Payment Terms, Incoterms and Documents for a Shower Head Order

How a first order is normally structured

Across this industry a production order is usually paid by bank transfer in two parts: a deposit that releases materials and books the production slot, and a balance tied to a defined event before or at shipment. That structure exists because both sides carry risk. The factory buys resin, components and packaging before it has been paid in full, and the buyer wants leverage until the goods exist and have been inspected.

T/T with a 30% deposit; balance payment conditions are confirmed in the quotation. Agree the balance trigger in writing on the proforma before production, using a named event rather than an ambiguous date or phrase.

Letters of credit, samples and small payments

A letter of credit shifts the risk onto two banks and suits larger orders, buyers under exchange control, and public sector purchasers whose rules require one. It also costs money and is unforgiving about document errors, so it is rarely worth it for a first small order. Where an L/C is used, agree the required documents and the presentation period before the credit is opened, because an L/C that asks for a document a factory cannot produce is worse than no L/C at all. ZHONGHE’s acceptance of an L/C and its banking conditions must be confirmed for the project before a credit is opened.

Free existing-model samples apply only to Japan-market customers, who pay international freight; custom samples are discussed separately. For other markets, sample fees and freight are confirmed per project. Whatever the instrument, pay only into the account printed on ZHONGHE's own proforma invoice, in the factory's name, Cixi Zhonghe Sanitary Ware Factory. If bank details appear to change, stop and confirm by phone with your contact before sending anything, because supplier payment fraud works by email.

Choosing the Incoterm

The Incoterm decides who books the freight, who pays for what, and where the risk passes. It is also the only way to compare two quotations honestly: an EXW price and a CIF price for the same goods differ by the entire cost of inland transport, export handling and sea freight. Ask every supplier for the same term.

The table explains general Incoterms roles; it is not confirmation that ZHONGHE accepts every listed term. Shipping ports are usually Shanghai or Ningbo, depending on the freight forwarder; the port and Incoterms are confirmed for the order. Confirm responsibilities, shipment mode and the named place or port in the quotation. Under CIF, freight and insurance to the named destination are paid by the seller, but risk transfers when the goods are on board the vessel at the port of shipment. See the import documentation guide and its ICC reference.

Documents that travel with the goods

A standard shipment carries a commercial invoice, a packing list and a bill of lading. Beyond that, what your customs broker needs depends on the destination and on whether you are claiming a preferential duty rate. Certificates of origin and preference forms are issued on request; ask for exactly the ones your broker names, and ask early, because some of them cannot be issued after the goods have sailed.

Product paperwork is a separate question from shipping paperwork. Test reports, flow data at a stated pressure and declarations for the destination market are supplied to support an importer's file. Certified options are available on request, and ZHONGHE publishes no certificate it cannot show. The HS code and import documentation guide on this site lists what a broker normally asks for.