Simple question about trading in China

Posted by Boomer11 (449 days ago)

Hi there,

I have a HK registered company who usually sells to educational institutions here. I have had an enquiry from a school in Haidian district of mainland China who wants to buy a product that I source from the UK and resell here. I am happy to sell and support (phone) as it is a chance to see if there is a market for this product there. Problem is, I know nothing of trading in the PRC. I am a bit worried about trusting that a PO or endorsed quotation will be honored if I send the goods and then invoice as I do here. Am I right to be suspicious? What about shipping to there? Are there customs requirements? Any good places that you can direct me to for advice such as websites?

Cheers

Paul

(I am based in Hong Kong)

Posted by Pepperoni Wong (449 days ago)

Do not ship to China before you have received either full payment or a valid LC at sight. You are totally right to be suspicious. Customs: there may be import duties (depends on the kind of product), but that would be for the account of the buyer.

(I am based in Hong Kong)

Posted by Boomer11 (449 days ago)

Thanks for this Pepperoni Wong but it does make doing business a bit hard. The school is also very wary of sending me the money prior to the goods being shipped. I guess that they will just have to accept my terms or lump it!

P.S. What is a "valid LC"? Legal Contract?

Cheers

Paul

(I am based in Hong Kong)

Posted by hkfrenchie (449 days ago)

LC is for letter of credit, not a full guaranty of payement though.
I agree with PW on customs and should get full advance payment.
Another issue is copyright, in my experience, China customers will never buy anything imported for long, except if it is a world reknowed brand, depending on the products you intend to ship there, there are strong risk they will be copied very fast and you will find yourself with competitors exporting same as yours out of China.

(I am based in Hong Kong)