Checklist for importers in China and low-cost Asia

by Renaud Anjoran ( USA )
(www.qualityinspection.org)

Let’s say you have done your homework, and you have decided that you should source from China/Vietnam/an other emerging Asian country. Now, what are the steps? Is there something you really don’t want to forget? I got this question several times, so I prepared this checklist:

Describe the product

• Write down precise product specifications

Identify and pre-qualify supplier(s)

• List potential suppliers that offer the right kind of product


• Communicate your standard terms (about payment, QC…)


• Ask a rough quotation


• Do a background check on the supplier and an audit of the factory

Share product information with potential supplier(s)

• Ask the supplier to sign and chop an enforceable NDA


• Share product specs with supplier(s)


• Send a sample to supplier(s), if applicable


• Get feedback about product specs

Develop special tooling/molds with supplier(s), if necessary

• Find a price agreement


• Get a development agreement signed and chopped by the supplier


• If necessary, wire money

Develop samples with supplier(s) for a new product

Supplier sends 1st sample

• Client comments about 1st samples


• If necessary, supplier sends more samples


• Approval of golden sample


• Comments for production

Develop samples with supplier(s) for a new labeling or packing

• Supplier sends 1st sample


• Client comments about 1st samples


• If necessary, supplier sends more samples


• Approval of golden sample


• Comments for production

Finalize product specs

• Confirm with supplier that product specs are correct

Issue PO, confirm 1 supplier

• Select 1 supplier


• Make the product spec sheet an exhibit of the purchase order

Authorize the supplier to start production

• Get a manufacturing agreement signed and chopped by the supplier


• Launch the payment process (transfer of deposit / opening of letter of credit)


• Remind the supplier to book the materials/components immediately

Comment on production samples

• Supplier sends samples taken from mass production


• Comment on samples


• If necessary, supplier sends samples again

Inspection/testing during production

• Share PO & share product specs with inspection firm/staff


• Get an estimate of the price/time necessary, and confirm


• Tell supplier about inspection plans


• Supplier proposes timing of inspection


• Get report & give feedback to supplier

Book shipment with a forwarder

• Get quotes and compare them


• Confirm a quote


• Start tracking shipment with forwarder

Approve quality before shipment

• Share PO & share product specs with inspection firm/staff


• Get an estimate of the price/time necessary, and confirm


• Tell supplier about inspection plans


• Supplier proposes timing of inspection


• Get report & give feedback to supplier


• If necessary, proceed to re-inspection and issue a debit note to supplier

Shipment

• Forwarder advises closing date


• Authorize shipment


• Forwarder confirms the products were made available in time


• Forwarder confirms the products were shipped out


• Supplier sends a copy of the documents


• Confirm that the documents are all correct

Final payment

• Check the quantity of shipped products


• If payment by bank wire: transfer the balance


• Supplier sends all original documents


• Confirm receipt of all original documents

Customs clearance

• Forwarder/agent applies for clearance


• Payment of import duties

Domestic transport

• Arrange domestic transport


• Confirm receipt of products

Warehousing

• Arrange sufficient manpower and space

QC on incoming products

• Share PO & share product specs with internal QC staff


• QC service checks conformity & quality


• If necessary, give feedback to supplier and inspectors

I tried to cover 95% of situations for importers of consumer goods and simple industrial products… Anybody has anything important to add?