Paying Chinese Factory

[RichardHNY]

Hi.

Paid first shipment by PayPal received goods. All good and happy with service.

Now second shipment pretty much same as before. Received following email.

attached the invoice for you
Could you send the money to our company bank account?
Last time you ship by sea and we need to formal customs declaration
if you pay to paypal, we could not customs declaration
so, your money in last order, we add it to other customer's order for customs declaration
ship by sea or air, must be pay to company bank account
hope you could understand
Best wishes

How would you take this email?

I do understand why sometimes companies would rather not use PayPal due to charges. But I do like the extra security it offers.

I have asked if I can pay now and half when my freight forwarder receives the items.
Is this a good suggestion?

Thanks for help

Rick

 

[Smilemina]

If company have company bank account, they should have export right,then they need match all the document as sales contract,and other documents from the customs. If they collect money from other way, the company will be have financial affairs problem. As this case,for payment term, depends on how you negotiated.

 

[Maple Sourcing]

Factory is correct, if a Chinese factory wants to get VAT tax refund, they have to show to government their company bank account has received foreign currency (usually USD) from abroad, PayPal does not work.

Common practice is 30% deposit paid at time of placing order, and the 70% balance paid before shipment. So, I doubt factory will agree to get final payment after your forwarder receives the items.

I'd suggest you find someone you trust to inspect the items before your final payment prior to shipment. You may also ask someone to witness container loading to make sure the correct products at right QTY are loaded into container.

 

[RichardHNY]

Thanks guys, brilliant help.