Process of Good’s Trade Control

Process of Good’s Trade Control:

Any risks, which may occur until delivery of the goods in accordance with the sales contract provisions to the delivery point, which is under the responsibility of the exporter, pertain to the exporter, and any losses after the delivery point pertain to the importing company. Any risks pertaining to the goods are entirely out of the control of the bank, which acts as intermediary for the execution of the foreign trade procedures, thus it is mandatory that the exporter and importer take the relevant necessary measures. Regarding the management of such kind of risks Traderexport Foreign Trade & Consulting performs the good’s trade (purchasing and sale) control, and provides its customers a huge benefit, and thus ensures the elimination of the risk.

What are we doing during Good’s Trade Control?

  1. Market Risk and Financial Risk Management

Market risk; means the risk, which the financial structure of a company may face due to fluctuations in the market price or adverse price movements on the market. In order to be protected against this risk, the exporter has to make researches about the purchaser, conclude a good contract, ensure a export loan insurance and transport insurance, if required shall chose the way of export via a surveillance company. Further the company may deploy derivate products and alternative financing methods from the derivatives exchange (VO) i.e. factoring, forfaiting, leasing.

  1. Determination of Reliability of the Foreign Buyer or Seller

Prior to fulfill the export request of a new customer, the exporter shall research the reliability of the potential purchaser and how the exporter is known. Essentially, the buyer shall have sufficient notoriety record and solvency power. In order to ensure this aspect, following documents should be requested from the buyer: near-time and inspected (audited) documents about the financial status, accountant records (profit-loss calculations included), payment balance, cash flow documents pertaining to the last 3 years, financial forecast for the next six months.