www.chinabuses.org: According to the related statistics, China automobile producers have exported 381100 motor vehicles in the first half of this year, year-on-year growth of 56.99%. In Jan.-May 2011, they have exported 112800 cargo trucks, y/y growth of 44.40% and 33700 buses, y/y growth of 22.32%.

Not long before, 75 China companies suffer from the heavy losses (around 20 billion USD) due to the turbulence in Libya, and the insurance payment is less than 400 million USD. How to prevent the exporting risks for the commercial vehicle producers?

Various Types of Payment

“As for the exporting order referring to some risks, we usually insure first and cooperate with China Export & Credit Insurance Corporation.”, according to Li Hongtao, deputy general manger of Zhongtong Bus Holding Co., Ltd Overseas Marketing, “We receive both letter of credit (for 70%~80% of the contract value) and T/T (telegraphic transfer), making higher credit limit to some companies with good credits. In the meantime, we also undertake two factors system and adopt barter trade through the third party, also other financing modes.”

Learning More about Importers

Apart from the various payment methods, it is vital to known more about the conditions of importers, also the info about importers’ countries and regions. “It is important to have clear idea of the economic situation of the importing regions, the local dealers’ credits, sales channels and networks and to make necessary preparation ahead of time for the possible risks.”, reflected by some expert.

Exploring New Ways to Prevent Risks

Li Hongtao mentioned that “It is not available to adopt RMB for the loan for the settlement of accounts before and some companies have tried to use RMB. For example, we also receive it if the Iran bank issues the letter of credit in RMB. Actually, it is more convenient to implement Yuan settlement than tax rebate for the exporting goods for the trading across borders. We are also exploring the new ways to prevent such risks.”

Source : www.chinabuses.org

Editor : Andrea

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Tags: automobile motor vehicles exporting risk