Paying for Goods in China

Discussion in 'International Business' started by serenbert, Jul 30, 2010.

Thread Status:
Not open for further replies.
  1. serenbert

    serenbert UKBF Newcomer Free Member

    19 1
    Hi,

    I'm heading to China in a couple of weeks to source some bridal products.

    My understanding is that I pay 1/3 on ordering the product and the rest on shipment

    I'm trying to work out a way to pay this amount and having a receipt of the purchase.

    Any help would be appreciated.

    Thanks

    Sian :)
     
    Posted: Jul 30, 2010 By: serenbert Member since: May 12, 2010
    #1
  2. paulears

    paulears UKBF Big Shot Free Member

    4,777 1,292
    The systems for paying are a bit tricky, but the old system was letter of credit - your bank can do this but it's complicated - essentially they get the money as it leaves the country - for really big orders, it's a bit more secure in terms that the goods are actually 'on their way'.

    However, nowadays you just transfer the money electronically into their account, just as you would any on-line purchase. If you have a business bank account, then it's quite simple.

    However, my suppliers (electronics) require ALL payment up front, with a typical lead time of 6 weeks to manufacture it for you. Very often, they have no products actually in stock - they use your funds to buy raw materials and make them on demand. I've no idea if bridal products are the same.

    The biggest snag I have is that depending on how they arrive, you might get extra charges, invoiced by people like DHL - who collect the VAT/Duty and invoice you!
     
    Posted: Jul 30, 2010 By: paulears Member since: Jan 7, 2015
    #2
  3. Paul Stuyver

    Paul Stuyver UKBF Newcomer Free Member

    19 5
    30% downpayment is normal these days. It can be that custom products, or products where the bulk of the unitprice is materialcost a higher downpayment is required. For bridal products 30% is ok. Shoes dresses etc are mainly labor costs.

    Make sure your paperwork is in order, place a PO or purchase order and add to that all the details you can think of including what to do if the product is not up to standard. Then as them to send you an invoice mirroring your requirements. Ask them to chop it and you sign and scan to send it back.

    Transfer the downpayment and have your goods inspected before sending. When ok then transfer the rest of the money. If any problems, always let the problem stay in the factory and let the fix it before final payment.

    Always transfer to a company, never a person.

    Good luck
     
    Posted: Jul 31, 2010 By: Paul Stuyver Member since: Jul 27, 2010
    #3
  4. JoeHe

    JoeHe UKBF Newcomer Free Member

    33 1
    Hi Sian,

    It's normal method 30% T/T in advance and the balance against copy of B/L(by sea;if by courier or by air it will be 30% T/T in advance and balance before shipment,as documents will together with goods these two ways).

    There're also 100% in advance,15% prepaid or 50% prepaid, just up to the amount you ordered. If small quantity your supplier may ask you 100% T/T in advance maybe. Anyway, you can just tell them what method you want, they'll let you know if the method is available.

    Joe from China
     
    Posted: Aug 1, 2010 By: JoeHe Member since: Jul 24, 2010
    #4
  5. jdpackaging

    jdpackaging UKBF Newcomer Free Member

    33 2
    Usually in China, supplier can accept 30% deposit in advanced and balance after sight of Copy B/L. after they get balance payment, supplier will send original B/L and other documents to you. But before wire balance payment, you should let your supplier to send some mass production sample to confirm quality.
     
    Posted: Aug 1, 2010 By: jdpackaging Member since: Jul 26, 2010
    #5
  6. tiggohandbags

    tiggohandbags UKBF Newcomer Free Member

    15 2
    Nowadays china suppliers have generally from 30% to 50% deposit for custom design products.The balance payment be paid upon inspection of products or against B/L or before shipment if with air cargo.
     
    Posted: Aug 1, 2010 By: tiggohandbags Member since: Jul 29, 2010
    #6
  7. Anthony2010

    Anthony2010 UKBF Newcomer Free Member

    6 1
    I am a Chinese.
     
    Posted: Aug 2, 2010 By: Anthony2010 Member since: Jun 5, 2010
    #7
  8. Ian Feingold

    Ian Feingold UKBF Newcomer Free Member

    80 13
    We're being quoted 50% on order placement and 50% on delivery to plane or boat for shipment. We have in the past also employed an inspection to sign off the cargo against a pre-production sample si we get no surprises on delivery. we ask our customers to match the same payment criteria.
     
    Posted: Aug 2, 2010 By: Ian Feingold Member since: Jun 2, 2010
    #8
  9. Wavecrest Ltd

    Wavecrest Ltd UKBF Enthusiast Free Member

    739 137
    Slightly off topic but a word of advice for people new to importing.

    Please ask your Chinese suppliers to quote prices on an FOB basis only. By doing so, you will be able to make your own arrangements for the shipping and have full control of the costs.

    Your suppliers will offer to do the shipping and either tell you it's free of charge or some nominal amount. The truth is when the shipments lands in the UK, you will be saddled with very high (non negotiable) handling charges etc.

    These can be GBP 100 per cubic metre or more with a minimum of about GBP 150 - just for handling and docs at the port and not including customs clearance and final delivery.

    If you make the shipping arrangements with a forwarder based in the UK, you will know exactly how much your shipping costs are going to be in advance and can budget accordingly - no hidden costs or nasty surprises when the goods arrive here.

    Best regards,
    Glen
     
    Posted: Aug 2, 2010 By: Wavecrest Ltd Member since: Oct 31, 2007
    #9
  10. Tony Tsui

    Tony Tsui UKBF Newcomer Free Member

    8 0
    you could make a PI,then you put the terms into the PI,sign it and carry it ok.
     
    Posted: Aug 15, 2010 By: Tony Tsui Member since: Aug 11, 2010
    #10
Thread Status:
Not open for further replies.