China's Packaging Machinery Market Research Report - PMMI

11.2.2 Overseas Suppliers
(1) Terms of Payment
Two acceptable terms of payment for foreign manufacturers: 100% payment in
advance; 20-30% as advance money, with the remaining by L/C. The uncertainty
about the payment capacity explains the strict terms of payment. Chinese customers
do not like such payment terms but have to compromise because they must rely on
the advanced foreign technology to be more competitive.
(2) Delivery
Delivery by foreign manufacturers takes much longer (4 to 6 months), which
contributes to the dissatisfaction of Chinese users.
11.3 Guide for PMMI members to enter China and procedures for exportation
11.3.1 Guide for PMMI’s entry into China
(1) Attend exhibitions in the packaging industry to collect info on customers; to
select a sales agency; and to set up offices or factories when the substantial sales
volume and great potential are in sight.
(2) Adopt flexible terms of payment, which are competitive in comparison with the
current ones.
(3) Provide better after-sale service to create a better image to Chinese end users.
11.3.2 Procedures for Exportation
PMMI Members have to go through the following procedures to enter China’s
market:
(1) An agreement on the value and specifications of the packaging machinery must
be reached between the Chinese user and the foreign manufacturers.
(2) An import and export (I&E) company needs to be entrusted by domestic
customers to attend to all the procedures of importation. For this task, the I&E
company applies with the mechanical and electric office at the relevant
provincial or municipal level for the approval of the imported packaging
machinery.
59