|FAQ: China Trade|
Frequently Asked Questions about China Trade
How to find a factory capable of making your product?
It is always better to have first hand knowledge of a factory that you intend to work with in China. The concept of sending an order to a factory with details of the product you want and expect that order to be followed exactly and shipped on time is not how most shipments work in Asia. There are always problems and finding a good factory can be hard. The best methods of finding a factory would be the following:
1. Business or Trade Council
Find a business or trade development council for the Asian country in which you want to find a supplier in your area.. These councils have web sites for sourcing and reference material for doing research for factories. Some have great libraries for you to use for research.
2. Trade Shows
Trade shows are a good way to talk directly to the owners of a company and see their products without going to their factory. Trade show listings in your area or different parts of the world are easily found on the web.
3. Web Sourcing
There are many good web sites that allow you to search for manufacturers. Some of the best are: www.globalsources.com ; www.hktdc.org ; www.alibaba.com
4. Product Publications
There are publications available that are by product category that can be used to keep abreast with the latest in product trends and information on factories producing those items.
How do I arrange for my shipment of products from the factory?
It is best to ask the factory to quote you CIF which means that the factory will arrange the shipment from their door to your door. This might not be the cheapest method but it might be the easiest and problem free. If you wish to try to do this on your own, you need to contact a Freight Forwarder in your area who has experience in bringing in shipments from the area where your product is being made. They should be able to give you a quote for the full service and you will then need the factory to know the name of the forwarder so they can make the shipment arrangements.
What is the normal process for doing Asian trade?
1. Do Research to find the right factory
2. Start dialogue to find the correct product and determine a cost
3. Send artwork to factory that is required for the product
4. Have factory make sample of the item and send to you for approval.
5. Issue out a purchase order to the factory . ( Factory might not make sample until this done)
6. Pay any deposit required to start production after sample approval.
7. Arrange for the factory to send goods to a lab testing company where required to test to make sure the product meets your countries qualifications.
8. Give factory details of your freight forwarder and shipping method.
9. Perform quality control inspections on the products before they are packed inside container.
10. Pay the factory balance after shipment is released or based on payment terms on purchase order.
11. Have the factory send you or your forwarder a copy of the BOL so goods can be released.
12. Goods will be delivered to your location confirmed by your forwarder
How do I find an inspection company to check the quality of my goods?
There are companies that can be hired to do product inspection on individual shipments. Their charges are normally quoted in man day which means they charge per person and per day it takes to complete the shipment with any additional transportation and other expenses charged separately. You can source these companies on web.
I have worked in the inspection industry for many years and here is my opinion on whom I recommend to contact.
Bureau Veritas - Good for laboratory and final inspections for toy items
Intertek - Good for electronic items and other consumer products for laboratory testing and final product inspection.
SGS – Good for items other than consumer products for Laboratory testing and final product inspections.
Quality Control Services – Is the best service available in the market for final quality inspection for goods made in China because of the customer service and how inspections are performed. This company , however, they will not take on small clients.