Foreign trade services

Every businessmen at least once thought about entering the world market. Many people dream of finding business partners in China.

A beautiful dream, but there are a lot of difficulties, like customs, taxes, foreign currency, transportation and risks.

What is foreign economic activities?

Foreign economic activity is a business area related to the import and export of goods. Companies and separate businessmen come to the international trade purposively. When there are no perspectives in the domestic market, they try to enter into foreign markets.

The main definitions of international trade are: import and export.

This activity attracts a lot of attention from the customs and tax authorities; therefore, not everybody will decide to work in this area.

Import Line Co. Ltd. provides a full range of services for foreign economic activity:

1. Searching abroad  the reliable supplier of the products you are interested in. This is a very important stage of work. It is important to recognize swindlers and trade agents and go directly to manufacturers. Then choose the most optimal among the manufacturers.

2. Negotiations with the supplier and audit of the production base with a visit to the place of production.

3. Exchanging of samples and technical documentation to prepare the mass production of product.

4. Contract conclusion with the contractor. The contract will include all the terms and conditions of the coming dealing. Contact is made in two, and sometimes in three languages.

5. Opening a currency account. It will probably be dollars or euro, but there are specific situations.

6. Registration at the customs post. The Parts of the contract must be registered at the customs post, where the transported goods will be declared. Cooperation with the customs broker allows us to hasten the customs clearance, avoid penalty charge, storage fees and others unforeseen situations.

7. Rent of the warehouse for temporary storage. The procedure of customs clearance is not the fastest procedure, so it is necessary to be ready to pay for temporary storage of goods while customs clearing process is on.

8. Certification. Some products must have EAC certification. Currently this process became more complicated and more expensive. Before concluding contract, we provide our customers all the conditions of certification.

9. Cargo insurance. To reduce the risks of damage and loss of goods during transportation, we recommend clients obligatory insure them.

10. Logistics. The cost of transportation and its terms sometimes occupy a significant part in the total cost. Our experts will choose the most optimal delivery way for you among the huge variety of potential ways.

11. Business accounting for an international economic transaction, currency purchase, currency transfers to a foreign partner, payment of fees, VAT, work with currency control - we will do ourselves. We conclude the contract with Russian customer in rubles.

Outsourcing of foreign economic activities of import and export.

If you are preparing to trade abroad, you have to study the other side’s market features, look for suppliers competently, work with customs, avoid delivery overpay.... It’s not easy to solve all this questions. Professionals with focused specialization are seldom and “expensive” ones.

What is FEA outsourcing? What do you need it for?

Outsourcing is the services of third-party companies with a staff of professionals which will be responsible of a part of the questions of your organization. Outsourcing of foreign economic activity is the transfer to third-party organization import and export processes.

The business owner is engaged in activities within the country, and professionals organize international purchases and sales. Such division of labor allows you to grow up your business faster than competitors which do everything by themselves. Small and medium enterprises can’t employ experienced specialists. In addition, such specialists are usually have focused specialization, some are experts in logistics, others in imports from China, and some are experts in customs law. Completing FEA department is a serious question. And you can solve it due to outsourcing. You will be managing you business and a part of obligatories outsourcing company will be doing. Thus, you do not need to employ additional staff members, you do not need to carry on customs clearing by yourself , carry on registration and delivery of goods, rent warehouse  etc.

How much does FEA outsourcing service cost? We are in the habit of other people's services are more expensive than solution the problem by own forces. But outsourcing can be even cheaper. You can calculate your own costs of concluding contract with a foreign partner, and then ask outsourcing company for the price for the same service. The outsourcer’s price may be much more less. And in this case, you will receive free time and a guarantee of the dealing security. The cost of outsourcing in each case is individual. It depends on the functions and tasks that you delegate to specialists. Outsourcing company can perform whole complex of questions from finding the supplier up to entry of goods in the books in accounting. You can buy complex follow-up support or delegate individual tasks.

Let’s consider the main services of foreign economic activities outsourcing:

1. Searching for suppliers or buyers and organization of negotiations. The manufacturer often sells goods through intermediaries what increase prices. Finding a real manufacturer that is the task which outsourcing company can do, outsourcing company chooses a list of potential partners, holds on negotiations with them and marks the most profit conditions. During negotiations it is important to pay attention to the mentality of the partner. The mentality of Western and Eastern businessmen is different. Outsourcers have experience in negotiations with suppliers from different countries.
2. Preparation of foreign trade contract is the key to successful organization of the deal. The contract must be done correctly, because it is the main document. It includes information about the product, transaction value, terms of payment and delivery, the procedure for resolving disputes and actions in case of force majeure. When working out the contract, it is necessary to take into account the requirements of the Russian customs legislation. Incorrectly done contract may leads to problems with the counterparty, payment or customs clearance. Outsourcers, take into account your wishes, will draw up the contract in two languages and competently coordinate it with the currency control department.
3. The service of financial transactions can be obtained when you choose complex service. Then you completely trust your payments in foreign currency to outsourcers and get ready for work goods. All operations are supported by documents.
4. Customs clearance of goods, including the preparation of documents and declarations, as well as payment of customs duties. Companies often outsource the customs clearance, because this procedure is very complicated. To prevent illegal schemes, you will be required to fill out a customs declaration and a full set of correctly executed documents. Outsourcing can prepare all the documents for you.
5. Organization of international transportation. Outsourcing companies have large experience in logistics. They will select for you the best option for cargo delivery, ensuring its safety, speed of delivery and information about the cargo’s location. You need to provide the information about the place of departure, place of delivery, dimensions and weight of the cargo, as well as about the features of transportation: temperature or class of hazard. After that, the outsourcer will offer several delivery options to choose from.
6. Maintenance of accounting. Accounting has specific moments when working with foreign economic activity. There are difficulties with registering or introduction of amendments to founders' documents, with preparing documents for currency control, posting payments and receipts from foreign counterparties, calculating and accounting exchange differences in the payment of customs duties. Not every accountant has worked with other countries. And as you know the services of experienced professionals are expensive.

How to begin cooperation with FEA outsourcing company?

If you decide to outsource some of the tasks, firstly you need to choose the services and theirs volume correctly. When choose the outsourcing company, please, pay attention to the period of its work, the existence of constituent documents, as well as the experience of previous work, e.g. with which companies it has already worked and works. Make agree all the terms of the contract, write down the terms carefully and clearly, so do not leave room for their double interpretation. Ask the outsourcer to explain all the conditions in which you doubt.