China has been associated for years as a origin of products specified as clothing, toys, various kinds of trifles, cheap, not necessarily the best quality. Over the last decade, the nature of Made in China has changed. statistic show that China is now primarily a supplier of machinery and equipment. For example, complex production lines.
Is this kind of purchase, imports from China of a complex multimodal assembly of production equipment not at risk? – this question I am asking Łukasz Jackievicz, an import specialist Fullbax (FB):
FB: You should not be afraid of importing a technologically complex production line from China, provided you have a trusted partner in place.
In Fullbax (for 7 years in China, for almost 5 years besides with the office in Poland) we are engaged in comprehensive import service from China, for companies. 1 of our specializations is the import of machines. We bring in all kinds of equipment, and our customers in this case are usually production and service companies.
On a regular basis, we debunk the story that Chinese-origin machines are of mediocre quality. The quality of goods, including machinery and equipment, depends mainly on the choice of the mill and budget, i.e. the planned amount of investment.
I know that you have just dispatched to Poland a peculiarly complex, complete production line. How did it start?
FB: In mid last year, a client came to us asking for aid in bringing the machine. The task is very innovative and interesting, but due to the NDA agreement concluded with the client we will not uncover details.
The value of the investment amounted to PLN respective million. The task was partially financed by the European Union, under the Regional improvement Fund. The remainder was financed under the leasing agreement. In specified a case, where EU institutions and financial institutions are involved, all formalities must be perfect. However, this is not a challenge for us. We have extended experience in preparing specified documentation.
Our client himself sought out the supplier from China and conducted preliminary discussions with him. At 1 point he encountered problems that resulted from cultural differences, he felt a deficiency of knowing in a situation of specified importance. Hence contact with us.
We listened to the plan guidelines to capture the intent and details. We have combined our perspectives and this is the recipe for good cooperation.
What was the next step?
FB: Arrangements with the supplier. Based on method documentation and invoice, colleagues from a branch in China:
- verified supplier and subject of import
- have verified the reliability and validity of certificates
- set fresh Incoterms conditions
- They've prepared invoice updates.
Sometimes customers come to us, who have already finished talking to the supplier. They just want to keep the job.
However, unless we are powerfully active in method arrangements, we have found it worth arranging arrangements and documentation with the supplier.
In the case of complex method projects, the engineers of both sides (customer and supplier) usually agree details. We, on the another hand, know the most about import, and we make certain that the full process goes smoothly.
You mentioned that you checked the contractor. And yet it has already been selected, indicated by the client.
FB: Always, in order to minimize possible risks, we make a basic check of the Chinese counterparty. The basic criteria include checking position in registers (equivalent to the Polish KRS), year of establishment, number of persons employed on the basis of insurance, possible court cases.
This is the first step to confirm the position and credibility of Chinese economical operators. We avoid fresh companies, single-member companies or intermediaries.
That's why we avoid problems.
Depending on individual requirements, we can besides make an extended check that allows you to capture the full image of the company (market position, financial situation, past of changes, past of disputes, etc.).
Production is not only the financial condition of the company, but also, and perhaps, above all, its own production potential. Are you besides verifying this?
FB: In the case of our client, due to the value of the import item, we have made an additional step, i.e. audit of the mill before undertaking final cooperation. Our worker inspected the company directly. This is simply a dot over "i" in the counterparty verification process. Our on-site typical checked the full machinery park, company resources, productivity, etc. Thanks to this, we joined the documentation with photos and videos. On the basis of the visit, we prepared a study which was sent to our client and further to financial institutions.
All talks and arrangements lasted little than 3 months. During this time, we had many talks, including with financial institutions. Our main nonsubjective was to make all actors active in this operation credible.
And what happened after this phase of your action?
FB: The culmination of our work was, signed between the parties, a preliminary agreement. We have prepared a professional contract in Chinese and English, containing details of the contract. The main technicians of both sides were appointed, authorized
to discuss the method specifications of the individual elements. The first 30% transfer was made. 2 days later, production began. Her trial itself went without major problems.
The contractor ended production. Have you checked its quality?
FB: Post-production inspections are carried out each time, in the factory. The exception is smaller orders erstwhile adequate materials from the supplier. In this case, of course, the control was mandatory. We presented a study with extended photograph and movie documentation to our client.
After acceptance of receipt, payment and loading of the full production line was made. The size of the device may be evidenced by the fact that we have supervised its loading up to 5 containers.
Thanks to the process so arranged, our customers are calm that they will yet receive the product/machine according to the guidelines. No surprises. We're inactive checking in China to have time for possible complaints.
Did your share of the import operation end there?
FB: No. We took care of the customs clearance of the machine. It has been authorised in the EU. We delivered it to a client. We helped organize the arrival to Poland of Chinese maker workers who helped the client set up a line in his plant.
At this point, a crucial part of the device configuration is completed, the work is in the final stage.
If you besides want to optimize your costs by importing from China, entrust your order to us. We'll take care of him like our own!
https://fullbax.pl
https://fullbax-machineny.pl
Leszek B. Glass
Email: [email protected]
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