Purchasing in China with Easy Imex
Whether you have contacted factories in China yourself or we have sourced products for you in-house, the purchasing process of goods from Chinese factories is all handled by the EASY IMEX Shanghai office.
Before we make payments to factories we first need to verify their credentials. Once we have established this and signed all relevant contracts with the factory here’s what happens:
The usual terms are to make a 30% deposit to the factory/factories for the goods. The balance is then paid once goods have passed our quality control checks and delivered to our warehouse ready for export. Upon receipt of the goods, we will pay the remaining 70%. Smart importers structure payments to factories contingent on certain goals being met.
Your supplier will pay more attention to your wishes if he has spent 70% of his sale price to buy raw materials and components and has only received a 30% deposit from you. This offers you leverage in any future negotiations. You never pay the remainder until the quality is confirmed by your own independent inspectors.
As we are able to pay for goods in Chinese Yuan we can in some cases obtain a better purchasing price.
How Is Payment Made For My Goods?
When you order goods with EASY IMEX you will receive two invoices.
The first is the cost of goods in China. This invoice is to be paid to EASY IMEX LTD Hong Kong. You can pay by bank transfer.
Once your goods arrive in either Australia or the UK you will be invoiced by either our UK company EASY IMEX LTD (UK) for the shipping, handling, VAT and duty costs. Or in Australia by EASY IMEX PTY LTD.
Why A Sales Contract Is Essential
When you place an order with a factory you simply must have a contract. If there’s a problem with your order, getting the factory to take responsibility is impossible without a contract. While contracts are rarely the FINAL word in China, they offer you an important bargaining positioning to reference again and again.
Your contract must include detailed product specifications. This means working closely with your account manager and being very specific in your product specifications – prior to placing your order.
Chinese suppliers have been known to put European plugs on Australian electrical goods! Or make blue bags with green straps (instead of blue). If you didn’t specify this in the contract, the Chinese factory will think they’ve done nothing wrong and see this as being your mistake.
Having all your specifications prior to making your order eliminates these problems.
Do I really need a contract?
Many think “the legal system is still quite underdeveloped in China, what’s the point in making a contract? If someone defaults for any reason, would you really take them to court?”
The answer is yes you would. China’s legal system does give you some rights. And so long as your contract is written correctly by someone who understands China’s legal standards, you have a strong chance of winning in court.
A contract offers you a strong bargaining position should something go wrong.
If problems occur and you need to visit the factory and apply pressure, you can reference your contract, giving them no way to deflect blame.
Why EASY IMEX?
EASY IMEX creates all the sales contracts on your behalf – ensuring those with real authority are signing off on them.
As a Chinese registered business, Chinese manufacturers tend to abide by our contracts more than they would if it were with an overseas company, as our contracts are valid under Chinese law.
If a factory knows you have zero presence in China, you’ll be ignored should something go wrong.
Being on the ground in China – Chinese factories treat Easy Imex differently from the beginning. Why? Because they know we will turn up to the factory in person and apply pressure. We will reference the contract, giving them no way to deflect blame. They know we will hold them accountable. Something many importers fail to do.