Recently I was contacted to assist in a case whereby a Chinese supplier had decided to change their mind about delivery terms on an order. This was post-production and while it was held at a 3rd party shipping agent. Initially, a quote was supplied to a European purchaser that was priced for FOB, Chinese port. These terms were accepted and the ordered processed. Somewhere between ordering and before loading onto the vessel at the port, the...

Sourcing from China for the first time can be a daunting experience. There are many cultural and language differences as well as huge differences in business mindsets. These combined issues can put you on the back foot from the start and put the supplier at a much more advantageous position. This can easily negatively affect the result of your negotiations, both in terms of price and product quality. Consider appointing an agent for you in...

CIF means Cost, Insurance and Freight. This Incoterm (international commercial term) is also commonly referred to as DDP, which means Delivered Duty Paid to the destination port. The supplier basically takes responsibility for the product from manufacturing, freight, customs and duty for the buyer. It normally works out a little more expensive for the buyer than if they were doing it themselves or FOB but it is an option many prefer as they...

Ex-works means that the product is available for the purchaser to take custody of the goods at the factory only. The purchaser has to pay for all expenses to get the goods to their destination address. The purchaser can do this whole procedure themselves but it is highly advisable and both economically and time efficient to enact a shipping agent or freight forwarder to take care of this for them.

Payment terms for an FOB product in China can be from 20%-50% initial deposit/down payment to begin manufacturing/assembly of the product. Once completed and ready for delivery the supplier will load the product into the container (FCL and LCL) and export it to be loaded onto the container ship at the port. The product will then be shipped to the destination port. At this point the B/L (Bill of Lading) is exchanged for the remainder of the...

Payment terms for an FOB product in China can be from 20%-50% initial deposit/down payment to begin manufacturing/assembly of the product. Once completed and ready for delivery the supplier will load the product into the container (FCL and LCL) and export it to be loaded onto the container ship at the port. At this point the B/L (Bill of Lading) is exchanged for the remainder of the order value. Once this has been exchanged, the product is...