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Three risks to be paid attention to when importing from China


Classic foreign trade case:

We are a newly established company, mainly purchasing leather products from China. Such as leather, and so on.

Now we have negotiated an order with a Chinese factory for nearly three months, and we have agreed on the price, packaging, delivery date, and so on, but the terms of payment proposed by the factory are 30% deposit and 70% of the final amount will be given to them before shipment. 

Because this is our first cooperation, the factory’s attitude is relatively rigid, and there is no room for negotiation. We sent many e-mails to the factory for bargaining, but the factory still insisted because the order’s delivery date was relatively urgent. We don’t have much time to find the factory again, under such circumstances? What we should and what risks we have to pay attention to?



There are three significant risks: Contract risk; Market risk, Credit risk. 

a. Raise awareness of risk prevention in import and export trade. 
b. Carefully study the signing and execution of the contract to avoid the risk of the contract. 
c. Establish your information system to reduce market risk. 
d. Take out insurance in an appropriate and timely manner to guard against accidental threats


(1) Try to find out the factory’s credit and its operation; for example, websites and the enterprise inquire about the factory’s legal personal information and ask some third-party intermediary agencies to check the specific conditions of the factory? 

(2) If the factory’s overall credit and the operation are right, we can consider accepting the order’s payment method. After all, it is not easy to develop a new factory, and it takes time and effort to establish a new factory. 

(3) if checked by a third-party company, the factory’s credit and the factory’s operation are good. And if our order’s production value is significant, we can consider import insurance and marine insurance, etc.


After All..imports from China. We have to pay attention to the Contract risk; Market risk, Credit risk. Thank you



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