Sharing my lifetime experience in export/import. Product sourcing specialist.

[Sharpzeal]

Hi Walter,

I've read the whole thread, thank you for all the information you provided here!
In the beginning of the thread you mentioned that people shouldn't ask for samples early in their communications with suppliers. How would you typically start communicating with suppliers? And at what point would you ask for samples?

 

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[Walter Hay]

Thank you for kind words and support.
Unfortunately, nothing is clear about shipping at this point...except DHL will charge me. I think this might just have to be a live and learn experience for me.

I cannot understand why people would not thank you! I cannot thank you enough! I'd xfer rep points, but I don't have much to go around.

Always ask if you need help. I don't want things to go wrong for you.

Not getting thanks is just part of life. I'm not grumbling.

 

[Walter Hay]

Hi Walter,

I've read the whole thread, thank you for all the information you provided here!
In the beginning of the thread you mentioned that people shouldn't ask for samples early in their communications with suppliers. How would you typically start communicating with suppliers? And at what point would you ask for samples?

There are a few things that newbies typically do wrong when first communicating with suppliers, and the result is that they are often ignored.

• Don't let them know you are a newbie. Give the impression that Your are an established importer and sign yourself buy manager or similar.
• Don't ask what is their MOQ. They will tell you soon enough. Just tell them that their product XXX fits well with your company's sales program and you would like to know more about it. Ask for a catalog, either online or preerably a print copy if they produce one. It can tell you a lot.
  
• Don't mention samples until a decent period of time after you have reviewed their catalog. Expect to pay for the sample and the freight. (Costly) It might pay to order a small quantity as samples.

I think these don'ts and related comments probably answer your question, but let me know if you need more info.

 

[Walter Hay]

Apologies for late responses.

I am sorry about late responses to questions and especially to those who have sent me PMs. I am currently traveling in remote parts of Western Australia and internet reception is erratic and in most parts non-existent.

I will reply as quickly as a connection when found, will allow me.

 

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[ddall]

Walter,

Can we have an honest discussion about what value to include on invoicing product shipments for duty and tariffs?

Presently my main items are charge 10% duty, and on nearly 20K in value per shipment this ads up. These items are unique and customized to my brand (that is, I do not think a value could be determined accurately outside of what I actually pay the supplier).

To date, I have been 100% on the level with the documentation we use illustrating the value of our imports. My supplier originally trie to DRASTICALLY deflate the value of the goods to which I protested and had amended to reflect the truth.

That being said, how often and common is it for people massage the value of their goods downwards, what is reasonable adjustment (say 20% below what you actually paid), how can you get 'caught', and what to do if an issue arrises. My suppliers tell me everyone lowers their value.

Thank you Walter

PS: My one supplier tells me sometimes DHL does not levey or charge for the duty and tariffs and sometimes they do. How is this possible?

 

[Brentnal]

I am finaly done with reading the whole thread, i have put all the important things in a word document and then in google docs.
Here is the link for anybody who is intrested : https://docs.google.com/document/d/1In7m0QzBYuufcjJgJfuBMQrTS1QelrSZIlXRCq6TpZk/edit?usp=sharing

Walter Hay this thread is one of the most helpful threads on import i must say. I am definitly going to buy your book. As a matter of fact i am going to do it right now.

 

[Brentnal]

I got just bought the book, i expected more pages but i guess you only put in important things without using whole stories to explain it.
I am going to read the book within the next few weeks and make lots of notes of it and the thread.
Also i'm going to put a review on this thread of it.

 

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[Walter Hay]

Walter,

Can we have an honest discussion about what value to include on invoicing product shipments for duty and tariffs?

Presently my main items are charge 10% duty, and on nearly 20K in value per shipment this ads up. These items are unique and customized to my brand (that is, I do not think a value could be determined accurately outside of what I actually pay the supplier).

To date, I have been 100% on the level with the documentation we use illustrating the value of our imports. My supplier originally trie to DRASTICALLY deflate the value of the goods to which I protested and had amended to reflect the truth.

That being said, how often and common is it for people massage the value of their goods downwards, what is reasonable adjustment (say 20% below what you actually paid), how can you get 'caught', and what to do if an issue arrises. My suppliers tell me everyone lowers their value.

Thank you Walter

PS: My one supplier tells me sometimes DHL does not levey or charge for the duty and tariffs and sometimes they do. How is this possible?

Thanks for asking this important question. Fortunately it coincides with my arrival in a civilized location where I have a good internet connection. For those interested, have a look at a map of Western Australia and see the vast distance between places on the map. Bear in mind that many of the place names are just ranches, some as big as the entire UK, and others are just roadhouses.

Now to your question. As you suspect it is almost universal practice for false values to be declared for Customs. Chinese suppliers will do it routinely unless at the time of placing the order you firmly tell them not to. The majority of importers insist on them doing it. There are a few things to be taken into account:

• It is illegal and can result in severe penalties. One of the lesser penalties is the flagging of your name and address for thorough inspection of every shipment thereafter, with long delays and extra cost often resulting.
• Numerous suppliers have been flagged also, with the result that every shipment they send is delayed at the port of entry.
• Customs officials are not stupid, and they have a good idea of real values in many cases.
• 10% adds up, but unless substantial undervaluing takes place, savings on small shipments are small. The average duty rate for goods entering Canada is 8.56% and the US is 5.63%, so although in your case it is 10% for many the saving would be very small even on a high value order.
• The way you can get caught is a) A customs official becomes suspicious, b) A supplier is known to Customs, c) A competitor might complain. Not very likely unless you have one or two major competitors who are tracking your shipments. That is relatively easy to do if they know your trading name.
• Insisting that suppliers declare full value enhances your standing with them. They may think you are crazy, but they will respect you.

I know that DHL and others sometimes deliver without lodging clearances. As to why, I have no idea, and I find it difficult to understand how they get away with it, but it definitely happens. It seems random.

Others may care to comment on the whole issue also.

 

[Walter Hay]

Duplicate deleted.

 

[ddall]

Thanks for asking this important question. Fortunately it coincides with my arrival in a civilized location where I have a good internet connection. For those interested, have a look at a map of Western Australia and see the vast distance between places on the map. Bear in mind that many of the place names are just ranches, some as big as the entire UK, and others are just roadhouses.

Now to your question. As you suspect it is almost universal practice for false values to be declared for Customs. Chinese suppliers will do it routinely unless at the time of placing the order you firmly tell them not to. The majority of importers insist on them doing it. There are a few things to be taken into account:

• It is illegal and can result in severe penalties. One of the lesser penalties is the flagging of your name and address for thorough inspection of every shipment thereafter, with long delays and extra cost often resulting.
• Numerous suppliers have been flagged also, with the result that every shipment they send is delayed at the port of entry.
• Customs officials are not stupid, and they have a good idea of real values in many cases.
• 10% adds up, but unless substantial undervaluing takes place, savings on small shipments are small. The average duty rate for goods entering Canada is 8.56% and the US is 5.63%, so although in your case it is 10% for many the saving would be very small even on a high value order.
• The way you can get caught is a) A customs official becomes suspicious, b) A supplier is known to Customs, c) A competitor might complain. Not very likely unless you have one or two major competitors who are tracking your shipments. That is relatively easy to do if they know your trading name.
• Insisting that suppliers declare full value enhances your standing with them. They may think you are crazy, but they will respect you.

I know that DHL and others sometimes deliver without lodging clearances. As to why, I have no idea, and I find it difficult to understand how they get away with it, but it definitely happens. It seems random.

Others may care to comment on the whole issue also.

Walter, thank you for the detailed response. What would you say are some ranges from which to lower the true value of the goods. That is, what is 'safe' but enough to realize savings, and what is absurd. That is, is 50% normal or an immediate red flag (I realize it depends on how commoditized the product is. That is, a very customized item might be difficult for a customs officer to value while something like lumber would be readily known). I was thinking of perhaps 30% less.

 

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[Walter Hay]

I am finaly done with reading the whole thread, i have put all the important things in a word document and then in google docs.
Here is the link for anybody who is intrested : https://docs.google.com/document/d/1In7m0QzBYuufcjJgJfuBMQrTS1QelrSZIlXRCq6TpZk/edit?usp=sharing

Walter Hay this thread is one of the most helpful threads on import i must say. I am definitly going to buy your book. As a matter of fact i am going to do it right now.

I got just bought the book, i expected more pages but i guess you only put in important things without using whole stories to explain it.
I am going to read the book within the next few weeks and make lots of notes of it and the thread.
Also i'm going to put a review on this thread of it.

I can't thank you enough for the work you have done in preparing this document. What you have provided could be of considerable value to those willing to do some searching through the document.

While it covers a lot of ground, it does not cover everything in my book. You will have already found things in it that I never mention online such as how to save the cost of the book in just a few inquiries on one particular site where you have to pay for certain information unless you follow my little trick of the trade to get that information for free.

As a matter of fact, I am constantly reviewing my book and a revised edition should be available in about 2 months. There is a lot of work in a revision, but I believe it is worthwhile to keep it as up to date as possible.

The new edition will have a lot more material. It will be automatically made available free of charge to all who have previously bought, so don't think that you will miss out.

I look foward to reading your review.

 

[Vigilante]

I got just bought the book, i expected more pages but i guess you only put in important things without using whole stories to explain it.
I am going to read the book within the next few weeks and make lots of notes of it and the thread.
Also i'm going to put a review on this thread of it.

Make sure you keep some of his references from the book private. There are a few tidbits he has intentionally left out of this thread, and based on his continued contributions to this forum, I would like to leave it that way in hopes that people reach out and support him and buy his book.

This thread could be a lesson in how to network. He didn't walk in here spamming the forum. He walked in here, added value to people's lives, and the natural byproduct of that is people want to know more... learn more... and buy his book.

So just make sure that in your review, you don't take it outside the construct of his wisdom in this thread. Leave room for people who want to know more or dive deeper to pick up his book. That's one way we, as a forum, can reward his exemplary contribution to our knowledge base.

 

[Walter Hay]

Make sure you keep some of his references from the book private. There are a few tidbits he has intentionally left out of this thread, and based on his continued contributions to this forum, I would like to leave it that way in hopes that people reach out and support him and buy his book.

This thread could be a lesson in how to network. He didn't walk in here spamming the forum. He walked in here, added value to people's lives, and the natural byproduct of that is people want to know more... learn more... and buy his book.

So just make sure that in your review, you don't take it outside the construct of his wisdom in this thread. Leave room for people who want to know more or dive deeper to pick up his book. That's one way we, as a forum, can reward his exemplary contribution to our knowledge base.

Thank you for the thoughtfulness and wisdom of what you have written here.

What I have presented on the forum is intended to help not only newbies, but also those who have been importing for some time, but I can't post 83 pages. I even have some large importers who have bought my book and have found it enlightening so that they have improved their procedures, sometimes using "simple" tricks that they have found in my book.

An example of an extremely simple thing that I have described in detail in the book, but only made small reference to in my thread is a freight scam. When I got caught, it cost me $6,000 at the time, and that would equate to about $12,000 in today's money. That scam is still alive and well, and it is not perpetrated by overseas suppliers or overseas freight companies, but by locals. A good friend who is a senior executive in the international industry says it is common wherever commissions are paid to sales representatives. That would be most countries.

That is another one of the little things that I would like kept as a reward for those who choose to pay a small amount for the full picture, rather than rely on the snippets of information to be found in forum posts.

 

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[Vigilante]

Walter,

Can we have an honest discussion about what value to include on invoicing product shipments for duty and tariffs?

Presently my main items are charge 10% duty, and on nearly 20K in value per shipment this ads up. These items are unique and customized to my brand (that is, I do not think a value could be determined accurately outside of what I actually pay the supplier).

To date, I have been 100% on the level with the documentation we use illustrating the value of our imports. My supplier originally trie to DRASTICALLY deflate the value of the goods to which I protested and had amended to reflect the truth.

That being said, how often and common is it for people massage the value of their goods downwards, what is reasonable adjustment (say 20% below what you actually paid), how can you get 'caught', and what to do if an issue arrises. My suppliers tell me everyone lowers their value.

Thank you Walter

PS: My one supplier tells me sometimes DHL does not levey or charge for the duty and tariffs and sometimes they do. How is this possible?

Life is too short. I don't want to be looking over my shoulder ever. Handle your business with integrity. I can tell you not everyone cheats. I sleep well at night. The invoices my suppliers provide are accurate and truthful. I never have to worry about "being caught."

 

[MJ DeMarco]

Thread marked GOLD! Thanks @Walter Hay for providing all the wonderful details.

 

[Bila]

Sorry if i am derailling the thread but : i am trying to order a big quantity of T Shirts for a project i am working on ( see progress thread)
Contacted 3 " manufacturer " from Alibaba, is it normal that they would not give a price per unit ? ...It's my third email ( to the three of them ) asking for that info, they reply vaguely ( yes quantity available, shipping via air recommanded ) ....Red flags ??

 

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[Walter Hay]

Sorry if i am derailling the thread but : i am trying to order a big quantity of T Shirts for a project i am working on ( see progress thread)
Contacted 3 " manufacturer " from Alibaba, is it normal that they would not give a price per unit ? ...It's my third email ( to the three of them ) asking for that info, they reply vaguely ( yes quantity available, shipping via air recommanded ) ....Red flags ??

Chances are that they are scrambling to try to find a manufacturer that can and will supply them with the items you have asked for quotes on. The traders who abound on Alibaba often have no formal arrangement with manufacturers and are simply opportunists. They advertise, sometime using pirated photographs and when they get an order they try to convince a manufacturer to supply.

You need to find a real manufacturer. PM me with the details of your requirements and I will see what I can find for you. You can be sure I won't be looking on Alibaba.

Walter.
P.S. Still in a remote part of Western Australia, so internet availability is erratic. Flying home late Friday, so my responses may be slow for another few days.

 

[Walter Hay]

Thread marked GOLD! Thanks @Walter Hay for providing all the wonderful details.

Thank you. I am honored to know that my contribution is regarded as gold.

I would like to say that the Fastlane Forum is Gold. I have been a contributor on a few other business forums and I must say that not one of them is even a shadow of Fastlane.

Here we have mostly serious people wanting to make a difference to their own lives and to the lives of others. I feel at home here.

 

[Brentnal]

I just finished your book and WOW alot of golden nuggets in there. It is like a treasure chest of knowledge and tricks of the trade for importing.
It was worth the money, in the long run it will save readers a load of money. What is 97 some dollars in comparison to thousands of dollars.
It may not be a 300 page book but that is because there are no stories and all that.

My questions from the book:

1# When should you use a customs broker and when a Freight forwarder? Is there a significant difference between the two?

2# I did the importing course from startupbros and they told me that in the beginning we should use air freight for small orders. But you said be wary of using air freight until you have gained some experience in importing. Why is that?

Thank you for your time and for sharing the knowledge with us.

 

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[Walter Hay]

I just finished your book and WOW alot of golden nuggets in there. It is like a treasure chest of knowledge and tricks of the trade for importing.
It was worth the money, in the long run it will save readers a load of money. What is 97 some dollars in comparison to thousands of dollars.
It may not be a 300 page book but that is because there are no stories and all that.

My questions from the book:

1# When should you use a customs broker and when a Freight forwarder? Is there a significant difference between the two?

2# I did the importing course from startupbros and they told me that in the beginning we should use air freight for small orders. But you said be wary of using air freight until you have gained some experience in importing. Why is that?

Thank you for your time and for sharing the knowledge with us.

Thanks for your review. I don't make a point about boasting how much money the book can save people who use it, but many of my readers have said what you have, that it has saved them a load of money. It's like people saying what's so special about a quality European car? - it's all just show. Once they drive one they know what's special.

Your questions:

1. The significant differences are that a) A Customs Broker has specialized knowledge of rules and regulations that can keep you out of trouble, reduce the chances of paying too much duty, and help you avoid importing things that are restricted or require special labeling. b) A good freight forwarder will work in your best interests to get the best price and most efficient freight for you. The savings can be huge, but you need to build a good relationship with them. I prefer to use a smaller forwarder, but they should employ an in-house Customs Broker.

Even if they do have one in-house, you can use both at the same time. Your Customs Broker can work with the forwarder and you can get the best of both worlds. The Customs Broker is better equipped to give you advice in advance of you placing an order, so you don't proceed to that point if he raises a red flag.

2. I don't like to be negative about specific experts or courses, but their reference to air freight is I believe, due to a careless approach common to what is taught by the majority of importing experts. Their treatment of sea shipments is likewise casual and potentially extremely costly.

It is important to understand the difference between air freight and air couriers. See Chapter 5, in particular 5.1 and 5.2. Briefly for our Fastlane readers: Both relate to delivery by air. Air freight refers to a service from Airport to Airport, but air couriers provide a service Door to Door. Believe me a newbie does not want to learn the hard way how to collect a shipment from the airport. It is not nearly as traumatic as collecting a shipment from a sea port, but until you know the basics by learning what your freight forwarder has previously done, it will likely not be a happy experience.

That is why I advise against using air freight until you have some experience. It would be different matter if you are using a freight forwarder. If you ask them to advise the best freight method, including delivery to your door, and they have recommended air freight, I would normally choose to accept their advice. The caveat is that the written quote must include all charges to your door.

As a general rule, small shipments will travel most cost effectively via air courier, but if you are building a relationship with a forwarder, ask them. They may have spare air container space that they will gladly fill at low cost to you.

Best wishes in developing your importing empire.

Walter

 

[Brentnal]

I use terapeak for my product research, do you know of other good ways to do product research?
Terapeak is not available to my country (The Netherlands) so i use the UK version. I think if it sells in UK it will sell here, am i right on this?

 

[Walter Hay]

I use terapeak for my product research, do you know of other good ways to do product research?
Terapeak is not available to my country (The Netherlands) so i use the UK version. I think if it sells in UK it will sell here, am i right on this?

I am not an expert on internet marketing. In fact I have never done it, except that my franchise website gradually evolved from being an online brochure to also become a place where the few standard items my franchisees carried as inventory were available for online ordering.

Naturally, through my constant exposure to such questions and the answers I have seen, I have learned a little. One important thing I have learned is that Terapeak is probably a bit misleading in the results it gives. One online marketing expert that I respect, is adamant that the best resource is eBay's completed listings. This is because it shows you what has sold, and the actual prices achieved. In looking at these listings you should not include shipping cost unless the listing is in your home country.

That may be helpful, but I think you would get a far more helpful answer from @Ecom man. He has a lot of experience and certainly seems to know what he is talking about in relation to selling on eBay.

 

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[Walter Hay]

Alibaba’s Trade Assurance Service. I know that many of my readers are wedded to Alibaba as their primary sourcing site regardless of the problems I have highlighted. Just because those readers won't take my advice is no reason for me to neglect them, so I have looked at this new service of Alibaba's.

It would seem on the surface to provide a far better level of safety than the old escrow system, now called Secure Payment. But...
Alibaba’s Trade Assurance Service is not without difficulty for buyers. I suggest you read the relevant Terms and Conditions, (T & C) but in particular the following:

2.4, 2.6, 5.5, 5.5.1, 7.3, 7.5, 9.5.1, 9.5.2, 10.2.4, 10.3, 10.4, 11.3,11.4, 11.5, 11.6, 11.7, 11.13, 11.14, 14.6.5, 15.5.

Because I know that few will bother to check out the huge page full of technicalities, I will draw attention to some very important matters found in the (T & C) plus some important things that they do not specify.

Alibaba have the absolute right to decide if your money will be handed over to the supplier. No right of appeal.

Claims that the product is faulty must be made before the goods are delivered!

They say in 7.5 “Buyer may confirm the shipping invoice within 15 calendar days after Seller uploaded the evidence of shipment”, but they do not explain this very important clause. “Confirming the shipping invoice” is not mentioned anywhere else in the T&C.

Data recorded by One Touch, Alibaba, and Alibaba.com constitute almost the only evidence admissible in dealing with a claim. This means it is imperative that you keep screen shots of every transaction, every page visited, every attachment sent to you or by you, every email to or from your supplier and to or from Alibaba and OneTouch. You can provide other supporting evidence, but it certainly appears that it is inconsequential.

Here is 10.2.4 in full: “10.2.4 In the event of a dispute between Buyer and Seller on product quality, Buyer should raise a complaint before Seller delivered the product. The product verification report issued by a product verification company obtained by Buyer shall serve as the basis of determination on whether or not the products are in line with the agreed product quality standards.” This implies, but does not clearly state, that you should have every shipment inspected before the goods leave the factory. See important note below. The inspection cost will be yours.

Now, if you have digested that, here is 10.3 in full: “10.3 After Buyer submitted a request for Alibaba to resolve a dispute on product quality, Buyer shall instruct one of the designated Product Inspection Company to inspect the products and pay for the relevant inspection fees. Alibaba shall make a determination on the dispute based on the product inspection report issued by the Product Inspection Company. If Buyer and Seller did not expressly agree on the quality standards required of the products, the Product Inspection Company shall have the right to issue the quality standards report based on the relevant industry standards. Alibaba shall have the right to reject any product inspection reports issued by other product inspection companies. If the products cannot be inspected due to reasons or faults attributable to a particular party, such party shall be liable for any damage or liability that arises therefrom. “ The bolding and underlining are Alibaba’s. Put simply it means you will have to pay for another inspection, using an inspection service of Alibaba’s choosing. In the past they have specified SGS, which will cost you about $350 or more. This clause also highlights the requirement to precisely specify quality standards. Few importers will have the technical knowledge to do this and will have to have specifications drawn up by an engineer familiar with the particular type of product being ordered, and in keeping with your specific requirements included. Cost to you $????.

The other major point I would make is that if you pay a deposit, that will be covered by Trade Assurance if you ask for it and the supplier agrees, but if you pay the balance before shipment, that is not covered. See Clause 10.4

If your deposit is below the US$1,000 minimum you can’t get cover anyway.

Before using Trade Assurance, it would be a good idea to carefully read all the T&Cs to be sure that you have dotted every i and crossed every t.

IMPORTANT! If the goods have been delivered there is no possibility of making a claim. They do not specify what "delivered" means, but that could depend on the terms of contract. If FOB, the goods have been delivered when loaded on a carrier. If EXW, the goods have been delivered as soon as they leave the supplier's dock.

Finally, note that the English version of the rules published on Alibaba’s site is not binding, only the Chinese version. There is a partial (non-operative) link to the Chinese version at the end of the T&Cs. Those of you fluent in Mandarin may be able to locate an active link.

 

[eticket]

Walter:

I've been off the fastlaneforum grid for a couple of weeks, but I finally got a quote today from my Chinese supplier. I Was going to ask if you would mind if I ran it by you via email to get your opinion. But, after reviewing the quote I got, the prices are hardly any better than if I purchased in the U.S. or from Amazon.com. I think the "manufacturer" I found is really a trading company in sheep's clothing. I'm finding this to be a very common experience, where a manufacturer actually turns out to be just a trading company (just like you mention in your book).

I've been communicating with this supplier for about a month now, and I'm at the point where I want to say "adios...sayonara...good bye!" (Isn't there a song that goes like that?) Do you have any suggestions as to how I might convey this?

Thank you very much for your help!

eticket

P.S. - It sure is difficult to find REAL manufacturers!

 

[Walter Hay]

Walter:

I've been off the fastlaneforum grid for a couple of weeks, but I finally got a quote today from my Chinese supplier. I Was going to ask if you would mind if I ran it by you via email to get your opinion. But, after reviewing the quote I got, the prices are hardly any better than if I purchased in the U.S. or from Amazon.com. I think the "manufacturer" I found is really a trading company in sheep's clothing. I'm finding this to be a very common experience, where a manufacturer actually turns out to be just a trading company (just like you mention in your book).

I've been communicating with this supplier for about a month now, and I'm at the point where I want to say "adios...sayonara...good bye!" (Isn't there a song that goes like that?) Do you have any suggestions as to how I might convey this?

Thank you very much for your help!

eticket

P.S. - It sure is difficult to find REAL manufacturers!

If they are a trading company, you will not be able to get them to reduce the quoted price. If they are a manufacturer, there would be a good chance of doing so.

There is only one way to be certain that the supplier is a real manufacturer. That is if they have been inspected and certified as such by one of the big European inspection companies such as SGS. Even if you visit the factory you can't be sure. The two preferred sites mentioned in my book do provide certainty because they have engaged such services to do genuine audits.

I would be happy to check them out for you if you like. Send details via PM if you want me to. If they turn out to be manufacturers you could then negotiate hard before forgetting them. If they are traders, I would not waste time or energy even emailing them again.

Walter

 

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[Walter Hay]

Q & A 18 Trade Assurance Question. Following my recent post explaining Alibaba’s Trade Assurance system, I have been asked questions about non-delivery and quality failure.

Q. Can you confirm that if the goods are not shipped, my money will be refunded? Also, what happens if the goods arrive but are not of the quality ordered? How can I prove it?

A. Trade Assurance covers not only pre-shipment quality assurance , but also a guarantee that the quoted delivery date will be complied with as well as. What that implies is that if the goods are not shipped at all, as happens sometimes, the money will not be transferred to the seller's account.

The loophole there is that false documents can be presented showing that the goods have been shipped when they have not. You should note that if the goods are not shipped but you have paid to have a pre-shipment inspection, that inspection fee will not be refunded. You have lost several hundred dollars.

It is also possible that genuine documents can be presented, but when delivered, the contents of the shipment are found to be not as described. This often happens on a small scale, but it is just as easy for scammers to do it on a large scale. You order machinery, they load the same weight of pebbles instead.

If you have not had a pre-shipment inspection, there is no point in trying to prove that the quality is not as agreed. There is no protection for instances of goods arriving at destination, but not being as described, or not of the agreed quality, so a pre-shipment inspection must be done and must include sealing of the shipment.

NOTE: A buyer's use of a pre-shipment QA inspection service is optional, but unless that inspection is done no claim could possibly succeed, so without it the use of Trade Protection is pointless. Why would Alibaba allow for that inspection to be optional, when failure to do it would nullify the protection arrangement?

 

[eticket]

Walter:

I have 2 questions.

1. Do you have an alternative site you can PM me to the one you mentioned in your book? When I visited that site, my browser flashed a warning that the site is dangerous because it was recently hacked.

2. I have yet to import any product, however, there is one item I would like to have manufactured myself and import for subsequent sale. What guidance would you give me as to how to go about this? Is the process for having something manufactured in China different than for importing only, per your book?

Thanks

eticket

 

[Walter Hay]

Walter:

I have 2 questions.

1. Do you have an alternative site you can PM me to the one you mentioned in your book? When I visited that site, my browser flashed a warning that the site is dangerous because it was recently hacked.

2. I have yet to import any product, however, there is one item I would like to have manufactured myself and import for subsequent sale. What guidance would you give me as to how to go about this? Is the process for having something manufactured in China different than for importing only, per your book?

Thanks

eticket

1. Sure, just PM me with the name of the site that has been hacked and I will let you know what might be the best alternative.

Thanks for letting me know about it. I will get my support team to circulate the information to all my book users.

2. Check out Chapter 8.6 Custom Made Products. You do need to be careful particularly if the product is your own design. Let me know if you need more help.

Walter

 

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[Twiizlar]

How do I source name brand expensive products? I want to sell expensive watches, wallets, and sunglasses for men. I'm guessing I have to contact each individual manufacturer (doubt they would sell to me, as I'm starting my order will be low). And I don't want to buy anything fake from China

 

[Walter Hay]

How do I source name brand expensive products? I want to sell expensive watches, wallets, and sunglasses for men. I'm guessing I have to contact each individual manufacturer (doubt they would sell to me, as I'm starting my order will be low). And I don't want to buy anything fake from China

The safe way is very difficult for a new business. You would have to buy from a local distributor in your country because as you suspect, the manufacturers (or brand owners) will not supply you direct. Even a distributor would be unlikely to supply your small orders.

If you can obtain supplies from distributors the profit margins will be very low.

Don't try to buy genuine expensive brand products from China. Such things rarely exist, and even if they do, you will encounter big problems. The goods will be confiscated by Customs, you may be prosecuted, fined, jailed, or sued into bankruptcy. At the very least your name and address will be flagged so that every shipment of whatever kind of goods will be delayed for thorough inspection by Customs.

There may be a way you can do it legally. See my post on Parallel Importing Sharing my lifetime experience in export/import. Product sourcing specialist.