Ordering products in the Far East
Hello Moirad,
If this is your first time ordering products from the Far East, you are likely to find that your supplier(s) will demand either of two scenarios. 1) 100% payment at time of order or 2) 30% downpayment at time of order with the balance due at time of shipment.
Generally speaking you should be able to do a bank transfer to your supplier. For smaller quantities you may be able to pay by paypall or credit card. I would not under any circumstances use Western Union.
A few general comments when doing business in the Far East ;
1) Make sure you research your supplier. Ask for references of companies your supplier is doing business with in the UK or Europe. Follow up on those references to try and establish the reliability of your supplier. Another option is to talk to specialist companies that source products on behalf of Irish clients in the Far East. They could do background checks on your prospective suppliers and perform pre-shipment inspections in the factory
2) Take charge of the shipping process. Check the cost of shipping by contacting freight forwarders based in Ireland who offer services from the Far East. I have seen horror stories where the shipping was left to the supplier, who got an unrealistically low rate and where the forreign freight forwarder, through the agent in Europe / Ireland collected the difference (and then some) in the form of a socalled "China Import Service Fee" on arrival. The problem at that stage is that you are committed. You have paid for the Merchandise, the supplier does a song and dance but claims to be helpless in all this and you have no choice but to pay up. The principle "Emptor Caveat" applies.
3) Incoterms ; When negotiating an international sales contract, both parties need to pay as much attention to the terms of sale as to the sales price. To make it as clear as possible, an international set of trade terms (INCOTERMS) has been adopted by most countries that defines exactly the responsibilities and risks of both the buyer and seller including while the merchandise is in transit. Devised and published by the International Chamber of Commerce, Incoterms are at the heart of world trade. Among the best known are EXW (Ex works), FOB (Free on Board), CIF (Cost, Insurance and Freight), DDU (Delivered Duty Unpaid), and CPT (Carriage Paid To). ICC introduced the first version of Incoterms - short for "International Commercial Terms" - in 1936. Since then, ICC expert lawyers and trade practitioners have updated them seven times to keep pace with the development of international trade.
4) Marine Cargo insurance is often a forgotton / overlooked aspect. A lot of shippers and consignees assume that the carrier - since they are in charge of the goods during the shipping process - has the obligation to make good losses in case of damage or theft or total loss. Under International conventions (such as the Hague Visby rules, soon to be replaced by the Rotterdam rules) the carriers can (and will) rely on limitation and exclusion clauses as part of the terms and conditions they impose through the shipping contract (Bill of Lading). Even if they have to accept liability, their maximum liability is often only a small fraction of the actual value of the goods. Make sure that General Average is included in the policy you take out.
Feel free to contact me or post again if you need any further assistance.
Best regards,
Rudolf289