How to ensure payment security while import car from China

There are reliable car exporters in China while there are also bad exporters who might cheat on you.

So, when you cooperate with an exporter for the first time, it is best to use a secure payment method to protect your rights. And most reliable exporters will provide you with safe payment methods mentioned below.

Generally speaking, there are 2 major safe payment methods commonly used in international trade.

1.L/C(Letter of Credit). The key point of L/C is 2 banks guarantee the importer and exporter respectively.

1. The importer bank provides guarantees for the importer to pay as agreed if the exporter deliver the cars comply with the contract.

2. The exporter bank provides guarantees for the exporter to deliver the cars as agreed if the importer makes the payment in compliance with the contract.

3. L/C requires importer to apply credit line from importer bank, exporter also needs to apply L/C services from exporter bank.

The major steps of L/C are shown as below

2.L/G(Letter of Guarantee). The key point of L/G is 2 banks provide guarantees for the down payment made by importer.

1. If importer can’t get L/C from importer bank, an alternative way is to make the down payment directly and ask exporter to provide L/G.

2. 2 banks will give the down payment back to importer if exporter fails to deliver the car as agreed in the contract.

3. L/G requires exporter to apply credit line from exporter bank.

The major steps of L/G are shown as below

So, if you are trying to import cars from China, be careful with the payment methods especially for the first transaction with an exporter and try to use safe payment methods mentioned above.