Guest Column: Importing from China — Managing Risk

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

  • 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

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