value-added tax and customs duties in the import link according to the law.
• Independent Pricing: The buyer and the seller freely negotiate the price according to the market situation.
• Clear Rights and Responsibilities: From the signing of the contract to the collection and payment of the purchase price, each link has clear specifications.

Ms. Li's clothing factory has recently started to expand into the Southeast Asian market. She has summarized a set of standard operating procedures:

• Market Research: Understand the needs of the target market through the industry report of Zhongshitong.
• Customer Development: Participate in international exhibitions or use B2B platforms to establish connections.
• Contract Signing: Clearly define key terms such as trade terms (such as FOB, CIF) and payment methods.
• Customs Clearance and Logistics: Prepare customs declaration documents and arrange international transportation.
• Foreign Exchange Collection and Verification: Complete foreign exchange settlement through the bank and keep the full set of documents for future reference.

According to the data of Zhongshitong Trade Consulting, 80% of trade disputes originate from the following problems:

• Document Discrepancies: Errors occur in documents such as commercial invoices, packing lists, and certificates of origin.
• Differences in Quality Standards: Electrical appliances exported to Europe must meet the requirements of CE certification.
• Exchange Rate Fluctuations: A three-month payment period may cause profits to be eroded by exchange rates.

With the progress of technology, the traditional trade model is undergoing changes:

• Intelligent Customs Declaration: Through the single window system, the customs declaration time is shortened from 2 days to 2 hours.
• Blockchain Traceability: Buyers can track the transportation status of goods in real time.
• Big Data Risk Control: Enterprise credit assessment no longer depends on manual investigations.

Import and export trade is like a carefully prepared voyage. Before setting sail, please confirm: Does your product have international competitiveness? Does your team possess professional knowledge in foreign trade? Is your risk prevention and control mechanism perfect? If the answers are all yes, then the global market is waving to you. Welcome to share your foreign trade stories or questions in the comment section, and let's jointly discuss the opportunities and challenges for Chinese enterprises to go global.