International Business Basic

Steven Zheng
General manager
Hangzhou Kefan Import & Export
Speaker Picture Slide

Steven, Zheng
General manager
Hangzhou Kefan Import & Export
International Business Basic

TERMS ORDERS DOCUMENTS

• PAYMENT TERMS • PROFORMA INVOICE • PROFORMA INVOICE

• TERMS OF TRADE • CLOSING WORK • CLOSING WORK
• DELIVERY • SHIPMENT • SHIPMENT
• ORDER PLACEMENT
Telegraphic transfer (T/T)
Very common payment terms of the international
business. The deposit combined with the balance can
solve cash flow issues in the business.

Letter of credit (L/C)

Bank trust based payment terms, depending on the
agreement, the L/C normally were used for big orders in
the international business

Open account (O/A)

Business trust based payment terms, depending on the
agreement, O/A bearing different risk in the business
payment.
 • Notify the opener about the shipping company, consignee
etc. before the loading
• The L/C take the effect under the approval of the import
authorization
SOFT CLAUSE • 1/3 of BL send to the opener
• Limit the shipping company or forwarder
• The QC certification be issued by the assigned person with
signature
• Through BL allowed but transit shipment prohibited
• Certificate of receipt required when reimbursement
• CO date late than the BL date
• ……
Don’t guess the buyer’s real thinking

Never offer the lowest price at the first quotation

No buyer will consider the price is cheap

Never give the buyer options you don’t want them

to select
01. Respect the reality
• The truth always can help buyer trust the seller more.

02. Leave some space for yourself DELIVERY TIME CONTROL

• Never big talk to get a order

03. Control the delivery time and the shipping time

• A solution always better than an excuse
BILL OF LADING AND RISKS

• Marine bill of lading and the house bill of lading

• The risk inside the Bill of Lading
• What we do to the Bill of Lading during the business
• What’s the most important thing in the Bill of Lading
• Case dealing if the Bill of Lading lost
CLOSING WORK

• Record everything involved in the negotiation

• Analysis all the possible changes
• Give the solution for each possible changes
ORDER PLACEMENT
NO ORDER ORDER FOLLOW UP

1 • Customer doesn’t has order in hand 1 • Any letter should be useful

2 • The order is not urgent currently 2 • No more asking but suggestions

3 • The quality is not good enough 3 • Keep customer on posted

4 • The service is not satisfied 4 • Don’t be too frequently

5 • ………… 5 • …………
What we need to concern on the PI

• More detail more safe

• The business trap in the Proforma Invoice
• Difference between the Proforma Invoice and the sales contract
• Why the Proforma invoice is more common than the contract
• Does the proforma invoice can replace the sales contract?
Order proceeding and shipment

• Production monitoring
• Status report
• Inspection and report service
• Keep the buyer posted on the proceeding
• Container booking and shipping company
• Document presents
• After services
Thank you!