The company encountered cash flow problems in its in-transit trade business and considered omitting payment, inquiring about the impact and legal risks of this operation on policies and actual business. The best answer states that omitting payment in in-transit trade is generally not allowed, as foreign exchange management has regulations, and omitting payment may be deemed a violation and punished, and it will also damage cooperation relationships and trigger customs investigations. In special circumstances, suppliers should be consulted and reported to the foreign exchange management department.
Re-export trade payment methods: which is best?
해결됨
I’m planning to start a re-export trade business recently, but I’m not very familiar with the payment methods. I’d like to know how payments are generally made in re-export trade. What are the common methods, and what are the characteristics of each? Which method is more suitable for someone new to re-export trade? I hope to receive a detailed answer, thank you!
무역 전문가 인사이트 답변
David Chen근무 연수：10고객 평점：5.0
무역 컴플라이언스 어드바이저채팅 시작
Common payment methods in re-export trade primarily include the following:
First is telegraphic transfer (T/T), which is divided into advance T/T and post T/T. In advance T/T, the importer remits the payment to the exporter via bank telegraphic transfer before shipment. The exporter ships the goods after receiving payment, which is most advantageous for the exporter and has low risk. Post T/T means payment is made after shipment, posing a greater risk to the exporter.
Second is letter of credit (L/C). With the bank as a third party, as long as the exporter submits compliant documents according to the letter of credit terms, the bank will make the payment. This is relatively fair and provides a certain degree of security for both buyers and sellers, but it is complex to operate and incurs higher fees.
Third is documentary collection, which is divided into documents against payment (D/P) and documents against acceptance (D/A). In D/P, the importer can only obtain the documents and clear the goods after making the payment; in D/A, the importer can obtain the documents after accepting the bill of exchange, which poses a higher risk to the exporter. For those new to re-export trade, securing advance T/T payment is the most secure and controllable risk option. If the other party has good creditworthiness, a letter of credit is also a good choice.
Daniel Kim근무 연수：4고객 평점：5.0
상품 검사 및 검역 컨설턴트채팅 시작
In addition to the methods mentioned above, you can also consider third-party payment platforms such as international Alipay. This method is relatively simple to operate, the transaction process is transparent, and it provides a certain degree of protection for the rights and interests of both buyers and sellers. However, there may be spending limits, and different platforms have different handling fees, making it suitable for re-export trade with smaller amounts.
Olivia Liu근무 연수：6고객 평점：5.0
외환 리스크 매니저채팅 시작
In re-export trade, under the D/P method of documentary collection, the importer pays to redeem the documents, allowing the exporter a certain degree of control over the ownership of the goods, with relatively lower risk than D/A. However, if the importer refuses to pay, dealing with the goods can be troublesome, and it should be chosen cautiously based on the creditworthiness of the partner.
Michael Zhang근무 연수：10고객 평점：5.0
통관 전문가채팅 시작
Although operating a letter of credit is complex, it is binding on both parties. The issuing bank assumes the primary payment responsibility and will pay as long as the documents are compliant. The disadvantage is high bank fees, and discrepancies in documents can easily lead to refusal of payment, so it is important to ensure accurate documentation.
Thomas Li근무 연수：7고객 평점：5.0
수입 허가 어드바이저채팅 시작
Under the advance T/T method of telegraphic transfer, the exporter receives payment first and then ships the goods, ensuring stable cash flow and low risk. However, for the importer, paying in advance carries risk, so if this method is to be used, there needs to be a good cooperative foundation with the importer or some form of guarantee must be provided.
Richard Wu근무 연수：8고객 평점：5.0
글로벌 무역 운영 전문가채팅 시작
International factoring is also an option. The exporter transfers accounts receivable to a factor, who is then responsible for collecting the payment. This allows for early financing and can also mitigate the credit risk of the importer, making it suitable for companies with high demands for cash flow.
Emma Zhao근무 연수：3고객 평점：5.0
수출 문서 전문가채팅 시작
For partners with large amounts, long-term cooperation, and mutual trust, the post T/T method can simplify the process and enhance the cooperative relationship. However, the exporter must have a thorough understanding of the importer’s creditworthiness and financial status to avoid collection risks.
Anthony Luo근무 연수：10고객 평점：5.0
무역 컴플라이언스 전문가채팅 시작
Under the D/A method of documentary collection, the importer can obtain the documents after acceptance, which reduces the financial pressure on the importer and is easily accepted. However, the exporter faces the risk of the importer not paying at maturity. Unless there is strong trust, it is not recommended to adopt this method lightly.
Linda Guo근무 연수：3고객 평점：5.0
무역 분쟁 중재인채팅 시작
When using third-party payment platforms, attention should be paid to their scope of application and regulatory policies. Regulations for third-party payments vary across different countries and regions, so it is essential to ensure transaction compliance and avoid financial losses due to policy issues.