How Should Foreign Trade Companies Fight The Second Half Of The Epidemic

Jul 21, 2020

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At present, the situation of my country's epidemic prevention and control continues to improve, and the order of production and life is speeding up. However, the spread of the epidemic abroad has brought many adverse effects on my country's foreign trade enterprises. Many foreign trade companies are facing problems such as the suspension or cancellation of "orders in hand" by foreign customers, and the serious shortage of "follow-up orders". The situation of foreign trade companies in various industries is very severe. How should foreign trade companies fight the second half of the epidemic? In this regard, the Hebei Provincial Council for the Promotion of International Trade puts forward suggestions on controlling the performance risks of “orders in hand”, consolidating the foundation for foreign trade business development, and exploring overseas markets to obtain new orders for the reference of foreign trade companies.

In terms of controlling the fulfillment risk of "orders in hand", companies can take the following measures. One is to reduce the pressure on the capital chain. Foreign trade companies can study relevant policies to maintain and reduce existing financing costs, and it is not advisable to blindly expand the scale of financing; at the same time, foreign trade companies should try their best to reduce product and raw material inventories to avoid excessive financial pressure. In addition, we must pay attention to the risk of refusal to pay due to the epidemic situation. The second is to resolve supply chain risks. Since domestic supply contracts and export sales contracts are in a different legal relationship, foreign customers must not only make arrangements for business connections, but also hire legal professionals to do so when facing foreign customers requesting foreign trade companies to suspend or even cancel contracts due to force majeure. Good legal connection. Regarding the sharp increase in the price of raw materials, it will be unfair to continue to perform the contract. Foreign trade companies can negotiate with foreign parties to change the contract in accordance with the "change of circumstances" rule. If no agreement can be reached, they can apply to the court or arbitration agency for the contract Be changed or cancelled. The third is to rationally respond to customers' "force majeure" claims. When foreign customers request for suspension of shipments, cancellation of orders, and refunds, foreign trade companies can entrust legal professionals to analyze and determine whether the contract that the customer cannot perform is "force majeure" in accordance with applicable laws and contractual agreements, and respond accordingly. The fourth is to control logistics risks. The global spread of the epidemic has greatly affected international cargo transportation. It is recommended that foreign trade companies pay attention to international cargo transportation related dynamic information through various channels, and negotiate with customers accordingly to adjust the production delivery cycle; secondly, according to different prices Terminology, reasonably divide the costs and risk responsibilities of buyers and sellers. In addition, for customers who abandon goods for no reason, they must dare to fight for reasons, and promptly take legal actions such as urged by the Chamber of Commerce to perform contracts and mediate to protect their legitimate rights and interests.

In terms of consolidating the foundation for the development of foreign trade business, enterprises must also do four tasks. The first is to balance the relationship between "stabilizing the team" and "controlling costs." First, the leaders and employees of foreign trade enterprises should establish a sense of mutual assistance and try to create value and benefits through various methods; second, in strict accordance with the relevant laws and the relevant regulations of the Ministry of Human Resources and Social Security, the relevant issues should be properly handled through consultation to avoid worsening problems and labor disputes. ; Finally, pay attention to the employment-stable assistance policies issued by government departments to minimize costs. The second is to do a good job in corporate compliance construction. Only by strengthening compliance building can foreign trade companies be able to achieve stability in the process of opening up the international market. In the current epidemic situation, the export control and economic sanctions of relevant countries have not been reduced, and they have even increased. The general terms of many large foreign buyers also contain compliance commitment requirements. If they are violated, they will lose their supplier qualifications. If it is serious, it may bring the risk of compensation for breach of contract. In the second half of the "epidemic" war, foreign purchases of anti-epidemic materials have surged. Therefore, foreign trade companies that switch to medical and anti-epidemic materials must promptly apply for relevant certification. The third is to raise awareness of intellectual property rights. During the epidemic, some companies obtained bank financing through intellectual property pledges, which fully demonstrated the intangible asset attributes of intellectual property. Various countries and related international organizations are also paying more and more attention to the protection of intellectual property rights. Therefore, enterprises must make an international layout of intellectual property rights in advance to protect their own intellectual property rights. At the same time, we must respect the intellectual property rights of others, and avoid civil, administrative and even criminal liabilities caused by infringement. The fourth is the courage to try new marketing methods. With the rapid development of online marketing under the epidemic, foreign trade companies must be brave enough to adopt a variety of new marketing models, such as live experience, digital exhibitions, and collecting customer information through big data. When trying new marketing methods, companies should pay attention to protecting their own trade secrets and avoid violating the privacy rights of others.

In actively exploring overseas markets to obtain new orders. Companies can use credit insurance support policies to open up new orders. Affected by the epidemic, the capital chain of foreign customers has also been under greater pressure. When developing new businesses, they may propose requirements such as extending the payment period and reducing the prepayment ratio, which brings greater business risks to foreign trade companies. China Export & Credit Insurance Corporation has introduced some assistance policies that can help companies boost their confidence in receiving orders and actively obtain new orders. In addition, companies can use the CCPIT credit recommendation certification to expand overseas markets. On the basis of providing trade facilitation services such as certification and certification for foreign trade enterprises for a long time, CCPIT has launched various levels of credit recommendation and certification services. For example, it is possible to provide credit endorsement support for enterprises to expand overseas markets by issuing the "China Export Commodity Brand Certificate" for qualified foreign trade enterprises and attaching the certification mark recommended by the CCPIT.