AboutHank S Expertise Ask me about sourcing products in China, finding manufacturers in China, importing from China, developing new products in China, moving manufacturing to China, price negotiations with suppliers in China, and logistics-related issues.
Experience I lived in China from 1993 to 2003 where I learned Chinese and worked in the fields of logistics, marketing and manufacturing services. I have visited hundreds of factories in China. I am authorized by the NYS Unified Court System as an interpreter of Mandarin Chinese. I have an MBA in international business and entrepreneurship. I work in a U.S. company as product development and sourcing manager.
Education/Credentials MBA, International Business & Entrepreneurship, City University of NY
BA, East Asian Studies & Chinese, City University of NY
Studied international trade taught in Chinese at the University of International Business & Economics in Beijing
Chinese language study at Beijing University & Nanjing University
Question Hi Hank, we have importing laptop adapters from a supplier in China for over a year now and we pay by t/t before the goods are sent. We have not had any problems or reason to be concerned but our latest order was for $55,000 and im worried that the company may not send either this order or a following order and then i cannot trace them anymore. Is there anyway i can protect myself against this ? All my orders so far have come by air but the latest one is coming by sea, what happens if the pirates take over the ship, the ship sinks etc. I'm also considering going to China next month as i have never been before and could do with some do's and dont's for the trip. I need to go to Shenzen, do i stay in Hong Kong etc,
Any help would be appreciated.
Thanks
Paul
Answer Hi Paul, the safest way to make payment would be to use a Letter of Credit. This is essentially a contract in which you give payment to your bank, which pays the seller's bank only when certain conditions are met, such as your inspector has checked and verified the shipment and the shipment goes on the boat. L/Cs are not cheap, but it might be a worthwhile investment. Check with your bank about setting one up.
As far as your concerns about pirates and sinking ships... not going to happen. If it makes you feel better, talk to your freight forwarder about buying some insurance for the shipment.
You should absolutely go to China and visit your supplier. A face-to-face meeting will help you assuage your concerns and move your relationship with this supplier to the next level. You can also ask for better pricing, and probably get it. An in-person visit goes a long way to building mutual trust and demonstrating to the supplier that you mean business.
Don't bother with Hong Kong - it is a distraction. Shenzhen is a bustling, modern city. You can fly into HK and then take a bus or ferry from HK airport directly to Shenzhen. If you like I can arrange for my colleague to meet you, hold your hand, accompany you to the factory and do the final inspection before the goods ship. I can also arrange for you to visit one of the largest laptop manufacturers in China, if you're not already buying from them.
