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JAPANESE

TTPP News Vol.111 March 2014

Subject:
:)JETRO TTPP - Pitfalls in Export Negotiations (PART 3)

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:::::    Vol.111 March 2014                           
::::        TTPP NEWS For International Business Matching         
:::                https://www.jetro.go.jp/ttppe/                   
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<< TTPP Announcements >>
-- Outcomes of TTPP User Questionnaire Survey 2013
 
<< Advice for Int'l Biz >>
-- Pitfalls in Export Negotiations (PART 3)
   - Be Careful about “Pay after Delivery” Contract for Big Orders -
    
<< JETRO Information >>
-- JETRO survey:Analysis of Japan-China Trade in 2013 and outlook for 2014
 

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===== << TTPP Announcements >> ======================================

-- Outcomes of TTPP User Questionnaire Survey 2013

We have received responses from 1,033 users (Response ratio: 18.2 percent)
to our questionnaire survey conducted in January 2014 to get a picture of
how TTPP is used and how it is contributing to business talks and the
conclusion of new business contracts. The questionnaire sheet was sent
to 5,671 users who had logged in to the TTPP website for five times or
more in the past year. We would like to use this opportunity to express
our appreciation to users who cooperated in this survey.
 

 * For the results of the questionnaire
    http://www.jetro.go.jp/ttppoas/enq/result/result2013.html



===== <<  Advice for Int'l Biz  >> ===================================

Pitfalls in Export Negotiations (PART 3)

-- Be Careful about “Pay after Delivery” Contract for Big Orders --

<<Case Study of Failure>>
A manufacturer first received an order for 3,000 units from an overseas
buyer (importer) and received orders for 2,000 units each the next month
and the month after next. In each instance, the manufacturer received
payment for the products before shipment as promised. However, at the
time of the fourth order, the manufacturer received a request that "we
would like to place an order for 20,000 units for the busy sales season
before New Year's, but we only have sold an initial 5,000 units. We do
not have the funds. We will remit half the amount, so would like to pay
the balance after 60 days."

The manufacturer (exporter) had placed an order for the raw materials
in anticipation of production, so had no choice but to accept this request
and shipped out the units before full payment. Three months after shipment,
the balance had still not been paid. The account was delinquent and the
debt was going to be marked as bad. When visiting to the overseas buyer
to push for payment, the manufacturer obtained agreement for payment
after 30 days if discounting the balance by 50 percent.


**For the details, please visit the link below.  
   http://www.jetro.go.jp/ttppoas/howto/index2.html#page03

===== << JETRO Information >> ========================================

-- JETRO survey:Analysis of Japan-China Trade in 2013 and outlook for 2014
   
   -Overview 2013
    1.Exports to China see a double-digit decline for two consective
      years.
    2.Imports from China decline for first time in four years.
    3.China's share of total Japanese export ranks second for the first
      time in five years, losing the lead to the US.
    
   -Outlook for 2014
    1.The Chinese government has been setting out policies to eliminate
      excess production facilities and beef up environmental protection
      regulations while maintaining stable economic growth.
    2.With imports from China, the price competitiveness mainly in materials
      and intermediate products decreased due to a weak yen.
    3.Japan-China trade value throughout 2014 is expected to increase
      slightly after the second straight year of decline.
 
   
**For the details, please visit the link below.
   http://www.jetro.go.jp/en/news/releases/20140228009-news


** For more information from JETRO
   http://www.jetro.go.jp/


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TTPP News  Vol.111 March 2014
Business Services Division (Editor/Publisher)
Japan External Trade Organization (JETRO)
E-mail: ttpp@jetro.go.jp
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Copyright (c) 2014. Japan External Trade Organization (JETRO).
All rights reserved.

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