International trading company saves buyers time, money

Why would you want to use an international trading company? For the same reasons, you’d hire an expert for any other part of your business.

An international trading group – such as Sino-Trade Rescue (STR), GlobalSource or TradeKey – has experience, connections and a thorough understanding of Chinese export policy, licensing and protocols. These companies live and breathe the import-export trade business and can help you execute your transaction, from start to finish. Although their expertise lies in Chinese export licensing, protocols and policies, the companies can also provide consulting help with importing issues.

An international trading company can assist with:

• Sourcing manufacturers

• Negotiating contracts

• Obtaining export licenses

• Banking

• Transaction support

• Resolving communication issues

One international trading group, Sino-Trade Rescue, also specializes in "rescuing" import/export trade transactions that encounter problems in their latter stages.

Sourcing manufacturers

A successful export from China starts at the source, the manufacturer. Typically, an international trading group will compile a list of China manufacturers that make the desired products and then research them thoroughly. The viability of these manufacturers is verified through business and tax records. In many cases, in-person visits are scheduled and photographs of the factories are taken.

Buyers have the option to do this research on their own, but it is time-consuming and they often don’t have the resources to access this information efficiently. An experienced Chinese supply agent can get the job done quickly.

Negotiating contracts

Most Chinese supply agents are fluent in the major languages and well-schooled in international trade, so they can negotiate all terms of an import/export transaction, including banking, licensing and documentation.

Sometimes problems arise because of language differences. If the buyer or the manufacturer doesn’t really understand the details of the contract, difficulties and delays can occur down the line. A good export trading company can work with both sides to iron out any issues and keep the transaction on schedule, establishing milestones and payment terms that are designed to meet their respective needs.

Export licenses

The manufacturer needs an export license to ship merchandise out of China. A good export trading company ensures that the licensing and paperwork are properly processed before the shipment leaves the factory. Another important function of the international trading company is to monitor the international trade laws, focusing on Chinese imports and exports.

Banking

An international trading group can evaluate and explain the various payment options, helping the client choose the one that makes the most sense.

Payment options include an escrow account, a bill of lading (where the bank uses a third-party proof of shipping) and a letter of credit, which requires the manufacturer to document that the products are being shipped. The export trading company can also help the parties negotiate "FOB the Port," which ensures payment to the manufacturer when the merchandise is in a China port, waiting to be shipped.