by Renaud Anjoran in 'Quality Inspection Blog'

As I explained before in Confirming quality when paying by irrevocable letter of credit, an importer can pay his suppliers through letters of credit (L/C). An L/C triggers the payment once the bank receives a pre-determined list of documents from the supplier.

It protects buyers much more than a regular bank wire, since there is no upfront deposit. Payment happens after shipment!

by Mike Bellamy in 'China Sourcing Information Center'

Is there a difference for export VAT recovery between a manufacturer and a company that purely buys and sells without changing the product in any way?

by Mike Bellamy in 'China Sourcing Information Center'

I am about to place an order with a factory, after conducting extensive research (this site is a great resource!). Now I read about how factories raise their prices when you place a 2nd or 3rd order. I’m not sure if it will affect me, but (what if) do you have any advice what one does in such a situation? Or even better, how I can prevent it?

by Mike Bellamy in 'China Sourcing Information Center'

I have a query regarding payment terms in China. Is it normal to pay 50% with purchase order and the balance prior to dispatch?

ANSWER:

This is very normal for a first order with a new supplier. But everything is a negotiation and there is no fixed payment format that is applicable nationwide or industry wide. Sometimes buyers get better terms (for example, 30 up front and 70 upon delivery) but I suspect the unit price would reflect this.

by Renaud Anjoran in 'Quality Inspection Blog'

An importer asked me what he should do when Chinese factories ask for his ”price targets.”

by Renaud Anjoran in 'Quality Inspection Blog'

I just read the latest issue of the CHaINA magazine (available here online), and I found a very nice explanation of the changes from Incoterms 2000 to Incoterms 2010.

By Renaud Anjoran in 'Quality Inspection Blog'

We started offering supplier qualification services a few months back. One of the steps we go through is sending requests for quotations (RFQ) to Chinese suppliers.

By Renaud Anjoran in 'Quality Inspection Blog'

We exhibited at a Hong Kong trade show in October, and I got to talk with many importers. I noticed that some new buyers hold the misguided notion that a letter of credit protects the importer.

By Renaud Anjoran in 'Quality Inspection Blog'

I see a lot of new importers on trade shows. They come to China to find a supplier, or a product idea, and they are ready to learn as they go.

By Richard Brubaker in 'All Roads Lead To China'

China Briefing has just posted SAFE Issues New Regulations to Further Control Foreign Exchange Movement, which confirms the worst case scenario I ran through in my post earlier this month The Next Problem for China's Exporters: SAFE Regulations.

By Kevin in 'The China Sourcing Blog'

The payment procedure is an integral part of sourcing, ranking alongside desk research, initial contact, negotiation, and due diligence checks.

There are various reasons for filing a claim against a factory but you will mainly be faced with:

1. Late or incomplete deliveries
2. Major quality issues
3. Copyright violations
4. Patent infringements
5. Non-compliance with laws of the destination countries

Bulldozing your way through a claims issue will get you nowhere with your China supplier. Investing the time and effort on discussions is essential to continued business, and terminating your contract should only be a last resort. All serious exporters are open to reason, so organize your evidence and make your point logically.

Dan Harris of China Law Blog finds —and shares —a useful explanation of documentary payment options available to buyers.