Guest Column: Importing from China — Managing Risk
China is still a growing market that offers rich sourcing opportunities, as well as a degree of risk. But following a few fundamental steps can help minimize those risks.
Second in a series of articles from Global Sources. Also read the first article, "Importing from China — Getting Started."
Understanding the Market
Finding a Trustworthy Supplier
Factory Visits and Inspections
Before the Goods Are Shipped
Compliance Issues
Landing Costs
Sidebar: List of Common Shipping Terms
Pro-forma invoice (PFI)
Purchase order (PO)
Commercial invoice (CI)
Free on board (FOB)
Letter of credit (LOC or L/C)
Minimum opening order (MOO)
Force majeure
About the Author Global Sources Online Directory sourcing fairs sourcing reports www.globalsources.com
Understanding the Market
Finding a Trustworthy Supplier
Factory Visits and Inspections
- To meet the management and see if the company is competent.
- To gauge the factory's level of technical sophistication.
- To check if the factory complies with regulations and labor laws.
- To see who else has placed orders with that factory.
- To determine if the factory's production capacity is as claimed.
- To see if the factory is subcontracting production to other factories.
Before the Goods Are Shipped
Compliance Issues
Landing Costs
Sidebar: List of Common Shipping Terms
Pro-forma invoice (PFI)
Purchase order (PO)
Commercial invoice (CI)
Free on board (FOB)
Letter of credit (LOC or L/C)
Minimum opening order (MOO)
Force majeure
About the Author Global Sources Online Directory sourcing fairs sourcing reports www.globalsources.com
