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    1 Reply Latest reply on Mar 28, 2008 6:54 PM by Biz Online

    Buying from China - Is it worth it?

    miguez Newbie
      As my business grows so does the demand for items.

      I have a import/export and distribution firm in the USA and trouble comes when dealing with China.

      Turns out that chinese want to have their payments done in a 30% TT and 70% after B/L.
      For the importer (that's me) is impossible to do because as soon as I pay the 30% up front then these people forget about my business and tries to collect other people's business, thus making a great profit by seding the items later than usual. Of course I am stuck with dealing with the merchandise because I would lose 30% of my money (and it is not $1000)

      They are not bending for a letter of credit (LC) issued by our well-known bank and it would be the first great risk that I am taking. The season of the sport is about to start in a couple of months and we need to get ready for this.

      Later on I called the number and it turns out this business was ran with a CELL PHONE! It is fine, but that seems a bit suspicious.

      Everyone should be careful dealing with chinese people nowadays. Their prices got higher and turns out that the china is EXPORTING to other surrounding countries for cheaper labor.

      Does anyone have any experience dealing with China as a importer? Did you hear anything unusual regarding the topic?
        • Re: Buying from China - Is it worth it?
          Biz Online Adventurer
          In several prior jobs, we purchased millions of dollars of product from China, and so does Walmart and every major retailer in the country.

          The thing to do is work with someone who knows the territory, your industry, etc. Surely one of your competitors is working with a consolidator that they trust. Look into resources within you industry to find the right firms in China to deal with.

          As for credit, that must be established on both sides. Legitimate companies will accept LC's, and that protects both parties.
          Good luck,
          Cliff