What are the better and safer ways to collect foreign trade payments?
For some small businesses that do not have import and export rights or soho, foreign exchange collection is undoubtedly a headache. Either find a friend, or find an agent, or sign up for an offshore account. As the country's supervision of overseas accounts has become increasingly strict, and more and more overseas accounts have been closed or frozen, many overseas traders have begun to silently prepare their own B plans. So, from the perspective of national policy, is there a safe and simple way to collect money from foreign trade?
What are the better and safer ways to collect foreign trade payments?
Use market procurement (customs supervision code 1039)
The market procurement trade method (customs supervision method code: 1039) refers to the trade method for qualified operators to purchase goods in the market agglomeration area recognized by the national commerce authority. The value of a single customs declaration is US$150,000 (including US$150,000) ) The following procedures shall be handled at the port designated by the customs for customs clearance of exported goods.
Market procurement trade (1039) has the following two main characteristics:
1. Value-added tax exemption and non-refundable
Goods exported by way of market procurement trade are directly exempt from value-added tax and are not refundable. That is to say, the goods of market operators without value-added tax invoices or without value-added tax invoices can be exported through market procurement trade.
2. Individual foreign trade entities can receive foreign exchange settlement
Commodities exported in the form of market purchase of foreign exchange can be collected and settled by the pilot market for foreign exchange purchase trade operators, or they can be collected and settled by individual market operators; if the individual market operators collect and settle foreign exchange, they can purchase foreign exchange through the pilot market. Trade operators who are qualified to collect and settle foreign exchange on their behalf must first open a foreign exchange settlement account, and then handle the foreign exchange settlement with the agency agreement and the original export declaration form; on the other hand, for foreign exchange, the government will verify the pilot market procurement trade operation The authenticity of trade.
Goods declared in accordance with the export method of market procurement trade do not need to issue input invoices or apply for tax refunds. In the past, goods without an invoice could only be purchased for export. Now, we can entrust foreign trade companies with market procurement qualifications to declare exports in the form of 1039. Foreign trade personnel do not have to worry about invoice issues and tax issues related to invoices.
For goods declared in 1039, the corresponding overseas payment can be declared in the 1039 trade project, and foreign exchange can be collected legally and safely.
Therefore, the 1039 model is very suitable for foreign trade operators who do not have import and export rights or increase tickets, but want to receive foreign exchange for normal and safe export. There is no need to worry about long-term problems such as high export inspection rate, closure of offshore accounts, underground bank operations, inability to obtain invoices, and tax risks.
Summary of foreign trade collection methods:
Foreign trade friends often discuss which foreign trade collection method is better and choose a suitable collection method. For a foreign trader, not only saves time and money, but more importantly, reduces risks and caters to customers. Taste, improve efficiency, and make foreign customers more satisfied.
One, check
Check is a bill issued by the drawer, and entrusts a bank or other financial institution to handle the check deposit business to unconditionally pay a certain amount to the payee or the bearer at the time of the check. Checks can be used for payment and collection.
The main purpose of checks is to collect payments. It is characterized by low prices, usually only 20 yuan of collection fees, you can collect checks sent by advertisers through major banks, and the fees are usually much cheaper than wire transfers.
But there are some shortcomings in using checks to collect payments. One is that the time period is very long. A check is sent from the United States to China, and then sent back to the United States from China. The entire cycle usually takes one month or even several months, which is too long. Second, there are certain restrictions on cheque collection in China. Sometimes the bank will require the user to provide evidence such as labor contracts for cheque collection, and sometimes the problem of intermediary deductions will occur. Therefore, the collection should choose overseas branches such as Bank of China or ICBC. Many banks conduct collections.
2. Credit card collection (Visa/Master)
Credit cards are issued by commercial banks to individuals and organizations. They can use special carrier cards with consumer credit for shopping, consumption, and cash deposits and withdrawals from special units. The issuing bank will give the cardholder a certain credit limit. The cardholder can Consume first and then repay within the credit limit.
There is a difference between 3D and non-3D credit card collection. The so-called "3D" refers to: VISA, MASTER (3D) 3D collection channels are credit cards set up by VISA and MASTER credit card organizations to protect the interests of cardholders and prevent merchants from malicious card theft. Verification measures, which are mainly implemented in Asia.
Since VISA and MASTER are mainly popularized in countries that require registration, the 3D verification system on the Internet greatly reduces the possibility of malicious fraud by merchants, but at the same time it also hinders about 80% of effective transactions. And "non-3D" can be paid without 3D verification. Conform to the habit of using credit cards abroad. It is more convenient for foreign trade merchants to collect overseas payments, thereby improving the efficiency of business transactions.
So the biggest difference between the two is whether one has gone through 3D verification. Non-3D; no need to do 3D authentication, the success rate of swiping card is 100%, but the risk is a little bit bigger than 3D. The payment system has done risk prevention, and has an automatic shielding function for credit cards with high bad records to make them unable to pay. So as to avoid damage to the interests of customers!
It is relatively rare in China to use credit cards to collect payments, so now many foreign trade friends encounter the problem that foreigners have to pay with credit cards. Many people don’t understand what is going on. Credit card collection needs to open online credit card payment with a third-party payment company. For business, open a credit card collection channel, and customers can pay directly with a credit card. This collection method is only suitable for retail merchants. For wholesale, such as charging sample fees or small orders, the related costs are usually expensive, such as certain The price of the domestic payment platform is an annual fee of 1,000 yuan for international credit card services and a handling fee of 4%. At the same time, according to China's personal foreign exchange management measures, there is a limit of US$50,000 per person per person in personal foreign exchange settlement accounts. In addition, credit card theft may occur, and the chargeback period is longer, reaching more than half a year. Therefore, using a credit card to collect payments is more troublesome than PayPal, which is not suitable for small-scale foreign trade friends.
Three, wire transfer (T/T) and letter of credit (L/C)
Telegraphic Transfer-TelegraphicTransfer T/T telegraphic transfer is an application by the remitting bank to send a telegram or telex (TestedCable/Telex) or to the foreign exchange bank through SWIFT, instructing it to pay a certain amount to the beneficiary. Kind of remittance settlement method.
Letter of Credit (L/C for short) is divided into clean letter of credit and documentary letter of credit. For the former, such as a travel letter of credit, the beneficiary can obtain payment only by means of a draft or receipt; the latter requires that the beneficiary must provide certain shipping documents to obtain payment. The letters of credit mentioned in foreign trade are generally documentary letters of credit.
The general fee is more than 3% of the remittance amount.
Wire transfer At present, many banks such as Bank of China, Industrial and Commercial Bank of China, China Merchants, and CITIC all have wire transfers to send money abroad. Taking the more commonly used Bank of China and Industrial Bank for example, Bank of China wire transfer must have a certain recipient country, address, name and account number, and it can be received within 3-5 working days. If the currency used is US dollars, then the face amount must be paid. One-thousandth of the handling fee (minimum RMB 20), 1%-3% of the banknote-to-exchange exchange rate difference (calculated by the bank based on the quoted price of the day) and a cable fee of RMB 150; ICBC promises that the wire transfer business will arrive after 7 working days If you use US dollars, you need to pay a handling fee of one-thousandth of the face value (minimum 20 yuan, maximum 200 yuan), 3% of the banknote conversion fee and 150 yuan telegram fee.
Many foreign trade friends who have just entered the bank have some misunderstandings about wire transfers and letters of credit. In fact, the main difference is that the letter of credit (L/C) is bank credit. There is a bank guarantee. The credit risk is relatively small; wire transfer ( T/T): Personal credit. In other words, if the individual does not speak credit, it will cause losses, and it will be difficult to recover.
At present, when receiving large amounts of foreign trade transactions, wire transfer is a more common method of remittance. However, it is recommended that customers who deal with for the first time must use a letter of credit. Although the cost of a letter of credit is high (bank fees can be shared by both parties), it can Safe collection of foreign exchange. Wire transfers are generally used among familiar customers, with low cost and convenience. But if the customer needs to pay the seller tens to hundreds of dollars, it will be very troublesome. Therefore, it is recommended to use other payment methods in the process of product sample delivery and consignment.
4. Cash payment, Western Union, Moneybooker, Moneygram
Cash payment. The state currently has strict management of cash payment. It is stipulated that for cash payments of more than 50,000 yuan a day or cash payments of more than 50,000 yuan cumulatively several times a day, the bank shall register one by one and properly keep the relevant The information should be filed with the local branch of the People’s Bank of China on a monthly basis. At the same time, different countries also have restrictions on carrying cash in and out of the country. For details, please refer to relevant national regulations. The most important thing for the foreign trade industry is that cash payment requires both parties to face-to-face transactions, which hinders the completion of most transactions, and at the same time is not suitable for current e-commerce needs.
Western Union and moneygram are the two fastest remittance methods in the world, both of which can withdraw cash within a few minutes, and the procedures for sellers are simple. However, because the funds arrived in an instant, Western Union and moneygram were also used by some international frauds. Some criminals got the money and fled, and buyers have no way of doing this. Therefore, foreigners are very cautious when using the services of Western Union and Moneygram, especially when paying larger amounts. Moreover, it is more troublesome to go to the bank or the special office of Western Union when processing the Western Union. But now you can pay directly online in the US, and you can pay by phone in the US, the UK, and Canada, which is much more convenient.
moneybooker is a relatively common payment tool in Europe. The user can conveniently transfer money from his credit card or bank account to his MoneybooBers account, and transfer money from his MoneybooBers account to your MoneybooBers account. Receiving money with MoneybooBers is very simple. You need to choose a valid e-mail box to register as a moneybooBers account. As long as you provide your e-mail address for the payer, any time the sender transfers money to your MoneybooBers account, the funds will be credited to your immediately MoneybooBers account balance.
MoneybooBers withdrawal has two methods: bank withdrawal and check withdrawal. It only takes about 3 days to withdraw money to Bank of China. The fee for withdrawing money to the bank is 1.80 Euro, and the fee for withdrawing money by check is 3.50 Euro. The handling fee is very low. But the disadvantage is that there are fewer agencies in China, and domestic credit cards are not supported, which is a bit inconvenient for domestic foreign trade collection.
Five, PayPal
Paypal is a very successful online payment method. It can be used in 45 countries and has more than 100 million users worldwide. Paypal has the most powerful protection for buyers, that is, the requirements of the most sellers are the most stringent, as long as someone Complaints, your account is likely to be blocked, especially for users in countries with no credit system like China (of course, there are more black sheep).
There may be other reasons why Americans love to use PayPal. Although the PayPal account is associated with a credit card, if it is processed in a timely manner, the chargebacks and claims can be made irrespective of the credit card. The advantage of this is that it will not affect the customer's bank credit record, because the credit system of PayPal is relatively independent.