In the face of the epidemic, how do foreign traders respond?

During the Spring Festival of 2020, the new coronavirus will become a “pain point” in people’s hearts. On the evening of January 30 local time, the World Health Organization announced that the new coronavirus epidemic was listed as a Public Health Emergency of International Concern (PHEIC). For foreign trade people, how should we face it?

1.Troubleshoot orders in hand and focus on compliance risks

It is recommended to comprehensively review and evaluate the orders in hand. For orders that may be delayed due to delayed resumption of work, communicate with the buyer in a timely manner, explain the relevant situation, and strive to extend the contract with the buyer in writing (email, supplementary agreement, re-signing the contract, etc.) Delivery time. For orders that are determined to be unable to fulfill the contract due to the epidemic situation, it is recommended to terminate the contract with the buyer in a timely manner and obtain the force majeure factual certificate issued by the China Council for the Promotion of CCPIT if necessary to reduce the risk of anti-claims by the buyer in the future.

2.Arrange transportation in advance and focus on logistics risks

At present, traffic is temporarily blocked in some areas due to the epidemic, so care should be taken to avoid late shipments due to logistics reasons. In particular, we should pay close attention to the latest shipment date under the L / C payment method in trade, if necessary, negotiate with the buyer to modify the latest shipment date, and reserve a sufficient shipment period to avoid discrepancies in the delivery of documents . At the same time, it is recommended that export enterprises should actively pay attention to the operation of important delivery places such as domestic ports and airports. If the epidemic situation causes temporary closure, change the logistics and storage in a timely manner.

3.Sort out upstream customers and focus on supply chain risks

It is recommended that export companies actively maintain close contact with domestic suppliers, assess the extent to which suppliers have been affected by the epidemic, and confirm the latest status of resumption of work and delivery arrangements. For the situation where the upstream supply is relatively tight, if necessary, formulate alternatives for domestic suppliers or appropriately increase inventory to ensure the safety of raw material supply.

4.Urge the buyer to fulfill the contract and pay attention to the risk of foreign exchange collection

In case of inquiries from overseas buyers, it is recommended that export companies actively communicate with buyers, truthfully inform the status of the epidemic situation and the latest progress, and dispel buyers’ doubts. In the event of an overseas buyer’s refusal to accept the goods or arrears due to the epidemic, the export company should clearly point out to the buyer that the temporary recommendations announced by the WHO do not include trade measures that may restrict exports, and strive to properly preserve relevant evidence. If there is a risk of buyer default or rejection, please seek the assistance of China Credit Insurance in time, and China Credit Insurance will initiate a recovery on behalf of the Chinese company from overseas buyers to protect the legitimate rights and interests of export companies.

5.Timely delivery of information to appease buyers

Notify buyers of extended holidays, don’t believe rumors about the epidemic, and believe that China has the ability to deal with it! At the same time, we have opened an online office, the order time will be extended, and we will give a timely response to the return time.

In addition, the World Bank and IFM spoke on February 3, expressing their belief that the Chinese government has sufficient policy space to deal with the epidemic, and injected considerable liquidity into the market. These measures can mitigate the epidemic’s impact on China’s economic growth. Loss. IMF President Georgieva also sent Chinese New Year wishes and epidemic condolences to the Chinese people by recording videos. This is affirmation by the World Organization of China’s ability to respond to the epidemic!

6.Cooperate with epidemic prevention and control to protect your own safety

(1)Seek medical attention in a timely manner

(2)Avoid going to crowded places

(3)Wear a mask to avoid close contact

(4)Sanitize frequently contacted places and items


Post time: Feb-07-2020