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Home > Articles > Import in practice
How to import from China, part 2
Source: BigChina.eu 2007-07-10 00:28:51
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This is the second article from the series: “How to import from China step by step”. The majority of trade departments in Chinese factories speak English, so it is the language in which you should (assuming you don't speak Chinese) sign contracts, negotiate terms and carry out your business contacts. We would like to give you a brief tutorial on how to run business corespondence. All you need to do is to know 4 principles.

 

1. How to write a proper e-mail

As any other letter, it requires proper beginning and ending. If you know the addressee's name, then you start your e-mail “Dear (first and last name) and end it with “Yours sincerely”. In case you don't know the addressee then you can start by writing “Dear Sir or Madam” and end with the phrase “Yours faithfully”. These phrases tend to be perceived as very strict and formal. Nowadays, in e-mails they are very often replaced by the more flexible “Best regards” or “Kind regards”. It is also advised to use an end-foot containing your contact details. Such e-mails look more professional and give the addressee all the necessary information on how to reach you. You should always add your country to your contact details as well as country code in the telephone number. An integral part of the e-mail savoir vivre is letting the addressee know that you're “Looking forward to his or hers reply” or “Looking forward to hearing from him or her soon”. If you want to stress out that you need an urgent reply, you may want to use “As this matter is of great importance to me, I would appreciate a prompt reply”.

 

2. What to enquire about?

Warranty.

When buying goods, you have to be aware that a product might break down. You can have your own repair facilities but on the other hand it's more convienient (and sometimes cheaper) to ship the goods back to the manufacturer. That is why it's essential to know if the manufacturer has a warranty on his products. On the other hand, a manufacturer, who doesn't give a warranty isn't reliable.

 

Minimum order quantity (MOQ)

If the MOQ has been set at , for example, 1000 pcs. Then it is pointless to ask for a shipment of 10 pcs. These amounts are set by the financial manager and they are connected with the overall production effectiveness. It's good to know the MOQ before you go through the entire negotiation process, because at the end of the long and arduous road it might turn out that the manufacturer isn't interested in shipping the amount that we require.

 

Time of delivery

The delivery time, depends upon two factors: mode of transport and the production policy of the manufacturer. Air shipping is advisable with orders that are either relatively small or require quick delivery. Shipping by plane shouldn't take more than 5 working days. Sea shipping takes a lot more time, but it's definitely cheaper when it comes to large orders. Time of delivery isn't only the time required to ship the goods but also includes time needed for production. Depending on the branch and on company policy time it may take just 1 day or even an entire month. Sometimes, factories start production when they have enough awaiting orders in order to cut costs.

 

Certificates

Before deciding on ordering the goods, it's important to know what certificates it has to have and standards does it have to comply with, in order for it to be allowed into distribution. The most common standard in the European Union is the CE certificate. Some goods require different certificates or are subject to other standards. The certificate (its copy or a scan) should be sent by the manufacturer if its required by the buyer. The Chinese tend to have a loose aproach in this matter. Often they will advertise their products by saying that their entire product range meets the CE requirements, when in fact only a handful of their product lines actualy have the CE certificate.

You should also ask for a certificate of origin because it is required by the customs office. Although in some cases that certificate isn't required.

 

3. Negotiations

It is a well know fact that manufaturing in China is cheap. On the other hand many people find themselves way below the price range when ordering small amounts. It is always good to negotiate, especialy to negotiate the price. Bottom line you are looking at three possible results: a) no result b) lower price, same quality c) lower pricer, lowet quality. The option of course is “b)”. When negotiating we have to always keep in mind that without rational arguments we will achieve nothing and by acting with sheer pressure we will, in most cases, achieve the “c)” option (lower price at the cost of quality). It's also advisable to appear as a dynamically evolving company with perspectives of establishing a long-term cooperation. Quoting prices of the competition might also do the trick.

 

4. Reliability

After just reading e-mails from a Chinese factory it's hard to determine whether we're dealing with a legitimate enterprise or just a virtual company set up by con men. If it's a legitimate factory than the

e-mail contents does actualy suggests if we're looking at a pleasant cooperation. Trade divisions within reliable companies usually reply within 24 hours (they usually use templates) and in most cases use proper English. It's adviseable to pay attention to the amount of detailed information we receive. In Chinese business culture paying attention to detail in trade relations isn't a priority – such attitude may appear awkward to a European. For the sake of ones peace of mind it's better to find a company which will send detailed and reliable information promptly.

 

 

To sum it all up: here's an example of an e-mail to a Chinese producer of MP3 players:

Dear James Wong,

We're interested in mp3/mp4 players. Yours seem to be attractive. We'd like to receive your full pricelist and know MOQ. We run one of the biggest e-shop in Poland and develop very dynamically. We look for a reliable electronic devices' supplier.

We'd like to see the CE certificate and warranty terms for the players. Hope to establish a long term cooperation with you.

Looking forward to your reply.

Kind regards,

Michael Lebkowski

In the next article we'll focus on how to spot and avoid frauds.