The outbreak continues to escalate around the world, with more than 50 countries declaring a state of emergency so far.

    Many countries have closed their land and sea border ports, required approval for cargo flights, loading and unloading at ports, and suspended entry visas, according to tyre world.

    Under this circumstance, the export risk of China's tire trade rose sharply.

    Some agencies have summarized the risk information and Suggestions of some countries for the reference of tire export enterprises.

    Risks are rising in these countries

    Affected by the spread of the epidemic and the drop in international oil prices, many countries have been at a high risk, please pay attention to the security of the money.

    Europe has been the epicentre of the outbreak, with countries with high Numbers of confirmed cases including Italy, Spain, Germany, France, Switzerland, the UK, Norway and the Netherlands.

    Several countries declared states of emergency.

    The ZEW economic sentiment index for the euro zone was -49.5 in March, the lowest since December 2011, according to data released on March 17 by the German think tank ZEW, indicating that red warning lights have been flashing on the European economy.

    In addition, a number of currencies have experienced sharp declines, including the Russian rouble, Malaysian ringgit, Indian rupee, Iranian rial, South African rand, Brazilian real and Mexican peso.

    When a country's currency depreciates sharply, the cost of imports is driven up.Some importers may choose to abandon the goods, refuse to accept the goods, delay the payment of the goods, or even not pay in order to avoid losses.

    Risk prevention advice

    1. It is suggested that export enterprises should comb the risks of key countries affected by the epidemic, pay close attention to the transport situation of the goods that have been shipped, consult and communicate with freight forwarders and shipping companies in a timely manner, and carry out loss reduction work in response to the possible customs ban.

    To strengthen the buyer's due payment of foreign exchange tracking.

    2. It is suggested that export enterprises timely and effectively communicate with the buyer for the goods that have not been shipped, reasonably arrange the time of shipment, and pay close attention to the possible risks of rejection and default of the buyer under the situation of epidemic prevention and control.

    3. It is suggested that when negotiating new contracts, export enterprises should agree in advance the possible risks caused by covid-19 outbreak through force majeure and retention of property clauses, so as to avoid or reduce the uncertainty caused by the outbreak.

    4. For the buyer whose business is really affected by the epidemic, it may consider appropriately relaxing the payment term when entering into the new contract and give the buyer a certain buffer period.

    6. It is suggested to keep records of communication information with the buyer, especially for the confirmation of creditor's rights and debts, repayment tracking, debt collection emails, WeChat chat records, etc., so as to provide reference basis for the later claims of insurance companies.