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Fri 6 Oct, 2006 11:49 pm
Hello Friends,
I am currently working on importing a product from a manufacturer in China, but the manufacturer does not want to accept a Letter of Credit (L/C) as payment. Their reason is that the bank's processing fee for L/C costs them too much. They want 30% down payment when taking an order, and the remainder 70% will pay when we receive a notice from the shipping company, usually seven days before the ship arrives in US port. They said they do this way with all their customers including their foreign customers. My question is that if I pay 30% (about $4000 USD) up front, how can I be assured that they will ship me the product? I would appreciate it if anyone who have such experience could give me your suggestions. Thanks.
Lee
Will they manufacture the product especially for you?
If yes, then 30 % downpayment seems rational. However, if they have an inventory of these products, it would be advisable to buy the merchandise C.O.D. (cash on delivery). This way the shipping company will act as
trustee and hand over the merchandise only if payment is made to them.
share with me ok?
would you like to share your impore experience with me friend ?
....can you leave you Email address , I got questions to ask you ...thanks .
Re: How to make sure I will get the shipment
A lot of Chinese manufactories now use such payment 30% in advance and 70% balance after shipment.Have you ever visit this factory for a quality audit before?If this is your first time deal with this vendor,please be careful. The best way is to invite a third party to visit the factory and inspect the quality and shipment for you before your payment.
I have connections with China. Send me the money in unmarked bills to a PO Box I will provide to you and I'll see to it that your shipment gets made. Oh, and let's keep this our little secret. :wink:
Top Fortune Group Logistics
Dear Lee,
It is not hard to do business with them,we are shipping company and we could do survey beofre loading for this shipment.
If you do not believe us,we will inform shipping liner there in your country to contact you for arrangement.
If you have new questions on this,write me to shipping at tplocean dot com
I also wish to get your reply here.
Hi Lee,
I'm a exporter in China. Maybe you could choose D/P(Document against Payment) instead of L/C. Usually, bank fee for D/P is less then L/C.
I think if this is your first deal with that manufacturer, bank credit is needed.
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