HOW TO PURCHASE WINDOW DOOR MACHINE FROM CHINA?
THE PROCESS OF IMPORTING WINDOW DOOR MACHINE FROM CHINA
Buying and selling between two countries is international trade, which is much more complicated than buying things in our own country. For buyers, in addition to payment methods, there are also packaging, transportation, customs clearance, tariffs and other issues. Now I will introduce how to purchase window door machine from China and what issues need to be paid attention to.
Payment Method:
After the buyer and the seller have communicated and confirmed the crude product, quantity and specifications, the important point is the payment method.
Now the most popular payment method is T/T (Telegraphic Transfer). The buyer go to local bank, pays to the seller’s company account through the SWIFT code. In our industry, 30% advance payment is generally required, and then 70% balance payment before shipment.
Another payment method is L/C (Letter of Credit). The two banks of the buyer and the seller act as guarantors for the buyer and the seller to collect and present documents on their behalf, replacing commercial credit with bank credit. The tool used by the bank in this activity is the letter of credit. However, the operation of L/C is very complicated, time-consuming and labor-intensive, and L/C payment is rarely used by us.
Trade Terms : EXW, FOB, CFR, CIF
It can also be understood as the composition of prices. In international trade, some costs will be incurred. These costs are ultimately paid by the buyer. When comparing prices, the buyer must distinguish clearly what the terms of the trade are. The most commonly used trade terms now are FOB and CIF
EXW (Ex works) is also called factory delivery. Buyers pick up the goods themselves and are responsible for other matters. This EXW price is the selling price of the machine and does not include any other costs. This trade clause is rarely used by buyers, especially those who rarely source from China. Some companies that often purchase from China understand the cost and are usually willing to deliver goods from the factory.
FOB (Free On Board), the seller delivers the goods to the loading port and bears all costs and risks before shipment. Expenses include land freight from the factory to the port, packaging costs, port warehouse costs and customs declaration costs, etc. The buyer will report these costs to the customer together with the price of the machine, and the customer will eventually pay.
CIF (Cost Insurance and Freight), on the basis of the FOB clause, plus insurance and ocean freight. Insurance premiums are usually only US$50-100, which is minimal. The focus is on ocean freight. In different months, ocean freight is high or low, and the international situation also has a very important impact, as well as some emergencies and force majeure factors.
CFR (Cost and Freight), adding sea fright to the FOB term, but without insurance. It can also be understood as removing insurance premiums on the basis of CIF. This clause is rarely used. In general trade, insurance premiums are very cheap, and sellers usually buy insurance and give it to customers.
FCL transportation, LCL transportation
If the buyer buys many window door machine, they will usually be packed in an entire 20-foot container or 40-foot container. This container belongs to one consignee, called FCL;
If the buyer's goods are small in size, they can choose to pack them in the same container with other consignee's goods, which is called LCL.
FCL charges for the number of installed containers, while LCL charges based on the actual volume.
Package
If FCL, usually the outer packaging is a waterproof plastic film, the bottom of the window door machine is a tray, and then the body is fixed with steel wires.
If it is LCL, it needs to be packed in wooden boxes to avoid damage to the machine during transportation. Note that the wooden box must be fumigated at high temperature.
After the above details are confirmed, the buyer will arrange the shipment, declare the export at the port of shipment, and then ship it. The buyer will mail the invoice, packing list, ocean bill of lading, and certificate of origin and other customs clearance documents to the buyer. After window door machine arriving the destination port, the freight forwarder will notify the buyer to clear customs and pick up the goods. Buyers can pick up the goods after paying customs duties and port fees. The other is the installation, debugging and after-sales service of the machine.
