1. What is the real China
Price?
The real China Price is what Chinese purchasers are willing
to pay for domestic goods in China, not what Westerners are charged
for the same product. The real China Price is completely
different than what is considered the China Price in the Western
world, and very often substantially less than what Westerners
pay. Please see the price difference below for fine
silver necklaces
|
* |
Price per unit |
price per 1000 units |
You Save |
|
Real China Price |
$2.50 |
$2,500.00 |
$5,000.00 |
|
US Distributor Price |
$7.50 |
$7,500.00 |
0 |
2. Who are your customers?
Basically, our customers are the established wholesalers &
manufacturers who buy bulk quantity from us or
China;
However, because of the rise of internet, a lot
of small stores, or even the individual with innovative ideas and
enterprising spirit, now are able to acquire as much info as "the
big guys" in this business to import goods directly from us or
start a import business from a scratch with us at much better
prices. You don't have to be big, but you should be serious in
starting or developing your business in a long term with us, and
we'd like to back you up and grow with you.. Having known the trend,
we've adopted a very flexible policy. Now, our sales revenue is a
50/50 split from established companies and
"emerging" individual businesses which usually make full
use of the internet for their distribution. In recent
years, we have seen an increase in goods
being exported to China and a growing number of our clients are
taking advantage of this trend.
3. What is the typical international commercial trade
price term?
Based on Incoterms 2000, 13 terms
listed below are used in international trade:
EXW EX WORKS (named place); FCA FREE CARRIER (named place); FAS FREE ALONGSIDE SHIP (named port of shipment);
FOB FREE ON BOARD (named port of
shipment); CFR COST AND FREIGHT
(named port of destination); CIF
COST, INSURANCE AND FREIGHT (named port of destination);
CPT CARRIAGE PAID TO (named place of
destination); CIP CARRIAGE AND
INSURANCE PAID TO (named place of destination); DAF DELIVERED AT FRONTIER (named place);
DES DELIVERED EX SHIP (named port of
destination); DEQ DELIVERED EX QUAY
(named port of destination); DDU
DELIVERED DUTY UNPAID (named place of destination); DDP DELIVERED DUTY PAID (named place of
destination). Among which, FOB, C&F & CIF are the most
common used ones. For example, FOB Shanghai airport means
exporter deliver the goods at Shanghai airport, and you will take
over the freight from this point on. CFR (C&F, CNF) Los Angeles
means exporter pays the ocean shipping freight to Los Angeles. CIF
Los Angeles means shipping freight and insurance to Los
Angeles.
4. What should we know on price
quotation at import side?
Needless to say,
the more your order, the lower the prices we offer. But, you may not
realize that the larger saving can be derived from the freight cost.
Please keep in mind that goods are shipped from one continent
to another where there are Pacific Ocean or Atlantic Ocean in
between, so making good judgment on the volume and planning
carefully will save you substantial money.
5. What is the payment method in
international trading?
a. T/T payment in
advance
T/T means telegraphic transfer, or simply
wire transfer. It's the simplest and easiest payment method to
use.
T/T payment in advance is usually used when the
sample and small quantity shipments are transported by air. The
reason why is that the documents like air waybill, commercial
invoice and packing list will be sent to you along with the shipment
by the same plane. As soon as the shipment arrives, you can clear
the customs and pick up the goods with the documents. As it's
acknowledged, T/T payment in advance presents risk to the importer
if the supplier is not an honest one.
For us, T/T advance
payment is required for some high-value samples (see our samples
ordering policy) and small quantity order shipped by
air.
To the customers who have long-standing business
relationships with us, we send free samples; and for the small
quantity order, document against payment is used.
It takes
3-4 days for us to received the wire transfer made from anywhere in
the world.
b. Letter of credit
An irrevocable
Letter of Credit is also an often used payment method. It is often
referred to an L/C. Letters of Credit are formal payment methods
that offer a lot of protection to the parties.
Simply put, a
letter of credit is a letter written by the importer's bank to the
exporter. It verifies that the payment will be guaranteed when the
bank is presented with the concrete documents (bill of lading, and
freight documents). Most letters of credit are "irrevocable" once
the importer has had them sent.
A letter of credit usually
includes applicant (you, the importer), beneficiary (our I/E agent),
opening bank, negotiating bank, specification and quantity of the
goods, amount of money, loading port and destination port, shipment
date, the validity date of the L/C, terms and conditions agreed by
both the importer and seller, and the documents required by the
importers (bill of lading, commercial invoice, packing list,
insurance certificate, etc.)
The L/C payment procedure
is usually as follows:
a. You (the importer) applies to open
the L/C to us (the seller) through a bank who can open the L/C in
your country.
b. The opening bank will inform The Bank of
China that the L/C has been opened.
c. The Bank of China
will inform us that the L/C has been established.
d. We'll
check all the terms and conditions listed in the L/C. If all terms
and conditions are acceptable, we'll arrange the shipment within the
time specified in the L/C.
e. After the goods are loaded
onto the ship without any damage, the captain will issue the clean
bill of lading to us.
f. We will submit the clean bill of
lading and other relevant documents to The Bank of China to gather
the payment. Only with clean bill of lading can you claim the
ownership of the goods.
g. The Bank of China will send the clean
bill of lading and relevant documents to your bank (the opening
bank).
h. The opening bank will inform you that all
documents are received.
i. You will go to the bank to make
the payment to get the clean bill of lading and relevant
documents.
j. With all of these documents, you can clear
the import Customs and pick up the goods after the goods arrive on
the destination sea port.
L/C is used for the larger quantity
order shipped by sea.
The typical L/C scenario takes
14-21 days to complete.
c. D/P (document against
payment)
The exporter (we) makes shipment and sends the
shipping documents to the exporter's bank (the Bank of China) for
collection. The Bank of China then sends the shipping documents
along with a collection letter to the importer's bank, who then
sends a collection notice to the importer. The importer makes
payment upon receiving the notice, and only after payment does the
importer receive the original shipping documents with which you take
the physical possession of the goods.
The major
advantage of the use of a cash against documents payment is the low
cost, versus using a letter of credit. But, this is offset by the
risk that the importer will for some reason reject the documents (or
they will not be in order). Since the cargo would already be loaded
(to generate the documents), we have little recourse against the
importer in cases of non-payment. So, a payment against documents
arrangement involves a high level of trust between the exporter and
the importer.
To our customers who have long-standing
relationships with us, for larger quantity order shipped by sea, we
usually make the payment arrangement as 50% made via T/T advance
payment and 50% made via D/P to expedite the whole transaction
process.
There is no payment method that is perfectly safe
to both the importer and supplier at the same time. But, we
still have got to do business, right? So, we hold it's crucial to
develop a long-term relationship with our customers based on mutual
trust.
d. Net 30
Through our extensive credit check, some
well established companies may be granted for Net 30.
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