Question 1

What is the difference between FOB and CIF, and which should I ask for?

Accepted Answer

FOB is the price with the goods loaded on board at a named port of loading; freight, insurance and everything after that is yours. CIF adds ocean freight and a minimum level of cargo insurance to the named destination port, but still leaves destination terminal charges, customs clearance, duty and inland delivery with you. Ask for FOB when you have your own freight arrangement or want to compare sellers cleanly, and CIF when you would rather the seller handle the sailing. Whichever you choose, ask every seller for the same one, with the port named.

Question 2

How is minimum order quantity set, and can it be negotiated?

Accepted Answer

It is usually set by something physical: a machine's minimum production run, a dye or batch lot, a packing standard, or the capacity of a container. Ask which one applies, because that tells you what would have to change for the minimum to move. Minimums set by container capacity often move if you accept different packing or share a container; minimums set by a production run rarely do. Note also that minimums frequently apply per colour, size, grade or specification rather than to the order total.

Question 3

Should I order a sample first, and what should the sample prove?

Accepted Answer

Yes for anything you have not bought from that seller before. Be clear about what the sample is for: a stock sample proves what they normally make, while a pre-production sample made to your own specification proves they can make what you actually ordered, and only the second one is worth approving against. Expect to pay for the sample and the courier; sellers who send free samples to every enquiry tend to price that into the order. Keep an approved counter-sample, sealed and dated, so there is a physical reference if the shipment is disputed.

Question 4

Which certificates do I actually need, and which are optional?

Accepted Answer

Separate legal requirements from commercial ones. The legal set is whatever your destination country demands to release the goods, which can include conformity marks, product registrations, sanitary or phytosanitary certificates, fumigation certificates, certificates of origin or restricted-substances declarations. Check that list with your own customs authority or broker rather than with the seller. The commercial set is whatever you or your customer want as proof of quality, and there the useful documents are lot-specific test or analysis reports rather than generic company certificates.

Question 5

How do I check that a listing's seller can really supply what it shows?

Accepted Answer

Ask for things that are hard to fake and easy to verify: current photographs or a short video of the specific item with a date reference, the company's registration and export licence details, a lot-specific test report, and the name of the port they usually ship from. Then ask a technical question that only someone who makes or stocks the goods can answer quickly. A video call walking through the premises costs nothing and settles most doubts. Slow, vague or purely commercial answers to specific technical questions are the warning sign.

Question 6

What payment terms are normal for a first order?

Accepted Answer

Something that splits risk. Common structures are a deposit of a portion of the value with the balance paid against shipping documents, a documentary letter of credit for larger values, or an escrow or platform trade-assurance arrangement where one exists. Full payment in advance is normal only for small sample orders or for a supplier you have a history with. Always verify bank details through a channel you initiated yourself, because payment-diversion fraud works by sending a convincing revised invoice at exactly the moment you are expecting one.

Question 7

How do I find the right HS code, and does the seller's code matter?

Accepted Answer

The first six digits are common internationally, but your own country adds further digits and it is that full national code that sets your duty rate, licensing requirement and any anti-dumping measure. Use your national customs tariff or your broker to classify it, treat the seller's export code as a hint rather than an answer, and if the classification is open to argument, apply for a binding or advance ruling. Getting this wrong is expensive in both directions: overpaid duty is hard to reclaim and underpaid duty attracts penalties.

Question 8

How long does an order usually take from confirmation to arrival?

Accepted Answer

Add four separate periods rather than accepting one figure: sample and artwork approval, production after the deposit clears, the wait from goods ready to vessel departure, and ocean or air transit plus destination clearance. The seller only controls the second one. Ask what their quoted lead time is measured from, and ask about factory shutdowns and public holidays in the country of origin, which routinely add weeks around major national holiday periods.

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Agricultural Products from Bhutan

Agricultural Products listings from Bhutan

Related in Agriculture

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