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You are here: Home / Supplier Management / Letters of credit when buying in China: the basics

Letters of credit when buying in China: the basics

January 25, 2013

Supplier ManagementI published an article in the latest edition of China Law and Practice. The objective is to provide importers with the basics they need to know about letters of credit.

In my experience, it is one of the most under-utilized tools in international trade. Some sophisticated companies recognize its usefulness.

But many small and midsize importers still accept to transfer large deposits (above 10,000 USD) to unknown suppliers! Unfortunately, these deposits are never returned, in case the buyer is disappointed with production.

Here is the content of that article:

  • Highlights of a letter of credit
  • How a letter of credit better protect the buyer from late shipments, non-conformities & poor quality
  • How letters of credit can be cancelled
  • Practical advice, and common pitfalls to avoid
  • Tips for negotiating letters of credit
  • Why Chinese suppliers are so against letters of credit
  • How buyers can increase their chances of the supplier using letters of credit

You can read that full article by clicking onĀ this link.

Filed Under: Supplier Management


Weekly updates for professional importers on better understanding, controlling, and improving manufacturing & supply chain in China.

This is the official blog of Sofeast.com.

This blog is written by Renaud Anjoran, an ASQ Certified Quality Engineer who has been involved in chinese manufacturing since 2005.

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