It is so easy for an inexperienced person to get confused and remain deceived in the world of modern international Internet commerce that it would not be superfluous to learn about the conditions under which the leading Chinese suppliers work. We will talk about them in this article.
Do you often buy online?
The modern world is so cluttered that sometimes we have neither the time nor the desire to go to supermarkets in search of gifts for loved ones or some pleasant surprises for ourselves. And progress does not stand still, and a considerable part of the advanced population has long been used to purchasing both household goods and clothing in stores offering their services via the Internet.
What can we say about Chinese sites - there are a huge number of them, and each is replete with its attractive prices and a good choice. It’s clear, eyes run wide, and not everyone first thinks about the terms of payment and delivery of such a desired product, but when it comes to that, and we pay attention to how to pay for the chosen pleasant things, many at this stage arise the question "what is T / T."
A more sophisticated consumer may be familiar with the international supply rules set out in the Incoterms 2000 codebook, but what about those who have little experience with direct imports in their lives?
What is T / T?
So, the Chinese manufacturer offers to pay us for the selected product through the conditions set forth in two cherished letters, overcoming the misunderstanding of which, after a certain time you get the cherished home decoration. What is T / T literally? Telegraphic transfer is a telegraphic transfer or telex transfer, although these words are unlikely to say something to an inexperienced Internet consumer.
Simply put, this type of calculation means an advance payment by using the international banking system. You don’t need to know anything special, except for the SWIFT code of the Chinese correspondent bank and the full details of the replenished account. With this data, you contact a financial institution in your country and fill out a questionnaire. Well, after your money is sent on an international trip, in which the third, the so-called intermediate institution also takes part, accepting funds from your country and transferring them to the recipient.
System Nuances
Currently, Payment Terms T / T are very common and, according to the Incoterms 2000 set of rules for international deliveries, they are often used in the following way: 30% of the transaction amount is paid in advance and transferred to the supplier’s account before sending the goods, while the remaining 70% is reimbursed already at the final stage of the purchase, in other words - when the treasured goods will already be in your hands.
However, do not forget about the amazing features of modern market relations, when fraudsters divorced more than enough. That is why Chinese sellers prefer to work on a 100% prepayment, where only the consumer risks being deceived.
What are your risks
What is T / T? This is a convenient system of settlements with business partners, but at the same time, a situation full of unforeseen surprises when you run the risk of being left without money or without goods. Well, or the product will still fall into your hands, but only the thing will turn out to be of completely not the quality that was indicated in the supplier’s catalog.
The situation should be especially alarming if the Chinese seller does not provide samples of the goods in your country with the distributor or partner. It's one thing if you get cheap clothes, and quite another when it comes to jewelry. In this case, one can only guess whether this or that factory has produced similar products before.
In general, the issue of quality should be considered in more detail. You must understand that the copy seen on the site is single and was created only for public display, and when you order goods in bulk, the integrity of its implementation may leave much to be desired. But what can you do if payment via tt has already been made, and even with an advance of 100% of the cost?
And the last thing, which is also worth paying closer attention to, is the packaging of the ordered products. Often, Chinese manufacturers have this aspect lame, and a more fragile product risks coming to you already damaged.
How to protect yourself
You must understand that payment tt implies the laying of all possible risks on the buyer, so if you are unsatisfied you can’t prove anything, unless you decide for yourself not to work with a particular manufacturer anymore.
If possible, agree with the supplier about the amount of prepayment of 30%, especially when it comes to a major transaction, and you communicate with the manufacturer for the first time. Online negotiations can also play an important role here, since the openness of a potential partner to dialogue is the first way to mutual trust.
Well, when filling out the declaration for sending the T / T payment, pay attention to which person is indicated in the details and whether the name of the company coincides with the name of the company of the supplier with whom you agreed to work. Indeed, you must agree that it will be strange if one person delivers the goods, and the money goes to the account of another.