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The most comprehensive guide: from inquiry to document settlement, one article explains the international trade process clearly

发布时间:2025/05/14
作者:AB Customer
阅读:280
类型:Tutorial Guide

This comprehensive guide will break down the international trade process from inquiry to order payment step by step, helping foreign trade novices master each key stage and conduct business successfully.

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This tutorial will analyze the international trade process from inquiry to documentary settlement in detail, explain each key step one by one, and help foreign trade novices start their career smoothly.

Key points of international trade process

The international trade process consists of several key steps. Let’s break them down one by one:

  1. Inquiry : This is the starting point of international trade. According to industry statistics, about 70% of successful international trade transactions begin with an effective inquiry. For example, a US clothing retailer sends an inquiry to a Chinese textile manufacturer, asking about the price, quality and delivery time of a certain fabric. An effective inquiry should clearly state the product requirements, quantity and expected price range. A well-crafted inquiry can significantly increase the chances of receiving a satisfactory response. Inquiry Receiving Diagram
  2. Quotation : After receiving the inquiry, the seller will issue a quotation. The quotation should include price, quantity, quality specifications, delivery conditions and payment terms. For example, a Chinese electronics manufacturer sells 1,000 smartphones to a European distributor at a unit price of US$200, requiring delivery within 30 days and payment by letter of credit.
  3. Counteroffer : The buyer may not be satisfied with the initial offer and may make a counteroffer. This process may involve multiple rounds of negotiations. In a real case, a Brazilian coffee importer may make a lower counteroffer to a Vietnamese coffee exporter, and the exporter may adjust the price and other terms accordingly.
  4. Acceptance : Once both parties have agreed on the terms, the buyer accepts the offer. This constitutes a legally binding contract. In 80% of international trade cases, acceptance is confirmed by written communication, such as an email or a signed contract document.
  5. Signing a contract : Signing a contract is a crucial step. It should clearly define the rights and obligations of both parties. Key points to note include product description, price, quantity, delivery time, payment terms, and dispute resolution methods. For example, in the contract signed between an Australian wool supplier and a Japanese textile mill, the contract stipulates the quality standards of the wool, the exact delivery date, and the currency of payment.
  6. Goods preparation : The seller begins preparing the goods as required by the contract. This may involve production, procurement, and quality control. A furniture manufacturer in Indonesia may need to source high-quality wood and hire skilled workers to produce furniture to the contract specifications.
  7. Inspection : Goods are usually inspected before shipment to ensure that they meet quality and quantity requirements. In some countries, government-authorized inspection agencies must conduct inspections. For example, food exported from Thailand to the European Union must pass strict food safety inspections.
  8. Customs declaration : Exporters need to complete the customs declaration process, which includes providing accurate information about the goods, such as description, value, and origin. Incorrect customs declarations can lead to delays and fines. In a recent case, a Chinese toy exporter faced a two-week delay due to an error on the customs declaration.
  9. Chartering : The exporter arranges for the transportation of the goods. This may involve chartering a ship, booking a flight, or using another mode of transport. For example, a large German machinery exporter might charter an entire container ship to transport its products to South America.
  10. Loading : The cargo is loaded onto the transport vehicle. Correct loading is essential to prevent damage during transport. French wine exporters need to ensure that the wine bottles are carefully packed and loaded to avoid breakage.
  11. Insurance : To protect against potential risks during transportation, exporters or importers usually insure their goods. Insurance coverage will vary depending on the nature of the goods and the transportation route. For example, high-value electronic products may require full insurance.
  12. Documentary Settlement : This is the final step in the international trade process. The exporter prepares a series of documents, such as bills of lading, invoices, and insurance policies, and submits them to the bank to apply for payment. According to trade data, about 90% of international trade settlements are completed through documentary letters of credit or other bank-related payment methods. Example of documentary settlement

in conclusion

For foreign trade novices, it is essential to master the international trade process from inquiry to document settlement. By understanding each step and its key points, and learning from real cases, you can confidently deal with the complex international trade environment. If you are eager to learn more about international trade and improve your skills, please subscribe to our newsletter for regular updates and insights.

International trade process Query Payment Tutorial Foreign trade for beginners Newcomer in foreign trade

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