This forum is now closed. During this session our trade expert Tekle Sebhatu responded to member's trade payment method and financing questions as they were posted.

Tekle has already answered your ten most common questions including:

• What is telegraphic transfer (T/T)?
• Am I an agent or a distributor
• More

Welcome Everyone! I am glad that you are joining me, my name is Tekle I will be facilitating this discussion and hopefully to answer your questions.

Hello Mr Tekle,

This question is related to documents in general. What payment/finance related documents should accompany shipping documents through the entire transaction process?

Thanks

Hello, thank you for asking, it all depends on what documents agreed to accompany the shipping documents commercial or pro-forma invoice, packing list and possibly Certificate of Origin (government document). The last two don't have any thing to do with payment/finance but almost always accompany the shipping documents. Often, payment/finance related documents are transferred between the importer and the exporter's banks.



Hope that helps!

Thankyou very much Mr Tekle -that helps!!!

Escrow ? everybody is talking about escrow.com ?are there any other legit escrow facilitators or just one. If not, then, how can I contact other companies which do this? and are reputable? is it a legal thing

I am sure there are other companies. Make sure that the company is reputable and don't just take the sellers words.

Dear Tekle,

How to elude financial adventure under the payment term of L/C 60,90DAYS?

My customer only accept the payment term of D/P 90 DAYS? However, the cargoes can be delivered to his country during 20days.

How should I do? I have no idea to persuade him? If I accept it, I am afraid there is some risk. Anyway, it is the first time for me to cooperate with him.

If I do not call for help from sinosure, how should I do?

Thanks

Best regards

Howard

You are right if you accept you will be taking a risk, because he has the goods and you have not received the payment. Be extra careful if this is going to be your first time transaction with this particular buyer. From your question you don't seem to be convinced about your seller's performance. I would not do it unless I have other reasons to do so. If he wants to change the term you will not have any option except accepting his request. Too late! Consider the consequences first before making any commitment.

I am a new comer in the field of International Trade. This forum provide a good chance for me to learn. Thanks!


Today,A client sent an email to me ,and mentioned :they do not pay for freight shipping from factory to our office, internal or international.


How should I deal with it? How should I reply him?

Is the seller asking you to arrange freight? I believe the shipping term (Incoterm) that they are suggesting to use is Ex-Works. Suggest to them FOB or CIF that way you do not have to arrange shipment form the factory to the final destination, even though you will be the one to pay for it.

Hi Mr Tekle!!


I hv one question here, I am based in India. I want to pick up goods from China and sell them to Newzealand without bringing the goods physically in India. How do I handle the Document part without making the end user aware of the actual seller?

In regard to payment your best option will be a back-to-back letter of credit. As to the shipping documents, I don't think there are ways to avoid them. Bill of Lading to verify ownership and country of origin of the goods have to be disclosed for Customs purposes. Focus on trying to add value to the producer of the product and the buyer to avoid being circumvented in future transactions, if that is what you are worried about.

Hi there Mr. Sebhatu,

I would appreciate any asitance with this.

What is the least risky form of financing for manufacturers/traders looking to expand into exporting?

I am not clear with your question but let me try any way. If you are looking to finance export shipments then your best bet will be loan guarantee programs most often governments offer such programs to encourage exporting and create more jobs. You will borrow from a bank and the government will act as collateral. If you default the lender will go after the government for collection and not you.

Hey, i have been pondering the idea of starting a buyers club - we put orders together across an industry/product line and order once. i was thinking it may work when ordering from countries where ther have been problems with suppliers.... do you think this would work and which countries would you suggest, with youtr experience.

Thanks

Without having detail information on the product and your overall plan there is no way that I can even remotely suggest. The idea sounds practical though with very high risk. Do you really want to take such a high risk? Think it through before you make any commitment.

Hi,

Yes i see. I am thinking about gifts and craftware from China in particular, importing back into the west coast USA -what would the risks be?

The risks could be several from not receiving the shipment after you pay for the merchandise to receiving damaged or wrong goods. Additionally, you need to be familiar with U.S. Customs regulations including quotas, marking, classification, valuation and other U.S. Government requirements that you might need to import the product. Learn more about importing by going to www.customs.gov. To reduce your risk make sure you also build a good relationship with your supplier.