What are the common foreign exchange settlement methods for foreign trade imports?

What are the common foreign exchange settlement methods for foreign trade imports?

1.Foreign trade can register an overseas account in its own name, and customers can directly deposit funds into the account. However, the annual foreign currency settlement amount of individual account is only 50000 USD. Of course, if you run out of personal money, you can open an overseas account with your relatives, but this will cause customers questions. Once the account is frozen, you will be in trouble.

2.If the factory has an overseas account, we can directly contact the customer in the name of the factory and use this account to settle foreign exchange. This practice should be based on a very good relationship with the factory. Otherwise, customers will be lost or factory profits will be squeezed.

3.Common foreign trade payment methods in the market include Western Union remittance, direct payment, PayPal, T/T telegraphic transfer, L/C letter of credit, etc. Use L/C credit card and T/T wire transfer for large amount, PayPal for small amount, and Western Union for medium amount. Western Union remittances are expensive (not as cost-effective as agents) and difficult to withdraw cash from PayPal and continue to pay.

4.To register a domestic public foreign currency account and conduct foreign trade settlement and transaction remittance in the name of the company, the state has become more and more strict in foreign exchange control, which is becoming more and more difficult. The account also needs to understand the foreign trade settlement process and import and export knowledge, and the annual review is also very high, which is not cost-effective for enterprises with very large import and export scale.

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