Trade Terms & Payment

EXW — Ex Works

• Risk: Buyer assumes all risk from factory gate
• Cost: Lowest product price; buyer pays all freight, insurance, and customs
• Best for: Buyers with their own China-based logistics team or freight forwarder
• Notes: We prepare export packing and documentation. You arrange pickup from our factory.

FOB — Free On Board

• Risk: Buyer risk transfers at port of loading
• Cost: We cover inland transport and export customs; buyer pays ocean freight and insurance
• Best for: Most common for experienced importers with their own forwarder
• Notes: FOB Shanghai or Shenzhen. We deliver to the port and handle export clearance. You control the ocean leg.

CIF — Cost, Insurance & Freight

• Risk: Buyer risk transfers at port of loading; seller buys insurance
• Cost: We cover freight to your destination port plus marine insurance; buyer pays import customs and inland delivery
• Best for: Buyers who want freight handled but prefer to manage customs clearance themselves
• Notes: Insurance covers total loss or damage during ocean transit. Claims handled directly with the insurer.

DDP — Delivered Duty Paid

• Risk: Seller assumes all risk and cost until delivery
• Cost: Highest product price; includes freight, insurance, customs duties, and delivery to door
• Best for: Hotel FF&E projects and buyers who want a single hand-off point
• Notes: We manage the entire chain: production, export, ocean freight, customs, delivery to your door or project site. Removes coordination risk between freight and installation schedules.

T/T — Telegraphic Transfer

Standard terms: 30% deposit with order, 70% before shipment against copy of bill of lading. This is our default for orders under $50,000 and for first-time buyers. Deposit triggers production; balance triggers release.

L/C at Sight — Letter of Credit

Irrevocable letters of credit at sight are accepted for orders above an agreed threshold (typically $30,000+). L/C charges are for the buyer account. This option is popular with government tenders and institutional buyers who require bank-backed payment security.

Sample Orders

Sample orders are 100% prepaid before production. The amount is credited in full against the corresponding bulk order.

Which trade term is best for a first-time buyer?

DDP is the safest because we handle everything including customs and delivery. The price is higher, but you avoid surprises. FOB is the most common for experienced buyers who have trusted forwarders. We recommend DDP for your first order and FOB once you have a logistics partner you trust.

Do you accept payment in currencies other than USD?

Our prices are quoted in USD. Payments in EUR or CNY can be arranged for orders above $20,000 with prior agreement. Exchange rate risk is borne by the buyer for non-USD payments.

What happens if I cannot pay the balance on time?

We store finished goods free of charge for up to 30 days after completion. Beyond 30 days, warehousing fees apply. We never sell your goods to another buyer, but delayed payment may affect delivery schedules.

Is a purchase order (PO) enough to start production?

No. Production starts upon receipt of deposit and a signed Proforma Invoice (PI). The PI is the binding document that locks specifications, quantities, prices, lead times, and trade terms. A PO alone does not trigger production.