Import and export classification

It refers to trade of commodities by concluding contracts with international parties concerned and comprises a series of specific businesses related to labor services and technologies. In detail, it covers: mode of trading import and export commodities; transport and custody of import and export commodities; inspection on import and export commodities; customs supervision on import and export commodities; cargo insurance of import and export commodities; settlement of payment for import and export commodities, international settlement and bank credit of funds, and arbitration and judicial hearing work for resolution of import and export business disputes; operation and management of import and export business among others.

The procedures of all such businesses generally fall into such three stages as business negotiation, contract performance and delivery.

1. In the stage of business negotiation, first of all, the importer shall offer demand conditions and request for inquiry or express its purchase intention through the intermediary to the exporter to facilitate a negotiation between the importer and the "supplier" or "exporter" concerned or enable the exporter to request for a business negotiation with the importer; then, the exporter shall give an offer to the importer which shall give a counter offer in response. In correspondence, the two parties shall ultimately "accept" an offer and complete the offer process before concluding the deal, agreeing on trading conditions, exchanging notes or entering into an agreement and completing the trading procedures.                                                   

2. In the stage of contract performance, the importer shall apply for an import license/permit, open a letter of credit, and conclude shipping space (book space) for deals subject to FOB delivery terms, and buy marine insurance for deals subject to FOB or C&F terms; the exporter shall stock goods, make domestic transportation, conclude shipping space for deals subject to C&F or CIF terms, buy marine insurance for deals subject to CIF terms, and handle export contracting, commodity inspection and customs clearance.                                                    

3. In the delivery stage, the exporter shall prepare all the shipping documents, do settlement of exchange or negotiation of exchange at the designated bank for recovering the payment for goods or request for the bank to collect the payment for goods (D/P, D/A) no later than the time specified in the letter of credit in accordance with terms in the letter of credit;