| Paying in China for materials | |
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| Jun 23, 2007 11:51 |   |
 | Dear All, I would like to get your advice in buying materials abroad, in particular, China. My partner is in China now, he has found out some materials for our house, which we wish to purchase. An agent, who helps him there is advising him to pay money into the agent’s account, then when materials are ready, the agent will pay to suppliers. Can we trust him? If we decide to do so, what is the best way to have proof that my partner paid money to the agent? The other thing, I wish to ask you what is IN CHINA other than a written note on an old piece of paper, for instance with a notary, witness, or something here. I have read a lot about Letter of Credit, although I think it is complicated, if you buy from different suppliers. My partner can pay a deposit to some suppliers, when he is still there, but who will chase them, if they do not deliver on time? Could you tell me what in the best way of paying in China with a minimum of risks? If someone has been in similar situation, could you possibly answer? Thank you for your time. Thank you All in advance! Best regards, Nataly |
| Jun 23, 2007 13:54 | #1 |
| just be very very careful |
| Jun 23, 2007 15:26 | #2 |
| It depends on how much you trust the agent, how much the total amount you will send. if you trust him, of course it would be more convenience for you. if you don't trust him, or this is the fist time you work each other, it is better to send the money to different suppliers.and then let the agency to follow up but you need to give the bill to the agency to show that you send the money. also, you need to see the suppliers factories or shops. or ask the agent to check that for you. this should be the job of the agency. normally, the shipping company would provide money transfer. but you need to check their office and licence |
| Jun 23, 2007 21:45 | #3 |
| Only the best way, pay by TT in a company account. Personal account not OK. |
| Jun 24, 2007 06:14 | #4 |
| Thank you All for your replies and comments. More advises will be appreciated. |
| Jul 6, 2007 08:24 | #5 |
| the best mode to pay yr supplier is to make another trip and make sure u see the goods with yr own pair of eyes, pack them under yr close supervision and get yr freight agent ot take delivery. do not trust an agent with any form of money unless u have work with him before otherwise not only u will lose yr money u may also not get the goods that u order |
| Jul 15, 2007 01:39 | #6 |
| etting up an LC is not difficult but will cost about US$100.00. Set it up to be released upon you getting the BL fromthe shiping company. Cheers, Dodger |
| Jul 27, 2007 21:30 | #7 |
| Hi Nataly, If your partner can find the supplier himself, why did he pay the money to an agent? Did he think the agent is more trustworthy? I think the issue you are facing now is not how to pay but to verify if the supplier and agent you are dealing with is legit and existing company. So I would suggest you do the following: 1) verify if the supplier is a legal company or not(check their business license, and take their copy of business license to vist local AIC for verification, and there are some free online source to verify if a company is legal or not), also visit their company to make sure they are not shell company.By that, try to make sure the supplier you are dealing with is legit and trustworthy, they won't run away with your deposit. 2) if they are legal, then sign a contract with them. a decent company will honour the contract and not risk to breach the contract. some foreigner are worried because they don't know chinese law, and whether the contract they signed with the chinese supplier will be protected by chinese law, I would say the contract laws in most countries of the world are almost the same, they protect good will, and punish bad will. besides, I highly suggest to include arbitration as the dispute settlement method as that will make it easy if dispute arise.you can visit www.chinawhy.net for any assistance in contract and trade issues. 3) I think in your case, try to find a export-oriented supplier to deal with, as they know how to export, how to ship, how to clear the customs, and they have quoted properly with all this expense included. If you need a agent, make sure the agent is a decent company before you sent them the money. For the other question, any written document will be protected by the law, but I would suggest you sign a brief contract with the agent instead of a piece of receipt or witness. |
| Jul 30, 2007 04:26 | #8 |
| I would follow ARTIST's advice. Never pay anybody any money if you have no previous dealing with them before. You will never see your money again or get any goods. |
| Oct 3, 2007 07:11 | #9 |
| Hi Nataly, I think you need the agent in China to help you QC or deal with other issues . Because sometimes factories won't tell you truth . If you can have your own people to find out problems earlier then it is good otherwise you will loose more later . So you can talk to your agent to pay him the service fee. About trust, you need judge him after works , because only work can show everything. Regards, |
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