The Shaoxing Office of China Credit Insurance Corporation recently received the latest warning from the Zhejiang Branch: “The trade risks of exports to Nigeria from Zhejiang Province have increased sharply, and textile companies are the hardest hit areas in terms of reported losses.” The person in charge of the Shaoxing Office of China Credit Insurance Corporation People reminded export enterprises in Keqiao District that they should pay attention to this.
In recent years, the changing international political and economic situation has brought great risks to many foreign trade export companies in Keqiao District. For this reason, many foreign trade companies have “went overseas” through export credit guarantees. From January to April this year, 20 export orders worth US$5.28 million in Keqiao District almost turned into bad debts. Fortunately, they were protected by export credit insurance. The reporter learned from the Shaoxing Office of China Credit Insurance Corporation that in the first four months of this year, the amount of reported export losses in Keqiao District increased by 15.11%, which is nearly 10 percentage points higher than the city’s average.
The emerging markets in Africa are the growth points that Keqiao District’s foreign trade export companies have actively explored in recent years. However, uncertainties in emerging markets in Africa have also increased corporate risks. Especially since 2013, the trade risks of exporting to Nigeria have increased sharply. According to data from Sinosure Zhejiang Branch, from January to December 2013, Sinosure Zhejiang Branch received a total of US$6.49 million in losses reported by Nigerian buyers due to arrears, rejection, bankruptcy and other reasons. Among them, textile enterprises The amount of reported losses was as high as US$5.03 million, accounting for 78% of the total reported losses. “This situation has continued until now.” The person in charge said.
The reporter learned from the Keqiao District Commerce Bureau that Nigeria is one of the African markets that Keqiao District’s foreign trade companies have successfully explored. Since this year, 69 textile companies in Keqiao District have maintained close trade relations with it. Due to the impact of Nigeria’s trade environment, Keqiao District’s trade with Nigeria showed a downward trend in the first four months of this year, with a year-on-year decrease of about 2%.
Facing the African market that has been finally opened up, export companies cannot give up when they encounter risks. To this end, China Insurance Shaoxing Office has provided several risk warnings to export companies: pay attention to the credit risks of small and medium-sized buyers. Export companies should establish risk warning awareness before exporting goods, review Nigerian buyers, and collect buyer-related information from multiple aspects and channels. , conduct a professional review of the buyer’s qualifications, and ensure that risk management and control are at the forefront; pay attention to the potential risks of Nigeria’s FormM (import inspection) system, have an overall understanding of the transaction process, and take timely precautions to avoid foreign exchange collection risks due to FormM flaws.
