Dear Sir,
I am importer of furniture from CHINA. Usually suppliers ask for 30 % advance TT & rest before dispatch. Doing few trnsactions i noticed that supplier try to play around with quality & since whole payment is sent buyers cannot do anything.
What is the bets way to do such type of transactions.
Can we get gurantee from any third party for quantity & quality certificate as per the invoice & packign list. Also instead of paying 30 % TT & rest before shipment. Is there ay better way to do secure & trust worthy transaction with overseas supplier.
Please guide me. Your any comment & advice will be high appreciable.
regards
Jignesh
30% downpayment and balance against B/L is an usual payment term in China. Most Chinese companies and especially cheaper producers are not very well capitalized so they need the downpayment to buy material for starting producing your order. If you want to increase payment security, you could ask your partner if they accept an L/C payment or if they are willing to combine the 30% downpayment with an L/C balance payment upon arrival of goods. Do not be surprised if the supplier won't like L/C however.
Concerning quality, you can easily hire an inspection agent who does a visit on your behalf at the company. An inspector can perform various duties for you, company verification, production supervision and loading supervision etc. There is a list of such agents at the Due Diligence forums, I think it is not very hard to find a helper who is well versed in furniture and lives close to your supplier. Inspectors usually demand a quite reasonable daily fee which is money well spent if you compare it to the costs you must pay if the product quality fails.
c[ ]
I think the problem is not the payment term.
You just need to make sure it is a good supplier and trustworthy. It seems the quality is the problem you met now. you can hire a individual person to work for you.
Verify the supplier, visit the factory, check their products they made before to see whether their quality are good or not, as well as their factory ability whether suitable for your order.
If you want a really quality, a final inspection is not enough(just know situation of the goods, but can not return), you have to check the materials that they are going to use for your order, see the workmanship when the first item is made out from the bulk production in their production line, checking again in the middle of the production to make sure again the bulk quality, then the final inspecion when all goods are ready to see the situation of the goods. If you can do like this, I think you can get exactly what you want and get satisfaction.
Surely, you can not fly to China to check, this is why I suggest you to hire one that you can trust, and work for you for long time.
You need to employ an agent or inspection company in China to represent you.
Then you need to develop a quality document based upon samples received outlining what your expectations are regarding quality. The best idea is to have signed confirmation samples both at your location and in the factory. The inspection agent can then compare production with the requirements of how it should be to confirm that production quality is up to expectations.
LC is your only option to TT 30% deposit but will not help you with quality.
The only way to keep on top of quality is to inspect goods before final payment is released and before goods are shipped.
Quoting from [chemtrade]:Dear Sir,
I am importer of furniture from CHINA. Usually suppliers ask for 30 % advance TT & rest before dispatch. Doing few trnsactions i noticed that supplier try to play around with quality & since whole payment is sent buyers cannot do anything.
What is the bets way to do such type of transactions.
Can we get gurantee from any third party for quantity & quality certificate as per the invoice & packign list. Also instead of paying 30 % TT & rest before shipment. Is there ay better way to do secure & trust worthy transaction with overseas supplier.
Please guide me. Your any comment & advice will be high appreciable.
Yes, a Pre-shipment QC Inspection service from a third-party service company like us can avoid such cases in China and we've been a purchasing agent for furniture for foreign companies for countless times in China. Please feel free to ask me any question related.
Quoting from [chemtrade]:Dear Sir,
I am importer of furniture from CHINA. Usually suppliers ask for 30 % advance TT & rest before dispatch. Doing few trnsactions i noticed that supplier try to play around with quality & since whole payment is sent buyers cannot do anything.
What is the bets way to do such type of transactions.
Can we get gurantee from any third party for quantity & quality certificate as per the invoice & packign list. Also instead of paying 30 % TT & rest before shipment. Is there ay better way to do secure & trust worthy transaction with overseas supplier.
Please guide me. Your any comment & advice will be high appreciable.
regards
Jignesh
I don't know.My english is very poor.In fact i can not understand your question.I am very sorry.
Payment method is not main factor about quality issue.
Also as been comment by Business in China & others so.
Using an inspection agent to do Pre-shipment IC is the option.
But, frankly it is about "MENTALITY" OR COMPANY PRESTIGE.
You are dealing with people who do not have "prestige/quality assurance"
the subject is not big or small factory/company !?!
But the People whom you deal with.
The other critical point is : SPECS
Specification of material, structure, finishing, hardware etc
that should be there, part of the Purchasing order that you had made ?
Q is : did you made it mate ?
So most of furniture buyer never prepare for it for some reason !
the Technical aspect that clearly saying what DO and Do Not in products.
Mainly only fob prices in the P/O. whilst the important instrument that should
been attached as the details description merely not provide.
The Specification of the furniture must there, and both must sign it nevertheless.
Can you imagine what the (such) inspector will do without this Specs !?!
Base this Specs that assign in a contract (Buy - Sell contract ).
Believe that every price will have the standard (quality) of the products !
Buyer and Seller both party had to sit and discuss it very details before contract.
By this approved and agreed Specification, then it can go with or with out the involve
of Inspector (IC).
Once the shipment been arrived and you got un-expected (dis order) goods.
not as per Specification that been signed both. You can issue Claim-note.
Of course as per mentioned in the contract been made.
It may replacing good or money pay back.
Again : Pre-shipment is good but the better one is the Pre- Agreement
i.e.: clear Specification (technical) of what you intend to buy !
dully signed by both party and there are a penalty in it.
regards
One Uni
Quoting from [chemtrade]:Dear Sir,
I am importer of furniture from CHINA. Usually suppliers ask for 30 % advance TT & rest before dispatch. Doing few trnsactions i noticed that supplier try to play around with quality & since whole payment is sent buyers cannot do anything.
What is the bets way to do such type of transactions.
Can we get gurantee from any third party for quantity & quality certificate as per the invoice & packign list. Also instead of paying 30 % TT & rest before shipment. Is there ay better way to do secure & trust worthy transaction with overseas supplier.
Please guide me. Your any comment & advice will be high appreciable.
regards
Jignesh
Develop Supplier/Vendor Base and encourage vendor based on certain criteria.If your experince problems like what you have mentioned Blacklist the vendor.
Thanks
R S Nambi
CEO
Tejasve Exports
1. find your own QC agency in china for you .
2. find a third party QC company for you.