Documents are the core link in foreign trade transactions.Mastering their operation process is the key to ensuring the smooth progress of transactions.In this article,we will analyze the entire process of foreign trade documents in detail and provide suggestions for risk prevention.

I.Foreign Trade Document Process

Customer Inquiry: Before placing a purchase order (PO),customers usually inquire with the business department to understand product details.

Quotation: The business department should reply to the customers inquiry in a timely manner,including the product name,model,manufacturer,quantity,delivery date,payment method,etc.and prepare an official quotation (Quotation).

Receiving the Order: After the customer confirms the quotation,they will send a purchase order (PO) and request the preparation of a proforma invoice (Proforma Invoice,abbreviated as PI).

Preparing the Production Order: After receiving the customers confirmation,start placing an order with the factory.

Business Approval: After receiving the order,the business department prepares an order details and submits it to the management for approval.

Issuing the Production Notice: After determining the delivery date,the business department will issue a production notice to notify the factory to produce on time.

Inspection: One week before the delivery date,the business department will notify the inspector to conduct an inspection.

Preparing Basic Documents: Based on the packing information provided by the factory,prepare documents such as export contracts,commercial invoices,and packing lists.

Commodity Inspection: If the product is a product subject to national legal commodity inspection,the inspection requirements need to be clarified when placing the order and relevant information should be provided.

Chartering and Booking Space: According to the quotation terms (FOB or the seller pays the freight),contact the freight forwarder or shipping company to understand the export port,shipping schedule,etc.and make a booking.

Arranging Container Transportation: After the goods pass the inspection,entrustthe company to pick up and load the container.

Entrust for customs declaration: At the same time,submit the materials required for customs declaration to the cooperative customs broker and entrustand handle the replacement of inspection and quarantine clearance certificates.

Obtain transportation documents: Submit the bill of lading supplementary information to the shipping company or freight forwarder,and urge them to issue the bill of lading sample and local cost bill as soon as possible.

Prepare other documents: Preparation of commercial invoice and FORM Adocuments such as certificates,General Certificate of Origin (CO),shipping advice and packing list.

Presentation of documents: Adoption of L/CIf there is,all documents should be prepared within the specified presentation time and carefully reviewed to ensure there are no errors before submitting them to the bank for negotiation.

Business registration: Each export business should be registered in a timely manner after completion for easy future query and statistics.

Document filing: A complete set of all documents,L/C and negotiation documents must be retained for future reference.

II.Risk Prevention Suggestions

In foreign trade document transactions,risks are difficult to completely avoid.We provide the following five risk prevention suggestions:

Understand relevant laws and regulations clearly: Mastering and applying the laws and regulations formulated by the statecan standardize the operation of import and export businesses and play a positive and effective preventive role.

Conduct credit investigations: When conducting foreign trade,choosing the trading partner is very important.It is necessary to carefully examine the authenticity of the other partys identity and find out the other partys creditworthiness.

Use risk - avoidance means: To preventfraud,as an exporter,try to use trade terms in Group C (such as: CFR,CIF,CPT,CIP,etc.).

Sign a rigorous contract: Include quality clauses,certification clauses,price clauses,inspection clauses,claim clauses,payment clauses,transportation clauses,etc.in the contract to ensure the smooth progress of the transaction.

Keep all kinds of documents well: It is recommended that export enterprises formulate a document storage system in advance,and classify foreign trade documents into corresponding file boxes according to rules such as year,import and export,and customs area.

By deeply understanding the foreign trade document process and applying these risk prevention strategies,foreign trade personnel can effectively manage and reduce risks,thus ensuring the smooth progress of foreign trade transactions.