Sunday, March 31, 2013

China and Visas

Regulations on Chinese Visa
The PRC follows the international system and issues visas according to its laws and regulations which may be modified from time to time.  The information provided here is about entry to the PRC mainland only: it does not include visa and entry rules for Hong Kong, Macau, or Taiwan. In some limited situations visa is not required, but most foreign travellers need one.  Generally, travellers requiring a visa must obtain it prior to travel, but there are a few exceptions.
Foreign travellers holding connecting tickets to pass through China are exempt from visa requirements provided they stay in the transit area of the airport for a no longer than 24 hours. 
Some visas can only be applied for outside China, some both, and one 'visa equivalent' – the temporary residence permit - can only be obtained inside China
The regulations for granting visas include a number of factors such as your nationality, whether you have family in China, and whether you were previously a Chinese citizen, and of course which type you are applying for, as well as that, each issuing office has some discretion in how they implement the regulations.  This makes it impossible to explain here exactly what will happen, or to provide any certainties. However, these guidelines will be relevant to most situations. 
The regulations are not normally applied to their fullest extent but at any time the government may issue a directive to apply the regulations more rigorously against an individual, to applicants from certain nations, or when special events are taking place such as the Olympic Games.  Thus, at any time you might be asked to supply full travel bookings, show a minimum amount of funds, or have invitations from Chinese persons or organisations.
Visas can be issued for various durations; immediate or later start dates, and allow one, two (dual), or multiple entries.  Any exit from the mainland of the PRC, including to Hong Kong and Macau will require that you have a valid entry to the mainland to permit you to re-enter.  Otherwise you will need to apply for a new one at a consulate (or equivalent in Hong Kong) before entry is permitted.
The Chinese visa is usually a paper sheet glued into your passport but it can occasionally be a rubber stamp.
Nationality Makes a Difference
Depending on the nationality of your passport, the rules vary.  Here, we try to provide some guidelines but as always, if you have any doubts contact the appropriate Chinese visa issuing office.
Like most countries, China applies has stricter regulations than it actually applies most of the time. It may be that nationals of some countries have been found to overstay more frequently than others, or have a higher incidence of crime, or be nations associated with terror, or simply ones where diplomatic relations are currently strained. It seems that at present, applicants from certain Asian countries are being required to get invitations and show adequate funds. 

Visa fees also vary considerably according to nationality.

Baggage Allowance for Chinese Domestic Flights

For passengers on domestic Chinese flights
 Can you give a specific definition of checked baggage and hand luggage/carry-on?
 Answer: Checked baggage refers to the luggage given to the carrier for transport and picked up at the final destination. Hand luggage, or carry-on luggage, refers to the smaller bags and personal items you are permitted to bring onto the plane and keep in the cabin with you on the flight.

 What is the difference between infant, children and adult ticket?
 Answer: Babies less than 2 years old should buy an infant ticket. Children aged 2 -12 years old should buy a child ticket. Everyone else should buy an adult ticket.

 What are the specific requirements for hand luggage ?
 Answer: Each hand luggage must not exceed 20×40×55 centimeters (8×16×22 inches) and should be less than five kilograms (about 11 pounds) in total. Any items that exceed these criteria are treated as checked luggage. First class passengers who hold adult or child tickets are permitted to carry on two pieces of hand baggage. Business or economy class passengers, only one piece of hand baggage is allowed.

 What is the standard for a checked luggage?
 Answer: Each piece of checked luggage should not exceed 50 kilograms in weight (110 pounds) and 40×60×100 centimeters (16×24 ×39 inches) in size.

 Can an infant ticket holder have free checked luggage?
 Answer: No, only passengers who hold an adult or children ticket are allowed to take a certain amount of checked luggage for free.

 What are the limitations for free checked luggage?
 Answer: The limitations are as follows:
Cabin ClassMaximum Total WeightMaximum number of items
First Class (F)40 kilograms (88 pounds)Two pieces
Business Class (C)30 kilograms (66 pounds)One piece
Economy Class (Y)20 kilograms (44 pounds)One piece

  What if my baggage allowance exceeds the free checked baggage limitation?
 Answer: The excess amount will incur an additional charge reckoned by distance and weight: Generally, 1 kilogram (2.2 pounds) costs 1.5% of a full economy-class airfare (one way, adult ticket).

 Can I put money in my checked luggage?
 Answer: No. Currency, important documents, fragile items and other valuables are not allowed in the checked luggage. In case of loss or damage, the carrier will compensate only for the common checked luggage liability, no coverage for valuables.

 Can I take lithium battery as checked luggage
 Answer: According to the latest news from Civil Aviation Administration of China (CAAC), lithium batteries that are usually used in notebook PCs, cell phones and digital cameras cannot be consigned as checked luggage. However, air passengers are allowed to take them in their hand luggage. At most two spare batteries are allowed to be carried as hand luggage and they should be well preserved to avoid short-circuit; but no lithium batteries can be consigned in the checked luggage.

 Are liquid items allowed in hand luggage?
 Answer: No. Passengers taking domestic flights are prohibited from carrying liquids in hand luggage; such items can be shipped subject to packing being consistent with the relevant civil aviation transport provisions.

 Is there any limitation about the cosmetics?
 Answer: Passengers may take small quantities of cosmetics, with a limit of one item of each type; each container shall be no more than 100 ml in volume. All cosmetics must be placed in a separate bag ready for inspection.
Passengers from outside China transferring to China domestic flights may carry unopened duty-free liquid items, in properly sealed transparent plastic bags; relative receipts must be produced.

 I am a mother flying with an infant, am I allowed to bring milk for my baby in my carry-on?
 Answer: No, but passengers with infants may apply for free liquid dairy products which are provided by the airlines when purchasing tickets.

 I am a diabetic, can I take my medicines (liquid) on the plane?
 Answer: Liquid medicines necessary for diabetic or other patients will be subject to safety inspection and will be kept by the flight crew.

 I bought a cat in China. Can I take it with me when I am traveling in china, and do the airports permit to bring animals?
 Answer: Yes. First you must make sure the animal you brought is home-raised and is a pet animal such as a cat or dog, etc. Then, you should tell the ticket agent when you book your tickets that you will be bringing your pet and you must offer the related health certificate about your pet to the airline.
Notice: The container for the pet must prevent it from escaping
            The container must ventilate the air so the pet will not suffocate.
            The container must prevent the fecal matter from spilling outside the container.

 Note: This information covers the general rules for baggage allowance. As there will be slight differences among different airlines, we highly recommended travelers consult your travel agent for detailed information about your airlines if you have any doubt. You can also check information from your airline website or call them for additional assistance.

China Customs Declaration

 What is the difference between the red channel and the green channel?
 Answer: They are two channels in China Customs. If you have nothing to declare, please take the green one, otherwise pass through the red one. When you are uncertain which one to take, choose the red one.

 How much US currency and Chinese RMB can I bring in?
 Answer: 5,000 US dollars (or equivalent in any foreign currency) or 20,000 CNY is permitted. If you have more than this amount, related documents will be needed and you need to declare to the customs.

 Do I need to declare my golden necklace which I am going to wear when traveling in China?
 Answer: According to the regulations, if gold, silver and the products made from them are less than 50g (2 ounce), they are duty-free and do not need to be declared. If the weight exceeds the limitation, you should declare it.

 What about the gold objects I have bought in China?
 Answer: All the receipts for valuable articles, such as jewelry, jade, gold and silver ornaments, handicrafts, artifacts, paintings and calligraphy that you buy in China should be kept for the exit check.

 Are cigarettes and alcohol duty-free?
 Answer: up to 400 cigarettes or 100 cigars and up to 1.5 liters of alcoholic beverages (alcohol measure above 12 degrees) are duty-free either entering or exiting. More than the limited amount needs to be declared and a certain mount of duty needs to be paid.

 Can I take Bible to China?
 Answer: It is allowed for personal use and up to 3 copies is a reasonable amount. If the amount exceeds the reasonable amount, the China Customs will confiscate the extra ones.

 Can you give specific information about the things need to be declared?
 Answer: The followings need to be declared according to the China Customs Luggage Declaration Form when entering into China:
1. Any item that will be left in China whose value exceeds 2,000 CNY
2. More than 400 cigarettes or 100 cigars and 1.5 liters of alcoholic beverages (alcohol measure above 12 degrees)
3. Foreign currency greater than 5,000 US dollars or the equivalent, or 20,000 CNY
4. Animals and animal products, microorganism, biological products, human tissue, blood and blood products
5. Transceiver, communications devices.
6. Any items prohibited and limited according to the laws of the People's Republic of China
7. Luggage that need to be transported separately
8. Cargo, commercial samples, advertising items
The followings need to be declared according to the China Customs Luggage Declaration Form when exiting China:
1. Foreign currency above 5,000 US dollars or equivalent, or 20,000 CNY
2. Gold, silver and other valuable items
3. Cultural relics, endangered animals and plants as well as their products, biological species resources   
4. Transceiver, communication devices.
5. Any items prohibited and limited according to the laws of the People's Republic of China
6. Cargo, commercial sample, advertising items

 Will I be punished if I did not declare the things that need to be declared?
 Answer: Yes. China Customs follows the regulation strictly. There is detailed information about what kind of things needed to be declare on the Declaration Form, so check your Custom Declaration Form carefully and make sure you complete it accurately. 

Note: Custom Declaration is quite a troublesome procedure. We strongly recommended that foreign travelers should ask in advance if you may have any problems concerning the regulations. You can consult your travel agency or the Custom Declaration office in the airport for help.

Know Before You Go To China: Chinese Customs


Learning a little about Chinese customs gets you a long way in a country where tradition helps a billion-plus people navigate changing times.
Chinese culture can be intimidating to many first-time visitors. And no wonder—China's 5,000-year old civilization has developed its own complex codes of etiquette and respect.
But don't worry—with a little preparation, you can easily get a handle on the basic rules of the Chinese social code. And once you're in China, you'll find that people are generally more than happy to help you learn the ropes.
1. Greetings
Get used to enthusiastic calls of "hello!" from Chinese eager to practice their English with a bona-fide laowai(foreigner). If you can reply with a friendly ni hao! (hello) you'll likely be told immediately that your Chinese is outstanding.
Of course, this compliment is likely to be delivered in Chinese, but it hardly matters—the point is that learning and using the most basic Chinese phrase of greeting is a simple way to win a friendly smile and get off on the right foot. 
Shaking hands has become a somewhat common greeting among urban Chinese men, but the aggressive American alpha-male power shake remains a rarity to be avoided. Handshakes are a fairly recent cultural import, and many Chinese are somewhat uncertain about the timing, pressure and length of a handshake.
Unless you're absolutely sure you're among China's small but growing internationally savvy fashion-forward set, avoid the Euro-style cheek kiss, and take it easy with American-style backslaps and hugs.
A more common greeting, appropriate with both men and women, is a simple, sharp nod of the head or very slightbow. Generally, outside of international business contexts, it's best for men to avoid touching women, even in greeting, until clear ground rules have been established over time.
It's a great idea to bring a supply of name cards with you, even if you're not traveling on business, as a friendly name card exchange is a frequent part of a first-time meeting. As with money and other items, politeness requires that you hand your name card to your new acquaintance face up, using both hands.
2. Face
The rules surrounding the giving, losing, saving and increasing of "face" may be the most anxiety-producing—and most poorly understood—aspect of Chinese culture.
Without going into too much detail, "face" (most commonly called mianzi in Chinese) can translate roughly as "respect," with connotations of "honor" (in an old-world family sense) and "reputation."
The best way to avoid causing a loss of face—or losing face yourself—is to avoid losing your temper in public. Control over one's emotions is considered a virtue, and to direct anger at another can easily cause a loss of face.
If you find yourself in conflict with someone, keep a lid on your temper, don't get flustered, coolly stick to your guns and be prepared for the long haul—something as simple as an argument over RMB 10 cab fare can result in a bullheaded face off.
Another aspect of face that may take some getting used to is the polite lie. Though "honesty is the best policy" in the West (at least we like to tell our kids so, hypocrites that we are), often, in China, one risks losing face with an admission of outright failure, and it's common for an excuse to be issued that is readily accepted to preserve face.
Face management also arises in matters of acceptance and refusal. It's not polite, in many cases, to outright refuse something, resulting in what might be termed the "Chinese maybe," which isn't a direct yes or no, but is, rather, a chance for you to read into the situation and accept the face-saving option for yourself or grant it to someone else.
Don't worry too much about face—you get a good deal of laowai leeway—but do be aware and willing to learn as you go without taking offense or leaping to judgment over cultural confusion.
3. Dining
Food and dining are at the center of Chinese cultural life, and as long as you keep a few simple rules in mind, you'll have an amazing time feasting on China's incredibly rich and diverse cuisine.
  • Refusing and accepting. It's polite to do both, as long as you do it right. A good rule of thumb: Politely decline an offer, whether it's an invitation to dine or a proffered chicken foot (or other delicacy you're not sure you want to try). You can decline up to three times; after that, accept and make the best of it, sipping that baijiu (see "Drink!" below) or nibbling that chicken wing.
  • Don't try to go Dutch or pay for your host. An invitation to dine is a big-time matter of "face." Hosts demonstrate their generosity by footing the bill; guests show appreciation by letting them.
  • Don't stick your chopsticks in your food or lay them across your plate. Just don't, okay?
  • Don't point your chopsticks at people while gesturing (try not to gesture too wildly in general, as a matter of fact).
  • Drink! "Ganbei!" means "bottoms up!" more or less, and you'll hear it at some point if you go out to eat with Chinese (men, mainly). It might involve the corrosively strong liquor known as baijiu, which is generally an acquired taste. Don't feel obliged to drain your cup—ladies get off especially easy on this one—but do pay respect to your host by taking at least a little sip.
  • Don't tip. Though tipping has taken root in some Western-oriented higher-end restaurants in big cities, it's generally unnecessary and even considered bad form.
4. Privacy and personal space
Don't expect too much of either one!
Chinese society is primarily communal in its outlook, which can be a real source of friction with individualist-minded Westerners. Chinese people are, generally, comfortable thinking of themselves as just another member of the crowd, sometimes resulting in behaviors that Westerners can find rude, but really shouldn't. Prime examples include:
  • The Mad Crush to squeeze one way through a turnstile or doorway while a stream of people tries to head in the other direction;
  • The classic Stranger Stare. In big cities this isn't such an issue, but in parts of China where foreigners are few and far between, people will stare and hold it... and hold it... and hold it...
  • The Curious Crowd. If you're doing anything slightly out of the ordinary or attention-getting, expect a crowd to gather. This could include bargaining, attempting to speak Chinese, tying your shoe, playing with a baby or reading a book. Don't be alarmed if the crowd draws quite close, because...
  • Personal space? Forget it. Don't be surprised if there are three people in the elevator and they're all standing up against the door and one another. Likewise...
  • Lines? Queues? Not likely! Though you will find lines in certain circumstances (often organized by a guy with a bullhorn), left to their own devices, most Chinese will simply crowd toward the object of their desire. And lines, when they form, can be a bit more free-form than in the West, so watch out for cutters and don't be afraid to stand very close to the person in front of you.
  • Friendly—if uninvited—questions and conversation. It's not at all uncommon to be hailed with a hearty "hello!" in public by a stranger. Often, broken English conversation ensues. This is a great thing if you're trying to practice your Chinese—don't be afraid to turn the tables! (Be smart but not paranoid: sometimes the cute kid chatting you up is a scam artist, so avoid anything involving money).
  • English cornered! "English corner" is a tradition in China's educational system, one that freely transfers to parks, malls and restaurants. Be ready to help strangers practice. The best revenge? Make 'em teach you a little Mandarin!
If you're feeling crowded or pushed, try to maintain your cool and calmly find a bit of space for yourself (don't freak out or yell at someone—see "Face," above). The upside of the communal ethic is that, though there are pickpockets and scam artists afoot, generally the Chinese crowd is entirely harmless.
5. Gifts
Giving gifts shows appreciation and respect, and it's traditional to give a gift when invited to someone's home. Gift giving is often reciprocal, so it's a good idea to avoid too expensive a gift because the recipient may feel obliged to give an equally pricey gift, and they may worry about losing face if they can't afford it.
By the same token, if you are given a gift, await the first opportunity to reciprocate, but don't outdo the gift-giver with a substantially more expensive gift or you may cause embarrassment.
If you can, it's a great idea to bring a few unique presents from home with you—snacks, candies, chocolate, local-flavor souvenirs, wine or liquor all work well in most cases. If not, flowers and fresh fruits are excellent standbys that are readily available in most cases. If you're dealing with a group, food is an excellent choice, as it can be shared.
6. Visiting
When visiting someone's home, it is customary to remove your shoes at the door. Your host will provide slippers. If you're doing the inviting, the expectations are the same. As noted above, you should bring a gift, even if only a small token. When asked if you would like something—some tea, a drink, a cigarette, some snacks—it is considered polite to refuse at first (three times is recommended), then to accept upon the host's insistence.
The old truism about avoiding certain subjects unless you really know someone well holds—bringing up religion and politics, especially regarding hot-button issues and those that have to do with China's national sense of "face" should be avoided. Your hosts will bring them up, no doubt, if they're interested in discussing them.
7. Shopping
China has a great tradition of bargaining, though the advent of brand-name stores and malls is taking some of the fun—and savings—out of shopping. Still, there are countless markets throughout China selling almost everything under the sun, so come ready to haggle like you've never haggled before. It's expected. We recommend starting at about 10-20% of the offered price, letting them work you up to half off, then "giving up" and walking away—chances are, you'll be pursued and given a good deal in the end. Treat it like a game, have fun and don't get worked up.
8. Smoking & Spitting
Chinese men smoke. A lot. Expect it. And expect expectoration: Chinese traditional medicine holds that swallowing phlegm is bad for the body and that it's better to get it out—so people do. That said, in big cities like Shanghai and Beijing, spitting has become far less common than in years past, as cultural attitudes change and city governments wage anti-spitting campaigns.
As for smoking, most hotels and many restaurants provide non-smoking areas and, as in the West, the awareness of smoking's negative effects on health are beginning to change people's habits. And if you're a smoker, well, welcome to tobacco heaven. Just be wary of purchasing cheap Western brand-name smokes off the street—they could well be fakes.
9. Age
China's Confucian and Taoist roots put huge premium on age, and "filial piety" remains a key virtue in Chinese society. Of course, much has changed, and the number of patriarchs heading huge clans has dwindled under the one-child policy, but you should always defer to the elderly and be extra polite to anyone older than you. Start with the variation on ni hao that signifies recognition of rank: nin hao.
10. Dating
Dating can be tricky enough without cross-cultural complications. Of course, most visitors visiting China on vacation aren't looking for love, but it's always a good idea to have an understanding of a culture's attitudes towards love and marriage, lest face be lost and hearts broken.
Many visitors note that relationships between Chinese and non-Chinese run overwhelmingly in one direction: Western men with Chinese women. Whatever the reasons for the imbalance, many can be traced to traditional Chinese attitudes toward relationships—attitudes which still hold sway today, though the many members of the younger generation are adopting less traditional and more "modern" views.
Traditionally, the family is sacrosanct in China, and for centuries children have been taught to honor the decisions of their parents as a matter of filial duty. In the realm of relationships, this traditionally meant arranged marriages that often had more to do with social status and financial success than they had to do with love. Even today, many parents work with matchmakers to pair their single children with an appropriate mate.
For visiting men, this can mean that flirtation can be taken far more seriously than might be intended, and a "date" can quickly turn into an invitation to meet the parents, who are likely to be interested in what the presumed prospective suitor might have to offer the family. Again, attitudes are changing rapidly in today's China, but unless a guy is willing to get deeper into Chinese family culture fast, he's advised to be careful when it comes to going out with that nice Chinese girl—it's all too easy for cultural signals to get lost in translation and for things to get awkward.
As for women, many find that Chinese men are reluctant when it comes to dating. There are many theories as to why, but the fact that China is a strongly patriarchal culture in which men have long worn the proverbial pants may have more than a little to do with it. In the context of traditional Chinese society, many self-confident and assertive Western women may come on a bit too strong or be too vocal and opinionated for more old-fashioned tastes. That said, it's not at all uncommon to see a Chinese man with a Western woman—it's just far less common than the reverse.
11. Don't make assumptions!
We're adding an all-important 11th rule because, contrary to old-fashioned (but, sadly, enduring) stereotypes of China being a conformist mass culture, today's China is a diverse nation featuring 56 recognized ethnic minorities in addition to the majority Han, not to mention a society experiencing far-reaching social changes as the booming economy drives a broad push to modernize.
What flies in on the high Tibetan Plateau may not go over so well in steamy Guangzhou. Sophisticate Shanghai urbanites won't give a foreigner a second glance, while nearby Anhui villagers might follow the same foreigner en masse, staring and trying out their "hellos!" You might enjoy a cold carry-in beer at a street-side Sichuan joint, only to be asked to leave if you try the same stunt at a Muslim hand-pulled noodle establishment.
Finally—relax. You'll find that individual Chinese are among the friendliest and most polite people you're likely to meet, and with a little patience, perseverance and openness, you'll have a brilliant time in the People's Republic.

Top 5 issues to consider when doing business with Chinese

1. Cultural Difference
You should already know that China has a totally different culture than your country, including Business Culture. Some approaches that worked in your country might not work well here. The first thing I would suggest is to hire a Cultural Consultant, so that you will know what is considered proper and improper behavior.

2. Know the Laws and Regulations
You should know what Chinese Contract Law says before you negotiate a contract, what Chinese Company Law provide before you set up a JV, and what Chinese Labor Laws state before you recruit staff. Hire a professional legal consultant.

3. Bilateral Political Relationship
You should be aware of the potential political risk, especially for investors from major western countries. Whether they admit it or not, many countries don’t like China or have had issues with China for a long time.
A recent example, the French President challenged the sovereignty of China by publicly meeting Tibetan separatist, Dalai Lama, which has greatly affected China-France economic relationship in the last year. French retailer company Carrefour has been boycotted by Chinese people due to that. So look at the political relationship between your country and China and evaluate what factors (religion, social system, territory dispute) might cause potential conflict between the two countries.
In the future, I think many countries will try to strengthen their good relations with China, because of the ever-growing Chinese Market. But for now, a potential investor cannot ignore the risks that political matters may affect their ventures.

4. Love China, Love Chinese, Love the culture
If you love China and love Chinese, you will be happy to be part of the society. You will learn local things, and be able to identify opportunities and problems. You will isolate yourself from the society if you don’t like China, Chinese, or Chinese Culture.

5. Find a good assistant
A good assistant can be your eyes and ears. It is very important for business and life. A good assistant will serve as a “How-to” Guide, will show you how to travel and where to relocate, as well as ways to recruit locally.

Saturday, March 30, 2013

Buying small quantity from china: things you should know

China is world factory. Buying directly from factory is cheap. But you will find it is not an easy job and enjoyable experience to buy small quantity from Chinese factory. In this article, we will guide you how and where you could buy small volume from china.

Chinese factories set high MOQ

Small business buyers don’t buy container or thousands of goods to test the water. You might need to buy 100 pairs of shoes, 50 USB, 5 computers etc. Factories will ignore your inquiry if your quantity is so small, which don’t reach their minimum order quantity.

In this case, I would suggest to buy from wholesaler, not trying to buy from the factories directly. The price from wholesalers in China are also very competitive, in some cases, will be cheaper than buying direct from factory.

For example, if you are buying apparel from China, you should definitely visit. the top apparel wholesale market in China(such as Sijiqing in Zhejiang, Baima in Guangzhou). If you want to buy electronics products, buy from Shenzhen wholesale market

Where you could buy small volume online

Aliexpress is a perfect place for small quantity purchase, aliexpress is set up by alibaba group, the sellers of aliexpress mostly are sellers on alibaba, so they are reliable(have been verified by alibaba). Most of all, they sell small quantity.

Some products are not suitable for small quantity purchase

Products like electronics are perfect items for small volume purchase, but you don’t buy a few chairs of tables or chairs directly from China, buy from your local suppliers, otherwise theinternational shipping overhead will make your products unsellable shipping all the way back to your country.

Things you should know when u wholesale products from China

When your import from china business grows, you need to find a Chinese buying agent, here is where the problem come from. you don’t know how and where to find a purchasing agent; Should you sign a contract with them, if yes, what clauses to put on the contract? How can you tell if they are trustworthy? Should you use a buying agent or a buying office, which one is better?

Trust is everything
I think you would agree with me that to work with an agent or broker, trust is everything. I would rather to use a reliable and trustworthy but mediocre buy agent rather than someone who is capable but you can’t believe in(Ideally, it would be perfect if you can find a competent and reliable one).

How can you tell if your agent or representative in China is trustworthy? In many cases, first impression can misguide you. You can did some online research to see if there is any comments and observation about him/her. Set some trial tasks with them, see how they act, if he did great for one project, two project, three projects…., then he is great. If he screws things up, find the reason and give him a second chance, you can normally tell a person by working with them for some times.

Contract VS verbal commitment
Some buyers think contract is not important(actually quite some), so they work with suppliers and purchasing agents on verbal commitment, binding by morality and virtue.

We have a client in US, buying casket from China. We are buying office for them. This client don’t like contract, he don’t sign contract properly, when I point that out, he responded that the contract will be useless if the supplier breach the contracts. Unfortunately things went on not very well with the casket supplier, they deliver poor quality products, first inspection failed, second failed, third failed, they refused fourth inspection. We have nothing to do but turn to ask for the help from lawyer, all lawyers asked if they could see the contract and what quality standard we agreed in the contract, which we didn’t have, the lawsuit is still going on, without a properly written contract, an easy lawsuit become complicated.

Believe me, these things happen. So my suggestion is trying to sign a contract properly with the buying agent no matter how good your personal relationship is with the agent. Ask the help of lawyer to draft and review the website.

Buying offices VS buying agents

Buying offices normally have experience in more industries while buying agents often specialize in certain area such as apparel, electronics. So if your sourcing projects covers many industries, then it might be better to use sourcing offices. If you deal with one product, you could work with individual agents. Also if your project is relatively big, it might be better to use sourcing office as you will need many sourcing experts to work on your project at the same time.

Buying offices are normally legally incorporated companies, so if they breach the contract, you will have somewhere and someone to chase after. Sourcing agent is often one man show, if bad things happen, they might disappear. So relatively, buying offices are more reliable than agents.

Agents might offer low rate, compared with buying office. So for small buyers, if you are able to find a reliable agent, then agent might be a better choice.


Hidden commission

It is a public secret that many sourcing agents demand commission from the suppliers. Getting commission from supplier means your buying agents and the suppliers become alliances, they will not push for the best price otherwise the suppliers won’t happily to give them the commission; they might turn a black eye on quality issue; they don’t recommend the best suppliers to you, instead, they recommend a supplier give them the best benefit.

You pay them decent service fee, they present you a make-up sourcing report(price is not real, factory presentation is biased, best supplier might be disregarded), all the problems are caused by hidden commission.


So how can you make sure your sourcing agents won’t betray you – adding hidden commission?

First of all, you should sign a contract with your sourcing agents, state clearly in the contract that hidden commission, actively or passively, is not allowed.

Secondly, you could contact some suppliers by random, using a different company name, see what price you get.

Hire an experts, not hire a secretary

There are thousands of products world buyers trying to buy from China, products are different to each other, it will take months or even years of learning to understand the production mechanism of a new product. A competent sourcing agent should be a product expert, if you don’t know the product, you don’t know how to plan the quality control, you don’t know the cost and can’t negotiate the price properly, you don’t even know where to buy the products.

Communication often is a problem

First is the language. You should make sure your sourcing agent speak your language well, good enough to understand your email, to draft and review English contract, they should also be familiar with products in your language(parameters, specification, parts and component etc). You need a sourcing agent who is well prepared and hit the ground running. If you are looking to build a long term relationship with your agent, ideally the agent should be proficient in speaking, as in many cases, email is slow, you will need to call them to speed up process.

But as a matter of fact, generally Chinese don’t speak good English, so for important matters, better to send an email or fax to make sure your agent understand and won’t miss your key points after the phone call.

The efficiency of communication is an issue to look at, especially when we have a time zone difference. See how long it takes your agent to reply your email, if they set up third party email management software like outlook, foxmail, they should be able to reply your email instantly. Instant messenger can be used to speed up the communication, text message can also be used for urgent contact.

Friday, March 29, 2013

THE FOUR PLACES YOU MUST GO


Did you ever think that one day you are carrying a backpack,
holding the hand of the beloved girl toward a peaceful and beautiful town,
keeping far away from the busy world…
1、The best place of china—Wuzhen

The geographical position: located in the north of tongxiang city zhejiang province ,
west near huzhou, the north boundary in wujiang, jiangsu county.
The reason you must go : It looks like a small jasper quiet Jiangnan town, no zhouzhuang’s reputation,
only peace and serene. It also let a person touch vicissitudes of life. White walls, grey tile,
wood partition board, flagging, WuPeng ship, woodcarving, Water pigeons , tea house,
deep get households,
will take you into a poem of the misty rainy Jiangnan .
2、Heaven on earth - the old town of lijiang
Geography location: located in the northwest of yunnan province spescimen territory.
The reason you must go: the ”to meet the rising sun and atmosphere” MuFu,
“stop the cheng” vanguard building, ”the pool clear and tidy city like jade,
fish fine stone” of the black dragon pool…
Lijiang of of primitive simplicity of nature, quiet and tastefully laid out and halcyon make people linger,
plus the dongba culture of mystery, the more it smooth added a few minutes of the original temptation.
3、Modern flower source - ink wuyuan
Geography location: located in northeastern jiangxi province,
east neighbors house historical and cultural city  QuZhou City,  the float saddle county,
LePing City, north pillow national tourism resort Huangshan mountain city,
south to Jiangnan first seazan sanqingshan, TongDou dexing city.
The reason you must go: Wuyuan looks like a Mosaic in Anhui,Zhejiang,
the intersection of the boundaries of three provinces of the green pearl.
Wuyuan is known as the ”book township” and ”the native district tea country,” said,
is the national famous cultural and ecological tourism county,
is the outside world known as ”China’s most beautiful village”.
On October 23, 2005, the most beautiful place in China list released in Beijing.
This activity by the China national geographic ”host,
selected as China’s most beautiful six big country town including Wuyuan.
4、Windy and rainy border city - the ancient city of phoenix
Geography location: located in the west of hunan, the bank of the bay.
The reason we must go: a castle peak hold ancient city,
a bay Tuo water march around the city, a red red SLATE street, a row of small the diaojiao building,
a rain of ancient city wall, a vicissitudes old castle, a determined singular beam hole,
a magnificent ancient stone bridge, a group of famous the world…
All, all beauty acme, so, just had one song Shen Congwen,
will he clings to the homeland of the dreams can depict the picturesque,
like a dream such as song, very touching.