Before Paying a Chinese Supplier, Check These Things First

A good factory price is only the beginning

We regularly receive enquiries after the supplier has already been paid. Sometimes everything is fine. Sometimes the product, packing, compliance or landed cost creates a problem that could have been identified earlier. Before paying, we prefer to check the transaction as a whole. ## 1. Confirm exactly what you are buying Model, material, size, colour, packaging, branding, quantity, tolerances and any required testing should be written down. A product photo is useful, but it is not a specification. ## 2. Check the supplier and manufacturing route Understand whether you are dealing with the factory, a trading company or another intermediary. That does not automatically make one good and the other bad, but it changes what needs to be verified. ## 3. Review HS code and India-side compliance Before committing, check whether the product is freely importable and whether BIS, WPC, CDSCO, FSSAI or another product-specific requirement may apply. ## 4. Understand the landed cost The supplier’s RMB or USD price is not the landed cost in India. Duty, freight, handling, clearance and domestic delivery can materially change the commercial result. ## 5. Agree packing and shipping terms Carton dimensions, gross weight, CBM, labels, marks and Incoterms should be clear before the goods are ready. Small packing changes can change freight. ## 6. Keep documents consistent The PI, commercial invoice, packing list, product description and shipping documents should tell the same commercial story. ## 7. Leave room for inspection For new products or suppliers, build enough time into the order to check samples, production or final packing where appropriate. > [!TIP] > **Action Step**: If you have a supplier PI but have not paid yet, share it with us. That is often the best time to review the import route. ## Helpful Resources & Official Links - LCL Global Sourcing & Import Services - Contact LCL Global Coordination Team