Acrylic acid is a versatile chemical found in acrylic and emulsion paints, textile vinyl-coated fabrics, and paper. The market includes Acrylic Esters, Acrylic Polymers and derivatives like Ammonium Polyacrylate and Cyano Polyacrylate. Acrylic acid and its salts are classified under HS Code 29161100. The import-export business involves the shipment of acrylic acid from one country to another, with may importing from china manufacturer.
If you’re looking to export your product to China, make sure you can get paid. The United States might be the world’s largest trading country or European importers, but China is the largest exporter of goods in the world. Hence, payment terms with a potential Chinese supplier must be handled wisely. It’s not just about making a wire transfer.
CHINESE SUPPLIERS.
While international logistics can be a real pain in the butt, importing from China is a great way to make money. Buying goods by the Chinese yuan from mainland china and then selling them domestically for 1000% markup? I’m all in!
Why importing from china and what’s in it for you?
You may have heard that the Chinese economy is in a growth period. This gives you, as a domestic supplier, an excellent opportunity to profit from low-cost manufacturing Chinese factories. By importing from China, you are able to get lower prices per unit and sell them for a high profit in your own country.
The reasons behind this are quite simple:
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Materials are easily accessible
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Wages in China are far cheaper
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The Chinese are masters when it comes to mass production
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Production lines in China are refined and organized
Simply put, the Chinese manufacturers just know what to do when it comes to making things!
Now! a most important factor in the importing process is “Finding a Chinese supplier”.
Finding a highly reputable Chinese supplier is the most challenging part of all. You want to find someone who will have your back when things go wrong. That way, you won’t be stuck with the responsibility if your Chinese supplier screw up.
You’ll want to make sure you research your Chinese suppliers thoroughly and make sure they are a good fit for your product and business because it want just be about a heavy bank account for wire transfer.
so, here are some of the most popular ways to find an wholesale Chinese supplier:
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Online supplier directories
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Google
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Attend trade shows/trade fairs
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Chinese marketplaces
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Outsource to a sourcing agency
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80/20 Sourcing
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Easy Imex
Chinese Supplier
There are many different types of Chinese suppliers. Here are a few:
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Manufacturers
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Wholesalers
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Drop-shippers
A list of Chinese suppliers
Finally, I’m going to tell you about the top 10 suppliers from our supplier directory!
1. Shiana LLC
3. OhYeah Co.
4. Everbuying
5. Tinydeal
6. DealeXtreme
8. Noda
10. Fillony Ltd
Payment Method For Importing Acrylic Products Form China.
As an international business, to succeed amongst today’s international businesses, we must offer attractive sales terms supported by the appropriate payment methods to succeed against our international competitors.
When I’mporting from China, an appropriate payment method amongst other payment methods must be chosen carefully to minimize the payment risk while also ensuring buyer protection.
Escrow payment terms
Importing from China via this International payment method involves a trusted third party which holds the funds a buyer agrees to pay a seller. This is called escrow, and it ensures that the seller will get the money they need once they have delivered the goods to the buyer.
Although this mode of payment, unlike other payment methods, is not popular among Chinese suppliers, it protects both you and your supplier. The seller is protected fraudulent buyers and vice versa.
Letters of credit
This is on of the payment options for international businesses in which a bank guarantees payment to a seller or seller’s bank on behalf of the buyer. Banks issue letter of credit letters for their collateralized clients who need them. They charge a percentage of the letter’s value as transaction fees.
Letters of credit is the best shipping method for large companies with large or medium sized transactions when importing from China, because the high fees can cut into tight margins of small companies importing from china.
PayPal accounts
In China, many suppliers accept PayPal. This payment process is valuable to those that accept paypal because it not only charges a percentage of the amount being transferred, but it also charges a currency conversion fee for every transaction involved in the import process. To be safe, make sure you are paying into the supplier’s account instead of your own.
PayPal is a simple way to send money to anyone, but the charges can add up over time. The payment protection policies are complicated, so it’s important to read the fine print before making any payments to suppliers who accept payments by PayPal account when importing from China.
Western Union
Though Western Union is convenient for international transfer across anywhere the world, most freight forwarding companies, Chinese manufacturers, and multiple suppliers would avoid this mode of payment. This is because western union doesn’t offer them any payment protection.. They also can be quite expensive.
It is also unusual for legitimate Chinese companies or freight forwarder to accept payment via Western Union for international transactions.
Sourcing Agents
If a sourcing agent such as Sourcing Allies is helping you with your sourcing China project, you can pay your supplier through that agent too.
This is a reliable method to pay suppliers if you have a trustworthy sourcing agent. But you need to check if the sourcing company will charge you for this service over and above the fee for sourcing before making any bank transfer when importing from China.
Wire Transfer/Telegraphic Transfer (TT)
Wire Transfers, commonly called TTs, are easy to understand. You agree to pay $10,000 for 100 Horse Saddles. You go to your bank and wire that amount of money to your Chinese supplier. Nervous already are you?
You should be. Sort of. Almost all of the risk is placed with you, the buyer. This is why ensuring the integrity of your supplier and freight forwarding company when importing from china is critical.
Cash-in-Advance
With cash-in-advance payment terms, an exporter can avoid credit risk because full payment is received before the ownership of the goods is transferred. For international sales, wire transfers and card payments are the most common payment method used, however this creates an unfavorable cash flow for the buyer.
Open Account
this transaction is a sale where the goods are shipped and delivered before payment is due, which in international sales is typically in 30, 60 or 90 days. Obviously, this is one of the most advantageous options to the importer in terms of cash flow and cost, but it is consequently not the safest payment method for an exporter. however, when offering this payment terms, the exporter can seek extra protection using export credit insurance.
Consignment
Consignment in international trade is a common payment method in which bank transfer is made to the Chinese suppliers only after the goods have been sold by the foreign distributor to the end customer. An international consignment transaction is based on a contractual arrangement in which the foreign distributor receives, manages, and sells the goods for the exporter who retains title to the goods until they are sold. The key to success in exporting on consignment is to partner with a reputable and trustworthy foreign distributor or a third-party logistics provider. Appropriate insurance should be in place to cover consigned goods in transit or in possession of a foreign distributor as well as to mitigate the risk of non-payment.
BANK ACCOUNTS
International Wire Transfers
This is an umbrella term that involves the electronic transfer of funds from one place to another using a network of banks and transfer agencies across the world. This includes bank-to-bank money transfers as well as frequent transfers that companies such as Western Union deal. Bank-to-bank wire transfers are one of the most common methods of payment. It is best used if you have done some due diligence on the supplier.
This mode of payment is widely accepted by both buyers and sellers. The charges can be high, however, as you will need to factor in your bank’s rate for foreign exchange as well as pay a fixed fee per transaction.
The receiver may also have to pay some kind of a fixed fee when they get the money. Since these transactions can take between two and five business days to process, the supplier is also at risk of currency exchange rate fluctuation from the time the payment order is signed to the date payment is credited into the supplier’s bank.
Though there is no in-built payment protection here, banks usually do some kind of identity check on businesses and people who have accounts with them so this is considered a safer mode of payment than many others. however, You can also protect yourself from risk while using this form of payment if you pay the supplier in tranches – say, a deposit of 30% on placing the order and 70% after a quality inspection and shipping.
This is a more secure option, whereby, as the name suggests, your bank collects the money on your behalf. It is also known as a documentary collection.
An instruction document is forwarded by your bank to your buyer’s bank for release against either Payment (Documents against Payment) or Acceptance – of a Bill of Exchange (Documents against Acceptance).
This can be a good way of “meeting in the middle” with your buyer, wherein the risk is reduced (but not eliminated) for you both.
It is also not as time consuming or costly as a letter of credit, and doesn’t take up any credit facilities.
What is crucial, however, is to follow these golden rules:
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Never send money to personal accounts via any method of payment: these are international transactions involving international payments by international transfers, so when dealing with a Chinese factory, ask for their business account. If they can’t provide one, walk away.
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Draft a strong agreement: In order to protect yourself, you must draft strong payment terms in your contract with Chinese suppliers before you send them any money. These terms relate to product liability insurance, bank account details, timing of payment and choice of payment method.
FAQ
To import goods from China, do you transact only in the Chinese currency (Chinese yuan)?
Most suppliers accept payment in payments in USD however you can pay your supplier in RMB which is the Chinese currency(Chinese yuan).
Can I pay my supplier in RMB?
Paying a supplier in RMB (Chinese Yuan) can result in a slight price reduction (1 – 3%), as you get a better exchange rate compared to USD payments. However, RMB payments are only available to a few countriesd
So far, I only have personal experience with companies in Switzerland, paying their Chinese suppliers in RMB. This is only made possible by a free trade agreement between China and Switzerland.
“Do I need a USD bank account to pay my supplier in China?”
You don’t need a USD account to pay your supplier. You can convert your local currency into USD when wiring money to your supplier’s bank account. However, opening a USD bank account can help you reduce your exchange rate risks.n
In conclusion
We should choose the best payment method according to the actual trade situation, because each payment method has advantages and disadvantages。
