Take a Hong Kong company as an example to introduce the operation of entrepot trade;
Suppose your main customer is from India, and now you have an order for machinery and equipment of $6.5438+0 million. Suppose the cost of this batch of machinery and equipment is 600 thousand dollars.
In your present situation, you have no right to export. Therefore, it is necessary to entrust a foreign trade agency to do export business.
At present, many people who do not have the right to export trade are basically like this, and they have no import and export rights. After buying the goods in the factory and entrusting the foreign trade agent to do the export operation, the machinery and equipment ordered by Indian customers is still 654.38+0 million, and the cost is still 600,000.
The task of a foreign trade agent is very simple, that is, to help you with export logistics and fund settlement. After the foreign trade agent helps you to declare the goods for export to India, your Indian customers will settle the accounts with the foreign trade agent first, and then the foreign trade agent will help you settle the accounts in RMB. Then there are other expenses such as agency fees. The more money you involve, of course, the agency fees charged by foreign trade agents will increase accordingly. This is one of the problems.
Another problem is that these foreign trade agencies are also your competitors. If they know the customer information, they will contact the customer to do this business next time. Just like in China, it is easy to find the same manufacturer, but it is difficult to find a buyer. So their long-term interests are not guaranteed.
Well, there is a good solution now. Is to register a Hong Kong company to operate.
If there is a Hong Kong company now, the Hong Kong company will first sign an order of $6,543,800+with Indian customers, and then sign a purchase contract of $700,000 with Hong Kong companies and foreign trade agents. Then change the bill of lading directly and ship it to India. After receiving the goods, the Indian customer remitted RMB 6,543,800+to the company account in Hong Kong according to the contract, and you remitted RMB 700,000 to the foreign trade agency in Hong Kong according to the purchase contract for foreign exchange verification. Then the foreign trade agent will settle accounts with you as before. But at this time, instead of calling back 1 10,000 dollars, we will exchange 700,000 dollars into RMB to help you settle the account. Another $300,000 profit will be kept in your offshore account, which will reduce the cost of foreign trade agents. For the initial stage of your transaction, it is actually more important to accumulate capital faster.