Study Of Exchange Earnings Risk Management Of In Z Company

Along with the deepening of the reform and opening-up policy, the rate of international trade in China GDP grows increasingly high. Especially since the entry of WTO, the rate is firmly at 50% or so. International trade is becoming more important than investment and domestic demand, particularly in promoting the employment and national economy development, maintaining the stability of society. These years, a growing number of Chinese enterprises goes to the overseas market, the scale and scope of international trade is getting much more enormous than ever. On the other side, we also distinctly aware that the problems of the exchange earning collection are becoming much severer. Therefore, we are sure to adopt all kinds of methods to reduce the risk of the payment and make sure its safety.This article focuses on the payment problems of Z Company during its globalization according to the actual status of Z Company, and attempts to raise different solutions against several basic risk types, namely the risk of foreign customer’s dishonor, the risk of the refuse payment of internal banks, the risk of export custom clearance.With regard to the risk of the customer’s refuse payment, first of all, it is better that Z company should investigate the background and credit before the formal business negotiation, and choose the better one to sign the contract. Secondly, the company should purchase the credit insurance, cooperate with the forwarder to arrange the shipping with correct quantity and high-quality products on the due time based on the agreed protocol. Finally, when we meet the refuse payment of the customer, we should notify insurance company to claim for the compensation while coordinating the client to arrange the balance payment as far as possible.Regarding the risk of the refuse payment of internal bank, it is preferable to request the customer to prepare the concerning documents about the payment or the discrepancy at the request of the bank. While the exporter arranges the outgoing shipment and custom clearance, they should endeavor themselves to grasp the control power of the custom clearance, so that they can get the original documents with the correct message. After shipment, the shipper should go to the negotiation bank to withdraw the money as early as possible so as not to miss the date.For the risk of custom clearance by the designated forwarder, the shipper should also investigate the agent’s background and credit, and then sign the relevant contract to make sure that the forwarder would arrange the tasks at the shipper’s request, and will not alter the documents that the shipper offered. Meanwhile, shippers should just accept the service that the appointed forwarder contracted with the customer, while handling the other relevant tasks by their own forwarder or by themselves. While they cooperate the shipping tasks with the forwarder, they should report to their customers once they find any abnormality from the forwarder in order to avoid any discrepancy or error. After shipment, they are sure to prepare the documents cautiously for the customer to do their import custom clearance to avert the customers’ dishonor or the contract cheats.All in all, the exporter should take all sorts of precautions to avoid risks, and well control the process in order to solve the problems timely, as well as take the remedial measures in order to minimize the loss.