The Incoterms rules or International Commercial terms are a series of pre-defined commercial terms published by the International Chamber of Commerce (ICC) widely used in international commercial transactions. A series of three-letter trade terms related to common sales practices, the Incoterms rules are intended primarily to clearly communicate the tasks, costs and risks associated with the transportation and delivery of goods. The...

(Have you read Part 1 of this article?) By this point, the overseas purchaser has been let down dreadfully by the supplier and had to compromise their margins in order to have their goods released. But it got worse. When the CI (Original Paper Commercial Invoice) and COO (Certificate of Origin) were requested from the supplier, they refused to do even this stating that it would cost yet more money to produce these documents and therefore...

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...

Mengniu Yoghurt, they certainly use all natural ingredients, I just hope it came from a tree above a blueberry bush… Almost every morning on my way into work, I stop at my local Jingkelong (Chinese Supermarket Chain) to buy a Yoghurt. It’s usually a Blueberry one with real blueberries in because I am a great believer in the health benefits of Blueberries. I also am careful about which brand of Yogurt I buy since the melamine scandal...

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...

I was in Xiamen in Fujian province earlier in the year and took a walk along the pedestrian shopping street before enjoying a rare stroll along the nearby beach. I am usually too busy to enjoy the city whenever I go there so this was a treat. However on my walk of I came across this little beauty. It’s clearly an unlicensed Body Shop store. The products within appeared genuine and from Hong Kong but all signage and interior design was a...