Q&A: What are some effective secure business contracts to use in importing expensive items from China?
Question by Alkalne: What are some effective secure business contracts to use in importing expensive items from China?
I have a business plan with 600-700 dollar items, however my funds will be sent up front via bank account. What kind of contract can I use to ensure he sends the product, utilizing either USA or Chinese law? The best option as I see it is to see him and the product in person traveling to China, however plan on moving back to the USA when the contract is signed to continue doing business with him.
How much information can I retrieve about a person through an internationally acquired Chinese bank account number?
If there are no reliable and secure ways to secure the importing internationally, without being with the supplier in person, then what kind of contract would I need for moving there permanently, to operate an exporting business and being able to buy the products in person?
The products take up to 2 weeks to assemble, so if I give them the money up front, I need a reliable contract to ensure I get the product, and they aren’t easily able to run off and steal the money.
*Whether or not I am operating the business from the USA or right next to him in China, I still need a contract type agreement.
Best answer:
Answer by Pete
Your most secure method is to utilize a Letter of Credit (LOC). You will give your bank the funds, his bank will receive the LOC. The LOC will include instructions outlining what is required for the Chinese entity to receive funds. In general, once you receive the product, then they will have access to payment. It gives both sides some assurance they will get paid and receive product.
http://www.vsgconsultants.com
What do you think? Answer below!