Import Direct from China and Many Other Countries

Home , Longdu, Mishui, Xiangqiao District, Yangdong District

IMPORT DIRECT FROM CHINA AND MANY OTHER COUNTRIES

Your Guide to Finding the Best Suppliers, Best Products, and Best Prices and How to Easily Organize the Importing Procedure

WALTER HAY & JIM COCKRUM

A Note from the Primary Author, Walter Hay:

This guide is the product of my long personal experience. It is not a rehash of someone else’s work, nor is it a result of a research report such as those churned out in their thousands by poorly paid freelance writers. Big numbers of Internet marketers sell e-books on subjects that they really know very little about, some even pretending to be experts with experience.

I began importing in 1987 and I have visited China and many, many other countries numerous times. Prior to commencing my importing business, I was exporting my own products to Asia/Pacific countries, including Taiwan, where my biggest customer was located.

While my heart bypass surgery has slowed me down physically, it has not affected my brain. As a result, you get the benefit of my wide experience in down to earth, practical advice. In this book you will find an invaluable step-by-step check list that if followed, will greatly reduce your risks and help increase your profits.

I could have doubled the size of this report with unnecessary words, but I have kept it as brief as possible while ensuring that you have all the information you need to start your own profitable importing business.

A Note from Co-Contributor, Jim Cockrum:

It's an honor to partner with Walter on this book. While nearly all of the content is his, I've added in a handful of resources and some basic suggestions based on my background in helping online entrepreneurs run successful online businesses. My team and I have helped thousands do just that since 2002, and our reputation & results are second to none.

As promised - this book is primarily about how to source products. It's not about exactly WHAT to source nor is it an in-depth manual about how to sell it. Those topics are covered thoroughly in other places such as the all-time best-selling “how to” course about selling on Amazon.com that my team and I created at ProvenAmazonCourse.com. As a reader of this book you get a great discount on that course if you don't have it yet.

Over the years I've uncovered numerous legitimate strategies for finding profitable products to sell, and I'm proud to have now found and partnered with a foremost authority on importing. Walter, my team and I stand by ready to help you with any questions you might have!

• To discuss questions that might be of interest to our community of online entrepreneurs, please join our Facebook group here https://www.facebook.com/groups/mysilentteam/ and post your thoughts and questions.

• For individual email support, use the contact info found at JimCockrum.com on the “contact” page.

• For individual coaching please visit: http://www.JimCockrumCoaching.com

TABLE OF CONTENTS

1. Is Importing Complicated? – Page 6 2. Getting Started – Page 7 3. Rules and Regulations – Page 11 4. Freight – Page 20 5. Understanding Agencies and Distributorships – Page 23 6. Standards – Page 27 7. Product Sourcing – Page 29 8. Alibaba.com – Page 32 9. Globalsources.com – Page 38 10. My Preferred B2B Sourcing Platforms – Page 40 11. How to Get Suppliers to Come to You – Page 48 12. Assessing Suppliers Including Due Diligence – Page 49 13. Samples and Small Orders – Page 60 14. Calculating Actual Costs – Page 64 15. Payment Terms – Page 71 16. Traveling to Source Supplies – Page 73 17. Order Procedure and Checklist – Page 80 18. Countries Other Than China? – Page 82 19. Vietnam the New China – Page 90 20. Over 1,000 Suppliers Chosen by Kmart – Page 95 21. “Just in Time” Ordering System – Page 97 22. Sources of Free Information – Page 99 23. Fulfillment Services – Page 100 24. Agents, Traders, Wholesalers – Definitions – Page 101 25. Manufacturers Not Wholesalers – Why? – Page 102 26. Business Registration and Tax ID – Page 103 27. Buying Locally – Page 104 28. Capital Requirements for Importing – Page 105 29. Inspection Services – Page 106 30. Certificates – Page 108 31. Minimum Order Quantities (MOQs), Haggling, and Discounts for Big Orders – Page 110 32. Quality – Page 111 33. Public Holidays – Page 115 34. Glossary of Terms – Page 116 Appendix – Page 121

1. IS IMPORTING COMPLICATED?

The short answer is that it can be, but by following the methods I set out for you it will be easier than you can imagine. I simplify the process for you without any mumbo-jumbo. In preparing this article, I looked at what importing guides are available online, and found that some of the information is misleading, much of it is out of date, some uses jargon that is not explained, some is unnecessarily complicated, and much of it is designed to try to get you to use someone else’s services as “facilitator” or “sourcing agent.” They do this by giving the impression that if you try to do it yourself you are risking disaster.

To minimize competition, importers like to maintain secrecy about their methods. They try to give the impression that you need a degree in importing as well as knowledge of endless rules and regulations. The reason behind this is that many importers hope to act as wholesalers to sell products to you in bulk. They then expect you to sell those products to the end user for a profit. There may be times when you would go to such people, but I will tell you more about that later.

This book is based on the idea that if you know what kind of products you want to import, and you know how or where you are able to sell them, why not have all the profit for yourself? Why pay those importers? Why not do the importing yourself?

So you think it’s too hard? Don’t let the established importers fool you. Don’t be fooled by people promoting their sourcing services on their “helpful” importing blogs. Don’t be discouraged by looking at official customs and excise websites where you will find endless details telling you about the rules and regulations. Soon you will find out how easy it really is to do your own importing.

1.1 Having suggested that sourcing agents don’t provide a lot of benefit, I would like to add that in some cases, using a sourcing agent can be your best choice. In general, it is not worthwhile to use agents for small orders, but if you are considering orders to the value of $10,000 or more, it could prove to be very advantageous.

I have often been asked to recommend a sourcing agent in China, but I have never previously been satisfied that they provide value for money. After lengthy discussions with some of my contacts in China, I have found two agents that I can confidently recommend. The first one, Middle Kingdom Imports: ProvenChinaSourcing.com/agents is only for large orders, and the second one, Guided Imports will handle smaller orders as well as large ones: GuidedImports.com

Rather than use sourcing agents, I am inclined to favour using a trusted inspection service. The cost will be substantially lower than using a sourcing agent, who will invariably want to carry out (or subcontract) product inspections. See 29. INSPECTION SERVICES.

2. GETTING STARTED

You should remember that the easiest part of your importing business will be finding goods to import and then actually importing them. The harder part is selling the products while making a good profit. I have to assume that you know at least the basics of operating a business. If you have no previous business experience it would be advisable to seek advice from someone who can teach you the basics of selling online. This is why I've partnered with Jim Cockrum. If you want to run an online business and you are brand new to selling online, a great place to start is Jim's SilentSalesMachine.com book.

I do not set out in this book to give advice on how to operate a business, nor do I offer legal advice. This report is intended to show how you can locate suppliers of goods to import, and how to do the actual importing.

You need to know what your objectives are and how you will achieve them. I am assuming that your objectives are to import goods and sell them for maximum possible profits, so what do you need to work out first?

2.1 What products or category of products do you want to import and sell?

However, you approach the issue of choosing which products to sell, you should always take into account the total cost of the goods, plus the cost of selling them. Cost of goods can be calculated as I show in Chapter 14. For cost of selling, some of the costs will be your advertising, Amazon or eBay listing fees, PayPal fees, packaging, and also freight to the customer. There may well be others, but you need to think carefully about that so that you can be confident that your buying price is low enough to ensure a good profit.

A good example is Amazon.com. If you use the Amazon.com fulfillment service (called FBA or Fulfillment by Amazon) to sell your products and ship your goods you can expect about 30% of your selling price to be eaten up by fees. The benefits of selling using FBA far outweigh the extra costs IF you are good at finding the right inventory at the best price.

Profits are made more by your buying process than by selling. If you buy products at a good price and for some reason sales are not as good as you hoped, you can sell them at a discounted price and still make a profit, provided you have ensured that you have a big enough profit margin.

It is best to get to know everything possible about the products you have decided on so that you can be sure that you are buying the right ones. It would be a great pity if you chose to import a slightly different model of something, and that model does not sell as well as the other. Later I will show you where you can look to locate a mind-boggling range of products to choose from.

2.2 Avoiding the pitfalls of trying to buy and resell Hot Selling products.

If you want to sell in a field with little or no competition, rather than jump on the “hot seller” bandwagon, there are a couple of ideas you could consider:

2.2.1 Sign up for Jim Cockrum’s ProvenAmazonCourse.com where you will learn how to find out about products that people are searching for but are not being sold on Amazon. Look for the ProvenPerformanceInventory course a little way down from the top of the page.

2.2.2 Regardless of what country you are in, you can avoid competition by the simple means of only buying products that have not been marketed before in your country. I expect that the reaction of most people will be to ask: “HOW do I find such products?”

There are three ways that can work for you. My first suggestion is to simply ask prospective suppliers: “Have you ever sold this same item to the US, UK, German, Singapore, Brazil, etc. etc.,) market before?” (Nominate your chosen market.) If they have, you look for other products from other suppliers.

This leads to my second suggestion. This method may worry some in view of the warnings I give about unreliable suppliers, but I consider it worth doing provided you take extra care in your due diligence.

There are so many products out there that have never been exported. It is possible to find them. Even suppliers in China have unique products, but it requires persistence and some extra work. When searching B2B sites, go past the first few hundred or few thousand suppliers and find ones that have no bells and whistles such as Gold, Verified, 5Star, Premium etc. symbols next to their name.

Those suppliers you will find by this method are generally the smaller manufacturers, some with little money to spend on advertising or buying status badges, some with little or no experience in exporting, and others just dipping their toe in the water to see if it is worthwhile. They are more likely to be the ones who have products not yet sold outside China. The more difficult it is for you to find suitable products and suppliers the more difficult it will be for potential competitors.

Search through the unverified suppliers on www.HKTDC.com. To see them you do a product search, then go to the last page at the end of the category. If there are unverified suppliers, that is where you will find them. You might find more by working backwards from that last page. The reason I suggest this procedure is that manufacturers that have not previously exported will often take up a free listing to “test the waters”. This means they will be unverified, but it also means that very few people will want to deal with them.

Search for ones with no symbol displayed. In one category in which I searched I did not find an unverified listing until I had viewed 10 pages, displaying 60 per page. The tedious search may be well worth the effort, because it is highly unlikely that an unverified supplier will have exported any products and you could be their first and only customer.

Remember, few people will have the patience to undertake the kind of searching that I suggest, and because they find it too time consuming, too difficult, or too boring, they are leaving those products for you to find.

To find unverified suppliers on made-in-china.com, enter a product category in the search bar. Then a menu will appear on the left side of the screen. Scroll down that menu until you find Business Type and then click on Individuals/SOHO. There you will find the small fry. These would-be exporters could well have products that have not been seen before in your market.

If searching on Alibaba, you will not be able to contact unverified suppliers, or in fact any supplier that is not a Gold Supplier, through Ailbaba’s Sales Inquiry system. This is due to Alibaba’s policy that allows only Gold Suppliers to receive such inquiries. The reason is obvious — suppliers are charged thousands of dollars for a Gold Supplier status badge, so Alibaba are applying pressure to cause every supplier to buy a Gold badge. To contact those unverified suppliers that have products of interest you will have to locate their websites via a Google search.

My third suggestion is to search interesting product categories in sites listed in Chapter 19 Countries Other Than China?

NOTE: In order to minimize freight costs, both from your overseas supplier and also to your customer, you should concentrate on lightweight products that are not bulky in size. Freight on shipments containing bulky, lightweight products will be charged on a volumetric basis rather than weight over the scales. See 3.6

2.3 Starting small.

I have had quite a few people tell me about their success stories after starting off with only $300 or $500, but if I was starting off again, I would like to have at least $1,000 to spend on inventory. Starting small can be a slow process, but here is how it works:

If you have selected a product that you are very confident will sell, and you know the price that it will most likely sell at, as well as your selling costs such as advertising, postage to your customer, eBay, Amazon, and PayPal fees, that will tell you the maximum landed price you can afford to spend on buying the product.

To work out the landed cost you should first get the total of the unit price + freight. Then add the duty calculated on that total. Remember that in most countries there will be duty exemptions for shipments below a certain value. It varies from country to country. After adding duty, add Sales Tax. This final total is your landed cost.

If the final figure is at or below what you have worked out as the maximum affordable landed cost, you can then proceed to check out a sample or multiple samples. If you have thoroughly researched the manufacturer, you might choose to import a small quantity as a sample shipment in order to reduce the freight cost per unit. Freight on single samples can cost almost as much as freight on 10, 20, or 50 items. See Ch. 13 regarding placing small orders,

You start selling after checking the goods, and assuming you have done your homework properly you should be getting profitable sales. You need to put aside as much of the sale proceeds as possible, ready for placing another order. If sales continue to be good, you rinse and repeat until you have built up your business to the point where you can a) take out some profit and b) order some other product/s.

2.4 How are you going to sell your products?

There are many different ways such as eBay, Amazon, Craigslist, direct sales from your website, flea markets, home party plans, your own retail shop front, etc. It is not for me to know which will suit you best. I hope you have already given a lot of thought to this vital

9 subject because there is no point in importing the cheapest and best widgets in the world if you cannot sell them.

Again, this is why I've partnered with Jim and will refer you to his SilentSalesMachine.com book or his Amazon selling course sold at ProvenAmazonCourse.com.

2.5 How much time and money can you put into this new venture?

For at least your first order the suppliers will require payment or at least part payment in advance. I will explain later how to do this as safely as possible and I will also show how you can avoid outlaying the very large amounts most suppliers require for minimum orders.

3. RULES AND REGULATIONS

This is where your first worries are over. Yes, it is true that there are huge books written covering the rules and regulations dealing with importing, but I am about to show you how little you really need to know.

Why not use the knowledge that other people have learned by reading those huge books and getting university degrees in importing? Some of the e-books and blogs I have seen about starting an importing business are loaded with well-researched information that is in my opinion more appropriate for a person wishing to become a Customs Broker rather than for a person starting up a small importing business.

If you own two or three dogs and use them in your business as guard dogs, you do not study to be a veterinarian in order to keep them healthy. Instead you use the services of a specialist, and that is exactly what I am advocating. You have to pay for their services, but think of the time and effort it saves you.

3.1 Customs Brokers.

This section is primarily concerned with consulting Customs Brokers for advice. It is usually not necessary to engage the services of a Customs Broker for handling Customs clearance of your shipment. This is because almost every freight forwarder, as well as every air courier service employs in-house Customs Brokers.

Customs Brokers can advise on such things as whether you need licenses or permits. As a general rule, in most Western countries anyone can set up in business as an importer. Other than for certain restricted goods, in most countries you do not need a license or permit to be an importer, although you will usually have to obtain an importer’s registration number which will appear on all of your customs clearance documents. Your Customs Broker (or Air Courier – see “When you do not need a Customs Broker” below) knows about this and will obtain the number for you when your first shipment has to be cleared. That registration number stays with you for as long as you continue importing, and it helps speed up the clearance process.

If you can’t find that number on the documentation provided by your broker after the shipment has been delivered, I suggest that you ask for it. It will be of value to you later if you do any clearance work yourself.

If you are importing to the UK, before placing your order you should obtain an EORI which can be done easily online here: https://www.gov.uk/eori

If you are importing to the USA, you will need an EIN. You can obtain one at no charge, See: http://www.irs.gov/Businesses/Small-Businesses-&-Self-Employed/How-to-Apply-for-an-EIN

In many countries, quotas apply that restrict the volume of imports of certain items. It may be the case that such goods may be imported in unrestricted quantities from certain favored countries. I suggest that you make inquiries with a broker or through your official Customs office at an early stage to ascertain whether you need licenses, quotas, or permits.

Chances are that you will not have to worry about goods that might be banned, restricted or subject to quotas. Few consumer goods would be restricted so you have a huge scope to choose from. But just in case you think you have a market for goods a little out of the ordinary, I have included this section on restrictions.

Restricted goods will obviously include alcohol, tobacco, wildlife products, motor vehicles, firearms, explosives, and munitions, but other items where quotas or strict quarantine rules may apply can include food, agricultural goods, fertilizer, steel, clothing, textiles, and footwear.

Instead of trying to sort out the volumes of regulations involved, it would be easier, and probably safer, to ask a Customs Broker’s advice in relation to the product type you are considering. If in doubt about whether you need a license, permit, or quota, a Customs Broker can advise you or you could contact your nearest Customs and Excise office.

In Canada and the USA, I have found the Customs office to be very helpful, but in other countries, including the UK and most EU countries you may get no help from them at all. That is when you must consult a Customs Broker.

While I am not giving advice on general business operation, even if it is not legally required for you to be registered as a business, it will usually make it easier for you. You also need to ensure that you know what rules apply to sales taxes and other income taxes.

A Power of Attorney may be required by your broker or Air Courier, and in some countries, even the postal service will require that. The purpose of a Power of Attorney is to give the relevant person the authority to make declarations to the customs authorities and to sign documents on your behalf. One very important part of customs regulations that applies in every country is that you the importer ― and not your Customs Broker ― will be ultimately responsible for any breaches of law in relation to the importation of the goods.

For this reason, you need to be sure that your broker is appropriately qualified and licensed.

It would be wise to not only check their license credentials, but also ask for references and then check them.

Brokers must be licensed in:

• Australia • Canada • Costa Rica • India • New Zealand (Where they are “accredited” after passing exams conducted by the Customs Brokers and Freight Forwarders Federation.)

• Pakistan • Phillippine • USA • Vietnam (In Vietnam Customs Brokers must be listed with the Customs Authorities. They appear to have greater personal responsibility for errors, and so they might be inclined to ask the same questions more than once.)

If importing into some countries notorious for red tape, such as Brazil or India, I would always choose to have a Customs Broker handle the clearance work.

3.2 To Find Customs Brokers:

For importers in the USA: USCBP has a list of licensed brokers that can be found at: http://apps.cbp.gov/ will need to use your browser search facility to locate one in your city or region. Note that some of those listed are freight forwarders who employ Customs Brokers.

For importers in Canada: CBPA has a list of licensed brokers that can be found at: http://www.cbsa-asfc.gc.ca/services/cb-cd/cb-cd-eng.html

For importers in the UK: In the UK the most commonly used term is Customs Clearance Agents. They are not required to be licensed, and there are no lists published. A search in the location “UK” (no specific location) in Yell.com will yield over 200 listings, and most are freight forwarders.

For importers in other EU countries: Only Italy and Greece have associations listed by IFBCA (see below), so importers in those countries will need to search via Google or online Yellow Pages. Most will be freight forwarders.

For importers in other countries: The International Federation of Customs Brokers Association lists the national Customs Brokers’ associations in a number of countries. You can use the links next to the association in your country in order to locate brokers there. http://www.ifcba.org/. You will need to translate the pages that open in the list. If your country is not listed, you will need to search via Google. For countries that do not have any listings on the IFCBA site, I strongly advise that you check on the qualifications of any Customs Broker you consider consulting.

Although freight forwarders usually employ Customs Brokers on their staff, they may not be willing to handle clearances unless you have arranged shipping through them.

You must be sure that all information supplied to the broker, air courier, or postal service is true and correct. The Power of Attorney does not extend beyond their role as your Customs Broker. This is one rule you must learn. You are legally responsible for the facts declared in any declaration lodged for clearance purposes. Even if your broker makes an error, you are legally responsible.

One area that few consider in this respect is declared value. It is almost universal practice for Asian suppliers to under-declare the shipment value, or declare the goods as a gift, thinking they are doing you a favor. Chinese suppliers will do it routinely unless at the time of placing the order you firmly tell them not to. The majority of importers foolishly insist on them showing false values.

It is a serious crime to understate the value. With duty rates in most cases now being so low, I cannot understand why anyone would take the risk. When I first started importing, average duty rate was around 15%. Now that the world is a global village, average duty rates in many parts of the world are around 5% (in the US 5.63%.)

Here are a few things to be taken into account:

• Understating the value is illegal and can result in severe penalties. One of the lesser penalties is the flagging of your name and address for thorough inspection of every shipment thereafter, with long delays and extra cost often resulting.

• Numerous suppliers have also been flagged for understating values, with the result that every shipment they send is delayed at the port of entry.

• Customs officials are not stupid; they see huge volumes of invoices; and they have a good idea of real values in many cases.

• Unless substantial undervaluing takes place, with average duty rates now being so low, the saving would be very small even on a high value order. Rates are continually falling, mainly due to Free Trade Agreements.

• The ways you can get caught are:

a) A customs official becomes suspicious. b) A supplier is known to Customs. c) A competitor might complain. Not very likely unless you have one or two major competitors who are tracking your shipments. That is relatively easy to do if they know your trading name.

• Insisting that suppliers declare full value enhances your standing with them. They may think you are crazy, but they will respect you.

• You can sleep more soundly.

If shipping documents arrive in advance of the shipment reaching your country, you should check the invoice value, and notify your broker if the value is not correct.

3.3 When you do not need a Customs Broker.

If you use international air courier services they normally carry out customs clearance work for you as a normal part of their service. They also obtain an importer’s number for you, but UK importers should take the precaution of obtaining an EORI in advance to avoid delay. That number should appear on air waybills. (See glossary) It is very important that you know in advance whether or not the cost of clearance work is included in their door-to-door service. See very important information on this subject in Chapter 4 - Freight.

Another way to avoid a lot of red tape is by limiting the value of each consignment and having it shipped via EMS (International Express Mail Service) or ePacket. This service has different names in different countries. Provided you do not exceed a certain value per parcel, the postal service will do the calculations for you, lodge the customs forms, and deliver to your address. All this is usually free of charge. You pay any duty and taxes due when you collect the goods from your postal service.

Check with your Customs and Excise office to find out what is the maximum value per shipment under this scheme. For some items entering the USA, it is $800.00 at time of publishing, but for others it is only $250.00. The UK is the toughest one I know of, with a limit of £135. No UK duty is payable on shipments smaller than that, but if the value exceeds £15 you will have to pay VAT. Some countries have more generous allowances and others do not allow any goods to be imported under such a scheme.

Note: If you use this scheme, avoid having more than one parcel dispatched on any one day. You should instruct suppliers to leave at least 3 days between shipments, otherwise they might arrive on the same day and consequently be regarded as one shipment and Customs would then require you to lodge a Formal Clearance. If that ever happens, the easiest course is to call upon the services of your Customs Broker rather than attempt the Formal Clearance yourself. Believe me; you do not want to try doing a Formal Clearance yourself. Your broker can do it electronically in minutes, but it could take you hours, even if you get it right on the second or third try. You will almost certainly get it wrong the first time.

Using the services of freight forwarders can also mean you don’t need a Customs Broker.

3.4 Freight Forwarders.

It would be unusual to find a freight forwarder that doesn’t employ a Customs Broker or at least have a reciprocal arrangement with one. They will sometimes be better for you to work with rather than a specialist Customs Broker. This would most often be the case once you move into shipping by sea freight. Also, in many cases you will find that freight forwarders can obtain better rates for shipment by air than either you or your supplier could negotiate, but this applies to air cargo, not air courier shipments. See 4.1.

Freight forwarders can organize the shipment from your supplier to you, and they can handle all the procedures including customs clearance for you. Their work can end at the warehouse in your home port, or when the shipment is delivered to your door, depending on the arrangement you have with them.

They can become responsible for your shipment at any stage, but usually it would be either at the supplier’s factory loading dock (if the order correctly specifies EXW, or incorrectly specifies FOB Factory which many Chinese suppliers use instead of EXW), or more usually at the shipping port of departure, such as Shanghai or Hong Kong, (if the order specifies FOB.) See 33.8 and 33.9 for meaning of these terms and also the special warning in 33.9 relating to FOB. That warning is very important.

I strongly advise against employing Chinese freight forwarders unless you have iron- clad proof that they are legitimate. See 4.2 regarding freight scams.

3.5 Finding a Freight Forwarder.

If you decide that you want to have a freight forwarder organize your shipping, it would be advisable to make sure they have Customs Brokers in - house, although almost all of them will. When choosing a freight forwarder, be sure to select one that handles international shipments on a regular basis. There are some smaller businesses that mostly handle national freight and occasionally deal with shipments from only one or two countries.

It is not necessary to have a freight forwarder that has an office in or near your location but that can be helpful. To find freight forwarders in any country, you will find a worldwide directory at http://www.freightnet.com/directory/p1/cont/s30.htm

If you prefer to use a small to medium forwarder, you can find a listing covering many countries at http://www.effa.com/

Not many forwarders operate in some of the more difficult countries to service, such as Brazil and India. One that does is BDP International. https://www.bdpinternational.com/ They operate in many countries and have a large number of offices worldwide. Please note that because of their large size, they might not be interested in handling small shipments.

The Canadian Trade Commission has one of the best listings of forwarders in Canada: List of Freight Forwarders, Customs Brokers and Shipping Companies.

3.6 Obtaining quotes. If you intend using the services of a freight forwarder you should obtain a quote. Give the forwarder all the details of your shipment as early as possible, and certainly before you finalize the order with your supplier. Always provide every possible detail.

The minimum details they will want from you are:

• Description of the goods and quantities. • Type of Packaging. • Number of packages. • Dimensions of packages. • If the shipment is palletised by your supplier, total dimensions, including the pallet. • Total weight of the consignment. • Place of shipment. (Pick up point.)

• Place of delivery. (I strongly recommend that should be your warehouse or home address if you store the goods there.) • Expected date the consignment will be available.

3.7 Freight cost on lightweight but bulky shipments. The reason you need to provide the dimensions as mentioned above is that if a shipment is deemed to be bulky, carriers will charge on the basis of what is known as Volumetric Weight or Chargeable Weight.

The difference can be staggering. I recently saved a new importer from making a huge loss because his supplier had quoted him on a per kg basis for freight, without informing him that the per kg rate would be charged on a volumetric basis.

I won’t provide the formula for calculating Chargeable Weight also known as Volumetric Weight, because it is complex, and carriers sometimes use a different formula. Leave that to your freight forwarder. See 4.2 Freight Scams.

3.8 Pickup from airport or sea port?

I have often been asked about picking up from the port rather than pay for the forwarder to handle the delivery to your premises. It is definitely possible but I would not recommend it. If picking up from an airport you may spend as much as two or three hours, but if the goods are arriving by sea, the pickup process could take you all day and sometimes you may even have to return the next day.

The main reason is that "outsiders" are not usually treated well by port workers and you may be ignored, deliberately subjected to unnecessary delays, and quite probably given wrong information. Often you may see vehicles arriving long after your arrival and leaving with a load on board long before you are attended to.

I would leave it to the forwarder to arrange delivery to your premises. The extra cost will possibly save you hours of valuable time. I strongly recommend that you always ask for quotes to be door to door and they must include customs clearance work as well as port and handling charges.

3.9 Saving money on air freight by using cargo consolidators.

Consolidators buy bulk freight capacity from airlines and air freight carriers at lower rates than you would be charged if you contacted those carriers direct. They then accept smaller shipments from a number of importers and put several shipments into one air cargo container.

This makes it possible for them to offer discounted rates to small importers. The possible disadvantage is that at times they will delay shipment until they have sufficient cargo to fill a container. Long delays are not common but can add several days and sometimes more to shipping time.

Even considering those possible delays, in almost every case, transit time will be much less than you could achieve if shipping via sea freight.

Below are listed some consolidators specializing in working in China who are capable of handling freight to your destination. They do not need to be based in China, your own

17 country, or the destination country, but I have noted where their head office is. They generally work with larger importers, but some state that they serve small and large importers, so you will need to ask.

Only one of the consolidators listed below (dsv.com) will handle shipments for you from more than one supplier.

You can find many others in other countries who are able to do this work also. Just do a Google search for Freight Consolidators, but note that many freight forwarders use the term consolidators in their advertising. NOTE: All of those listed below will handle LCL or FCL sea shipments as well as air freight. http://normanglobal.com UK, with an extensive network in China and other Asian countries. They offer logistics services but don’t specify whether or not they will receive shipments from several suppliers for you. You can ask here: [email protected] http://www.dsv.com Denmark. Operating in 80 countries. This company states that they can receive shipments from various suppliers, consolidate them and ship to you as a single shipment. https://www.glship.com/services/air-freight/consolidation/ USA. This large organization will not receive shipments from several suppliers. They probably handle only large shipments, but if that is what you have, they can save you a lot of money and hassles. https://www.shipco.com/ USA. Great capability in handling air cargo consolidation, but will not receive shipments from several suppliers. Potential for considerable air freight savings.

3.10 Importer of Record

Under special regulations, air couriers serving US importers are permitted to act effectively as the Importer of Record on your behalf for shipments up to $2500 in value. Those regulations permit air express couriers to clear shipments under their name and customs bond (see 3.11) without a Power of Attorney from the importer, up to their own discretionary value, and that value can exceed $2,500 if the courier chooses to handle it in that manner. (Most won’t.)

That system doesn't work in the case of regular air cargo or sea cargo shipments. In those cases the importer who is not a US resident must be registered as a non-resident importer, or he can appoint someone who is willing to accept all risks and legal and financial responsibility of acting on his behalf. There are a number of logistics operators who offer this service, but it is costly because of the risks involved for them.

Listed are some logistics operators who offer this service. Please note that I have no experience in dealing with these companies and because acting as IOR for another party is a high risk business it might attract scammers, so you will need to be careful in using such a service.

18 https://tecex.com They are based in Luxembourg. Long established and no bad reviews found. https://gcelogistic.com/ Based in Jordan. Established 1991, with no bad reviews found. http://www.aerodoc.com Based in Florida USA. Established 2003, with no bad reviews found.

It is also possible, under a ruling by USCBP that a Customs Broker that has been named in a Customs and Border Protection's Power of Attorney may make entries on behalf of the exporter or his/her representative.

Check with your freight forwarder as to what they require if you are not a US resident.

3.11 Customs Bond

This is an insurance policy that guarantees that all duty, taxes, and other charges will be paid should the importer default. You can purchase a single entry policy, or, if shipping more than once per year, it is usually economical to purchase an annual customs bond.

There are numerous insurance brokers offering customs bonds, so shop around. One that seems economical on annual bonds is www.bonds4customs.com . Current price for a US$50,000 annual bond is $249.

Customs bonds are not legally required for shipments under $2500 in value.

3.12 Power of Attorney

A power of Attorney is a legal document that authorizes a Customs Broker to act on your behalf in completing all documentation and declarations necessary for the importation of goods. Most Customs Brokers will have their own form for you to complete, together with proof of identity.

It is important to note that even when exercising a power of attorney, the broker does not bear legal responsibility for errors or misrepresentations. They remain your responsibility.

4. FREIGHT

This section could save you thousands of dollars, so please read it carefully.

4.1 Customs clearance cost. Always make sure the cost of customs clearance work is included in a freight company’s door-to-door service before placing orders overseas or you could be in for a very nasty and very costly surprise. Suppliers can often obtain much better freight rates than you can arrange for yourself, but if you are allowing your supplier to prepay freight for you, insist that your supplier pre-pay, not only the door-to-door freight, but also the customs clearance charges. Make it clear that you want a quote for Delivered Duty Unpaid (DDU) not Delivered Duty Paid (DDP) or the supplier will think you expect them to pay the duty or Taxes. The quote must specify all costs involved in delivery to your door.

Your DDU terms should specify DDU 11 Mount Road Hamilton NJ (Insert your delivery address after DDU.)

That payment will not include any duty or taxes, which will be paid by the broker, forwarder, courier, or postal service at the time of clearance and will be collected from you before they will hand over the goods. Always get quotes in writing for everything that you are going to pay for – freight, customs clearance work, port charges, handling charges, documentation charges, LCL charges, loading or unloading charges, freight to your destination, or any other service.

4.2 Freight Scams. Pre-payment of freight by your supplier can eliminate a massive risk. The risk involves deception by freight company sales representatives. I have often seen this scam used on importers who have decided to pay for freight on arrival of the goods in the country.

4.2.1 Scam by your local freight sales representative. This is how it works:

• You ask the freight company Sales Representative for a quote for the consignment you intend importing.

• They quote you a very good price. As a novice, you trust them and do not get a firm quote in writing. They will usually procrastinate about providing written confirmation of the quote. Meanwhile you don’t want delay, so you set the order process in motion, and you have soon reached the point of no return.

• When the goods arrive, you are informed that you have to pay a massive freight and clearing charge before your goods will be released.

• You dispute the charge, but the Sales Representative claims you misunderstood. You may even have the notes you made at the time, but they will not be sufficient proof.

• You either pay the exorbitant freight charge or the freight company takes possession of your entire shipment (which you have already paid for) and sell it at auction. They may add insult to injury by suing you for the difference between the amount realized at auction and the freight amount they charged. They will probably even add storage charges.

• Meanwhile, the Sales Representative enjoys his/her big commission.

If goods are sent to you on a “freight collect” basis without any prior written quote from the carrier, you will usually pay crippling schedule rates. [See 33.16].

4.2.2 Extra charges. This smaller scale, but even more common scam involves failing to include surcharges and trans-shipment charges in the quote. Make sure your written quote includes any surcharges. To be safe, you should insist that the quote states that all surcharges payable have been included.

I have received numerous reports about shipping delays, while previously undisclosed extra charges are collected, but the worst cases have involved holding your shipment for ransom. This is a simplified version of the scam described in 4.2.4. It is done by a process of gradually imposing extra charges that were not quoted for. Unless you pay up, your

21 shipment won’t arrive. The quotes you have received were supposedly complete, with no extra charges, but the unscrupulous forwarders couldn’t care about the risk of being sued.

4.2.3 Failure to disclose that freight will be charged on a volumetric basis. Freight may be quoted in “Cubic Tons.” This means you will be charged according to a formula that calculates a cubic ton by multiplying length times width times height of a parcel. By this method, ½ ton weight of feathers would be charged as about 1000 cubic tons, and the freight would cost many times more than the value of the feathers. When you ask your supplier to quote a price for the items, always ask for details regarding packaging. See 3.8

If you are paying the freight yourself and not having the freight pre-paid by the supplier, you need to know the weight of the package and the dimensions.

When requesting a quote for freight, you must tell the freight company or freight forwarder the weight and the dimensions, as well as the number of packages. Then read the quote carefully to see if you are being quoted in cubic tons (or cubic meters.) If you are, you need to have them tell you in writing how many cubic tons (meters) the shipment will be. That is the only way you will know the real freight cost before it lands at your sea port or airport.

4.2.4 Use of fake forwarding companies. Often the process begins with forging documents showing business registration, export licences etc. This highly sophisticated scam operating mostly out of China involves setting up fake forwarding companies and their favored target is importers with high value shipments.

They appear legitimate and by offering rates significantly lower than other forwarders they get a lot of business. They might actually ship the cargo to the specified destination port, or they might simply receive it and hold it in their own warehouse.

Either way, they never supply a Bill of Lading (B/L). Even if the cargo has been shipped, without that document it is impossible to complete Customs clearance.

So, once the cargo is on the ocean, instead of a B/L they get an email that amounts to a ransom demand, telling them how much they have to pay if they want to receive their products. Tracing these scammers is notoriously difficult.

The importer becomes more desperate once the shipment arrives at the port because from the time the container arrives, costs begin to build up. A further ransom message will usually be received, and if the importer doesn’t pay up they will be racking up mounting costs for storage, and eventually the shipment may be seized and sold by Customs.

The supplier in China has been paid and his obligations have been met once he has delivered the shipment to the location designated by the customer. The buyer has lost the money paid for the goods, the freight charged by the fake forwarder, and the fees charged by Customs in his destination port.

The moral of the story is: Don’t use Chinese freight forwarders unless you really know who they are.

Product Size Is Important. Feathers may be an extreme example, but lightweight items can sometimes cost you more to freight than heavy items. For example, if importing watches, you will fit 100 of them in a small parcel, weighing about 22 lbs. (10 kg). In the case of plastic

22 toys, you may only fit one or two in that same size parcel, so you will probably be charged on a cubic ton basis. Result: air freight for plastic toys is prohibitively expensive, so you must use sea freight with its long delays (6-8 weeks or even more.) Watches can be air freighted or shipped via air courier at a very low cost per item relative to their value.

Side Note Regarding Storage: The size of the product you choose will also have a substantial effect on the amount of storage space you will need.

4.3 The Difference Between Air Freight and Air Courier Services.

This is an important distinction that you must never slip up on. I often see people (even so-called “experts”) refer to door to door courier services as “air freight”. It is true that the goods travel by air, but there is a clear distinction that should always be noted.

4.3.1 Air Freight. This is usually reserved for small to medium size high value shipments and is almost invariably arranged on an airport to airport basis. If you use air freight, I would recommend arranging it through a freight forwarding company, particularly if they are cargo consolidators.

The freight forwarder can usually offer much lower rates than the airlines themselves because they buy bulk capacity at huge discounts and in effect they then retail that capacity to shippers like you.

There are risks involved unless you thoroughly discuss the matter with the forwarder so that you are certain that you know ALL costs that may be involved. I suggest being wary of using air freight until you have gained some experience in importing.

There are a multitude of issues to deal with including “inland” charges by the supplier; local freight, tolls, government export charges, and then charges at the receiving end; including: customs clearance, unpacking the special air containers, inwards airport fees, storage, delivery from airport to depot, delivery from depot to you, etc.

It is worth repeating that you must obtain all quotes in writing.

4.3.2 Air Courier Services. These services are provided by the likes of UPS, DHL, FedEx, TNT, etc. They usually (but not always, unless specified) provide a door-to-door service, and most often they provide customs clearance services as part of the deal.

4.4 International Express Mail Service (EMS), including ePacket. I include this because it is so often used and is in effect an air courier service conducted by the international postal services. It is in almost all cases a door to door service, although under certain circumstances you may be required to collect from a mail center. The postal service in most countries will handle clearance for you, and will collect any duty and/or sales tax payable either when you pick up or when the goods are delivered to you.

4.5 Evaluating different freight services for cost effectiveness. Here I should add a note about cost effectiveness, because it can be too easy to think that the lowest freight cost per item is the one to choose. It may be, but that is not necessarily so.

You should consider what is known as opportunity cost. Faster delivery means quicker turnover of your capital and can considerably reduce your capital cost. While I am not teaching business economics, I suggest you consider what it might cost you in lost earnings on the capital needed to pay for your goods while they are in transit. It may cost you interest payments, or it may lose interest that you could otherwise earn.

There is also the need to consider the lost sales that might result from the delay.

5. UNDERSTANDING AGENCIES AND DISTRIBUTORSHIPS

Some people see glamor in being a distributor, and others think that being an agent is the best way to sell manufacturers’ products. The fact is that these terms are often misunderstood, and there are traps for the unwary. There are a number of advertisers on Alibaba, Made-in-China, and other B2B sites, saying they are looking for agents in XXX country. If attracted by such advertisements you need to understand agencies and distributorships.

5.1 Agencies. An agent sells products on a commission basis, and shipping costs are borne by the overseas supplier. This has the advantage for you of minimizing your cash outlay and risks, but commissions are invariably well below the rate of profits you could expect when handling the same volume working for yourself as an importer. Agencies are rarely granted by Chinese companies but if they do, the terms will always be heavily weighted in their favor.

You should never consider acting as an agent unless you and the supplier have signed a firm contract specifying the terms of the agreement. You should get advice from a lawyer before signing any contract but especially one with a Chinese company. You should understand that legally enforcing a contract with a Chinese company is almost impossible, even if the contract states that the applicable law is the law of your home country.

Justin Yuang is a practicing lawyer I know in China and he has had some success in helping westerners enforce contracts with Chinese companies. He emphasizes that success rates in court are low, and he recommends negotiation instead, and he says he succeeds more often through negotiation or bluffing. If you need help contact him via this email: [email protected].

I know of many cases in which a supplier employs an agent to sell in a new area or new country, and if the agent succeeds, the supplier then establishes a branch office and takes over all the business. I have even known local manufacturers who have done this. This often leaves the agent out in the cold, with little or no redress. They own all of the customer details because the customers are theirs and they have all the names and contact details. This is why you should consult a lawyer before taking on an agency agreement.

The “agencies” usually offered by suppliers on B2B sites are not agencies. They are ordinary sales deals, whereby you buy the product and resell it. You are not paid commission, and the risk is all yours. They use the word agency just to attract buyers.

5.2 Distributorships. This term is one of the most widely misunderstood and misused terms in business. Strictly speaking, a distributor is an importer or seller with exclusive

25 rights allowing him/her to be the one with sole rights to import and sell a particular product in a certain country or region.

Sole distributorships are almost never granted by Chinese manufacturers. Some may tell you that you have exclusive rights, but unless a carefully constructed contract is signed, such a statement is worthless.

Exclusive rights agreements are difficult to enforce and could result in a big financial commitment on your part, so it is essential to seek legal advice very early on in your discussions with a supplier. It is common for an unscrupulous supplier to offer exclusive distributor rights in order to persuade you to place a huge initial order.

If you want to become a distributor, you must beware of suppliers who may do the same as outlined above in the section on agents. Never disclose your customers’ details, and do not give your suppliers any information relating to your market. If they do decide to scrap your agreement, at least they will have to repeat your hard work and you may be able to find an alternative supplier for your established customer base.

You should also avoid providing any way for your customers to identify your supplier. This might have to involve re-labeling.

6. STANDARDS

This subject is related to the rules and regulations chapter, but I have made it a separate matter because it is very important to be sure you remember to deal with standards when they apply to your chosen products.

You may think that a product is so straight forward that - provided you pay the appropriate Customs Duty and Sales Tax - that is all you need to think about. But that could lead you into trouble.

For example, do you know what the labeling requirements are for your product? Most types of merchandise now must show country of origin at least, but some items must have labels of a minimum size, in a specific location on the item, and with printing of a certain minimum size.

Regulations of critical importance also apply regarding safety standards for children’s toys and nightwear, electrical goods, foodstuffs, machinery and others. If you fail to meet these requirements, your goods may be seized at the port of entry, or if they are delivered to you, you may be subject to legal action for selling them without meeting the relevant regulations and you may be required to undertake a costly recall.

Here are some links to FTC and FDA sites where US readers can find help to understand the rules covering product labeling in some categories:

General: Fair Packaging Rules

Cosmetics: FDA Cosmetics Labeling

Clothing: ftc textile labeling requirements

Supplements: FDA Dietary Supplements Guide

Alternatively go to: https://www.ftc.gov and search for this term: “Fair packaging, Cosmetics labeling, Textile labeling, and Supplements labeling.”

Canadian importers can find information here: Canadian labelling requirements, but it is much more complex than the very helpful US sites.

UK importers see here: https://www.gov.uk/product-labelling-the-law

Australian importers see here: https://www.business.gov.au/products-and-services/selling-products-and- services/product-labelling for an introductory site with links to specific information.

If you find all this daunting, there is a simple solution - Ask a Customs Broker before you place any orders. In fact, I recommend asking before you have paid out your hard-earned money to import any samples.

The small cost of a broker’s advice could save you thousands of dollars. You could check all the regulations in your own country for yourself, but you could find that you are spending weeks or even months doing research and study.

Remember, Customs Brokers deal with these regulations on a daily basis and are constantly updating their knowledge. Rules and regulations change with alarming frequency, and brokers often know in advance when changes are about to come into effect.

7. PRODUCT SOURCING

Most novice importers take great risks in sourcing goods to import, but there are ways to reduce your risks.

Never believe the off-the-cuff suggestions you may read on forums. Many posts are made by people with vested interests wanting to profit by you going to the sites they suggest. In most cases the recommendations are made in ignorance of the risks associated with many B2B web portals (sourcing sites) that list suppliers.

The majority of B2B sites offering goods from a large number of manufacturers, agents, and wholesalers do not properly screen the businesses that offer goods for sale on their sites. The screening that is performed by some of the sites who claim to verify suppliers is often completely inadequate.

On most of these web portals, you will find a large number of suppliers claiming to be manufacturers, but in reality, few of them are genuine manufacturers. A little later I deal with how to tell who really is genuine. There are quite a number of these B2B sourcing sites, as well as countless individual sites offering goods for export. I have seen a list of about 3,000 risky sites that were mostly based on big brand names. I am unwilling to name some of the big and apparently authentic sites because of the risk of litigation. Many more sites have opened over the last couple of years selling counterfeits or genuine big brand items that have been illegally acquired. Most are selling products purchased on Aliexpress. The prices they offer can look attractive, but the risks in importing those products are so high that I consider it to be foolish to do so.

Instead, I would suggest that you restrict your searches to the sites I have listed below, but first, a couple of hints about searching. I include these because from questions I so often receive, I know that many searches fail because people don’t search as well as they should.

Use American (US) spelling as well as British (UK) spelling. For example, a search for something made of Aluminium (UK) may not yield results, but a search on the same site for something made of Aluminum (US) may produce results. If you are unaware of spelling differences, you can always try misspelling your keyword.

It is worth noting that some B2B sites will not recognize (American spelling) a word if it is spelled using American English and others won't recognise (British spelling) a word if it is spelled in British English.

You could also try thinking outside the box and use variations on your keyword, including breaking up long-tail keywords into parts.

For example, if you are looking for promotional acrylic key chains

• acrylic • acrylic key chains • acrylic key rings • plastic key chains • plastic key rings 29

• key chains • key rings • promotional key chains • promotional key rings • or, even just promotional products.

This last one will open up a vast range of possibilities and somewhere in the search results you are sure to find promotional acrylic key chains. You will also note that I have searched using US terms: key chains, and UK terms: key rings.

Another example might help. You may want to buy a combination bath and shower made of acrylic.

Some search possibilities are:

• Acrylic tubs • Plastic tubs • Acrylic baths • Plastic baths • Acrylic showers • Plastic showers • Acrylic combination bath and shower • Plastic combination bath and shower • Combination bath and shower • Bath tubs • Shower tubs • Tubs • Showers

As a general rule, don’t place any reliance on premium status badges, regardless of which site you are using. Such badges are always bought, even by suppliers listed on my preferred sites. Ignore Gold, Platinum, Silver, Premium, Preferred, Stars, or any other status badge. I will explain later what assessments can be relied on.

Much patience is required if you want to find something that might not be easily found.

Recent changes mean that there is only one safe site that I can recommend unreservedly as safe to use. www.hktdc.com See detailed information in Ch. 10.1. I have been unable to find any adverse reports in relation to suppliers listed on this site.

I have removed www.made-in-china.com from my safe list but there are ways to use that site with a reasonable degree of safety. See Ch. 10.2 for detailed information. Please note that this site is NOT TO BE CONFUSED WITH MADEINCHINA.COM

I have also reluctantly removed www.thomasnet.com from my safe list although it is a highly valuable site for sourcing products in the USA. This site is operated by Thomas Publishing LLC. I mention them later in relation to buying products from the USA. See Ch. 19.

IMPORTANT: Just because a supplier is listed on a reputable site does not mean it is a reputable supplier. You must read Chapter 10 where you'll find step-by-step instructions on how to navigate some of the sourcing sites that I recommend and how to make buying inquiries on those sites. Chapter 19 also provides some information on navigating sites in other countries, although many of those are not very user friendly.

I have researched improvements and also changes that are not improvements on the sites Alibaba.com and also GlobalSources.com. While I am hesitant to recommend them without reservation, my readers may find them helpful if used with care. Here are my conclusions:

8. ALIBABA.com

Because Alibaba dominates the B2B sourcing scene, I am providing an in-depth analysis. They made some improvements after listing on the NYSE, but some of those improvements have been replaced with changes that are less helpful.

A major concern is that the verification process has not been improved, despite them saying that most of their suppliers are now verified. Very few ordinary verified suppliers are now listed.

Even Gold Suppliers achieve that status simply by paying an annual fee. They do not have to undergo any extra verification process. They pay their money and automatically get the badge to give the appearance that they are in some way more reliable and trustworthy than ordinary verified suppliers.

Here are the various levels of verification:

Onsite Check. This involves someone going to the supplier’s location and checking that the business actually exists. That is the full extent of the Onsite Check.

A & V Check. This is like the Onsite Check but for businesses located outside of Mainland China, Hong Kong or Taiwan. It is supposedly carried out by an independent service, but that service is not even identified. Strangely, Alibaba say that “Verification check is mostly carried out by Alibaba.com staff and some by our third party.”

Assessed Suppliers. This is an optional extra available to China-based Alibaba Gold Supplier customers and includes verification by an inspection company such as TÜV Rheinland or Bureau Veritas. Gold Suppliers who have paid for this option have assessment reports available on their profile page. It is the only part of Alibaba’s verification system that is of any value. It is important to read the complete report.

This is supposedly the ultimate qualification, but it is of no real value. Even Gold Suppliers that are apparently of many years standing might be new businesses that have taken over the name and Gold Supplier status from a failed business. With the high annual attrition rate on Alibaba and Globalsources, this is an ever-present possibility.

Changes to Alibaba’s policy now mean that suppliers who fail to buy a Gold Supplier badge are not permitted to receive online sales inquiries. In effect this shuts them off from getting any sales unless determined buyers search and locate the supplier’s own website.

This also makes it more difficult to locate unverified suppliers should you choose to search for them in an attempt to locate unique products. See Ch 2.2.2. If you find any unverified businesses listed in categories that interest you, you will need to search for their website address – not their page on Alibaba, because they will not be permitted to respond to any

32 buyer inquiries.

8.1 Manufacturers or Wholesalers?

Most suppliers listed on Alibaba identify themselves as manufacturers. Of those, upon investigation, very few prove to be manufacturers.

How do you tell quickly whether they are manufacturers or wholesalers? The only way of being sure if those advertisers claiming to be manufacturers are really genuine manufacturers is to filter for Assessed Suppliers with the red tick in a blue circle. You must also then read the assessment report to see if the inspection company has confirmed their status as manufacturers and that the report is up to date. In a random check I found Assessed Suppliers with long-expired reports, and that would leave you guessing.

8.2 Secure Payment. This service no longer exists. After changing the buyer protection scheme in April 2017, Alibaba in Sept 2017 announced that the Secure Payment service is no longer in existence

8.3 Alibaba’s Trade Assurance Service. You should note that although you don’t have to pay any fee for Trade Assurance, your suppliers have to pay Alibaba a fee amounting to 5% of your purchase value. You may be sure that suppliers will add that 5% to the price they quote you.

I know that many people are impressed by Alibaba’s Trade Assurance Service believing that it is the answer to the old safety concerns about payment. My thorough examination of the service indicates that it is far from trouble free and generates many complaints.

I have carefully reviewed the very complex Rules for the benefit of my readers, and I find that there are many aspects to this system that mean that it is far from being the security solution that people think.

Interpreting all the Rules is very difficult because so many are ambiguous or contradictory, and important issues are not included in the Rules. Instead, many are found in the Q & A section of the Help Center Trade Assurance Help Center, but for a more complete picture you need to read the Trade Assurance Terms and Conditions.

Their opening advice reads: Important Notice: Please review these Rules carefully, particularly those terms and disclaimers which may adversely impact the scope of Trade Assurance Services available to you, including but not limited to those under Rule 11 of these Rules. You must review and understand them before committing to any contractual agreements subject to Trade Assurance Services.

Rule 11 is a 2-page disclaimer stating conditions under which a buyer will not receive any compensation.

Because I know that few will bother to check out the 16 A4 pages full of technicalities, I will draw attention to some very important matters found in the Rules, plus some important things that they do not specify.

• Alibaba have the absolute right to decide if your money will be handed over to the supplier. There is no right of appeal.

• Since Dec. 8 2017, Trade Assurance no longer provides Pre-shipment coverage, which in any case only covered you for the deposit you paid. I have protested to Alibaba that despite this change, their rules still provide details on how to make a claim if your pre-shipment inspection finds the goods to be faulty!

I suggest you ignore that because Post-delivery coverage is now the only option. This covers you for the full order amount. The rules have been changed substantially, and the old rule allowing you to check your order’s product quality within 90 days of shipment and within 15 days of the products clearing customs no longer applies. It has been replaced by a new rule “Your orders will now be protected up to 30 calendar days after you receive the goods. This means you will now have 30 days to complete product quality inspection when you receive your goods and apply for a refund if the quality does not match the terms of the contract.”

• IMPORTANT! Unfortunately, they do not specify what “receive your goods” means, but that could depend on the terms of the contract. According to Incoterms rules, if FOB, the goods have been delivered when loaded on a carrier. “Delivered” almost certainly would be legally defined as “goods received.” If EXW, the goods have been delivered as soon as they leave the supplier's dock.

To confuse the issue further, Alibaba refer to both these events as being when shipment occurs, and they don’t refer to them as delivery. This means that if your shipment is by sea and takes 30 to 60 days to arrive at your premises the 30 day period allowed may well have expired by default. Alibaba do not make this clause clear enough.

I have been unable to clarify this extremely important matter of what constitutes “receive your goods”. Good luck if you try to get help. It is only available in the form of a robotic chat line. The only way to find an answer would be to lodge a claim against a supplier under the Trade Assurance system. That may well be too late. You should know in advance of ordering.

• Claims that the product is faulty should be supported by inspection. Alibaba no longer specify which inspection service you must use, or when. See my recommended Inspection Services Chapter 28.

• Clause 10.3 is bolded by Alibaba and underlined, due to its importance. If making a claim this clause first requires that you must “provide effective, complete and accurate evidence, like photos and videos if a product’s problem can be proven through photos and videos.”

Put simply this clause means that should your evidence be deemed insufficient, you will have to prove that the goods did not meet your specifications, and that would probably only be accepted if the inspection is carried out by an Alibaba approved Quality Inspection Service, but they no longer specify this.

This clause also highlights the requirement to precisely specify quality standards. Few importers will have the technical knowledge to do this and will have to have specifications drawn up by an engineer familiar with the particular type of product being ordered. Your precise specific requirements must be included. Your order should also be very specific in relation to packaging, labelling, dispatch date, and anything else that is important to you.

• Before using Trade Assurance, it would be a good idea to carefully read all the Rules to be 34 sure that you have dotted every i and crossed every t. You should also read the answers to all the questions about Trade Assurance found in the Trade Assurance Help Center. See link above.

• Data recorded by One Touch, Alibaba, and Alibaba.com constitutes almost the only evidence admissible in dealing with a claim. This means it is imperative from the time of

35 your first sighting of the product listing, that you keep screen shots of every transaction, every page visited, every attachment sent to you or by you, and every email to or from your supplier or to or from Alibaba and OneTouch. You can provide other supporting evidence, but it certainly appears that Alibaba will regard it as inconsequential.

• Finally, note that the English version of the rules published on Alibaba’s site is not binding, only the Chinese version.

8.3.1 Alibaba’s small order offshoot, Aliexpress now actually provides greater protection for buyers by including Buyer Protection on all transactions, but the big drawback is the incomplete explanation of the process for a buyer to lodge a claim.

The published rules are vague and some steps you must take when lodging a claim are not revealed until your claim is under way.

The first thing you should note is that you have 15 days from “completion of the order” (I assume that means delivery to your address) to lodge a claim.

If the goods are not delivered you can lodge a claim, but I am only assuming that this can be done within 15 days after delivery was due. There is no provision for making a claim if you have been scammed.

The most common scam that I am aware of is delivery of a package that is either empty, or filled with sawdust, shredded paper, stones, a brick, or an empty case that supposedly contains electronics of some kind.

To be ready in case you need to deal with this you should video the opening of any parcel from a supplier on Aliexpress. If you can get the delivery person to be present, that would be good. If your friendly courier driver will remain present while you do it, make sure you accidentally get their image in the screen at some stage. Probably better to not draw attention to that, otherwise he/she might quickly depart. People don't like to get involved.

When lodging a claim, the only reason for a claim that seems to be possible is that the goods were not delivered.

If you paid by Credit Card, lodge a dispute with your card supplier, telling them about the fraud.

PayPal gives you some protection provided you take note of this: A number of unhappy buyers have been denied protection by PayPal because they claimed "Goods not as described" after they had opened the package and found sawdust, stones 1/2 brick etc. Instead, notify PayPal of a fraud.

8.3 Aliexpress.com. I have listed this site because growing numbers of new importers have been convinced that it is a good place to find products in small quantities for the purpose of validation of marketability of a product. Aliexpress is effectively a B2C site and not suitable for building a commercial enterprise. I would never use Aliexpress for sourcing.

The idea of validating a product by buying some from Aliexpress suppliers first, and then buying from the manufacturer is seriously flawed.

You might never be able to locate the manufacturer. One reason is that Aliexpress sellers often sell liquidation stock that they have purchased on 1688.com, and the manufacturer could be out of business. Another reason is that the manufacturer might not be advertising on Alibaba.

Rather than use Aliexpress, I suggest you follow the procedure set out in Ch. 13. If you order more than one sample, the per unit freight cost will be reduced, and you will have sufficient items to sell in your validation process.

If you decide to use Aliexpress, you need to be aware that their Buyer Protection system has strict rules that must be followed if you are to have any hope of obtaining a refund. See Ch. 8.3.1

The negligible Aliexpress verification process is the same as used for sellers on Alibaba and provides almost no assurance of reliability.

9. GLOBALSOURCES.com

This is the next B2B sourcing giant deserving of their own chapter. First, you should note that being Hong Kong based, Globalsources uses British English, so search results using British spelling will achieve better results.

According to an article by Bloomberg, 35% of registered vendors on Globalsources don’t renew after their first year. It is worth noting that this is almost exactly the same as the number who quit Alibaba each year.

This high attrition rate highlights the fact that it is critically important to be able to have confidence in the verification and rating system used. This is due to the fact that when vendors come and go at such a rate, that indicates that many of them could be scammers.

In the same way as Gold Supplier status on Alibaba can change hands, Star ratings can also be acquired by new businesses buying the badge of one that has failed.

I began using Globalsources for product sourcing long before the advent of the Internet. They published numerous printed product sourcing magazines, and I was a registered subscriber. There was no verification system then. If an advertiser could afford to pay, their advertisement would appear in the magazines.

Has anything changed? NO….. I had allowed my vendor registration on Globalsources to lapse so I set out to register again recently in order to update my knowledge of their system. The process was too easy. Without any verification procedure I was immediately awarded a 3 STAR rating, about which they say:

“Start as a 3-star advertiser to win buyers' trust fast.” Strictly speaking there might be a verification procedure. They say they will send a contracted person to my address to collect a check. At least that would prove that I exist. They say they will visit my premises 3 times to verify, but instead they sent me an email telling me that their representative (in another country) would phone me. I am certain that he is not going to take a flight 5 hours each way on one occasion let alone three. I never got that phone call.

Here are the details showing how their verification works:

VERIFIED SUPPLIERS are suppliers and exhibitors whose business registration details have been verified by independent third parties. In other words they are simply a registered business.

VERIFIED MANUFACTURERS Globalsources using a system almost identical to Alibaba, verify that the suppliers are a registered business, and that their registration entitles them to manufacture products. There is no evidence that they are actually manufacturing 38 anything. Registration as a business is no guarantee of ethical behavior or reliability.

SUPPLIER CAPABILITY ASSESSMENT This refers to a GlobalSources service that you pay for, but they subcontract it to Bureau Veritas. It reports on production facilities, capabilities, and product quality. You can arrange and pay for such factory audits with any potential supplier that you find on any website, without doing it through the B2B site.

There is no way of knowing whether suppliers identifying themselves as manufacturers really are such. They still allow even verified suppliers to offer big brand goods, as well as copies supplied with your own brand label. The potential risks to buyers involved in this practice are so great that in my view it casts some doubt on the reliability of the site.

Discussions with senior management suggesting ways to improve their verification process ended without them agreeing to make any changes. Note: Prior to this discussion I was well enough regarded by Globalsources that they invited me to speak at one of their major fair events. I declined.

10. MY PREFERRED B2B SOURCING PLATFORM

10.1 HKTDC.Com.

Although having a much smaller number of suppliers listed than most other B2B sites, I prefer to use hktdc.com, because of the high quality of their verification and reporting system. In the case of this official website of the Hong Kong Trade Development Council, all suppliers listed as verified have been thoroughly checked out by the HKTDC. It would be rare for one of those suppliers to risk their good standing with the HKTDC by treating you unethically.

A very small number of suppliers on the HKTDC site are unverified. I would usually avoid unverified suppliers, but see my comments in chapter 2.1 about locating suppliers of products not already being sold in your market.

Premier Advertiser The introduction of paid Premier Advertiser badges has boosted HKTDC’s revenue, but done little to provide assurance for buyers. Even so, suppliers that have advertised with HKTDC for at least 2 years are generally likely to be safe to deal with, but I would prefer to deal with those that have earned the other signs of reliability, such as D&B Checked, Compliance Verified, Certificates Verified, and Supplier Reference.

Many of the suppliers have been checked by Dun & Bradstreet to verify their true business registration, location, names of contact persons, websites, and other significant information. This is done twice a year, but bear in mind that they do not report on their financial standing. They are issued with a DUNS number. If they are displaying the D & B CHECKED sign that is good reason to believe they are safe to deal with. It is not a thorough process of verification, but is far superior to the negligible checking done by other sites such as Alibaba, GlobalSources, etc.

The Compliance Verification system put in place by the Hong Kong Trade Development Council includes verification of their manufacturing capability and also verification of social compliance. This means that they will satisfy the strictest rules regarding employees’ ages and working conditions as well as social responsibilities.

The Certificates Verified label covers verification of any certificates specifically identified including:

• Product Certificates • Management System Certificates • Corporate and Social Responsibility Certificates • Security Certificates • In House Laboratory Management Accreditation

This certification removes any concern that certificates quoted by advertisers on HKTDC might be forgeries.

Sellers that qualify for this badge have been able to prove the accuracy of any claims made regarding export volumes and export markets.

HKTDC have a “Small Order Zone” on their website. Suppliers listed in this area will handle small orders at genuine wholesale prices for business operators. They will not deal with individual buyers wanting to obtain a bargain on a single item.

IMPORTANT NOTE: It is important to remember that you can usually obtain better prices right from the start by negotiating a small order from a supplier not listed in the “Small Order Zone.”

10.2 Made-in-China.com.

Yet again, they have made significant changes to their rating system. The “Diamond” rating symbol has been change for the Top Rank symbol. Here is how the new system works:

This symbol is worthless. It simply shows that the supplier has paid for listing on page 1 of your search results.

Audited Supplier. These reports are free of charge provided you sign up as a member. This is worth doing because these reports are an excellent help in assessing suppliers. The report is delivered by SGS, or Bureau Veritas, both are worldwide inspection authority established in the 18oos. Their reputations are beyond reproach.

These reports can, but don’t always, cover:

• General Information • Foreign Trade Capacity • Product Research & Development Capacity • Management System and Product Certification • Production Capacity & Quality Control • Financial Position • Working Environment • Energy Saving and Emission Reduction • Industry Information • They also show photographs of the business.

IMPORTANT. The existence of an Audit Report does not automatically prove the supplier’s status. Your first step is to hold your cursor over the Audited Supplier symbol. This opens what looks like a drop down menu but it is a list of the subjects I have listed above. One or all of those subjects might be dealt with in an audit. Only those items marked have in fact been the subject of the inspection.

Hovering the cursor over the symbol may tell you at a glance whether the supplier is a manufacturer or a trader, but to see what has actually been dealt with you will need to click on Read Free Report. If you have not previously registered, you will be asked to do so before you can open the full report.

This 360° Virtual Tour symbol might be a help in evaluating a supplier, because a tour will be reasonable proof, but not 100% certainty, that the supplier really is a manufacturer.

The Gold Member badge does not add to the value of an audit report by SGS or Bureau Veritas, and can be ignored. Gold member status is purchased, and as is the case with Alibaba Gold Suppliers, the badge might be passed on to a new owner when an existing Gold Supplier business fails or is sold. It is now stated on the site that this badge simply shows that the supplier is a registered business.

In summary, if sourcing on made-in-china.com, I would only deal with Audited suppliers, after reading their full Audit Report except in the case of sourcing products not yet sold in my home market. See 2.1.

Their old Secured Trading Service was made-in-china’s equivalent to Alibaba’s very faulty Trade Assurance scheme, but has now been terminated.

I consider made-in-china to be a valuable sourcing platform, but only when relying on a complete Audit Report.

May I remind my readers that I would never under any circumstances deal with madeinchina.com, which is a totally different B2B portal. If you search for that site it defaults to (DealeXtreme) which has a shocking reputation. 10.3 Trade Magazines Available.

HKTDC. Provides a good selection of trade magazines. They are available electronically free of charge. You can easily locate them on the HKTDC website. Advertisers are not necessarily verified.

GlobalSources.com also publishes a number of trade magazines, but you should read my comments about that B2B site before relying on those magazines for sourcing.

Registering on a trade sourcing website means that you will receive numerous emails which may be of no interest. Over time the volume of these will increase and they take up a lot of your time, even just to check them before deleting.

If you want to regularly log on to a site that requires registration, you can use a free email address specifically for registering on sites that require it. If the mailbox becomes overloaded at that address you can simply abandon it and log in to change your registration details to show a new address.

WARNING - Never be tempted to import big brand items at bargain prices. It is almost impossible to source the genuine article unless you have a few million dollars to spend, and importing copies, even in good faith will likely result in your shipment being confiscated and destroyed and you face a real danger of prosecution.

10.4 How to Search for Products and Complete Inquiry Forms on HKTDC.com and Made-in- China.com.

The enquiry form to contact potential suppliers has been changed substantially since my last revision. The Wish List on the product search page no longer functions so I have made the necessary changes to the instructions below.

Note: To illustrate the process I have chosen to search for silicone cupcake molds (US spelling) or moulds (UK spelling). These sites recognize both, but will sometimes only present results using your spelling, so it may widen your scope by doing a second search using the alternative spelling.

HKTDC.com

Enquiry Form. On the home page enter cupcake moulds (HKTDC use UK spelling) in the Products/Services search bar. A long list of suppliers will appear, and you can choose one or more. If you want to choose more than one, check the square on the left-hand side of the product illustration.

Then after checking as many squares as you want, click on Contact Multiple Suppliers at either the top or bottom of the page.

A page opens showing your choices. This is the same form whether you want to contact only one, or several suppliers.

Note that the reason I recommend not including a number in the order quantity box is that by not doing so, you leave it to them to specify an MOQ.

If you have only ticked one, only their product illustration and company name will appear on the Enquiry Form. Below is a screenshot of the form with my notes included.

Complete the form as shown in the screenshot of the Send Your Enquiry Form page below: then click SEND

HKTDC are no different to other sites when it comes to your privacy. Even if you don’t give permission, your email address will become known to a huge number of suppliers that you have never contacted, so you might like to use a throw away address for all enquiries.

To post a sourcing request. This form is very similar to the enquiry form shown above, so I have not included a screen shot. The old Buying Lead Service is no longer used and it is now called Request For Quote. It is not easy to locate on the website, so here is the latest link: http://hktdc.com/rfq/rfq_form.htm

Required fields include your Target Price and Planned Quantity per year or per order. You will have to insert a company name and if you don’t have one you can invent one, but you should then use it for all future communication. Finally click on Submit.

Made-in-China.com

Searching for products on this site is now easier than ever. I have also searched on this site for cupcake molds or cup cake molds. . Enter cupcake molds (They use US spelling) in the Product Directory search bar. A long list of suppliers will appear, and you can choose one or more. If you want to choose more than one, click on Add to Inquiry Basket below the Contact Now button.

If you choose only one, and then click on Contact Now, a Send Inquiry form will appear and show the product as well as an already completed Subject box. Complete the form as shown in the sample Inquiry Form page below:

If you have clicked on Add to Basket to inquire about more than one company’s product, go to the bottom right hand corner of the page where your Inquiry Basket appears. Click on Inquiry Basket. This will open the Basket where you can check the boxes next to the products you want to get information about. Then Click on Send Inquiry and this will open the very simple form. Complete the form and click again on Send Inquiry.

If you have registered and signed in, your details will automatically be sent to the supplier. If you have not registered and signed in, after you complete the form and click on Send Inquiry a small window will open asking for your details.

Sourcing Request The request form has also been simplified, so I have set out instructions for the new form as follows. You will need to register in order to submit a sourcing request.

To post a sourcing request, click on Post Sourcing Request at the right-hand end of the Product Directory search bar. This opens the request form where you insert details with as much description of the product/s as you want to include. You are required to put a figure in the Quantity box. I suggest that you first look for suppliers using the Product Directory search and see what MOQs are usually stated. You could then either insert the average MOQ, or a figure about 75% of that. You can later discuss buying a smaller number for your initial order.

If you are posting a Sourcing Request because you have been unable to locate any suppliers, just nominate what you guess might be a likely MOQ. The Valid to Date you enter determines how long suppliers will have to respond to your request. An expiry date at least limits to some extent the massive number of emails that you may receive.

11. HOW TO GET SUPPLIERS TO COME TO YOU

This is amazingly simple. All you need to do is post a buying request on one of the websites above, specifying the product of interest to you. You will usually receive a flood of responses, and you know that these people are keenly looking for business. Remember that they may not be “verified” or “audited” suppliers, so you will need to go back to the B2B website and see if they are.

You will need a business name, because none will respond to an inquiry from an individual. The business name does not have to be registered unless you are using it in your own country or another country in order to sell goods or services. Don’t forget that your email address will now be widely available, so I recommend using a disposable address.

If you don’t want such a flood of emails, many of which will be from opportunists who know nothing about the product you are looking for, it would be better to avoid posting a buying request. Believe me, when I say flood, I mean it can be like a tsunami and it will continue for a long time.

My preferred search method is to do a standard search for the product and look at the various suppliers that appear in the results. You can use my sample email in Chapter 13. The sites do enable you to send the same inquiry to multiple suppliers at once. Or you may prefer to follow the step by step instructions in Chapter 17.

12. ASSESSING SUPPLIERS INCLUDING DUE DILIGENCE

12.1 Are They Manufacturers or Traders and Are They to Be Trusted?

I usually avoid dealing with agents or traders because they often lack influence with their supplier to ensure continued good quality and reliable service. See Ch 23 for detailed explanation of differences between manufacturers, traders and agents.

One major exception when using an agent can be beneficial is when an agent has exclusive rights to export a supplier’s goods. Such exclusive export rights are often a result of the manufacturer not having a good knowledge of English, but you will not often find such suppliers.

Another possible exception to my rule of avoiding traders is when traders are offering extremely low prices on close-out stock. Of course you cannot expect to place a repeat order, but it could give you an opportunity for a very good one-off profit. To find such bargains will require a lot of searching using the keyword “close-out.”

It is important to remember that there is no 100% sure way of verifying a supplier without visiting them. Even then you cannot be absolutely certain in some cases. The compliance verification system found on the hktdc.com website does a lot of the work for you, because it can confirm the supplier’s status as a manufacturer. If you want to benefit by this new system you should limit your searches to Dun & Bradstreet checked and Compliance Verified suppliers. What follows in this chapter will help you do some checking for yourself.

Many companies are businesses that combine manufacturing and trading, so simply because their trading name includes words such as: trading, import, export, commodity, commodities, agency, or international that does not mean they are not manufacturers.

Note that onsite checks at HKTDC do verify production capability, and also the made-in- china.com Audit Reports provided by SGS or Bureau Veritas can be trusted to identify real manufacturers.

In both cases, read the reports carefully.

If a supplier not covered by those reports claims to be a manufacturer, that claim should not be believed without other evidence. If they have product patents that is a good sign. Also, if they have genuine ISO certificates for any processes, even for management systems, that is also promising.

12.2 When Visiting China.

If you plan to visit China in your search for suppliers, you should first research online and narrow down the possible list of suppliers to a manageable number depending on their location and the amount of time you will be in the country. Communicate with them frequently to help you assess their attitude to service, QC, etc. Let them know that you plan to visit, and would like to see their factory. If they won’t agree to that you will have one name to cross off your list. 49

Take with you a supply of business cards printed in English on one side and if possible, Mandarin on the other. Exchange of business cards is more than a business custom; it is rather like a ritual. See 16.6

It is acceptable to let the potential suppliers know that you will be visiting and that you will contact them on arrival in the city where you will be staying. Having made an appointment after arrival at the hotel, check all travel arrangements necessary to be there on time. The hotel staff will usually help you with this. Take account of the fact that travel within Chinese cities can be appallingly slow. Whenever you venture out, always take a few of the hotel’s business cards to give to taxi drivers for your return trip.

Once you arrive at the business premises, you will usually be greeted on arrival by someone who may appear to be a junior staff member, but it is customary for a female staff member to be appointed as your hostess. She will speak good English and her mission is to make you feel like an honored guest while observing strict propriety. She will often have some authority to negotiate, but price negotiations on the first contact are not desirable. Do that later in your visit, or even later on your return home. Visits are usually restricted to the reception area, where you usually drink Jasmine flavored green tea. If you empty your cup, it will be refilled, so unless you love Jasmine flavored green tea, you should only take very small sips. Don't ask for coffee unless a younger host who is more modern offers it.

If your prospective supplier is impressed by you, that could result in your visit lasting a couple of hours. If they invite you to lunch, that can take as long as 3 hours.

After a suitable time, which you will have to judge by the flow of conversation, you should ask to visit the factory. If this is on the same premises, you may be sure you are dealing with a manufacturer. If taken to another location, do the following to determine whether or not the people you are dealing with own the factory: Assuming you cannot read Chinese, just compare Chinese characters on signs outside the premises with those on the business card supplied by your hosts. If they match, they are probably genuine manufacturers, but changeable signs are not unknown. The investigations done prior to your trip will also help in your assessment.

As you can see, even when visiting personally, confirming factory ownership is not easy. You could spend a lot less money by employing the services of Intertek (UK) or SGS (Switzerland) for a few hundred dollars and staying home, but you miss out on the delights of tax deductible overseas travel.

12.3 When Unable to Visit China.

In that case you should take great care when searching online. Only use the safe sites that I have listed above and look first at the website. It should have address, telephone, and other contact details. A high-quality website is not necessarily a sign of a reliable or trustworthy business. Email addresses are sometimes free services and that is usually a bad sign, although some legitimate businesses use free email addresses for some staff members. It is more reassuring to see an “[email protected]” address.

If they also show a factory address that can be an indication that they are manufacturers, but it could simply be the location where they buy most of their goods. Not all websites will have complete address details and sometimes those addresses may appear unlike what you are used to seeing. Remember that industry in China does not always operate in the same way as you may have seen locally. Often they will be located in a unit, suite, etc., and they may even be in a plaza. I have found manufacturers with addresses such as No 77, Alley 10, Lane 16, Section 286, Nanking East Road, Shenzhen. It does not sound promising, but some very efficient, reliable, and long established factories may be found in such strange addresses. At an early stage in your search you should request that they email a copy of their catalog or provide a link to their online one. You could add that if they have a printed one you would like to receive a copy by mail. Assuming you receive a printed copy, check whether the factory address, even if it is with a different company name, is printed on the supplier’s literature. If it is, the company is almost certainly a manufacturer. Agents often cut off the part of a leaflet showing the actual manufacturer’s name, so if no business name appears in print on the leaflet, that is likely to be a sign that the supplier is an agent. In other cases, they stick on a label with their name and address. If it is not published on their website, or in their catalog, ask for the name and location of the factory. If they will not or cannot provide these answers, you should go elsewhere.

Ask for their telephone number. Check to see if the area code corresponds with the address location they give for either their office or factory. If it does not, find another supplier. Does their website show a full address and telephone number? Do not even consider an anonymous company that has a website but may have nothing else. TIP: Do the phone numbers match the postal code? If not, RUN! You can line up postal codes with telephone area codes by going to the official Chinese site: http://www.china.org.cn/english/MATERIAL/120745.htm

If the telephone code is in an area that does not align with the postal code in that area, I would consider that the company may not be trustworthy.

12.4 Trade Show Exhibitors.

An easy way to weed out frauds is to ask the supplier to confirm which trade shows they have attended. Then visit the trade show's official website and verify that the supplier has in fact attended. If they have told you that they have exhibited, but they have not, forget about dealing with them.

12.5 Business Licenses.

You might also decide to ask for business licensing information. Registration certificates are often forged, and simply seeing a copy of a certificate is not sufficient. There are services available that can check licenses for a fee, but once you have their license details these can be checked by a call to the trade consulate of the supplier in your country.

If your supplier is from China, you will encounter a big obstacle. This is because all Chinese businesses in mainland China are registered in the Chinese language only. Many Chinese companies offer their services for a fee to check the validity of a business license. I have a friend who is a practicing Chinese lawyer who offers such a service and you can contact him 51 here: [email protected] and ask him to quote for things such as Business License verification. He will also do wider Supplier Verification & Auditing Services that will give you a far better understanding of a supplier’s status than you can achieve by doing it yourself. He will also consolidate your sample orders, storing them until all the suppliers you have told him about have delivered, and then send them in one courier shipment. The only condition is that he only does this for clients who have used his verification service.

12.7 Google Search.

Effective searching is often just simply a matter of patience and perseverance. Consider using the Google advanced search. A few years ago Google dumbed down the advanced search option next to their search box so that it provides only the option of choosing a different country. Instead of opening an ordinary google site, go to: https://www.google.com/advanced_search

There are many filters available. I sometimes find it necessary to refine the search several times by inserting in the “none of these words” field the many irrelevant words that clog up the search results.

Searching for the company on Google sounds too ordinary, but it can find a lot of information. The hardest part about it is that there are many possible variations to the business name. Businesses in China often use their location such as Shenzhen as the first part of their business name, so it may be necessary to omit that location when searching.

Even legitimate businesses operate under several names, so you might find a website with a different name to the one you are searching for. You may need to search for variations, such as a website with the initals of the company name. For example if you are interested in a company called Shenzhen Wyjo Plastic Products Ltd, try just Wyjo, or WPP Ltd, or WPP.com. Here is an example of an actual search: I searched for Tianjin Flying Pigeon Cycle Manufacture Co., Ltd.

Results appeared as: http://www.cccme.org.cn/shop/cccme10803/index.aspx (Official company website.) http://flying-pigeon.en.forbuyers.com/shop/index/profile(this another, but much more elaborate company website) I also found them here http://cntjfeige.en.alibaba.com/ as well as www.flyingpigeon.en.ec21.com

See also 12.8, regarding search results on Panjiva.

A Google search requires patience, but it is your money you are protecting, so persevere. Don’t limit your search to page 1, 2, or 3. You might not find them until page 5 or 6.

It is common to find a Google result for a company you first saw on Alibaba also listed on Tradekey, EC21, DHGate, which you should disregard because those sites are notorious for scams. If you find them listed on other sites that I have listed, go to those sites and see what their rating is there.

12.8 www.panjiva.com.

This site tracks exports worldwide, and although it can be frustrating to use, I have often found companies there that I have been unable to locate elsewhere.

You can sign up for a free subscription that allows unlimited searches, but the results will not be as complete as you would get if you had a $99 per month paid subscription.

Here is an example of a search: I searched for Tianjin Flying Pigeon Cycle Manufacture Co., Ltd. It appeared in 6th place in search results, preceded by 5 companies that were not related except that they were bicycle suppliers. They are correctly shown to be manufacturers. I have not yet found Panjiva to be wrong in identifying a company as a

53 manufacturer. If they are not so identified, it may be due to lack of information, and you might like to search elsewhere for confirmation

Having satisfied yourself to the best of your ability that the supplier is a manufacturer and is likely to be trustworthy, there are several other criteria to consider when choosing a supplier.

12.9 Do they have a product that you can sell?

This is probably the easiest question to answer, because you will have done your market research and are confident that you have a potentially profitable market for widget X, and you have found several suppliers.

12.10 Does their price allow you a good profit margin after allowing for all expenses?

My simple “trick of the trade” to ensure that you are getting the best price is that you must obtain more than the three quotes usually recommended. Standard business practice is to obtain three quotes, but what if those three companies are related without you being aware of the fact?

I am aware that there are many Chinese companies that trade under more than three names, so you need to obtain quotes from as many as possible. The number depends on how patient you are and how much time you will put into checking prices.

I once obtained eight very similar quotes for a particular product; then quotes 9 and 10 were very much lower. That can ring alarm bells because if a price is too low that can mean the supplier is not genuine or their product is second rate. In this case it was a good outcome because most of the first 8 were agents, not manufacturers, and as a general rule, manufacturers will offer lower prices than agents.

You must take into account Asian culture, and particularly Chinese culture when negotiating. See 12.19 Cultural and Language Differences

The simplest way to negotiate softly in the Asian style is to obtain competitive quotes and use them in a non-forceful way. If you choose to do so, it is acceptable to scan a copy of the competitor’s quote, with all company identification removed. No names, addresses, telephone numbers, logos, Chinese characters, company numbers, product numbers, etc. should appear. If they can meet that price they will tell you, or they may offer you a price in between their price and their competitor’s.

If you find a company that you would prefer to deal with for some reason, but their price is too high, it is acceptable to politely thank them for their quote but say that you have received a quote from another company for $x. When using a competitor's quote to try to get a better price, I suggest that you mildly compliment the supplier you are negotiating with, and add that you would prefer to deal with them because of those good points, but you must consider the price.

Because you have already given away a negotiating point with that praise, they will rarely match that price but they will often lower the price to a compromise level. The praise is used

54 to help cement your relationship, and in my opinion the risk of not getting them to lower the price all the way to match the competitor is worth it if you believe you have found a really good supplier.

You might prefer to try for the very lowest possible price in which case you don’t offer the mild compliment. It is up to you to decide whether the price difference is worth choosing the less desirable supplier.

12.11 Regarding Prices.

The lowest price may not be as important as insuring that you are getting a quality product from a reliable and trustworthy supplier. I have been in a number of factories in China where there are in effect two production lines. One produces “el-cheapo” products to supply people who think of nothing but price. The other produces a much better quality version of the same product. Surprisingly the price difference is often only a small one.

When a supplier is keen for business and a buyer pushes for a lower price, the supplier will often reduce the quality. By way of illustration, consider a plastic ride on toy. The manufacturer’s design team calculated the minimum safe thickness of plastic to use in the various parts, but to satisfy an insistent buyer, the manufacturer might reduce that thickness by a small amount, shaving enough off his cost to allow him to meet the buyer’s price demands.

The result can be disastrous; with product failure after it is in use for some time. Returns, refunds, product recalls, harm to the importer’s reputation and possible litigation could result.

12.13 Possible Profits.

I once had a call from a potential customer desperate to obtain a custom-made product, but every company they had contacted was not interested because the order was only for 1,000 items. I knew a company in China that made vaguely similar items and I asked them to quote. The landed cost worked out at approximately $3.00. I quoted the customer $21.00 each and got the order because they absolutely had to have the product and nobody else would even quote them. I pocketed a profit of $18,000 for an outlay of $3,000 and for very little work.

That does not happen every day, but the point I make is: Don’t be afraid to charge what the market will bear, rather than a cost-plus price. On a cost-plus basis, I would have charged landed cost including all duties and taxes $3.00 x 250% = $7.50. That is my usual minimum profit margin; 60% of the selling price. I can happily live with that, but I can really enjoy $3.00 x 700% = $21.00 – a margin of over 85%.

Some importers regularly make much higher margins, but that is usually because they have found a niche that is not widely exploited. I have seen products retailed for as much as 10 times what I know to be landed cost.

12.14 Custom Made Products.

Most of what I have written so far relates to standard goods that the manufacturer already produces in volume.

If you are aware of a locally made product, or even a high priced imported product of a type you are familiar with that has a very lucrative market, you may want to consider having that type of product custom made for you in a low cost country. It is safer to first consult a lawyer specializing in international intellectual property rights, because you must beware of breaching intellectual property rights such as patents, copyrights, or trademarks.

If you are satisfied that the product can be legally and ethically copied, you would then contact manufacturers who make the same kind of products. Remember that designs are often subject to copyright, so if your custom made product looks almost exactly like a brand name product it could be regarded as a counterfeit, with dire consequences for you.

You may not find manufacturers who produce exactly the same item, but if for example you want to copy leather aprons with tool pouches, you may not find suppliers who make that product exactly, but you could probably find some who produce other leather products.

If you want something made especially for you, there are a number of matters to take into account:

• Much longer lead time. Depending on what is being made, how complex it is, and what set-up work may be needed, it can take months to even obtain your first sample.

• If casting, stamping, or injection molds are needed, these can be very costly. For example a simple stamping tool for a medal might cost $40 - $100 for a single sided item, or double that for a double sided one. A plastic injection mold may cost as much as $20,000 to $50,000.

• Fabrics woven to your design can require jacquard costs up to $500.

• Items to have something printed on them will have set up charges ranging from $20 to $500.

• It can be difficult to ensure that the manufacturer interprets your drawings and written specifications the way you interpret them.

• A manufacturer will usually require a substantial order to compensate for the extra time and effort needed to develop the new product. They will often have their materials suppliers require them to purchase a large MOQ of materials needed to make your product. If the manufacturer won’t budge on the MOQ, you can offer to pay a handling charge. It is common practice for suppliers to impose a handling charge on smaller orders, and this might be better for you than ordering the larger quantity initially.

• If you have your own original design that you want made, you will need to take steps to protect your own intellectual property, and for this you will need the help of a lawyer specializing in international intellectual property rights.

• Some protection can be achieved by having components manufactured by different companies and assembled in your home country. The risk with that is that they might not fit precisely.

It is worth noting that a large part of smaller scale manufacturing in China runs on copying. This poses a real and ever-present risk to those who ask for new designs to be made or for improvements to existing products to be produced.

I have seen plenty of cases in which a new design or new product is being offered by other suppliers in China before the innovator who submitted the design even gets a prototype.

Protection by way of Patents, Design Registration and Trademarks at least works for some time in Western countries where IP rights are respected. Sourcing agents in China would struggle to protect IP rights in that country. A Chinese friend, who is a practicing lawyer in China, tells me that expensive litigation rarely succeeds, and bluffing is more often successful. He does that for clients all the time.

I recommend trying to avoid having the manufacturer know the full picture. From the time of first contact I would use another (invented) business name, not my brand name, because if your supplier chose to, he could search for that in order to see the completed product. I would also avoid disclosing my website URL.

It is worth considering having brand and logo applied in your home country. Cost can even be lower than paying to have it done in China, particularly in relation to set up charges. It can sometimes be possible to permanently deboss (like engraving) you logo on a finished molded product.

There are many possibilities and you will find detailed information in my labeling book powerlabelsforprivatelabelingprofits.com on how to generate and source post production branding and labeling.

I suggest that you should not consider custom made products unless you yourself have a good understanding of, or experience in, the manufacturing process.

12.15 Do they seem reliable?

The best way to test that is to request a sample. You may have to pay for it – more on that later. If the sample arrives promptly, that is usually a sign of reliability. You should also request client references or testimonials. Chinese companies are reluctant to supply these because they think you may be trying to obtain a commercial advantage. You need to assure them that you only want to ask their customers about reliability, service, and whether quality met expectations. About 80% of Chinese companies will still refuse to supply references so you need to make other inquiries.

12.16 Are they helpful?

Prompt replies to your emails are usually a good indication that they are helpful. This applies particularly if you ask for an explanation about some aspect of the product. Note: the English- speaking secretaries will invariably be under instructions to try hard to get new business so they will email you repeatedly. Do not mistake this for being pushy.

12.17 Will they accept small orders at first?

Most will at first insist on a minimum order that will possibly cost more than you are prepared to spend, but if you follow my methods in the next chapter, “Samples & Small Orders,” many will allow a small first order.

If they are unwilling to agree, I would move on to more cooperative sellers.

12.18 Never Keep All Your Eggs In One Basket.

If you have found a good product that sells very well at a good profit, I urge you to look for a back-up supplier. Your first supplier may suddenly go out of business, or they may receive a massive order from Disney or McDonalds and not have the capacity to handle your orders. You could be left stranded if you do not have an alternative supplier. If a supplier begins to repeatedly increase prices, you should start looking for another supplier if you do not already have an alternative, because it is very difficult to negotiate better prices with them.

In my experience, suppliers will usually work very hard to get your business, but they tend to take you for granted after a while. This can usually be remedied by lodging a strong complaint but in some cases, with quality and reliability falling below acceptable standards you cannot continue to buy from them. In that case you will need other suppliers to turn to.

12.19 Cultural and Language Differences.

These differences can make or break a business relationship, so I will outline a few essentials.

Although I have stressed the need under certain circumstances for watertight contracts, Chinese culture places great stress on trust. Moral influence is more important than legal practice. Chinese business people tend to rely on a person or company’s moral obligation, rather than on legal obligations. This does not mean you should ignore my advice about contracts, but if you can build a trusting relationship where both parties will feel morally obligated to perform, you will generally have as much security as if you had a signed contract.

In Chapter 17 Order Procedures, the check list includes reference to Pro Forma invoices. In practice, these are as near as you can usually get to a really binding contract.

When writing to Chinese speakers remember that they mostly have a limited vocabulary. Words that may seem straightforward to you might mean something different to them. Avoid using words that have more than one meaning, such as “bow.” Also try to simplify your meanings by using words that cannot confuse someone with a limited vocabulary. For example, instead of using the word “lustre” (UK) or “luster” (US), use “shine” and instead of using the word “buff” use “polish.” If you can find a reliable interpreter, do make the effort to use Chinese characters on your emails, order forms and letters.

Cultural differences extend to the art of negotiating. People who have visited retail stores and particularly street markets in Asian countries encounter sales people who haggle over price. In fact this is not the Chinese way of doing business. On the contrary, you will find that they will generally quote low initially to get your business, and then impose price increases over time. Chinese business people are generally very professional. While some are greedy, most are prepared to work on relatively low profit margins.

When they give you a price, they will be highly offended if you respond with an offer to pay less, in the way you might at a street market. Instead, see 12.10 above, regarding obtaining many quotes to obtain the best price.

Always be very polite in such communication. Chinese people are extremely polite and they have a higher regard for Westerners who are also very polite. Just remember to treat them as you would like to be treated.

A good way to maintain good relations once you have established a good business relationship is to send greetings for both Western New Year and Chinese New Year. Greetings or good wishes for other festivals would also be worthwhile.

13. SAMPLES AND SMALL ORDERS

When making your first approach to a potential supplier, you need to make a good impression. You must avoid disclosing that you are new to the business or that you are a sole trader. Always give yourself a business name even if you do not have one registered. Also, an important trick of the trade is that you should never ask what their MOQ is because that will immediately identify you as small fry. They will tell you their MOQ soon enough.

Here is an example of an email for making first contact. You will note that the supplier contact is addressed as “Mr.” or “Ms.” Don’t use first names until you have established a good relationship, or they have begun to use your first name.

Wonder Products (HK) Ltd Dear Mr Huang,

We are established importers seeking reliable suppliers of XXXXXXXXX. We believe it would be a good addition to our current product range.

Please email a catalog and price list.

If you also have a printed catalog, please send a copy to me at:

John Doe Wizard Imports 1356 Center Road Williton CA 5351 USA

Regards, John Doe Purchasing Manager Wizard Imports

Using your name in the first line of your address will insure postal delivery, even though there is no business called Wizard Imports at that address.

NOTE: Giving yourself a title such as Purchasing Manager leaves open the possibility of later blaming a superior, usually simply referred to as “my boss”, for insisting upon placing a small initial order for testing or market trial purposes. It is acceptable to refer to your superior as your boss.

If making your inquiry through the contact form on a B2B website, you may need to embellish your story a little. This should not include claiming that you are planning to place very big orders. The contact forms often require you to state expected order quantity. Do not put any figure there. Most newcomers prefer to use the B2B website contact forms, so in 10.4 I have prepared step by step instructions on how to complete those forms.

13.1 Samples.

At some stage before placing an order you must obtain a sample, or if you are able to visit the supplier, there is no better way than to see the actual product. This is because in these days of Photoshop images you cannot believe everything you see in print or online.

You will appreciate that many people contact Chinese companies in the hope of getting freebies or at the very least a cheap single item. This makes Chinese companies wary and many will charge for samples, usually with a proviso that if you order a commercial quantity, they will deduct the cost of the sample. If they do not suggest that, you could ask them to do so before you order your sample.

Even if they provide a free sample, they will usually ask you to pay courier charges. For them, this serves two purposes. First it shows that your inquiry is a genuine commercial one, and secondly, because they expect you to quote your courier account number, it proves that you are in fact in business. Find out the package weight and dimensions, and if you have a courier account number, check with your courier exactly how much they will charge for a freight collect door to door delivery from the dispatch location (which city) in China to you, for the package. Their price must include customs clearance and must be in writing. See Chapter 4 - Freight.

Once you pick your jaw up off the floor after seeing that quote, ask the supplier how much they would charge for a pre-paid package if you pay the supplier in advance. Bank fees will be expensive, and the supplier may want to charge you for their bank fees also, but in many cases the total cost will be much less than what you would pay your courier for a freight collect delivery. If the supplier accepts payment via PayPal or credit card, you will probably be in luck. If you do not have a courier account, you can still plead that freight collect charges are way too expensive and see if they will accept pre-payment from you as above. Alternatively, you could tell them that all your suppliers pre-pay the freight and that is why you do not have an account.

When the supplier quotes you for the total including courier or airmail charges, check to see how much those charges should be. Often suppliers will try to make a big profit out of the freight. You can get a good idea of airmail rates through the Hong Kong Posts Office at https://www.hongkongpost.hk/en/sending_mail/international/index.html. Checking courier rates on your local courier service website will show you the absolute maximum charge, which will almost certainly be much more than what the supplier will pay.

If you can wait, ask the supplier to ship via China Post. It will take 3 to 4 weeks, but the cost is very low. Be sure to get them to confirm the postage charge before they ship. E-Packet costs a little more but is a lot faster.

Often the best approach is to either choose a small range of their products and place a sample order, or even place a sample order for a small number of the particular item that interests you. They will then prepay freight, and you could well receive some saleable items for little more money than a single sample plus freight would have cost you. When doing this, you must make it very clear that this is a sample order to enable you to evaluate the product.

13.2 Small Orders.

I have just introduced the subject of small orders as a way to obtain samples without paying through the nose. You may also want to place those small initial orders to test the market and to test the supplier.

If you have done your market research, and have carefully calculated the maximum affordable landed cost plus selling costs that would make the product saleable at a good profit margin, you should be confident that even if they don’t sell well at the price you hoped for, you should be able to sell them at a discounted price and still make a profit.

If your chosen product is low in dollar value, a small commercial order may only cost $200 or $300, but if the item has a high dollar value, small commercial orders would possibly amount to $1000 or $5000. I strongly recommend that your first one or two commercial orders should be as small as a supplier will allow, or as small as you feel is the maximum amount you are willing to spend as part of the learning process. By doing this you can get the feel for the process and learn first-hand what it feels like to be an importer. This will also help you test the reliability, helpfulness, and quality control of the supplier.

Suppliers will usually want to know what quantities you intend buying. Don’t volunteer that information; wait until they ask. After that, it is best to generalize about expected order quantities, or even evade the issue for the time being. Evading the issue is a common tactic used by Chinese people themselves, and they would be impolite to remind you that you have not answered their question, so you will usually get away with not answering.

Before giving much detail to them you should request catalogs and a price list as in the example above. These can usually come via email unless you want print catalogs to help verify the business. Do not request samples at this stage. You should wait until you have received a catalog. Here is a typical email requesting samples:

Wonder Products (HK) Ltd Dear Mr Huang,

Thank you for your prompt response. I have thoroughly reviewed the catalog received (or online) a few days ago and I am very confident that we have a good market for your products YYYYYYYY (Catalog No 123) and ZZZZZZZZZ (Catalog No 456).

I need to see a sample of each product before placing an order. Would you kindly forward one sample of each? Preferably in red, but any color would be OK.

Regards, John Doe Purchasing Manager Wizard Imports

Discussion on charges for samples and/or freight will then commence as in the samples

62 section above.

If you want to place a small order of maybe 1,000 items, but the supplier has quoted you a Minimum Order Quantity (MOQ) of 10,000 or 50,000, the best approach is to tell them you would like to place a trial order for 1,000 items. If their MOQ is 1,000 pcs, say you want to place a trial order for 100 pcs. Don’t forget that not being the boss; you can blame the boss for requiring a small initial order. Most will agree, but if they will not, you move on to another supplier.

If the product is completely standard production for them, tell them you are prepared to wait, and ask them to add your order to their next production run.

Once they have supplied the trial order quantity it is often possible to get them to supply that quantity again. If they refuse and you can afford to do so, ask if they will supply double that quantity. It is unlikely that you will receive a better price for double the original order quantity, but at least that may give you continuity of supply. If you have found several suppliers of the same product at around the same price, the use of this method could keep your business running while your sales develop to a point where you can afford to buy the MOQ.

NOTE: Chinese businesses universally use the term pieces [pcs] instead of items.

14. CALCULATING ACTUAL COSTS

When obtaining quotes for small orders, it is common for suppliers to quote on the basis of using air couriers. In fact, I would generally recommend that you ask for the quote to be on that basis. Make sure that all the quotes are on the same basis. In particular, be sure that customs clearance charges are included. Once you have moved on to ordering larger quantities, you have several freight options to consider and you might decide to ask the supplier to quote on more than one method as follows:

14.1. Air Courier.

It is worth considering using air couriers even for larger shipments mainly because of speed of delivery, which can make it easier for you to work with smaller inventories. That can mean cost savings that can outweigh the extra cost of delivery. There is also the convenience of having the entire process handled for you. In this case the supplier would quote door to door. (CFR [See 34.5] door to door). Please read again the first paragraph of Chapter 4.

14.2. Air Freight.

Used for fast delivery of larger consignments. I recommend using a local freight forwarder, near you if possible, who must include absolutely every cost including clearance and delivery to your premises. In this case the supplier would quote you FOB [See 34.9]. Take care to ensure that they mean delivered to the port of shipment. The quote should state FOB Port. The name of the port should be stated. FOB means loaded on board in almost every country except China.

To comply with international trade conventions, it should have the same meaning in every country, but in China it often incorrectly means “ex-factory.” This can mean there will be extra “inland” charges, which can include freight to an airport or sea port, road tolls, Chinese Customs charges and maybe some other charges that they are busy dreaming up right now. The proper term for ex-factory is EXW.

If shipping by air freight, (NOT courier door to door service, but airport to airport) you may have extra costs similar to those mentioned in 14.3 below, so be sure to get a quote that includes all costs to your door. See 3.9 Consolidators

14.3. Sea Freight.

This is only used when you have a large volume shipment and can afford to wait up to 2 months to receive the goods. When sea freight is necessary I would prefer to use the services of a freight forwarder rather than rely on the supplier to handle all the necessary work to ship by sea. In that case the freight forwarder is the one to ask for the freight quote, and the supplier’s quote would be for FOB.

As in 14.2 the quote should state FOB Port. Insist that your forwarder includes in their quote all costs including delivery at your address; otherwise you could get a bad shock. Charges after the cargo arrives at your port can include customs clearance fee, transport to a container 64 depot, cost of unloading the container and other fees, but will not include the duty or tax. These will be paid for you by the freight forwarder and collected from you, usually before they will finalize delivery.

If your order fills a container; that is called Full Container Load (FCL). If it is less, it is called Less than Container Load (LCL). If unloading is not done within a specified time, usually 3 days, you will pay a container rental charge.

I recommend that you never attempt to collect your shipment from a port. You will be treated as an outsider, probably given wrong information, ignored, bypassed by trucks driven by regulars, and may be required to come back the next day, when if you are lucky, your goods might be loaded on your truck.

It is sometimes possible that shipping small quantities by sea can cost more than shipping by air. It is worth getting your freight forwarder to quote for both air and sea freight.

In addition, you might consider splitting your shipment, so that a small quantity is shipped by air, and the larger quantity by sea. This can give you the best of both worlds; fast delivery of sufficient inventory to satisfy customers and much lower cost freight for the rest.

14.4. Doing the Calculation.

Now that you have your quotes, remember that there will then be other costs, such as Customs Duty and Sales Tax. Your Customs Broker or freight forwarder should be able to tell you in advance how much these would amount to. Although you might have a quote that includes Customs clearance charges it will not include duty or Sales Tax. Your forwarder or carrier will usually pay these for you and collect from you before delivery.

Unless you are using a door-to-door service, it could be foolhardy to attempt to make all the arrangements and handle all the red tape yourself. For this reason I urge you to use a customs agent or freight forwarder for such shipments. Talk to them before placing an order.

In order to do the calculations yourself, you will first need your total price for the goods, plus freight, plus insurance.

You can obtain an idea of duty rates at www.dutycalculator.com. This service is currently free for up to four calculations, after which you will need a paid subscription. I say “an idea”, because opinions on which tariff codes are relevant can vary, even between experts. If you want to be certain, you should obtain a ruling from your official government Customs office. See 14.5.

You will have already asked your customs agent the duty rate, and you should not be in business if you do not know the rate of sales tax applicable. Let us assume goods cost a total of $10,000 including freight and insurance, and there is a duty rate of 3% plus a sales tax rate of 5%.

Calculate as follows: CIF (or C&F) cost $10,000.00 CIF x 103% = landed cost, including duty $10,300.00 Landed cost, including duty x 105% = landed cost including duty plus sales tax $10,815.00 Add Customs Broker’s fee (assume $250.00) $ 250.00

Total Landed Cost $11,065.00

If you have imported 1,000 items in the example shipment, each has cost you $11.07 at the point of entry. You need to add delivery to your home or warehouse unless your freight cost has included that. You also need to add the cost of shipping to your customers. This will give you some idea of what you need to charge in order to make the desired profit. Don’t forget to allow for breakages, and for stock remaining after your sales effort has run its course. A prudent business person would also know in advance what the selling costs will be, including any eBay, Amazon, or PayPal fees.

14.5. Certainty About Duty Rates.

Although I suggested in the previous section how to get an idea of duty rates, it is preferable to know for certain in advance of ordering the product.

In most Western countries this can be achieved at no cost by obtaining an official, binding ruling from your Customs department.

In general the following applies to all western countries. You can request in advance, a BINDING RULING on tariff classifications for any item you intend to import into the country. This takes all of the guess work out of HTS codes and tariffs.

A binding ruling is permanent and cannot be changed by any customs official. No official is authorized to override it, or charge you more than the rate specified in the ruling or in any way change the ruling. It is not difficult to do it yourself, and the small amount of time involved is worth it.

Here are links to find out how to obtain a binding ruling.

UK. https://www.gov.uk/guidance/binding-tariff-information-rulings The UK and all other EU countries are currently, until Brexit is completed, covered by a ruling obtained in any EU country. These rulings are known as Binding Tariff Rulings.

USA. https://erulings.cbp.gov/home This site shows how to obtain a ruling online. These rulings are known in the USA as Binding Rulings.

CANADA. http://www.cbsa-asfc.gc.ca/import/ar-da/menu-eng.html Canada calls these rulings “Advance Rulings.”

AUSTRALIA. https://www.homeaffairs.gov.au/Search/Pages/Results.aspx?k=advanced%20rulings and calls these rulings “Advance Rulings.”

NEW ZEALAND. https://www.customs.govt.nz/search/?query=tariff+rulings New Zealand calls these Tariff Rulings and they only last 3 years.

ALL EU COUNTRIES. https://ec.europa.eu/taxation_customs/search/site/ In the EU, these rulings are known as Binding Tariff Rulings.

The EU site provides helpful information relevant to all countries, stating: “You must apply your BTI to customs procedures when importing/exporting your goods. You must declare it in your customs declaration.”

Once you have obtained a ruling it would be a good idea to email a copy to your supplier and ask them to send a printed copy with the shipment. This can save you the possible problem of dealing with an erroneous duty charge.

Other advance rulings that you might want to consider are Country of Origin and Country of Origin Markings. This last one checks that your intended labeling complies with regulations. It is probably worth asking your Customs Broker if you need to obtain these Origin rulings rather than going to the trouble if it is not necessary.

15. PAYMENT TERMS

Suppliers will invariably require payment in advance at least for your first order. That is standard practice in Asian countries, but their western customers find that difficult to accept. This practice is at the root of a large percentage of successful scams.

If the order is big enough value, scammers will be happy to take your 30% to 50% deposit and never make contact with you again.

I never paid in advance. My view has always been that there was no reason why I should act as their banker. They say they have to outlay the money on materials in order to make the product for you. So what! Every manufacturing business in a western country has to do the same but they don’t demand advance payment – at least not until the goods are ready to ship.

By refusing to comply with such demands I made my sourcing task more difficult, but in the process, I sorted out the keen vendors from those who did not care about my business. Some refused to supply although I had politely explained my position and offered to pay in full a few days before the goods were shipped. A pre-shipment inspection was necessary in that case. The factory should be willing and able to fund their own production of existing products.

This hard-line attitude can be misinterpreted, so it must be presented with extreme politeness. Having found the ideal product after a lot of searching, many new importers choose to yield without protest and pay the deposit upfront, but to do so it is vital that you carry out thorough checking of the reputation and credentials of the supplier.

If the amount is substantial it would be worth paying an inspection service to carry out a factory audit. You should inform the inspection service that this should include financial information as well as a capability assessment.

It is important to keep faith regarding order quantities if you expect them to accept your terms. If at the beginning you said you would buy 1,000 pcs., you must order 1,000 pcs., or your credibility disappears.

The situation is different if the order is for a new product. In that case you might have to accept their terms of a pre-production deposit, although I never did.

The most common payment methods requested by suppliers are. Wire Transfer (T/T), Letter of Credit (L/C), and Western Union. International drafts issued by companies such as American Express, or Wells Fargo, and sent to your supplier via airmail or courier will usually cost less than a Telegraphic Transfer (T/T), through your bank. Sometimes these drafts are available at post offices. Bear in mind that there will be delays due to airmail transit time. You may be surprised to find how slow and relatively unreliable that can be when the destination is China. Sometimes the draft is not delivered if you use the postal service. A courier service will usually be far more reliable, although more expensive.

You must ask your supplier if they will accept payment by your preferred method. Do not just

69 go ahead with the payment, as they may bill you for their expenses in clearing the payment through their bank. Wire transfers may cost more, but they do avoid delay. But beware of suppliers who require payment by money transfer through agencies such as Western Union.

Never send payment to a destination other than the address you have been communicating with, unless, in the case of a mainland China company they have an office in HK and a bank account in HK. That is very common, not only for tax reasons but also because the export department of the supplier will very often operate a company in Hong Kong.

Never send payment to a company name different to the one you have been in contact with, unless you are certain it is part of the same business group or is the export agent for that company.

Almost Never make a payment by any method to a personal account. Payment must always go to the company name or you will lose your money, unless you know for certain that the person is the owner of the business. Even then there is a risk.

NOTE: Although the correct banking term is “International Money Transfers,” Chinese companies still mostly call them T/Ts. Some people call these Wire Transfers, but that is not a commonly used term in dealing with Chinese businesses. With bank fees being so high, paying in two hits can add considerably to the cost of your order. For this reason, you may give preference to a supplier who accepts PayPal or credit cards, but (although growing in number), there are still relatively few that will do that. Those with an office in Hong Kong are far more likely to have those facilities. With this in mind I suggest that a small order paid for in full in advance may be worth the risk. I would never pay in advance for a large order.

15.1 Safest Methods. The safest payment methods are either Letter of Credit (L/C) or Escrow. These methods can be expensive options if you are paying small amounts. Many banks will decline to issue an L/C for less than $100,000, but it could be worth asking your bank. If they won’t handle smaller transactions, I suggest you tell suppliers that you want to use www.escrow.com and that you will pay the escrow fee. Many will say no, largely because they don't know www.escrow.com, so you will need to show them details of that company's financial registrations in various states of the USA. This can be found on their website.

Escrow.com's fees are very high for very small transactions, but a lot lower when the transaction is for $1,000 or more. There is an online calculator on their site but just to give you some idea, here is what their escrow protection will cost you, including a flat rate service fee of $25.

$200 25.0% $500 10.0% $1,000 5.7% $2,000 4.5% $10,000 2.0%

By using escrow.com you can be almost certain of safety in the transaction, but there is still a risk of fraud in using L/C or escrow. If a seller submits forged documents, payment will be

70 made by the bank or escrow company, but you will not receive the goods. This again highlights the need for thorough verification of a supplier’s credentials.

15.2 Possibility of Obtaining Monthly Terms.

However, you pay for your first order, there is a way to possibly get a supplier to agree to monthly terms after you have placed several orders. The most important part of this process is to show them that you are honest and ethical. This can be achieved with a simple note in an email when placing your first order and repeated with each subsequent order. All you need to do is write as follows:

Please provide invoices showing full value. We will not accept fake invoices.

While they will protest that they never offer fake invoices, they will find your comment very refreshing because most importers request fake invoices in order to save on customs duty and sales tax. They will accept that you are an honest person, and later when you ask for monthly terms they will be much more inclined to agree. Monthly terms are only viable if you are in the habit of placing more than one order each month. When requesting monthly terms, you should suggest that they can save on bank fees if they will send you a statement at the end of every month and you will pay within seven days. This is known as an open account.

If you only place one order per month or two, a good alternative is to request that you be allowed to pay on delivery, or within 7 days of delivery. If you do obtain favorable terms, always be sure to abide by the agreement.

15.3 Letter of Credit.

When large sums are involved, it is common for a supplier to require payment by Letter of Credit (L/C) [See 33.10], or you may decide in any case that it is in your best interest to pay by this method. An L/C is a kind of promissory note that you buy from your bank, in which your bank promises to pay the supplier once all of the conditions in the L/C have been met.

These conditions will include the following but may also have other provisions: • Supply of the ordered quantity. • Supply of goods matching the quality of the sample previously supplied. • Supply of goods confirmed by your nominated inspection service as meeting your specifications. • Proper marine insurance cover [See 33.12] for 110% of the value of the shipment has been made and a certificate provided. • Goods are loaded on ship or aircraft no later than the date specified in your order. (Never specify a dispatch date unless you and your supplier are absolutely certain it can be met. Changing an L/C can be very costly.)

15.4 Escrow Services.

Be careful when using escrow services. Use normal commercial due diligence to check the credentials and reputation of any service you might think of using. Escrow services can be an 71 excellent way of ensuring that you do not finish up paying for faulty goods, but you need to be certain that they are reliable. Not all are what they appear to be, so take care to ensure that they are genuine. One reliable service I have used is www.escrow.com I have never used an escrow service provided by a B2B site such as Alibaba.

Escrow works in a similar way to L/C transactions through banks. You pay upfront but the money is held in trust until the order conditions have been met exactly, and to your satisfaction. The main differences are that escrow usually costs less than a Letter of Credit, and unlike dealing with a bank with an L/C, you can allow an escrow service to release payment even if a minor point has not been exactly complied with. Banks insist quite literally on every “i” being dotted and every “t” being crossed, and they will charge extra fees to make a change.

I have already pointed out that the Trade Assurance service provided by Alibaba has complicated rules with very limited time allowed for you to decline to approve payment. The Buyer Protection service provided by Aliexpress is similar. The big advantage in the case of Aliexpress is that theirs is a free service. Alibaba charge their advertisers 5%, so that charge will be passed on in their prices.

Keep that in mind when negotiating prices. Suppliers in China tend to be penny pinching in relation to their costs of doing business and will usually want you to pay the escrow costs.

16. TRAVELING TO SOURCE SUPPLIES

16.1 Tax Deductible Travel.

Check first with your taxation adviser, but I suggest that if you enjoy overseas travel, your holidays can become, at least in part, tax deductible expenditure - provided you spend time looking for products to import. I AM NOT GIVING ANY TAXATION ADVICE, but I suggest that when doing your market surveys overseas, you should make extensive notes, preferably in diary form. It is probably worth noting dates and times, taxi fares, meals, or other expenses, as well as names of any people you meet.

Detailed records are more likely to keep you out of trouble with tax authorities. I never rely on memory for such things, and I never write up my diary when I return home. Here is a little hint to keep the tax people happy: I always show at least a part of my travel expenses as “personal” in my accounts. After all, I do spend money that has nothing to do with business, so I do not claim it as an expense. I repeat: Check first with your taxation adviser.

16.2 Visiting Retail Sites Overseas.

While overseas there are many ways of searching for products to import. Some importers visit local markets where the locals shop. Even visiting large stores can help you locate products that could be worth importing. Keep your eyes open for products that are appealing but are not available in your own country.

Caution! You may not have seen such products on the market at home but that does not mean someone is not already importing them. Also remember that although they appeal to you, it does not mean there is a market for them back home. One of the greatest mistakes I have witnessed among newcomers to importing is to get carried away with the novelty or attractiveness of a product that appeals to them. It must appeal to your local market. You may love it but when you try to sell it, your wonderful new product could go down like a lead balloon.

When looking for products by visiting retail outlets, you must remember that it is pointless choosing a product if you cannot locate the manufacturer. The retailers where you see these products are unlikely to tell you who the manufacturers are, so you must do some detective work.

They might give you that information if you buy one of the items. If the cost is low, it could be worth buying one that you can photograph, measure and weigh in order to locate a supplier by advertising as we discussed in Chapter 11. You can do a Google Images search and might be lucky enough to see an image from a supplier’s listing on one of the B2B sites. If you cannot locate the supplier, at least you have a tax-deductible souvenir!

It is possible to buy retail at street markets or in back road shops where locals do their shopping. Prices there will at times be even cheaper than the best prices you could get from the factory, but each item would have to be checked for faults. I know of some relatively small scale importers who love traveling, and they buy retail in those places as many items

73 as they can fit into their luggage. They always ask for a receipt and declare actual value. They sometimes strike trouble when a Customs Officer at the airport refuses to believe that the receipt is genuine, so they finish up paying more duty and sales tax than they should. Goods in commercial quantities must always be declared. They cannot be considered part of any traveler's duty-free allowance.

A big advantage of having a sample is that it enables you do an informal market survey at home. Show it to your friends. Ask questions such as: Do they like it? Would they buy one? Friends may think they have to say yes in order to avoid offending you but tell them that it is very important that you get honest answers. Check for country of origin on the package or on the goods, because while the goods may look local, they may have been imported into the country where you saw them.

When planning your trip, you should check on dates of public holidays in the country or countries you plan to visit. You can hardly justify a sourcing trip to Rio during Carnivale. In some countries, attitudes around keeping appointment times can be very casual. In the Philippines for example, you may have to wait an hour or more past the time you arranged to meet the person you are visiting. Other countries can be similarly relaxed so do your homework. Siesta times can apply in some Asian locations as well as in Europe and Latin America. This can affect office hours, so check this as well.

Generally, you should avoid peak tourist times because of congestion, cost, and difficulty in arranging accommodation. In Northeast Asia, the typhoon season can cause flooding in cities, and also disruption to air travel. During trade shows, you will need to make reservations well in advance. With these things in mind, no doubt you will do some thorough research before making your travel arrangements.

If you plan on seeing potential suppliers, always allow plenty of time because appointments that you expect to occupy ½ hour could well last 1-½ to 2 hours, and if the supplier thinks you are a very good prospect, they may take you to lunch. In my experience such a lunch can last as long as 3 hours.

16.3 Visiting World Trade Centers.

This means of locating suppliers is usually only known by the “big boys” in importing. If there is a WTC in the city you are visiting, then a visit without prior appointment can be well worthwhile provided they have members with permanent showrooms. Many reputable suppliers have offices and/or showrooms in some of the Centers, and those showroom displays can give you some great ideas about products to import. Check on the WTC site www.wtca.org. Click on Locations, then on the region. This will then show you a list of all the Trade Centers in that region. Click on the city of interest. The address and other contact details will appear. With the address, there will be a contact form and usually a website link.

World Trade Centers are located in countries around the world, but they operate independently in each country. Many of them have a product sourcing or supplier sourcing system. Using this system could enable you to locate suppliers that are not listed on any of the B2B sites.

Generally, they will be larger companies, but I have in the past found many small go-ahead businesses who have joined their local WTC in the hope of expanding their business. Their presence in the WTC system means they are keen for business, but it can also mean that they have little or no experience in the export process.

Use the contact form to say that you are looking for exporters of product X. I suggest you only refer to a product category. Some will not have such a service, but most will.

Before deciding to visit, it is advisable to email the center to ask if they have permanent showrooms at that location. Most do not. One that has nearly 1,000 showrooms is the WTC in Taipei. They cover 5 floors of the huge WTC building. I can highly recommend a visit if you intend traveling to Asia. As I mention in the next section regarding trade show exhibitors, not all permanent exhibitors are manufacturers.

Many of the companies with offices or showrooms at World Trade Centers are very big businesses and are accustomed to dealing only with importers who are also in the big league, but you will still find many businesses in those centers that will deal with any importers provided they can place orders that meet their minimum order requirements, or at least what they consider to be a worthwhile quantity. Concentrate on finding suitable products, and then ask about their MOQ. Remember also what I wrote in Chapter 13 about how to get them to accept small orders.

You can find the Taipei WTC here: http://www.twtc.org.tw/en/e-index.aspx They recently (Sept 13 3017) closed their Trade Data Library Service, so searching on their site for products is no longer possible. You can make requests for details of suppliers of products of interest to you by send an email inquiry to [email protected] or [email protected] but they will now almost certainly direct you to http://www.taiwantrade.com.tw

You can find a listing of all 920 exhibitors by clicking on the Trade Mart link on the TWTC site. Some of the exhibitors advertise on B2B sites, but some don’t, so whether or not you visit Taipei you can find a big variety of products. If you visit the Trade Mart personally, you can see and collect samples.

It is usually not advisable to make firm commitments on first contact at WTCs or at trade shows. Take time to consider. Rushing a decision could bring regrets later, and also it does not present a good image to prospective suppliers. Even if you sleep on it and return the following day that would be better than making a hasty decision.

You may choose to use the Trade Center contact forms found at each city’s WTC site to request a list of suppliers for a product you are looking for. Not all will be able to do that for you, but it is worth trying if you are having trouble locating a particular product.

16.4 Visiting Trade Shows.

By visiting sites such as www.tsnn.com and http://www.taiwantradeshows.com.tw/ you can find hundreds of shows listed, not only in China, Hong Kong, etc., but also USA, UK, Europe, and many other countries. It may take you some time to sort through them, but you are sure to find shows where products of interest to you will be exhibited. Even in your home

75 country, there are likely to be a number of shows of interest, with exhibitors from various countries, and this could be a good starting point for you if you do not want to outlay the considerable (tax deductible) cost of traveling overseas while starting your importing business. But if you want to see as many manufacturing exhibitors as possible, it is usually best to visit shows in the manufacturing countries.

For those who can afford the time and money to take a trip to China I would highly recommend it. Nothing can beat face to face contact with potential suppliers.

There are a few things potential importers need to know before going to trade fairs in China:

• Trade fairs can be mind boggling. The vast product range will fill your head with ideas, so you need to make sure you take detailed notes, as well as collecting catalogs. • Be prepared to spend at least two or three days at a fair. They are massive. • Always contact exhibitors via email well before you travel and let them know you are coming to the fair. You should have narrowed down the field before you go. • DON'T commit yourself on the day, unless you have had plenty of prior contact with the supplier. Your mind will be in a whirl and after committing yourself you may find a product or supplier a few stalls away that will be much better for your business. • Don't accept any statement that the supplier you are talking to is really a manufacturer. Just as you will find happens on B2B sourcing portals, many trade fair exhibitors claim to be manufacturers but are not. • Allow time to visit other suppliers that you may have previously contacted, who are not exhibiting. China is a big country so plan your trip and in particular all the internal travel carefully. • Make your travel and accommodation bookings early. Check with the fair organizers to see if they have special deals with any hotels. When you leave your hotel take several of the hotel’s business cards with you, kept in different parts of your clothing or brief case, to help taxi drivers understand where you want to go at the end of the day. • Remember that Chinese business people have a different concept of the word "Yes". To them it can mean maybe, perhaps, possibly, probably, no, or even yes. They are not being dishonest, they are just trying to please, and to them, saying no is impolite. • This may seem out of place but it is worth considering visiting trade fairs in your own country. Depending on the industry sector featured, there will often be many overseas exhibitors.

Don't want to travel to trade shows?

Check out the inexpensive guide TradeShowNoShow.com for tips on getting nearly all the benefits of attending trade shows WITHOUT actually attending!

If you do want to go to shows, first look for those being held in Taipei, Beijing, Shanghai and Hong Kong. As a general rule, most of the exhibitors in these cities will be manufacturers but use the suggestions I made in Chapter 12 to work out which exhibitors are manufacturers. Many of the exhibitors at shows outside Taipei, Beijing, Shanghai and Hong

Kong are only agents, and this particularly applies to similar shows in Europe, USA, and Singapore.

Two world famous trade fairs that attract thousands of visitors are widely recommended on forums. The Canton Fair is held twice a year and the Yiwu Fair is permanent.

I do not recommend that you attend the Canton Fair unless you have carefully sorted through the exhibitors and contacted those of interest well in advance of the fair date. You still need to check them out to be sure that they are a business that you want to deal with.

Allow at least 2 days to visit each stage of the Canton Fair. It could take 3 or 4 days. The fair usually runs over 2 weeks for all stages, but you might only be interested in products exhibited at one or two of the stages.

Many people have asked me about the merits of visiting the Yiwu Trade Fair. This fair operates continuously and is popular with people who go there to find one-off bargains. Many, if not most, of the product descriptions on their website are in very poor English. The site is not user friendly.

There are a number of agents offering to act as an intermediary for people to buy online, with fees as low as 1%. The big problem with using an agent is that it is difficult and maybe impossible to know how reliable they are. If a price has not been advertised online, are they bumping up the price to also get a commission from the vendor?

Will they be conscientious about quality control and risk not getting a commission if they reject the goods? Will they handle small orders? Some of the prices seem extremely low, but in other cases they are a lot higher than quotes I have seen recently from suppliers on HKTDC or Made-in-China.com.

Whether you are visiting the fair or sourcing online it is impossible to ascertain whether or not you are dealing with manufacturers. That may not be such a problem if the prices are exceptionally low, but those low prices may be due to the product consisting of reject stock, or closeouts. Continuity of supply will not be possible in those cases. Many vendors have MOQs, some of them substantial.

Few of the vendors have adequate English skills, so anyone wanting to buy from Yiwubuy.com will have to use an agent. It is not as bad as Taobao, which is admittedly more for consumer sales. The Taobao site is only available in Chinese or an awful English translation, and I recommend you avoid it. It is very risky.

I would say that the only way to safely buy from Yiwu markets is to visit. I have always advised against people going to Yiwu markets to buy products for resale, for several reasons, but there is no doubt that it is possible to buy very profitably there. Many cheap discount storekeepers make frequent visits to buy inventory in bulk. For importers wanting to build a brand, continuity of supply could be an issue.

Personally, I would not bother going to Yiwu market. Here are the main reasons:

• One important issue regarding buying at Yiwu is that many of the stallholders sell liquidation stock, and also reject stock. There are two main problems in relation to this. One is that continuity of supply will be impossible. The other is that you may well have a huge number of returns from your unhappy customers.

• The place is so big that it is mind boggling. The market covers 1,000 acres and has mostly small manufacturers and merchants renting 70,000 stalls. That is a lot of ground to cover on foot.

• You would need to hire an interpreter. Having been required to use a translator in my exporting days when I was selling product to China, I can tell you that it puts you under a serious disadvantage. There is a big risk that they may say in English something quite different to what the vendor says in Chinese. That relates to prices in particular. They may quote you much more than what the merchant wants, and then handle the transaction for you, pocketing the difference. Also, you don't know if the interpreter has a commission arrangement with a number of vendors and thus steers you in their direction. • Many of the stalls resemble Middle Eastern bazaars, resulting in brain overload from the constant bombardment of vast quantities, varieties, and colors, increasing the risk of making regrettable decisions.

• If you buy from multiple stores at Yiwu, you would either have to carry them away with you, and organize freight, or you can arrange for the Yiwu Fair owners use the market's freight consolidation system to organize shipment for you. They will consolidate orders from several stallholders for you, thereby saving freight, but you have very little control. Your interpreter has to guide you through that process. Total freight cost will be unknown until you complete all purchases and the consolidation process, but it will be a lot less than paying for each shipment separately

• Purchasing decisions and payments must be made on the spot unless the vendor speaks good enough English for you to continue communicating via email or phone after you return home.

• Prices will be mostly quoted in Renminbi (Yuan).

If someone is determined to visit the market for purchasing, they should search the website first and identify the suppliers and stall numbers they want to visit. Allow at least 2 days if visiting only 6 to 8 preselected vendors. Allow at least 4 days to a week if browsing.

16.5 Visiting Potential Suppliers.

Part or even the sole purpose of your travel could be to visit possible suppliers. You should try to time your trip to coincide with a trade show. Before arranging your trip, you should locate possible suppliers. You can do this by various means described in Chapter 12.

Ask if they are planning to exhibit, and if so tell them you will visit them at the show. If they are not exhibiting, arrange to see them during your stay in their city. Allow plenty of time

78 between appointments, because travel times in Chinese cities and in Taipei can be very much more than you would expect if you estimate time based on distance.

When you leave your hotel to visit suppliers, trade shows, or even to go sightseeing, always take some of the hotel’s business cards with you to show to taxi drivers, otherwise you may wander in a strange city for days before finding your way back to the hotel.

16.6 Business Cards.

The exchange of business cards is an important ceremony in Chinese society and should not be neglected when visiting Chinese businesses. If you are planning a serious sourcing trip, you should take a supply of business cards. They should be printed in English on one side and in Chinese on the other. Having a business card printed in Chinese will impress suppliers and they will take you more seriously.

When a card is handed to you, keep it in your hand. Don’t put it straight in your pocket, wallet or for the ladies, your handbag. It is acceptable to place it on the coffee table. You should return the compliment of being given a card by handing the person one of yours.

If you really want to impress, you could have one set printed in Mandarin and another in Cantonese, but to use these effectively you would need to research and ascertain which dialect is used in the various Chinese cities you plan on visiting. This benefit can also apply to emails. You could have your signature section translated into Chinese and using that will also impress. It is satisfactory to use only Mandarin, which is the more commonly used dialect nationwide, being one of the official languages, but Cantonese is spoken by most people in Hong Kong.

17. ORDER PROCEDURE AND CHECKLIST

If you are not confident that you have general business knowledge and are aware of your responsibilities in relation to record keeping, taxation, insurance and government regulations, you should seek advice before starting your new venture. I cannot provide such advice for you.

Here is a checklist to help you through the procedures if you wish to import:

• First do your research - as far as possible make sure that there really is a profitable market for the product/s you are thinking of importing. If you choose to ignore this point, I suggest that you may be heading for financial disaster. I cannot overemphasize the importance of this point.

• I recommend that you consider having precise product specifications drawn up. This specification schedule will make it possible for you to have quality inspections done either during production or before loading for shipment to your destination. See Ch. 29 Inspection Services. If you intend having quality inspections carried out, you should tell the supplier early in your communications with them. This helps to encourage them to maintain good quality control themselves.

• Locate a suitable supplier (preferably several) and obtain a quote for the items that interest you, ensuring that the quote includes specifications, price, delivery and availability. Even if they have provided you with a price list, you must ask for a quote before deciding to place an order.

• Make sure that the product/s comply with any regulations, quota restrictions, etc. At least for your first few transactions you should seek specialist advice, usually from your Customs Broker.

• Email or fax the supplier to place an order. Be sure to repeat full details of the product you intend ordering and refer to their quote that you are accepting. Also request a Pro Forma invoice [See 34.15].

• Once you receive the Pro Forma invoice, make sure that all the details such as price, dispatch date, and freight method, as well as payment terms are as agreed in previous discussions or correspondence. In practice, a Pro Forma invoice functions as a sales agreement, and no other form of agreement is usually necessary. The Pro Forma Invoice should be signed, preferably with a chop stamped on it. A chop is a seal.

• Carefully confirm the order in writing using fax or email. It is essential that your order should give exact details regarding quantity, quality, price, freight method, freight terms, dispatch date, as well as any specific requirements such as packaging, weight, colors, size, etc. Your order should include a request for confirmation. It is also important to specify that the supplier must notify you upon dispatch. If using email, set your email program to require a read receipt.

• Once you receive from the supplier written confirmation of the order, which might be in the form of a revised Proforma Invoice, check it thoroughly, and then arrange payment as

80 required. This could involve obtaining an L/C, or possibly advance payment in full, or payment of 30% or 50% deposit, with the balance payable prior to dispatch or upon receipt of goods, depending upon how successfully you have negotiated the terms. If you delay organizing payment, you will inevitably delay shipment.

• At the time of making payment you should remind the supplier that you must have a commercial invoice to accompany the goods. You should also ask for a copy via email or fax. Air couriers or freight forwarders will not accept any goods without such an invoice. If using EMS or ePacket, you should specify that one copy of the commercial invoice should be attached to the outside of the parcel and one copy should be packed inside the parcel.

• As you will most likely be using the services of a Customs Broker or a freight forwarder, when you receive notification of dispatch, you must immediately advise them of the details of the shipment including AWB [See 34.1] number, tracking number [See 34.17], or EMS [See 34.7] number and be sure to provide them with a copy of the commercial invoice.

• If you are importing without the help of a Customs Broker, you just await notification by the airline, courier service, or postal authorities and then proceed to clear the goods through Customs…… but again, do-it-yourself customs clearance is not recommended. If the shipment is by EMS or ePacket and the value is below the threshold set by your Customs authorities (see the subsection “Another way to avoid a lot of red tape” in Chapter 3 - Rules and Regulations) the postal service will usually do the customs clearance work for you.

• Immediately upon receipt of the goods, check them for compliance with your specifications. If you find errors in any way, such as quality failings or shortages in quantity, notify the supplier immediately. In most case, reputable suppliers will usually do their best to remedy the problem. Sometimes a photograph may help to satisfy them that your complaint is reasonable.

18. COUNTRIES OTHER THAN CHINA?

Although most of the detailed information I have provided relates to importing from China, I do not want you to think that China is the only place to consider when looking for suppliers. Currencies fluctuate, and industries come and go. Japan was once the low cost supplier to the world until South Korea assumed that role. Then Taiwan took over from South Korea.

When I was exporting to Taiwan, I recall hearing complaints from my agents there about price competition from mainland China. I now hear similar complaints from some of my contacts in China, who struggle to compete with Indian companies in certain product categories. Also, many Taiwanese companies have set up factories in Vietnam and Cambodia, and now mainland Chinese companies are doing the same.

I suggest that you might also consider suppliers in countries such as Estonia, South Africa, Venezuela, Italy, Czech Republic, Turkey, Brazil, Mexico, Malaysia, Indonesia, and even the United States! Searching in countries other than China can often result in finding unique products.

India is a special case. I know one successful importer who has imported from India for quite a few years and has obtained excellent results. His secret is that he never places an order unless he is in India and can see the goods for himself. He then personally supervises the packing of the goods and sits in his supplier’s office while freight is booked.

This is an expensive and time-consuming process, but he has found it works well for him when he buys container loads of high value giftware which he retails through his own chain of small giftware stores.

The Indian export industry still has a long way to go to catch up with countries like China. My personal experience and that of business associates, other than the one mentioned above, in dealing with Indian suppliers has not been happy. Dealing with large organizations in those countries may be satisfactory, but small to medium enterprises have caused problems for myself and for others whose personal experiences I know. To be fair, I am aware that although it is not the only reason, erratic electric power supply is often the cause of poor performance by small Indian suppliers.

On one of the Indian sourcing websites I have listed you will find many suppliers with “Trust Certificates” issued by Dun & Bradstreet. These are issued after a much more comprehensive process than D&B apply to suppliers in other countries, and they do provide a reasonable level of security.

Having mentioned Dun and Bradstreet, I will explain about DUNS numbers. You will often find these quoted on B2B sites, and they can be valuable tools for verifying business credentials when considering buying from a supplier. These numbers are issued by Dun and Bradstreet after thorough investigation.

I have listed below a number of sites covering countries other than China. I have thoroughly tested and researched them and they are in my opinion safe to use. Many of them are 82 established by trade associations or government authorities whose objective is to assist their members in finding export markets. They will happily provide you with contact details for companies within the industry sectors that you nominate.

To locate the nearest office of one of the above associations, or to ascertain whether another country of interest to you has an association, contact the relevant country’s commercial attaché or consul. If they have no export trade association, the consul will possibly be able to provide a list of companies supplying goods that interest you.

Contacting potential suppliers via their country’s consular offices will usually provide a high level of security, because scammers are highly unlikely to use official government sources to promote their activities.

Consular staff usually prefer to deal with larger importers, but they are there to promote their country’s exports, so they will almost always deal with your inquiry. You will need to tell them what product categories you are interested in. Tell them you would like to be introduced to exporters who manufacture those products.

AFRICA http://www.africaexports.co.za Search by product in the keyword box. If there are suppliers listed, a new page will open with a list of sub categories. Among them you will find manufacturers. Not all will have websites listed but if the have a site you could find it via a Google search. I found some listed as manufacturers who were also clearly traders, but they did manufacturer some items.

I found some quite unique products on this site.

BRAZIL http://www.vitrinedoexportador.gov.br/bens/ On the home page enter your product or category keyword and click on CONSULT. Results will appear showing websites in Portuguese. Some will have an English option, but if not, cut and paste to Google and get a translation. Don’t try using translations of the contact email addresses or your email won’t be delivered.

BULGARIA http://export.government.bg/ianmsp/en/foreign-companies

This government site promoting exports is a nightmare to navigate, so I have provided a link direct to their National Export Portal. Click on Bulgarian companies looking for partners. There is only a small list to choose from.

CZECH REPUBLIC http://www.czechtrade.us/ Has a database searchable by product category.

DOMINICAN REPUBLIC http://www.dd.com.do/business-economy/industries/ This site has a relatively small number of categories, but importers could find some interesting products listed.

ESTONIA http://www.estonianexport.ee/catalogue/ Operated by the Chamber of Commerce, this site has been greatly improved recently. The link I have provided takes you direct to the Exporters Database, listed by category.

FRANCE http://www.ubifrance.com A French government site. They have a lot to learn about making a site user friendly, but if you persevere you can find some outstanding products, many of which will be unique to you if you choose to import them. If you find it too difficult to locate a product of interest, contact their local office nearest to you for help.

On the home page you will find a list of countries where they have offices. Click on your country for contact details.

If you search by product category you will find suppliers, but most do not display a website address. You might be able to locate one by searching Google for that company name.

GERMANY https://www.deutsche-exportdatenbank.de This site is operated by the Federation of German Industries. It is not user friendly, partly due to the excessive number of sub-categories. Searching can be very time consuming.

INDIA http://www.tradeindia.com This site appears very amateurish compared to other B2B sites. The layout is heavily influenced by the amount of money various advertisers have been willing to pay. I would be reluctant to use this site because of the apparent total lack of verification. https://www.exportersindia.com A green tick indicates Verified Supplier, but that is of no value.

They place importance on their paid VTrust badge, but it is often displayed by advertisers that are not members, in which case the VTrust report does not exist. They describe the VTrust Certificate as “an indication of trustworthiness of a business based upon its verified record of certified documents pertaining to proof of existence, legal status, statutory approvals, affiliations and quality certifications.” In addition to checking their address telephone number there are a number of documents checked. Here is what they check, but note that not all VTrust certificates show all of these:

Business Type: Manufacturers or Suppliers (actually traders) Year established Ownership type Directorate General of Foreign Trade Importer Exporter Number GST or VAT Registration Number Business Registration Number PAN number. An income tax number and is also an ID number

Oher paid status symbols are also displayed, but they add nothing to help determine trustworthiness or reliability.

If I found a product that is outstandingly good on ExportersIndia with the supplier displaying a VTrust symbol, I would possibly consider them, but it would be desirable to do other due diligence such as a very thorough Google search – at least as far as Page 5, and also search sites such as Panjiva.

Alternative approach for INDIA: Go to http://goidirectory.gov.in/country_wise_view.php?ct=I001 Enter your country’s name in the search bar. The results page will list cities in which there are consulates. Click on one of those city names. You will be redirected to a consulate website. Scroll down and click on Commercial Representative. This will open a page where you will find the name of the commercial consul, and an email address.

ITALY http://www.italyexport.net/indexeng.htm Kitchenware, Housewares, Hardware, Tools, Food, and Giftware. Not an easy site to use, and a limited product range, but may be worth exploring for unique products.

JAPAN https://www.jetro.go.jp/en/ This is not a sourcing site, but an official government site where you can find details of commercial consulates in many countries. On the home page you will find a list of those countries where they have offices. Click on your country for contact details.

They are more interested in getting people to invest in Japan, but it is worth trying them to provide a list of exporters for products in a category that interests you.

MALAYSIA http://www.matrade.gov.my Click on For Foreign Buyers. Then you can search for products by clicking on Malaysia Products Directory in the menu in the left hand column of the page. It is worth also looking at the Malaysia Export Exhibition Centre (MEEC) which is at the bottom of that menu. There are 500 permanent exhibitors at the Centre.

MEXICO http://www.mexconnect.com/articles/3308-m%C3%A9xico-s-trade- Commissions The home page has a list of links to all of their offices worldwide. Contact your nearest office to locate exporters of the products that interest you.

SOUTH KOREA http://www.buykorea.org KOTRA has set up a sourcing platform similar to HKTDC, but it is not as user friendly. It does provide daily news on new products being offered, but readers should be aware that others may also find the new products of interest, so you may not be the first to market.

The buykorea.org site has some advantages in that it provides for purchases up to $10,000 to be paid for by credit card. To use that service you must have a verified card (Verified By Visa, Master Card, Secure Code, J/Secure, etc.). On the site there are instructions on how to have your card supplier verify your card. This process gives added security for both buyer and seller.

If you are looking for quality products, Korea is well worth considering. Please note that some Korean suppliers offer brand name products, but it can be risky to import such products. I urge my readers not to try importing brand name products.

TAIWAN http://www.taiwantrade.com.tw I have placed Taiwan in this section: “other than China”‘, because the government of Taiwan and the Government of the People’s Republic of China dispute sovereignty and I make no political decision on that issue.

The website is similar in some ways to the HKTDC site, both being operated by government or semi-government organizations. Like the HKTDC, Taiwan’s TAITRA publish online magazines.

On the home page you can search for products in the usual way. They list a very small number of Mainland China suppliers, almost invariably owned by Taiwanese companies. Rules for listing on the site are very strict, and that gives me some confidence in the trustworthiness of the advertisers.

It is also worth looking at the Taiwan trade show site. The shows are held in the Taiwan World Trade Center Exhibition hall. The TWTC is also known as the Taipei Nangang Exhibition Center. http://www.taiwantradeshows.com.tw/ There are nearly 100 trade shows listed. You can search at the top of the home page by entering the product type that interests you, or you can click on the monthly diamond to see what shows are on during that period. I can thoroughly recommend visiting trade shows in Taipei.

Click on the VISA circle at the bottom left of the home page to confirm requirements, but nationals of many countries are eligible for the visa exemption program, with a duration of stay of up to 90 days.

Here are some other Taiwan owned sites worth visiting. They list some Hong Kong and mainland China suppliers as well as many in Taiwan and many have factories in both places. http://www.chinasources.com.tw This site does not have any rating system, but from what I have seen it appears that most of the listings are manufacturers unless they say otherwise. They have websites with addresses and full contact details which suggests that they are reputable. Almost every listing is by Taiwanese companies. http://www.b2bchinasources.com

Almost all suppliers listed are in Taiwan. Search by clicking on the category of interest. Then click on company name. Look at the supplier’s “Home Page,” then click on the D&B Registered symbol to view the D&B number. Only consider suppliers with a DUNS number. It is worth noting that many of the manufacturing businesses in mainland China are managed by Taiwanese executives and technical personnel. Some are 49% owned by Taiwanese companies.

The quality of products made in Taiwan will usually be superior to the equivalent product made in mainland China. Some Taiwanese companies offer buyers the choice. In my experience, products made in mainland China under the supervision of Taiwanese personnel are not inferior to those made in Taiwan.

TURKEY https://www.turkishexporter.net This is a Turkish government supported site. Searching will be slow, but worth it because Turkish manufacturers have such a fresh approach to design and innovation that it is possible to find products or styles of existing products that are not available elsewhere. Click on the category, then on subcategory. The listings are bland, but it is worthwhile being patient and checking out most of them.

If you see names listed in your category, click on the name, not on the keywords under their listing.

When you click on a supplier's name, there will usually be very little information. The company advertisement link sometimes only shows a JPG picture, but that can be informative. In addition to a picture featuring one or more of their products, sometimes it reveals a website name or email address. Accessing the website will usually require using a translation. If they have an English sounding name, do a Google search for that.

If there are no other contact details, you have two options: 1. Send a fax if a number is listed. 2. Complete and send the contact form.

USA http://www.thomasnet.com This site lists a vast range of US companies producing industrial and consumer products. Not all of them would be interested in exporting, but many of them would. Some would be willing to wholesale products to you. Most listings are of US companies, but with many listings now by Amazon, you will find suppliers from other countries will appear at times.

You also need to be aware that many US companies listed as manufacturers, produce some or all of their products in factories they own in low labor cost countries.

To locate US manufacturers on this site, after signing up, you need to search as follows:

1 Scroll down to near the bottom of the home page and click on Buyer Discovery. The next page displays the heading Find Trusted Suppliers.

2 Search first for Product/Category. The result might be a huge list of various types of product within that category and you will see: Optional Add Supplier Qualifications.

3 Under Company Type you can select Manufacturer or Custom Manufacturer and that will narrow down the search.

4 Choose or ignore other selection criteria.

5 Click on View Suppliers.

As you look through the list you will be able at a glance to reject some, but for those you want to check out you can click on their detailed entry and you can go to their website. Be aware that some will identify as manufacturers and although located in the USA, they manufacture overseas. http://www.thinkglobal.us This site publishes a magazine: “Export USA” in conjunction with the US Government’s Commercial Service. The magazine can be viewed online or you can obtain a free subscription to the paper copy. All of the advertisers are there because they are keen to export. Some offer products or services at very good prices due to the low value of the US dollar, but I have found some that quote wholesale prices higher than I can buy at retail.

Recently they appear to have restricted advertising to US companies only.

Search by entering your product or category keyword in the search box at the top of the home page. NOTE: When you click on the search Icon, a drop down menu gives options including company name. If searching for a specific brand that might help. VIETNAM. See special article following in Chapter 19.

WORLDWIDE This was a Canadian B2B sourcing site that listed exporters from many countries, but it has been acquired by Alibaba who promptly shut it down.

OTHER COUNTRIES NOT LISTED www.panjiva.com In 10.8 I wrote about searching by company name to help identify manufacturers. This site can also be used to locate suppliers in other countries not listed above. The process can be very slow and frustrating.

• Open the site, sign in, and enter your product type in the search bar. • Under the small list of countries, click on “More Locations”. • Click on the countries of interest. • Click on a company of interest. • Do a Google search for that company name. If you find a website check it out. If you don’t find one, contact the Commercial or Trade Consul for that country and ask for contact details.

I did a trial search for footwear, and limited the filters to The Dominican Republic, where I found D’Clase Shoes. My Google search turned up their Facebook page, but no company

88 website. Communicating via Facebook would easily provide contact details if I wanted to pursue this lead.

19. VIETNAM THE NEW CHINA

VIETNAM. This country is the “New China” as a result of the growing cost of labor, a crackdown on polluting industries, and a major increase in government regulations governing industry in China.

For many years now, Chinese and Taiwanese companies have been moving production to Vietnam, but there is lately a huge growth in the local entrepreneurial spirit and Vietnam has some substantial home-grown industrial companies.

The business culture. Asian culture has its differences from country to country, and it is good to know what is acceptable and indeed how to make your visit go smoothly, or to ensure that your long-distance communications proceed without causing offence. As you might expect there are however a lot of similarities between Chinese and Vietnamese cultures, but I will explain the differences.

Business: My visits to Vietnam went smoothly because I had extensive experience in visiting China, and there are similarities in manners and business practices, but I also went to the trouble of learning about the differences. Here is a guide to help you if you visit Vietnam. A lot of what I write would relate equally to any leisure time you have there.

• The Vietnamese generally shake hands both when greeting and when saying good-bye. Shake with both hands and bow your head slightly to show respect. When greeting someone, say “xin chao” (seen chow) + given name + title. The Vietnamese are delighted if a Westerner can properly say “xin chao” Because, similar to Mandarin, Vietnamese is a tonal language, “xin chao” can have six different meanings, only one of which is "Hello", and I suggest you practise. • Seniority is important to Vietnamese people so rather than address them as Mr or Mrs ……, it is always appropriate to address the other party by their designation, for example: Chairman Phan, Director Nguyen or Manager …….. • As in China, business cards are usually exchanged when meeting for the first time, but unlike in China, you should give and receive a business card with both hands. In fact, anything you hand to another person should be done with both hands. When giving out a business card or a brochure, make sure you start with the most senior person before moving down the line. Remember to face the card you are giving out in a manner such that the receiving party gets it facing him correctly. • The more you share your personal life, including family, hobbies, and aspirations, the closer you will become in your business relationship. This relationship is usually warmer than you might experience with Guanxi in

China. Sometimes, a lot of time is spent discussing matters outside of business, but then for a lot of that time, the other party is also making up his mind about your deal based on how he sees your personal relationship with him. • As part of an overall conservatism, the Vietnamese dress very well. • For business, men should wear conservative but casual suits and ties. • Women should wear a conservative dress or a businesslike blouse and pants. • Western women should always dress conservatively in Vietnam. Women who wear heavy makeup and revealing clothing are viewed as prostitutes. • When dining with a Vietnamese man, a western businesswoman should arrange to eat in a public place and should insist upon hosting the meal. If the Vietnamese man hosts, the Western woman is then obliged to reciprocate with a meal of equal value, so if the woman hosts there is no obligation for a second meal out. • The Vietnamese are generally quite punctual and expect foreigners to be the same. Fortunately, the Vietnamese can be very flexible and accommodating when situations occur that are beyond the control of one of the parties involved (for example, a washed-out street, traffic jam, etc.). • Few Vietnamese speak English well, and few businesses have English speaking staff. An interpreter is usually necessary. • Most business decisions are made by more than a single individual and this can slow discussions. You need to cultivate a joint connection rather than just with a single individual. • The Vietnamese willingness to avoid unpleasantness can sometimes lead to great misunderstandings. As in China, "Yes" may not mean "yes." When a Vietnamese person says, "No problem," you can take it to mean "Yes, there is a problem." Double check that they understand your requirements and they know that keeping of promises is important to you. • Corruption is widespread. All manner of payoffs, kickbacks and "gifts" are quite common. Be aware that corruption will not only affect your costs, but may also contribute to unexpected delays in delivery and the processing of licenses. This problem can occur in business as well as in government circles and it would pay to steer clear of any hint of bribery. You could find yourself in trouble with the authorities. • Do not give any gifts in a business setting. That could be interpreted as a bribe. If invited to a business person’s home, giving a gift there is acceptable and in fact desirable. • An offer of tea at a reception or meeting is a ritual form of hospitality and should not be refused. If you drink it all, your cup will be refilled, as in China. • If invited to dine, beware that a small dish or shaker of white crystal on the table is more likely to be monosodium glutamate (MSG) than sugar or salt. • The Vietnamese style of dining is chopsticks and rice bowls. Hold your rice bowl in your hand; it is considered lazy to eat from a rice bowl that is on the table. Most of the larger restaurants will provide western cutlery on request. • The end of the meal is usually signaled by a plate of fruit or another sweet dish. After waiting a respectful period after the last course is consumed, the guest is expected to make the first move to leave. Be sure to shake hands (with both hands!) with all Vietnamese participants and conclude by thanking your host profusely.

• Always refer to Ho Chi Minh City as Saigon. Local people prefer Saigon to Ho Chi Minh City, which was imposed by the government in Hanoi. • Don't take pictures of anything to do with the military, this can be considered a breach of national security

Overview of Vietnam as a place to source products.

Unlike the comparatively well-oiled machine that is China’s manufacturing and exporting industry, Vietnam’s fragmented manufacturing industry makes it harder to identify suitable suppliers, especially for those new to Vietnam.

Vietnam lacks basic infrastructure and business travel as well as movement of goods is much slower than in China.

Product sourcing is still not easy, but below is a Vietnamese Government site that is more user friendly than any B2B sites I have seen previously in Vietnam. Below is my guide on how to navigate the site. You will find some errors in the site itself, including at least one link that takes you to a site that I immediately deleted.

Also listed below is the Vietnam Chamber of Commerce site.

Before going to those sites there are a few things you need to know.

Due Diligence. This is not easy when considering Vietnamese suppliers. Google searches will not often yield results, and searches on Panjiva will provided very limited help.

If you have any concerns, you should employ the services of one of the big inspection companies such as SGS to conduct an audit. They have an office in Vietnam. Other inspection services such as Bureau Veritas, AsiaInspection.com and V-Trust also have offices in the country.

V-Trust usually tends to be more expensive, but it might be worth contacting them all for a comprehensive outline of what an audit covers and the cost involved.

Company Names. These might be Co Ltd, which is a company with as few as a single owner, or up to 50 shareholders, and is not permitted to sell shares on the stock market; or a Joint Stock Company, which is a company owned by at least three shareholders and they are permitted to sell shares on the stock market, with no limit on the number.

Currency. The Vietnamese Dong (VND) for which the symbol ₫ is used will frequently be used when quoting prices. Sometimes prices are quoted in other

92 currencies, including the US Dollar, Japanese Yen or the Chinese Yuan, both of which have the symbol ¥.

Limitations. In 2016 the Vietnamese Government decided on substantial liberalization of import and export laws, resulting in there now being very little restriction on who may import into or export from Vietnam. To learn about restrictions (which generally apply only to excluding the right of foreign based companies to organize networks for buying goods in Vietnam for export,) see: http://vietnamlawmagazine.vn/draft-law-to-clarify-traders-rights-to-freedom-of- import-and-export-5410.html Operating such a business from outside Vietnam appears to be possible as a joint venture with Vietnamese shareholders.

Peculiarities. The site is not always showing what you will actually find. For example, you might be looking under one classification and find a company listed that offers nothing at all within that category. Look on the bright side. This could lead to some interesting product discoveries.

Limited choices. The number of companies listed might be a disappointment, but you may be sure that most of those that you find on the site are very keen to do business. The biggest limiting factor is that many of those listed are accustomed to dealing with big names and may well impose large MOQs although these are never published.

http://en.vietnamexport.com/ How to navigate and what to expect.

There are just under 2,000 companies listed. About 20% of them are exporters of food or commodities.

Many will identify as trading companies or export companies, maybe even as importers. I suggest you ignore most of those designations and assume all are manufacturers or producers of the goods being offered.

All those listed have been through a rigorous verification process, so you can be reasonably confident in dealing with them.

Categories are not always fully descriptive. For example, “Construction” includes such things as cement manufacturers, aluminum extrusions, doors, and shutters, thin MDF sheet etc. Under “Wood” you will find, in addition to wooden furniture etc, rubber latex. Some listed under “Wood” supply wooden products made of wood from rubber trees. All this demonstrates that patience will be required.

Many of the website links shown will not connect, in which case you should cut and paste the website name and search Google. Some will be in English but a lot will need translating.

Quite a lot of the exporters will not show a website in their listing, so you can try cutting and pasting the company name and doing a Google search. Failing that, in order to make contact you will need to send an email to the email contact address listed.

http://vccinews.com/exporter.asp

You will find some duplication of names that are also on the government site, but there are also many exporters that are not listed on vietnamexport.com.

Unlike that site, you will find that there is no verification system in place, and although you might expect Chamber of Commerce members to be reputable, you should exercise care and do your due diligence.

20. OVER 1,000 SUPPLIERS CHOSEN BY K-MART

Attached as an appendix is the latest list of suppliers used by K Mart. The value of this list is that K Mart not only carry out thorough due diligence, but they are also use the Business Social Compliance Initiative (BSCI) country risk classification to determine high risk factories. To ensure worker safety and respect for core labour standards, all factories listed have been independently audited in the past 24 months.

Most of these suppliers have been found by Kmart without looking at B2B sites such as Alibaba, GlobalSources, HKTDC, etc. Kmart use sourcing agents, some of whom are expatriate purchasing managers expert in their specific product category sent to Asian countries, and for quality cotton goods Egypt, to locate and assess reliable suppliers. They also use the services of some local sourcing agents.

In a few case the suppliers listed will be agents, but in the great majority of cases they are manufacturers. I suggest that if Kmart are buying through agents, my usual reluctance to recommend agents or traders would not apply because they obviously give Kmart good service and good prices.

You should be aware of the fact that because Kmart are huge buyers, many of the suppliers will expect very large orders otherwise they simply will not do business with you. You can try my “sample order” method to purchase a small quantity, but I think that in some cases that would be rejected.

The suppliers listed are not listed by products or categories. They are listed by country and their addresses are included. There are no websites shown, nor are there any contact names or email addresses. To find these you will need to do a Google search of the name. It might not appear until Page 5 or later and it might not appear at all, in which case you move on to the next. A search on Panjiva might find them.

Your search will be tedious, and you might not find any suppliers of products of interest to you, but you might find products that you had not even thought of.

There are two ways to use this list:

20.1 Search each name. First, search Google for that name. If the name beings with a city name such as Anhui, Guangdong, Foshan, Changzhou, or Shenzhen etc., search first with the name including that city, and if unsuccessful, leave out that city name.

If you find a website you will be able to contact them direct, but before progressing far in discussions with them, you should first do some due diligence, searching for their name plus the words, review, reviews, and scam.

If the name does not include any product identifier words, you might find some interesting products. Some might be related to your core products, thereby making it possible for you to expand your range. Others could be totally new categories that you might choose to explore or ignore.

20.2 Search names that have as part of the business name a category of interest. Many of the business names do describe the products they supply. Using Word or Office search methods you can search the document for categories that interest you, and then search for them in Google as described in 20.1.

21. “JUST IN TIME” ORDERING SYSTEM

The “Just in time” system is used mainly by very large manufacturing companies such as General Motors. I have designed my own system by adapting the general concept to suit small scale importing.

In large scale manufacturing, the cost savings of this system are mind boggling, but on a small scale they can make or break a small entrepreneur starting off as an importer with very small capital. It is only suited to products that are suitable for Air Courier delivery.

Here’s how it works: • Go through the proper processes of deciding on a product or products to market.

• Source supplies, ensuring that you have at least one back up supplier for each product.

• Remember that all quotes must include door-to-door Air Courier delivery.

• Place orders as small as the supplier will allow and as large as necessary to give you a reasonable amount of inventory.

• Set your marketing program in action. • At least daily, monitor sales and see if the product is selling well. Use that monitoring to assess what is the likely time before you will sell all the items in your inventory.

• Knowing how long it took to receive the first shipment, place a repeat order. If you have left it a bit late, put a temporary hold on your marketing until you have been advised by the supplier that they have dispatched the goods.

• Repeat the process as often as needed. It may be that sales progress so well that you will need to place larger orders, but …….

• Consider the alternative of ordering more frequently. This may cost a little more in freight, but if your shipments are below the duty-free threshold, there will be a savings on duty paid, and in some countries, you may also legally avoid sales tax.

• If ordering very frequently, make sure shipments are sent at least 3 days apart, as explained in Chapter 3: Rules and Regulations.

• Once you have found a supplier who seems very cooperative, tell them that you want to use the “Just In Time” ordering system which involves frequent smaller orders. Tell them that you have found that by this method you can actually sell a bigger volume, which means more sales for them.

• Finally, if you have found such a supplier, you will very likely be able to negotiate a

monthly account with them after you have established a good record with them. See 15.1 regarding monthly accounts. It could be appropriate to raise that as a possibility if a supplier seems reluctant to agree to your “Just In Time” proposal.

• Splitting your orders can also be effective, see Ch.14.3

22. SOURCES OF FREE INFORMATION

Customs websites can provide a great deal of helpful information, and they are free of charge.

The following are examples of useful sites:

USA http://www.cbp.gov In the home page search box type in: “Tips for new importers.” The first document to appear will have that name. It is worth reading, but do not be alarmed by some of the complexities revealed. Use of a licensed Customs Broker or a freight forwarder can save you having to understand much of the technical information.

CANADA http://www.cbsa-asfc.gc.ca/ There is so much information on this site that you can spend hours learning a lot about importing, but we suggest, if you have a dog, why bark yourself? Save time and use a Customs Broker or a freight forwarder.

GREAT BRITAIN http://www.hmce.gov.uk I show the link to the Customs and Excise site, but don’t bother going to it because they will only refer you to http://www.businesslink.gov.uk While there is a mass of information on that site it is not as user friendly as the USA and Canada ones. A very helpful private site is http://www.business.hsbc.co.uk In the search box type “importing”, and then look for link Importing and Exporting - Business Support:International Business: HSBC UK .

AUSTRALIA: http://www.customs.gov.au This is one of the least helpful sites, which is a reflection of the general attitude encountered in dealing with this bureaucracy.

Wherever you are operating your business, you will usually find that your Customs and Excise office will assist you in handling the clearance requirements in relation to your first shipment, but from then on, they will not be willing to help at all.

23. FULFILLMENT SERVICES

Many people wishing to import may not have space available to store even a small inventory. Perhaps they are working full time and do not have the time to pack and post every order.

Fulfillment services can be a very effective way for such people to handle the storage, packaging and shipping of their individual orders. Probably the most popular service as already mentioned earlier is the one provided by Amazon, known as Fulfillment By Amazon (FBA). One big benefit of using their service is that it entitles you to sell on the most shopped online site in the world. Before items can be sent to Amazon FBA however, they will have to be properly labeled and prepped for Amazon's warehouse. For a small price, you can actually have your inventory shipped to a third party who will handle the Amazon preparation for you. For example, check out this service: http://www.mysilentteam.com/public/901.cfm

The labeling service referred to on that page will completely handle the process of preparing your inventory. This means no matter where you live in the world you can have inventory shipped to the above service, and they will label and send your inventory on to Amazon for you. There are other fulfillment services around the world that will perform similar services for you, but if you plan to sell on Amazon, this is where we suggest you start.

100

24. AGENTS, TRADERS, WHOLESALERS – Definitions

Agents act as sales representatives for manufacturers, usually ones where there is no English-speaking staff, or no marketing ability. They will sell any product and have little interest in the product itself. They receive a commission on all sales.

Traders are not usually paid on a commission basis. Their income is from a margin they can obtain by buying from the manufacturer for less than they sell to you. Usually they only offer generic products. Many are plainly opportunists who identify popular products and advertise them while rarely having inventory. They will often do so without any formal agreement with a manufacturer. After obtaining an order and deposit from you they then search for a manufacturer who will sell to them at a good price.

This partly explains why they will not reduce the big MOQs that they specify. Firstly they want to make as much profit as possible in one sale, because they know their chances of repeat orders are slim. Secondly, the big numbers make it easier to persuade a manufacturer to supply them.

Here’s how they operate: 1. They obtain product illustrations by various means such as from a manufacturer’s website, magazine advertisement, or a printed catalog. 2. They advertise on sites such as Alibaba. 3. They obtain a deposit. 4. Next they contact the manufacturer. 5. If successful in negotiating with the manufacturer they order and then ship to the reseller. 6. If unsuccessful they offer alternative products and as a last resort they refund, provided it is not a scam.

Traders rarely have much influence with the manufacturer so smaller MOQs or small modifications to a product or even to packaging will often not be possible.

Wholesalers theoretically carry inventory, but in practice that is often not the case. Those who identify as wholesalers but do not carry inventory are traders in disguise.

101

25. MANUFACTURERS NOT WHOLESALERS – WHY?

First let me say that some wholesalers advertising in China are genuine stockists with long- standing arrangements with manufacturers.

Wholesalers are not charities. They don't pass on any discount they might get for buying in bulk. They are in business to make a profit by buying from manufacturers, adding their margin, and selling to resellers. If you buy direct, you get to keep that margin. The profit that wholesalers make comes simply from the fact that they buy direct from the manufacturers. Only a tiny part of it might come from ordering very big quantities. See Chapter 30 regarding discounts.

Businesses in China identifying themselves as wholesalers often do not carry inventory. In those cases, they are traders. See the preceding section on Traders.

Suppliers that are genuine manufacturers have a lot more to lose if they do the wrong thing by their customers. It is more difficult for a manufacturer to escape from bad reviews and reports to the safe sourcing sites regarding bad practice. Traders and wholesalers can readily change their name and carry on.

102

26. BUSINESS REGISTRATION and TAX ID

A common question relates to whether or not a business must be registered and Tax ID provided in order to import. In most cases an individual is permitted to import goods without registering a business, but they will in most countries have to provide tax identification. See 3.1 regarding obtaining numbers in advance.

In almost every country, when you first import anything commercially, if the value is sufficient to have to pay Duty and/or Sales Tax, you will be issued with an importer number. It goes by many different names in different countries, but it is an identifying number that allows Customs authorities to keep track of what you import, when, and the values.

It also makes it faster to lodge customs clearance documentation in future.

If an importer later registers a business and imports under that different name, a new importer number will be issued. There is no requirement for the importer to cancel the old number.

103

27. BUYING LOCALLY

Although importing is often the best option because of the generally lower prices available outside of developed countries, in some circumstances it may be worth buying locally.

Manufacturing industry is today a much more fluid field than it was prior to the internationalization of the world’s markets that began in earnest after WW2. Now with the world being a global village, manufacturing will move from country to country following low labor costs and also technical skills and material resources.

One symptom of this is the slow return of some manufacturing industries to their country of origin after 10 or 20 years in lesser developed countries. As a result, I have seen quality products made in countries such as Germany, Italy and the USA being sold in other markets at prices comparable to products from China.

This means that it may be possible to buy locally at prices equivalent to, or even less than you can buy from Asian or other low labor cost countries. Freight costs in particular should be taken into account when considering this possibility. It is certainly worth checking it out in relation to the type of product you are interested in selling.

One major drawback to this idea is that manufacturers in Western countries have a tendency to be reluctant to deal directly with small retailers, and insist on working through major distributors. This is a big factor in the growth of small importing businesses, because the distributors’ margins eat into the profit margin available to small retailers.

Search for manufacturers in your home country who are advertising that they want to export. These are generally more entrepreneurial and may be more inclined to deal with smaller local businesses. Use the sourcing sites in my book that relate to your country or inquire through the trade department responsible for exports.

104

28. CAPITAL REQUIREMENTS FOR IMPORTING

This burning question cannot be answered definitively. There are many variables, so the best answer is probably that I would personally want a minimum of $1,000 to begin on a small scale.

I know of some who have begun with only a few hundred dollars, and that is OK provided the new importer is willing to see the venture as one that will take a considerable time to turn into a viable business. The importer must be absolutely certain of his/her ability to sell all of the items imported, and to sell them at a good profit. The importer then must be willing and able to plough back into the business all of the profits in order to buy more inventory. A high profit margin is crucial to success in this scenario.

As proof of the last statement, let me tell you my own personal experience. It was not importing. It was a B2B business in which I re-labeled some very specialized industrial products. I knew I could sell them under my own label, but I had almost no capital – in today’s money it would have been about $500.

By selling at a very high price I was able to feed my family, and pay my suppliers. On a sale of $1,000 I made $600 profit. Without that high margin I would have been broke within a few weeks. It even allowed me to gradually build up inventory, and later move into manufacturing my own product with an even higher profit margin.

105

29. INSPECTION SERVICES

I strongly encourage the use of inspection services for quality, safety, and legislative compliance matters.

Inspection services in China are multiplying rapidly and it is common on some business forums to see numerous Chinese individuals and sourcing services jumping on the bandwagon and offering their services.

The big question is how well do they do their job, how reliable are they and are they ethical? I will first deal with inspection businesses offering their services on B2B websites. I will use Alibaba as an example, because they have a huge number of listings for inspection services.

I did some research on a number of the multitude of Inspection Services listed on Alibaba and found that many of them list a low fee that covers only a basic service, but they charge a lot more for a complete inspection service.

Inspection services in China are completely uncontrolled. Some of the services listed by Alibaba quote membership of bodies that I have never heard of. In effect their whole system relies entirely on trust.

Alibaba state: “Alibaba.com will check every inspector's qualifications to confirm their authenticity and capabilities.” I have no way of knowing how good their checking on qualifications is, so I would suggest that you be absolutely sure what you are paying for before you employ any of the services listed.

It would probably pay to also get a quote from one of the services Iisted below. These are the inspection companies that I consider to be reliable. They are not in order of preference, and just because a company is not listed that does not mean that I consider them unreliable.

• Bureau Veritas. Head office France, with offices worldwide. Establish 1828. http://www.bureauveritas.com/

• TUV Rheinland. https://www.tuv.com/world/en Not to be confused with TUV SUD another substantial inspection service also based in Germany, but TUV SUD does not provide servicesfor small importers. Both original TUVs were established in Germany in the late 1800s

• SGS Established in late 1800s. Based in Switzerland. This link https://www.sgsgroup.com.cn/en/ takes you direct to their China site.

• KRT Audit Corporation (US based, with operations in 12 countries.) http://www.krtinspect.com/

• Topwin is a medium size Chinese inspection service about whom I have received good reports. Their prices are considerably lower than the large organizations listed above. http://web.topwininspection.com/twi.html This site is slow loading and requires you to allow Adobe flash to run, but I found it safe to use.

106

107

30. CERTIFICATES

Certificates are required for many products including toys, electrical, chemical, clothing (in some cases) even kitchenware might need them. I don’t bother keeping up to date on the ever-changing regulations, so I would rely on a Customs Broker to advise me on that subject.

This is such an important subject that I have provided detailed information for you. This is not so much for you to be an expert on the subject, but so that you know how important it is, and how to protect yourself.

Certifying authorities are mostly private enterprises and their value depends upon trust and whether the company providing the certificates is accredited with appropriate government authorities. Most who provide certificates are also inspection services.

When you are doing business in a country where counterfeits are commonplace, never take anything on face value. Business registration certificates, compliance certificates, inspection certificates, are all items that are frequently forged or copied. Websites, logos etc., can be too.

The forging of certificates of every kind is endemic in China. This not only refers to such safety issues as those involved with CE and ROH certificates, but even business registration certificates are being forged.

If you don’t have the required certificates ― genuine and up to date ― that can have serious consequences:

• Customs might hold your product and can ask you to provide the necessary certification. Failure to provide the certificates means Customs will seize your product.

• Even if the supplier has provided certificates, they might not be suitable if they (1) Are forged or (2) If the test does not cover the actual product, or (3) If the test does not relate to the legislated requirement.

• If you import products that require certification, and one of them causes a fire, or injury etc., if you can't provide the correct certificates, you could be liable to fines and in rare serious cases even imprisonment. Lack of genuine certification might even invalidate your product liability insurance, and you may suffer crippling damages in a lawsuit.

Certificates of almost every kind can be forged and often are forged. On the HKTDC site there are two labels that give certainty about the veracity of Certificates displayed or quoted by manufacturers. They are “Compliance Verified” and “Certificates Verified”. They generally cover the same issues and verify certificates relating to Corporate Social Responsibility, and other issues relating to quality control displayed by suppliers.

Certificates of inspection, company audits, quality inspections, compliance certificates or other certificates that might be required to satisfy government regulations are issued by a number of inspection companies in addition to those mentioned in the previous paragraph.

A young entrepreneur asked me to help him by checking the validity of CE and ROH Certificates for an item he had considered importing. One of the certificates had supposedly been issued by Anbotek which is a small inspection and testing service which I regard as OK. He told me that the sample looked good, but I had to give him the sad news that the certificates are fakes. The certificates were the best looking forgeries I have yet seen. 108

According to the certifying authority the Certificates do not exist. In blue is a cut and paste of the notice they posted in response to my search, including their little mistakes:

"Sorry, the certificate does not exist warn of fake CE certificates

Fake CE conformance certificates are a growing menace in the safety industry. An increasing number of products are being sold, which have never been properly tested and are accompanied by fake CE certificates. This is putting lives at risk and exposing employers to possible prosecution. The certificate shown on the right is a fake, supposedly issued by a Anbotek test house, but in reality this product was never tested by them. The product does not perform to the strict requirements of EN xxxxx."

TUV Rheinland publishes a blacklist of companies in countries everywhere who have improperly claimed that they have been certified by TUV. https://www.tuv.com/world/en/

TUV’s list highlights the fact that forging of certificates is rampant in China. You cannot be sure that a certificate is genuine unless you check it with the authority that has supposedly issued it. Some others like TUV have checking facilities on their website.

109

31. MINIMUM ORDER QUANTITIES (MOQS), HAGGLING, AND DISCOUNTS FOR BIG ORDERS

While it is true that the larger the order the lower the price, the price differences for various order quantities can be surprisingly small.

As the economy has slowed, Chinese manufacturers in many industries have been obliged to work on low margins. Consequently, prices quoted for their MOQs will often be near to the lowest price possible from that supplier. If a person wishes to order less than the MOQ, a manufacturer may seize the opportunity to gain some extra profit, even if the order is small.

If someone wishes to place a very small order, it is reasonable to expect that a higher price will be required to cover the cost of processing which will be approximately the same, regardless of order size.

If however an MOQ is 1,000 pcs @ $5/pc. and a new customer wants to order 100 pcs, the price should not go up beyond say, $7. That allows $200 to compensate the manufacturer for handling the small order. While I advise against haggling, this situation will often require negotiation that may resemble haggling. The best way to gain the manufacturer’s cooperation is for the buyer to describe the small order as a “sample order.”

The myth of big volume discounts: Those who think that volume means large discounts have never dealt with Asian manufacturers. Sure, they give discounts for larger quantities, but those discounts are usually very small. Orders of double MOQ may receive a discount of 5% to 10%, but often such quantity discounts will be a lot lower.

Over 22 years of importing, I found that discounts for volume were typically in the 1% to 2% range for doubling the size of an order. Multiply the MOQ by 10 and you might get a discount as high as 10% if you are lucky. Therefore, buyers should not expect substantial discounts for volume. In fact, as the volume increases, the % discount falls.

Warning: Haggling can result in extremely low prices, but that will frequently lead to reduced quality. See next section on Quality. It also harms the business relationship and the supplier may choose to no longer supply.

110

32. QUALITY

This subject is of great importance if you want to establish a good reputation and enjoy repeat business, good feedback, and word of mouth recommendations.

32.1 Sourcing Agents and Quality Control.

There are quite a few importing information sites operated by people wanting to sell their services as sourcing agents, sometimes including quality control inspections. Some of the big B2B websites have advertisers offering those services.

The information provided on those information sites is heavily skewed to worry intending importers so that they will believe that unless they use the services of a reliable sourcing agent they are courting disaster. The things that generate income for them are fear and ignorance.

The pitch is that if you go it alone in product sourcing you won’t know who a reliable supplier and you is may finish up paying for faulty goods.

However, if you employ someone such as (here insert the name of the sourcing agent operating the site or affiliated with it) you can sleep soundly, knowing that they will eliminate every risk for you.

It sounds good in theory, but who polices the policeman? Are they really working for you, or are they secretly working for the supplier?

This is not theory. Don’t forget that I have been importing since 1987 and I know it happens. Sourcing agents sometimes work on commission from the suppliers, and sometimes they charge you a commission. In reality, sometimes they get both, but they will never tell you that. Sometimes the great supplier they find is a relative or friend. Sometimes it is a company owned by the sourcing agent himself.

Typical charges for sourcing services are 10% commission, but as you can see, you might finish up unknowingly paying a lot more than that 10%.

Straight out quality control services do exist and some of them, particularly those based in Europe have a fine reputation. In Chapter 28 I have listed a number of utterly reliable independent inspection services.

The problem is that for small businesses their charges can soak up too much of the possible profit unless the buying process has been successful in obtaining very low prices. A small shipment inspection will cost about $250 to $350 provided the inspection service is located in the city where the manufacturer is located. Most of the big European inspection services do have branches in the main manufacturing centers throughout China, so most are covered.

I would employ an inspection service if my orders exceeded $2,000 but I would use one of

111 the lower cost Chinese services such as Topwin or Anbotek if the order value was less. Once you get to the point of ordering in the five figure or more range, inspection services will almost certainly be well worthwhile. Some of those companies will also provide sourcing services, but I believe that doing it yourself can be a very safe process and can save you hundreds and even thousands of dollars.

32.2 Cost Cutting Measures.

Although China is renowned for low prices, those notably low prices often result in manufacturing down to a price. I have seen prices for very low value items quoted to 2 decimal points of a cent e.g.: $0.0624 per pc.

Once haggling or huge buying power causes manufacturers to trim every fraction of a cent from their cost they will resort to extreme measures in cutting costs of materials and labor.

Here are some of the things I have seen, and they can be very difficult to detect:

• Brass plating instead of gold plating. It looks attractive and is in fact the preferred look in some market sectors, but it is not gold and must not be described as gold. Large surveys have found that most women prefer the look of brass rather than gold because they think the brass looks more like their perception of gold. Please them with brass if you like, but don’t advertise it as gold.

• Painted mild steel instead of stainless steel. It is so well done you have to scratch it to be sure, but sooner or later it will rust.

• Thickness of plastic moldings reduced very slightly. The total weight of plastic resin saved over huge production runs can be in the tons. Reduced thickness means reduced strength. See 12.11 Regarding Prices.

• UV stabilizer is sometimes left out of plastic products unless very strongly specified and checked. Even if not regularly used outdoors, light entering a room will shorten the product’s life-span.

• Mild steel components such as screws are sometimes plated to look like stainless steel, but they corrode, sometimes in a critical part of equipment.

• Items supplied as leather are often made of Polyurethane (PU) plastic, with a leather perfume added. Beware of items described as leather in advertisement headlines, but in another part of the ad, described as PU Leather, or Faux Leather.

32.3 Various Qualities in One Factory.

Having visited many factories over a wide range of industries, I know that some manufacturers have different qualities available off the shelf. The quality variation is related to price, so if you haggle you may be switched from high quality to inferior quality. Generally the price difference is slight. For example, a pair of leather shoes with good quality leather uppers may cost $8 to $10, (retailing for $120 -150), but ones with inferior quality will cost $5 to $7. (retailing for $40 – 50). The retail margin will be a substantially higher % on the better quality.

112

32.4 In-House Quality Control (QC).

Manufacturers with genuine ISO compliance certificates can generally be relied upon to exercise reasonable QC. Others can be tested by the simple expedient of a sample order of a quantity that would require a real production run. Single samples may be mostly handmade, in fact you might be surprised to know what products can be handmade, but a hundred or more will usually involve items being part of a full-scale production run. That may apply in some cases to as few as 10 items depending on production method.

32.5 Quality Assurance Inspections. Countless offers appear on forums from people in China who want to do quality assurance for importers. Some may be OK, but I would never try any that do not have a verifiable reputation. For that reason, I suggest that if a large shipment is being organized, and the buyer wants a quality assurance inspection, it should be contracted to one of the old established European or US based inspection services, or ones accredited with the Hong Kong Accreditation Service as listed in Chapter 29 INSPECTION SERVICES.

32.6 What Should the Small Importer Do?

The best protection is a good relationship with the supplier, but that takes time to develop. For initial orders, see In-House Quality Control 31.4 above. Always be reasonable when complaining about faults. If possible, propose a compromise that could amount to a win/win situation. For example, after providing some proof of the fault, possibly by photographs or video, and offering to return one item for their inspection, you might suggest that rather than have both parties lose money, a discount be given by the supplier taking the form of a credit to be offset against the next order.

Once a supplier recognizes that you are a reasonable person they will take your complaints much more seriously.

Once your relationship is going well, you may propose a payment arrangement of 50% deposit and 50% on receipt of goods subject to QC. After you reach the point of ordering more than once per month try to arrange an open account as described in Ch.13.1 of my book. Such an arrangement gives you the greatest possible leverage when it comes to QC, because you have the goods but have not yet paid. This power must be exercised with great discretion and the utmost politeness. If you can accept a small discount, offer that. If the goods are totally unacceptable but may have some value as a cheap item to sell in bulk, make a reasonable offer to do so. Don’t attempt to take advantage of a supplier – you will destroy your all-important relationship.

32.7 When You Want Better Quality.

Don’t tell suppliers early in your contact that you want high quality, best quality, or superior quality. If you do they will likely quote a higher price than usual for their usual production quality. First obtain a sample and check out their standard production quality. You may be

113 pleasantly surprised, but if the quality is not good enough for your needs it gives you a starting point in relation to quality and price.

Note exactly what the deficiencies are, set out what changes you would like made, and ask the supplier can they produce items to your new specifications. I would not ask for a price on improved quality in that communication. If they say they can meet your requirements, you could then ask them to quote to that new standard.

Bear in mind that some changes may require substantial set up costs. Plastic molding is a costly example. An injection mold can cost $1,000 for a small, simple one to $20,000 for a complex one. Even small changes to a plastic molding can cost a huge amount to implement.

Woven items are towards the opposite end of the set up cost spectrum. A jacquard may cost as little as $100 and not likely to exceed $300.

Low cost quality upgrades usually relate to a higher grade of raw material; for example, stainless steel instead of mild steel. Such quality upgrades can be surprisingly low in cost.

Try locating alternative suppliers and check out their samples in order to possibly avoid the need to carry out an upgrading procedure. A few hundred dollars spent doing this may save you a substantial amount of time and money.

114

33. PUBLIC HOLIDAYS

Public holidays can be a major cause of disruption to supply, and it pays to know when they occur in each country where you may be buying products.

It is advisable to plan well ahead because the month leading up to major holidays such as Chinese New Year will be very busy, and during the holiday most businesses simply close down.

Official holidays are sometimes changed, so check on sites such as www.timeanddate.com Chinese holidays are announced near the end of each year.

115

34. GLOSSARY OF TERMS

In this glossary I have provided more detailed explanations than you will usually find, but it is not exhaustive. Most terms explained are those “technical” terms and abbreviations used in this report. For a more complete glossary, we suggest you inquire through the reference section of your local library. If using a Customs Broker, don’t hesitate to ask them to explain any term you do not understand.

34.1 AWB. - Air Waybill very shipment by air must be accurately documented to ensure that the correct goods are delivered to the consignee. The Air Waybill is provided by the airline, air freight forwarder, or Air Courier and is the supplier’s receipt for the goods, proving that the supplier has shipped them. In a similar way to a check or a mortgage, it is a negotiable document. As a result, the person in possession of it has a legal entitlement to ownership of the goods. Once you sign it, the AWB also becomes proof that the goods have been delivered. The carrier keeps track of the shipment by means of the number printed on the form. You always quote this number when you need to ask about the whereabouts of the goods. This is known as “Tracking.”

34.2 BILL OF LADING. This document is similar to an AWB but is for sea freight. This negotiable document signifies that the goods described have been loaded on board the nominated vessel. When payment is being made by L/C, the supplier must present his copy of the Bill of Lading, together with other specified documents such as a copy of the insurance policy, to his bank. The bank will carefully examine these documents to ensure that all conditions have been met, and they will then make payment to the supplier. This could cause a delay of several weeks before you receive the goods.

It is customary for an L/C to specify that the Bill of Lading must be “Clean On Board.” This means that you (through your bank) will not accept the shipment if there is any qualification or notation on the Bill of Lading regarding damage, inadequate packaging or any other real or perceived deficiency in the consignment.

34.3 CARRIER. The business that is providing the service of transporting goods is the Carrier. This includes postal services.

34.4 CIF. (Sometimes referred to as CI & F) - Cost, Insurance and Freight This means that in addition to the FOB price, insurance and freight to a designated port (airport or seaport) is included in the quoted price. When an order is being paid for by L/C, it is customary to require insurance to be included. When using Sea Freight, insurance is absolutely vital. See Marine Cover below for reason.

34.5 CFR (formerly known as C&F) – Cost and Freight Same as the old CIF except that insurance is not included. The supplier’s liability ends once the goods are delivered to the carrier, whether by sea or air.

34.6 DEEMED VALUE. 116

This an amount calculated by Customs authorities in some countries to determine the value of the goods for customs duty and sales tax purposes. To arrive at this figure they add a figure, usually 10%, to your actual costs. I have heard many different explanations for this impost, but the most likely would seem to be that it compensates for the common practice of using fake invoices. The percentage rate may be varied or even removed, so ask your customs agent how the calculation for duty and sales tax is done.

34.7 EMS. - International Express Mail Service. Also, E-Packet Previously known as Speedpost, but only a few older people would still use this term. The document accompanying the parcel is the Postal Service’s equivalent of an AWB and it also carries a tracking number. By using this number, you can usually track the goods via the Postal Service’s website. It is important to note that consignments sent via EMS are not insured unless you have an open insurance policy See [33.14] that covers all of your shipments.

34.8 EXW. – Ex Works. This means at the supplier’s loading dock. If you have a very experienced and capable freight forwarder handling your shipment, that may be acceptable terms to work with, but generally I would not accept quotes on an EXW basis. See important warning in 33.9.

34.9 FOB. - Free On Board. Also known as Freight On Board. Strictly speaking it means until the cargo being load on the ship crosses the ships rail around the deck.

This means all freight and other charges to the point of loading have been included in the quoted price. If the supplier quotes FOB factory, that means loaded on transport at the place of manufacture. If you receive such a quote, make sure that you ask what freight and other charges will be involved in transporting the goods to the airport or seaport, because there will be extra charges.

Also, beware that some Asian suppliers use the term FOB loosely, allowing you to think it is a normal FOB quote, but in effect it is FOB factory. This is probably because they make money on inland charges. For example, if they have a factory in mainland China, but their export office is in Hong Kong, they will incur costs in shipping the goods to Hong Kong and they may want to pass these costs on to you at a profit. If they quote FOB, be sure to ask if there are any additional inland charges. Exporters from China pay various charges that they will pass on to you, so you need to know what is included and what is not.

The supplier’s liability ends once the goods are delivered to the carrier. If quoted FOB factory, that is really EXW and means effectively that their liability ends at their loading dock and you take any risks for loss or damage from that point, as well as all costs beyond that point.

34.10 FORMAL ENTRY. The process of lodging documentation required for clearance through Customs of shipments above a certain value. For novices stuck with puzzling paper documents, in which it is essential to complete every tiny detail with absolute accuracy, this is a difficult and complex task. Customs Brokers do it electronically in a matter of minutes.

The shipment value for which a Formal Clearance becomes necessary varies from country to country and from time to time, but at the time of publication is usually in the $1,000 to $2,000 range, although in the case of certain goods such as clothing, it may be as low as 117

$250. If the shipment value is below the rate set by your Customs office, an informal entry will be allowed. This is not very complicated. Once you have seen it done once or twice you could probably handle it yourself.

In the case of low value shipments arriving by mail, the Postal Service in some countries such as USA, New Zealand and Britain will carry out the informal entry for you at no charge. (See Chapter 3 - Rules and Regulations under the heading: “Another way to avoid a lot of red tape”). In Australia you must still lodge the informal entry yourself, and this can cause delays because you must either personally attend the customs office, (often located at a postal depot,) or lodge via fax or email.

34.11 L/C. (Sometimes, but rarely, referred to as LOC) - Letter of Credit. This is a negotiable document provided by a bank. It is customary for the importer to pay the bank in advance for an L/C, but under some circumstances, banks will issue an L/C on a credit basis. The L/C specifies precisely what is being ordered and all terms and conditions of the sale must be included. Prepare your precise product specifications plus order conditions before ordering. All of these should be included in your order and in an L/C as the conditions to be met by the supplier. Anything not included cannot be enforced

After providing proof that the conditions have all been met, the supplier can then negotiate the document through his bank. This usually happens very soon after shipment leaves port, and that can be long before you receive the goods.

34.12 MARINE COVER. - Also referred to as a Special Marine Policy or Marine Certificate of Insurance.

The terms Special Marine Policy and Certificate of Insurance are used interchangeably in Commercial Marine insurance. Certificates are utilized when exporters must furnish evidence of insurance to customers, to banks or to other third parties in order to permit the collection of claims abroad. The original and duplicate copies of these forms are negotiable instruments, which will enable a consignee or a bank to make a claim overseas, if the goods are damaged in transit.

It is customary for the party arranging the shipping to also arrange the insurance. It may be you, your supplier, or your freight forwarder. If you intend arranging your own insurance you might try one of the big insurers, such as http://www.acegroup.com/us-en/ They are underwriting managers of a Lloyds syndicate. It is possible they may consider that you are too small, in which case you can use their website to find an insurance broker who handles cargo insurance.

For shipments by sea freight it has always been my practice to obtain cover for at least 110% of the invoice value of the goods. Banks issuing a Letter of Credit need to be sure that the cover is for the full value of the shipment and by insuring for 110% you avoid any possible problems caused by the popular insurance company excuse that you were “underinsured.”

34.13 OPEN ACCOUNT. This refers to an arrangement made that you may make payment to your supplier on or after delivery. 118

34.14 OPEN INSURANCE POLICY. An open insurance policy is taken out if you want to provide cover for all air and road shipments throughout the year with the exception of shipments covered by a Marine Policy. (Strangely, it may sometimes be referred to as a Marine Policy; even though the goods travel by air or road.) Insurance companies will usually require an estimate of the total annual value of your shipments and will base their premium on that figure. At the end of the year, the actual total must be declared, and the premium will be adjusted accordingly.

34.15 PROFORMA INVOICE. (Sometimes called a PI) This is an invoice that amounts to a confirmation of quoted prices, sizes, weights, dispatch dates, etc. It is not the same as a commercial invoice although it may look identical except for the word “Proforma.” It cannot be used to clear goods through Customs. A Commercial Invoice must accompany the goods so that you or your Customs Broker can effect clearance through Customs.

34.16 SCHEDULE RATES. This refers to a rate chart published by the carrier. In the case of postal services, it is not subject to negotiation and you will always pay that rate. In the case of commercial carriers, it is the absolute maximum rate, which is only paid by people who are ignorant of the process.

Schedule rates are rarely charged in normal business with freight companies, but anyone who has not negotiated a lower rate in writing, in advance, will pay that maximum rate. Discounts of at least 50% are usual when negotiating rates in advance, but often it will be even more.

One of my readers recently reported being granted a 65% discount with little persuasion on his part.

34.17 TRACKING NUMBER. See AWB and EMS

119

++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++

Would you like to join our global community of successful online entrepreneurs? If so, we suggest you check out the ProvenAmazonCourse.com course – it will teach you all you need to know about selling physical products on the world's most shopped website – Amazon.com.

++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++

120

Appendix

Kmart Ethical Suppliers Factory List, 2018

Factory Name Factory Address BANGLADESH 23-24, Union Tatuljhora Hemayetpur, Savar Dhaka Aboni Fashions Ltd Bangladesh Active Composite Mills Ltd Dewan Indis Rd Zirabo Ashulia Savar Dhaka Bangladesh Aman Fashion & Designs Ltd Nalam, Mirzanagar, Aman Fashion & Designs Ltd Ashulia, Savar Ph# 88 Dhaka Savar Bangladesh Nazim Nagar, Hemayetpur,Savar, Dhaka, Bangladesh Aman Graphics & Designs Ltd Dhaka Savar Bangladesh Kazir Chor, Danga, Palash, Narshingdi, Bangladesh. Chorka Textile Ltd Dhaka Bangladesh 60/2 Shataish Govt. Primary School Road, Khapara, Tongi, Classic Fashion Concept Ltd. Gazipur -1711. Dhaka Bangladesh Baniarchala, Bagher Bazar, Mirzapur, Gazipur Dhaka Cortz Apparels Ltd. Gaziour Bangladesh Gorat, Sarker Market Road, Ashulia, Dhaka Dhaka Debonair Limited & Orbitex Knitwear Limited Bangladesh Jangaliapara, Vawal, Mirjapur Gazipur Sadar, Gazipur Elegance Orientale Ltd Dhaka Bangladesh Fakhruddin Textile Mills Ltd. (A Concern Of Urmi Garfaria Master Bari, Kewa, Sreepur, Gazipur. Dhaka Group) Bangladesh Farseeing Knit Composite Ltd. Faridpur,Telihati,Sreepur, Gazipur, Dhaka Bangladesh Dakkhin Vangnahati, Boiragirchala, Sreepur Dhaka Hams Garments Limited Bangladesh Plot: 91-93, Sector: 03, Kepz North Patenga Chittagong Intimate Apparels Limited Bangladesh Zajhor, P.O: National University, Gazipur, Bangladesh. Iris Design Limited Dhaka Bangladesh Iris Fabrics Ltd Zirani Bazar.Kashimpur ,Gazipur, Dhaka Bangladesh Plot: 2-4 & 9-11, Sector # 7/A Cepz, South Halishahar, Jay Jay Mills (Bangladesh) Private Ltd. Chittagong - 4223, Bangladesh Chittagong Bangladesh Plot#398, Sreepur Bus Stand. Ganak Bari. Savar. Dhaka- Jeans Plus Ltd. 1341 Dhaka Bangladesh Karim Textiles Ltd. Noorbagh, Kaliakoir. Gazipur Dhaka Bangladesh Cda, 15(P),16, Mohara Industrial Area, Chandgaon Kds Idr Limited Chittagong Bangladesh Hartokitola, Chandra, Kaliakoir, Gazipur Dhaka Mahmud Jeans Limited. Bangladesh Manami Fashions Kabirpur Ashulia Savar Dhaka Bangladesh Modiste ( Cepz ) Ltd. Plot 33-36, Sector 7 , Cepz Chittagong Bangladesh Natural Denims Ltd. Tonga Bari, Ashulia. Savar. Dhaka Bangladesh 50 Chandapara, Chanpara Bashon Road, P.O: National Needle Drop Limited University Joydebpur, Gazipur Gazipur, Dhaka Bangladesh Ornate Knit Garments Dewan Idris Road,Ashulia Savar Dhaka Bangladesh

121

Kamarpara, Shernagar, Belkuchi, Sirajgonj Dhaka Purbani Fashion Limited Bangladesh Radial International Ltd (Unit-2) Zirani Bazar, Kashimpur, Gazipur Dhaka Bangladesh Ashulia,Savar, Dhaka, Bangladesh. Dhaka N/A Radiance Jeans Ltd. Bangladesh Ratul Knitwears Limited Cs.Sa-41,Zirabo, Savar Dhaka Bangladesh Kakil,Sataish,Mudafa,Vadam Road ,Tongi,Gazipur. Dhaka Shanta Expressions Ltd. Gazipur Bangladesh Dag # Rs 228 Jl # 73 Gorat East Nor Shinghapur Dhaka Shin Shin Apparels Bangladesh Bk Bari, Taltoli, Monipur, Mirzapur, Gazipur Dhaka Silver Composite Textile Mills Ltd(U-1, Garments) Bangladesh Ssfb-03,Adamjee Epz, Siddirgonj, Narayangonj. Dhaka Simba Fashions Ltd. Bangladesh Southern Services Limited Doctor Bari, Zirabo Ashulia, Savar, Dhaka Bangladesh Plot- C221, 222 & 223S: Jamirdia, Valuka Dhaka Sq Birichina Limited Bangladesh Plot-7-10 & 13-16, Depz Extension Area, Ganakbari, Talisman Ltd. Savar, Dhaka Bangladesh Kewa, Boherarchala, Gila Beraeed, Sreepur, Taqwa Fabric Ltd. Gazipur_1740. Dhaka Bangladesh Golora, Kaitta, Saturia-1810, Manikganj Dhaka Tarasima Apparels Limited Bangladesh Tex Town Ltd Dewan Idris Road, Ashulia Savar Dhaka Bangladesh Union Plaza, 140 Baron, Depz Road, Ashulia, Savar, Windy Apparels Ltd Dhaka-1339, Bangladesh Winter Dress Limited. Vill: Kalma, P.O: Dairy Farm Savar. Dhaka Bangladesh Zaber & Zubair Fabrics Ltd.(Stitching-2) Pagar,Tongi,Gazipur-1710 Dhaka Dhaka Bangladesh

CAMBODIA Bayon Garment Factory Co. Ltd. Toulkork Village, Toulsangke Quarter, Pune, Cambodia Road No.3,Vattanac Industrial Park 2,Sangkat Kraing Dongdu Textile(Cambodia)Co.,Ltd Pongror Khan Dangkor,Phnom Penh Cambodia Phum Tranchk, Khum Kaheng, Srok Samrong Tong, Footforward Cambodia Socks Co. Ltd. Kampong Speu Province. Kampong Speu Cambodia Canadia Industrial Park #33,34,36,37, 43,St.Veng Sreng International Fashion Royal Street Sangkat Chom Chao,Khan Dangkor Phnom Penh,Cambodia Cambodia Phum Raveang, Khum Khnol Dambang Srok Cheung Prey Juhui Footwear Co.,Ltd. Kompong Cham Province Kampong Speu Kampong Cham Cambodia Phum Keooddom, Khum Tropeingkong, Sruk New Huamei Knitting&Clothing Co.Ltd Samrongtong Kampong Speu Cambodia You Li International (Cambodia) Garment Co., Chrey Thom Village, Prey Angkunh Commune Chantrea Ltd.(Branch 3) District Svay Rieng Province Dholka Cambodia

CHINA 3 Group, Lujiaqiao Village, Chongxian Industrial Park, Aifa Hangzhou Lawn & Garden Acc. Co., Ltd. Chongxian Town, Yuhang District, Hangzhou Yuhang 122

Borough Zhejiang China No.88, Kaifaqu Road, Huimin Development Zone, Jiashan All Star(Jiashan Tongsheng) Houseware Ltd County. Jiaxing China Building 4, No. 528, Shunfeng Road, Qianjiang Economy Amelia Knight (Hangzhou) Cosmetics Co.,Ltd Development Area, Hangzhou, Zhejiang Province China Hang Gai Industry Zone ,An Ji County,Zhe Jiang Province, An Ji Xin Lin Gardening Productions Co.,Ltd China Hu Zhou Zhe Jiang Province China 5 West Huaihai Road, Fenghuang Park, Huaibei City, Huai Anhui Gold Coronet Glass Co Ltd Bei Anhui Province China Anhui Guoao Sporting Goods Making Co.,Ltd 68 # Jianxing Road, Huainan ,Anhui,China An Qing China Zongyang Economic Development Area And Textile Anhui Lanlan Towel&Sheet Co., Ltd Industry Garden Tong Ling China Gang Kou Road No.59 Ying Zhou Development Zone Ying Anhui Longyi Shoes Co., Ltd Zhou Area,Fu Yang City, An Hui Province,China Tongcheng Town Tian Chang, Anhui Tian Chang Anhui Anhui Xiangshen Shoes Co.,Ltd. China Xingdian Industrial Zone, Lvting Town, Tongcheng An Qing Anhui Xingda Group Co.Ltd. Anhui China No. 9, Weijian Road, Fei'Eling, Shangyuan Village, Chashan Animal Magic Asia Ltd. Town, Dongguan City China Shangshu Town,Anji County,,Huzhou City Zhejiang Anji Cozy Home Co.,Ltd. Province, China Anji Hangma Sports Co., Ltd. Liang Peng Town, Anji, Hu Zhou Zhejiang China Building No.1, Jiqingqiao Village, Sunshine Industrial 3St Anji Shuangfeng Furniture Co., Ltd Park, Dipu Town, Anji County, Huzhou City Zhejing China No. 88 Xianxin Road, Nanjing Xingang Economic And Arc Glassware (China) Co., Ltd. Technical Development Zone, Nanjing, China No. 9 Xingye Road, Hengdian Electronic Industry Park, Ardour Industrial & Trading Co.Ltd. Dongyang City Zhejiang Province,China Baijia (Fujian) Underwear Shifeng Industrial Areas Shenhu Jing Jiang China Baijia Industrial Park, Huahai Village Shenhu Town, Baijia (Fujian) Underwear 2 Jinjiang Fujian, China No. 168, Zanxi Street, Zangang Town, Xiongxian Country, Baoding Windmill Balloon & Electricity Co.,Ltd Baoding City China South Of Ring Road,South Of City Industrial Clusters, Baoying Chenglong Daily Necessaries Factory Baoying County,Yangzhou,Jiangsu,China Dongfeng Village, Xinxu Town, Huiyang Huizhou City, Hui Baozhaolai Metal Manufactory(Huizhou)Co.,Ltd Zhou Guangdong Province China Wangzhuangzi Village,Bazhou City,Hebei Province, China Bazhou Weiou Furniture Co.,Ltd Ba Zhou Hebei Province China 4# Building, No. 168, Feihe Rd, Mohekou Industrial Zone, Bengbu Yong Cheng Glass Products Co., Ltd. Huaishang District Beng Bu Anhui China No.8 West Huimin Road, Rugao Economic Development Bestway (Nantong) Recreation Corp. Zone, Ru Gao Jiangsu Province China Bestway Inflatables & Material Corp No 3065 Cao An Road Shanghai, 201812 Shang Hai China Intersection Of Garden Road And West Ring Road Biyang Biyang Fengying Clothing Co., Ltd. ,Henan Province ,China Road 3 Technology Park Luojiang District, Quan Zhou Blue Farm Foods(Fujian) Co. Ltd Fujian China Bosideng Co.,Ltd Changshu Garment Factory Bosideng Industrial Zone, Changshu City,Jiangshu,China

123

Jiliancun, Zengguang, Duozhuzhen, Huidongxian, Hui Zhou Boyi Handicraft Co Ltd., Guangdong China No.9, Huanbao Er Road, Environmental Protection Industrial C&G International Gift Manufacture Co. Ltd. Zone, San Li Zhuang Section, Jimo, Qing Dao Shandong China No. 48, 228 Industrial Estate, Henggang Town, Longgang Caili Electronics (Shenzhen) Co. Ltd District, Shenzhen City, China No.17 Yongji West Roadï¼ŒCangzhou City, Hebei Cangzhou Borosilicate Glassware Co., Ltd. Province, China Weiwan Village,Weiwan Town,Cao County,Shandong, Cao County Lianyun Arts&Crafts Co.Ltd China Liu Village,Pulianji Town ,Cao County He Ze Shandong Cao County Shengya Arts&Crafts Co.,Ltd China #16, Guangming Road,Hi-Tech Industrial Park Areas Yu Chang Shu Qing Yuan Textile Co.Ltd Shan ,Chang Shu Jiang Su China Yantai Road,Jiangtian Town,Changle City, Fu Zhou Fujian Changle Lufeng Footwear Co.,Ltd China No. 52 Production Building, Jinshan Airport Industrial Zone, Changle Yasen Houseware Co.,Ltd No. 18, Pengcheng Road Hunan Town, Changle,Fuzhou China No.16 Meidiyang Road,Zhaoshi Town Chang Shu Jiangshu Changshu Hongli China No. 15 Xietang Road, Fangbang Industrial Park Chang Shu Changshu Hongyufang Jiangsu China Xingtai Industrial Zone ï¼ŒChangtai County,Zhangzhou Changtai Jieyu Sports Equipment Co.,Ltd City, Fujian Province China No.3 Longwo Road Wujin District Chang Zhou Jiangshu Changzhou Boer Plasitc Co., Ltd China No.2 Huadian Road,Jintan,Chanzghou,Jiangsu,China Chang Changzhou Jintan Meirui Clothing Co.,Ltd. Zhou China North Site Of Dongmen Village,Fengtang Town,Chaoan Chaoan Fengtang Xinyuan Ceramics Factory District Chaozhou China Gao Xin Road, Chaozhou New Economic Development Chaozhou Champion Porcelain Factory Zone, Chaozhou City, Guangdong Province, China Yunfu Road, Sansheng, Fuyang, Chaoan Chao Zhou Chaozhou Chaoan Sunrise Craft Shoes Factory Guangdong China Northeast Of Puhou Area, Panyang Village, Fengtang, Chaozhou Henglibao Porcelain Industrial Co.,Ltd Chaozhou, Guangdong,China Chaozhou Huifa Ceramics Making Company Yihaochi, Yizhong Area, Yunbu Village, Fengxi District, Limited Chaozhou City, Guangdong Province, China Chaozhou Yuanwang Ceramic Caopuzai Shangdongpu Fengxi Chaozhou Guangdong China Cixi Aot Electrical Appliance Co., Ltd Songpu Village, Fanshi Town, Cixi Ningbo, China Cixi Guanhaiwei Tuopu Electric Appliances No.266,Longzhen Road,Longshan Town,Cixi Manufactory City,Ningbo,China Ning Bo China No.388, Kaifa East Road, Zhouxiang Town, Cixi City, Cixi Junkang Stationery Company Limited Zhejiang Province, China No.22 Taisheng Road, Kuangyan Town, Cixi City, Zhejiang Cixi Kingtra Leisure Products Co., Ltd China Cixi Modern Electric Industrialist Co., Ltd Guanhaiwei Industrial Zone,Cixi Ning Bo Zhejiang China No.8 Zhoutang Rd, Dongxin, Zhouxiang, Cixi, Zhejiang Cixi Wanlong Electrical Co Ltd China

124

No.19 Renmin North Road, Fanshi Industrial Zone, Cixi Yuli Industrial Co., Ltd Longshan Town,Cixi City,Zhejiang Province,China No. 2, Yianxi Road, Hongkuan Industrial Part, Yang-Xia Color Star (Fuzhou) Products Co., Ltd Town, Fuqing City, Fujian Province China No.8 Jingyi Souty Road, Tongcheng Private Economic Cooltex (Anhui) Manufacturing Ltd. Development Zone, Anhui, China 45W, Lushan Rd, Beilun, Ningbo, China Beilun District Cre8 Direct(Ningbo) Co., Ltd (Ningbo Chenglu) Ning Bo Zhejiang China Danyang Shanshui Outdoor Coï¼Žï¼ŒLtd No.32 South Xiangyang Danyang City Jiangsu China No.3 Lianhu Industrial Park, Danyang City Jiangsu Province, Danyang Hengya Printing Co., Ltd China No. 18, Faxiang Road, Xinshi Industrial Zone,Deqing De Qing Sheng Tian Garments Ltd County,Huzhou City,Zhejiang Province China Dongtou, Xunzhong Village, Xunzhong Town, Dehua Dehua Donghua Ceramic Co., Ltd County, Quan Zhou Fujian China 1A And 2F No. 200 Building 2 Kungang Road Little Deshi Printing Co., Ltd Kunshan Town Songjiang District Shanghai China Shangyuan District Qingxi Town, Dong Guan Guangdong Dg Qingxi Electronics Toys Products No. 2 Factory China Dingzhou Xincheng Sporting Goods Factory Xizhugu Industry District Dingzhou He Bi Hebei China Shui Bei New Industrial Estate, Shi Pai Town ,Dong Guan Dong Guan Sunrays Industrial Co.,Ltd Guang Dong, China No.48 Jin Yu Ling Road Sang Yuan District,Dong Cheng Dong Guan Dong Wei Toys Co.,Ltd Town,Dong Guan,Guang Dong China No.1 Baohao Industrial Street Houjie Town Dongguan City Dong Guan Shi Sen Li Shoes Co Ltd Dong Guan Guangdong China Song Gang Village, Qing Xi Town, Dong Guan City, Guang Dong Guan Wuahan Plastic Products Co.,Ltd Dong Province, China The Xiniupo Second Industry Area,Dalang Town,Dong Dong Guan Yisheng Co., Ltd Guan.China Lian Sheng Industrial Area, Deng Wu Village, Qiao Tou Dong Guan Yung Fu Electronics Ltd. Town Dongguan City, Guang Dong, China No.12, Limin Road, Jinxiaotang, Fenggang,Dongguan, Dongguan Anycon Intelligent Technology Co.,Ltd Guangdong Province,China Dongguan Cherryfield Printing & Manufacturing Yu Kai Industrial Park, Huan Hsiang Tung Lu, Wuzar, Limited Changan, Dongguan, Guangdong Province, China Dongguan Chuangji Rong Polymer Materials No.11., Dongshen Industrial Zone, Tangxia Dadaonan, Company Limited No.97-11, Tangxia, Dongguan, China No.10 Xinhui Road, Shangjin Village, Xinan Community, Dongguan Chuangzhi Plastic Metal Co., Ltd. Changan Town, Dongguan City, Guangdong, China No.17A, Nanping Industrial District, Qiaolong, Tangxia Dongguan City Leisen Metal Products Co., Ltd. Town, Dongguan City, Guangdong Province, China No,6,Weixiang Road, Niushan Community Foreign Dongguan City Utop Sporting Goods Co.,Ltd Economic Industrial Park, Dongcheng District,Dongguan Guang Zhou China Dongguan City Wan Feng Toys Manufactory Ltd Tianbian Village Shipai Town Dong Guan Guangdong China Dongguan City Wangniu Dun Ying Hui Electronics Town Center Road , Chijiao Section ( Or Chijiao Village ) , Factory Wangniudun , Dongguan City, Guangdong Province, China No. 12ï¼ŒYongfeng Street, Century Road, Baihao 2Nd Dongguan Excellence Footwear Co., Ltd. Industrial Park, Dong Guan Guangdong China Dongguan Feng Lueng Plastic Product Company No.9 , Yi Huan Road , Chiling Industrial Area, Hou Jie, 125

Ltd Dong Guan Guang Dong China No.11ï¼Œ 2Nd Xiaobu Road, Guanjingtou Community, Dongguan Fenggang Pengde Bags Factory Fenggang Town, Dongguan City, Guangdong, China Second Industrial Zone, Cunwei Village, Hengli Town, Dongguan Guangchang Sujiao Zhipin Co., Ltd Dong Guan Guangdong China Dongguan City Fenggang Town Bihu Industrial Avenue Dongguan Honour Electronic Technology Co., Ltd. No.7 Dong Guan China Jincheng Street,Jinqiao Industrial Zone,523660 Qingxi Dongguan Jiahong Toys Co.,Ltd Town,Dongguan City,China No.13 Gangxia South Road, Xia Bian Community,Changan Dongguan Joy2Hear Electronics Co., Ltd Town, Dong Guan Guangdong China No. 4 Building, Shajingzhenkou, Miaobianwang Village, Dongguan Junhong Leather Products Co., Ltd Shipal Town Dong Guan Guangdong Province China Langzhou Village, Changping Town, Dongguan City, Dongguan Kaide Electric Co., Ltd Guangdong Province, P.R. China No. 6, Fuhai Market Road East, Xiagang Community, Dongguan Key Champ Toys Company Limited Changan Town Dong Guan Guangdong China Gao Li Industrial Area, Tong Xia Dong Guan Guand Dong Dongguan Kiddieland Industrial Limited China Jiuwei Industrial Zone, Qishi, Dong Guan, Guangdong, Dongguan Kk Electrical Appliance Co., Ltd. China Dong Guan Guangdong China No.5, Zhangpeng 1 Road, Zhangpeng Village, Mayong Dongguan Leeshi Toys Co.,Ltd Town, Dongguan, Guangdong Province,China 4Th Floor,Guancheng Electronic Industrial Area, Jianan Dongguan Lontion Industrial Co,. Ltd Road 689, Shatou Village,ChanganDong Guan GuangdongProvince China No.16 Of Lingan Steet, Lingxia Village,Liaobu Town, Dongguan Luckyplaza Shoes, Ltd Dongguan City, Guangdong Province China Lingxia Industrial Area, Liaobu Town, Dguaonn City Guang Dongguan Maple Toys Co. Ltd Dong Province, China Block 1, Liu Jia Industrial Estate, Hengli Town Dong Guan Dongguan Mei Tu Toys Company Ltd. Guangdong China Dongguan Nian Hui Home Fashion Company Wkk Rd Tutown Chanping Town,Dongguan Guangdong Limited Dong Guan China Nan Ping Industrial Zone Qiao Lang Town Tang Xia Town Dongguan Ovation Industrial Co., Ltd Dong Guan Guangdong China Northeast Of The Village Committee, Lan-Gi Yuan Village, Dongguan Richbo Plastic Manufacturing Limited Xie-Gang Town, Dong Guan Guangdong China Chuanxin Road,Xialingbei Infdustrial Zone, Dong Guan Dongguan Ruisen Handbags Products Co Ltd Guangdong Province China No.3# Wenzhu Rd. Wentang, Dongcheng Area, Dongguan Dongguan Sin Ding Industrial Co Ltd City, Guang Dong China Huang Jiang Village Huang Jiang Town Dg City Dong Guan Dongguan Taiway Shing Kee Toys Co. Ltd Guangdong China No.4 Shiniuma Road, Houjie Town Dongguan City, Dongguan Tongyun Shoes Co Ltd Guangdong Province Dong Guan Guangdong China No.1ï¼ŒXifu Street,Daweinew Village, Chiling,Houjie Dongguan Ulrica Footwear Co.,Ltd Town Dongguan City Dong Guan Guangdong China 33,New Jinyuan Road,Shilongkeng,Liaobu Villiage, Dongguan Union Fashion Handbag Co., Ltd. Dongguan City, Guangdong Province, Guang Zhou Guangdong China Dongguan Xiegang New Shayuan Jewelry Factory No.13 Tianhe East Road, Licun Area, Xiegang Town, 126

Dongguan City, Guandong Province, China No 15,Longshi Road,Shangqiao Industry Av,Dongcheng Dongguan Yongsheng Footwear., Ltd District, Dong Guan Guang Dong Province China Jinglian Road, Tangjiao Village, Chashan Town, Dongguan Dongguan Yotoys Plastic Fty Co., Ltd City, Guangdong Province, China. Dong Guan Guangdong China Workshop 1 To 4 Layers, Huang Village Industrial Zone, Dongguan Youngster Children'S Products Company Beice Community Of Humen, Humen Town, Dong Guan Limited City, Gd Province China Xidawei Road, Jiaoli Administration Zone Zhongtang Dong Dongguan Yuanyuan Garments Co., Ltd Guan Guangdong China No.2 Xinguang Road, Jinhe Industrial Zone, Jinhe Dongguan Yuzhexin Hardware & Plastic Products Community, Zhangmutou Town, Dongguan City, Co.,Ltd Guangdong Province, China No.5,Yinhe Industrial Zone 6Th Road,Shishuikou Village, Dongguan Zeyosmart Electronic Co., Ltd Qiaotou Town,Dongguan City,Guangdong Province,China Liuhuang 3Rd Industrial Zone, Cha Shan Town, Dongguan Dongguang Strategic Sports City, Guangdong Province, China Dong Guan China Dongyang Joho Cultural & Creative Co., Ltd Huxi Industrial Park Dong Yang Zhejiang China Lizhai Industry Functional Area, Chengdong Street Dongyang Lvbo Leisure Products Co., Ltd Dongyang Dong Yang Zhejiang China Double Body Industrial Park,Lianxi,Huitai Industrial Double Body Biotech Limited District, Hui Zhou City,Guang Dong Province,China. Hui Zhou Guang Dong China Eastco Enterprise (Zhongshan) Limited 1St Industrial District, Shen Wan, Zhong Shan City, China First Phase Of Factory Building, No.1 Jinfeng Road, Elec-Tech Zhuhai Co., Ltd. Tangjiawan Town,Zhuhai City,Guangdong Province P.R. Of China 7Th Floor,No. A Building, Gangzai Henghongtai Industrial E-Power Limited Park, Furong Industrial Area,Xinqiao,Shajin Town,Bao'An District Shenzhen Guangdong China No. 24 Longwan Road, Longtian Street, Pingshan District, Ever Bright Electric Co., Limited Shenzhen Guangdong China No.58 Yuanqu Road, Zhouzhuang,Kunshan,China Kun Shan Everich Imp.& Exp.(Kunshan) Co.,Ltd. Jiangsu China No 139, Li Min Road ( North), Lili Town, Wujiang District, Eversky Plastic (Suzhou) Co., Ltd. Suzhou City, Jiangsu Province Su Zhou Jiangsu China Building #4, No.12, Xinhu Jianye Road, Shuangfeng Town, Ezidone Display Corporation Ltd. Taicang, Jiangsu Province,P.R.. China No.3, Yongan Road, Jishan Industrial Park, Xikou Town, Fenghua Yuhong Arts&Crafts Co.,Ltd. Feng Hua Zhejiang Province China Hongfen Road Segment,Chishan Industrial District, Liguan Fo Shan City Nan Hai Mingway Toys Co., Ltd Road Lishui Town, Nanhai Area Foshan City Guangdong China No.7 Shunyuan South Road, Wusha Hi-Tech Industrial Foshan Shunde Homeart Electric Mfg Co.,Ltd Zone, Daliang, Shunde District Fo Shan Guangdong China Zhenghe South Road, Leliu Town,Shunde District, Foshan Foshan Shunde Junye Electronic Co.,Ltd. City, Guangdong Province, China Fo Shan Guang Dong China No.1, Road 2, Huatian West, Shunde High-Tech Industry Foshan Shunde Sincere-Home Home Appliance Development Zone,Ronggui,Shunde, Fo Shan Guangdong Manufacturing Co.,Ltd China 127

Foshan Shunde Strategic Garment Ltd Chencun Industrial Park, Shunde Fo Shan China Sanzhou Town,Gaoming Main Street,Gaoming Foshan Yuanhua Plastics Industry Co., Ltd District.Foshan City, Guangdong Province,China Guang Zhou China Road 1 West Jin Tang Economic Technical Development Fufung (Longnan) Garment Ltd Area Long Nan Country Ganzhou City Gan Zhou Jiang Xi China Xunzhong Town Chengdong Industry Dehua Quan Zhou Fujian Dehua Guanhong Ceramic Co.,Ltd Fujian China Baomei Industrial Area, Dehua, Quanzhou, Fujian Quan Fujian Dehua Penghuang Ceramics Co., Ltd. Zhou Fujian China Baomei Industrial Zone,Dehua Quanzhou,Fujian,China Quan Fujian Dehua Xinmei Craft Co.,Ltd Zhou Fujian China Fujian Jinjiang Huamei Knitting &Clothing Co.Ltd Dongshan, Shenhu, Jinjiang, Fujian, China Xia Men China No.1, Industrial 6Th-Road, Industrial Area, Lian Cheng Fujian Kanglaibao Co.,Ltd County ,Longyan City Fujian China No.1St Waipu Road Dongdai Lianjiang Fu Zhou Fujian Fujian Lian Jiang Feilu Footwear Co.,Ltd China Fujian Provincial Shaowu City Huaguang Special C Zone, Zidong Industrial Area, Shaowu City Shaowu City Craft Co., Ltd. Fujian Province Fu Zhou Fujian Province China Fujian Putian Qihua Footwear Co.,Ltd Huangshi Industrial District Pu Tian Fujian Province China No.33 Jinzhou North Road, Jinshan Zone Fuzhou Fu Zhou Fujian Reida Precision Co.,Ltd Fujian China No.76,Huxing Road,Huzhong Village,Chendai Town Fujian Sen Rong Footwear Co.,Ltd ,Jinjiang City Quan Zhou Fujian China Xiafu Village,Chidian Town,Jinjiang City,Fujian,China Jing Fujian Yade Sports Goods Co.,Ltd Jiang China Qiyun Village, Jingyang Industrial Area, Fuqing City, Fujian Fuqing Yongxiu Shoes Industrial Co.,Ltd Fu Qing Fujian China Building C, Xiangshan Avenue #71, Luotian #3 Industry Fuxingda Stationery Ware (Shenzhen) Co., Ltd. Park, Songgang, Baoan District, Shenzhen, Guangdong Province, China. Fuxia,Guozai Gaishan Town Cangshan , Fuzhou, Fujian, Fuzhou Donglin Shoe Co.,Ltd China Fuxia Road, Fuzhou Fujian, China Fu Zhou Fu Jian China Hong Kuan Industrial Zone Yangxia Street Fu Qing Fuzhou Fuzhou Glitter Paper Products Co., Ltd Fu Qing Fuzhou China Floor 3Rd,Guangzhuang Road 16-1,Chen Dian Hu Industrial Fuzhou Guangxia Arts & Crafts Co. Ltd Park,Ganzhe Town,Minhou, Fuzhou,Fujian,China Fu Zhou China No 53 Plant Jinshan Airport Industrial Zone No 18 Fuzhou Hongsen Furniture Co.,Ltd Pengcheng Road, Hunan Town Changle City Fuzhou City,Fujian Province China Fuzhou Legend Melamine Products Next To 316 National Highway,Rong Xi Village,Zhuqi Co.,Ltd.â€‚â€‚â€‚â€‚â€‚ Country , Minhou,Fuzhou. China No.63-1, Xiekeng Village, Chengmen Town, Cangshan Fuzhou Longcheng Footwear Industrial Co Ltd. District Fu Zhou Fujian China No.183 Jun Bian Cun,Cheng Men, Cang Shan,Fuzhou Fu Fuzhou Qiangsheng Shoes Co.,Ltd. Zhou Fujian China No 16 Daoshishan Road Luozhou Town Cangshan District Fuzhou Tianfu Plastic Co.,Ltd Fuzhou City Fujian Province China

128

East Wen Chang Street, Gaomi District, Shandong Province Gaomi Huibao Textiles Industry And Trade Co.,Ltd Shan Dong China West Of Chengbei Street, Liquan Subdistrict,,Gaomi Gaomi Jinli Knitwear Co., Ltd City,Weifang, Shandong Province China No. 97, Fuyong Area Guangshen Road, Bao An District Grandford Technology ( Shenzhen) Ltd. Shen Zhen Guangdong China No.4, Lian He Road, Jin Shi Da Dao, Shi Ling Town, Hua Guang Zhou Run Yu Leather Co., Ltd Du District, Guang Zhou, China Guang Zhou Guang Dong China West Expressway Exit, Guangzhou-Zhanjiang Highway Guangdong Hallsmart Intelligence Technology Guandu Town, Zhanjiang, Guangdong, China Zhan Jiang Corporation Limited Guangdong China Guangdong Kejialin Electrical Appliance The 6Th Across Road East,Rongbian Tianhe Industrial Park Manufacture Co.,Ltd. Ronggui Town,Shunde,Foshan City Guangdong,China Guangdong Midea Kitchen Appliances No.6, Yong An Road, Beijiao, Shunde, Foshan, Guangdong, Manufacturing Co., Ltd China Xinxia Road Tiepu Industrial Zone Xiangqiao District Guangdong Sweet Best Food Co., Ltd Chaozhou Chao Zhou Guangzhou Province China 38A, Yangda Rd, Lunjiao Town, Shunde Area, Foshan City, Guangdong Wireking Household Supplies Co. Ltd . Guangdong Province China Guangdong Wireking Housewares & Hardware Co., No.38 Yangda Road, Sanzhou, Lunjiao, Shunde, Foshan Ltd. City,Guangdong Province Guang Zhou China No. 11 Shunpan Rd Wusha Sect, Foshan Shunde Daliang, Guangdong Wireking Metal Manufacture Co., Ltd Guangdong Guang Zhou China Guangdong Xinbao Electrical Appliances Holiding Zhenghe South Road, Leliu Town, Shunde District, Foshan Co., Ltd City, Guangdong P.R..C China West Guangyuan Road, Yangdong Industrial Third Guangdong Yangdong Huahai Plastics Factory District,Yangdong Yangjiang City, Guangdong Province,China Guangdong Zhong Ling Industrial Group Co., Chuangye Industrial Zone Xinhe Wanjiang Dong Guan Limited Guangdong China #.58, Jiepu Rdshengpu Industrial Park Suzhou City Jiangsu Guangiang Metal Products(Suzhou) Co., Ltd Province, China Guangxi Beiliu Taihongda Electronics Company Gan Cun Industrial Zone,Bei Liu,Yu Lin Limited City,Guangxi,China Beiliu China No. 2, South Of Xingye Road, Nancun Town, Panyu Dist. Guangzhou Argion Electric Appliance Co.,Ltd Guang Zhou Guang Dong Province China Guangzhou Guangsheng Hardware & Plastic Hoyuenmu, Yenchiang Road, Buyun County, Tanbu Town Products Co., Ltd Hwadu District Guang Zhou Guangdong China Dongfeng Middle Road, Dongfeng Road, Automobile Guangzhou Huadu Sanhua Plastic Co .Ltd Industrial Base, Huadu District, Guangzhou China West Side Workshop, Second Floor, No.1 Building, No. 33 Guangzhou Sbox Leather Products Limited Hongmian Avenue, Xiuquan Street, Huadu District, Guangzhou, China Factory No.3, No.2 Of Zibian No.20, Pingshi East Road, Guangzhou Songmu Electronics Co.,Ltd Huashan Town, Huadu District Guangzhou Guangzhou, China No.3/3 Xinshi Rd, Xinke Country, Junhe Street, Baiyun Guangzhou Wh Electron Co., Ltd District, Guangzhou, China No. 2ï¼Œ Shanhong Road, Yuanhua Town Haining Haining Chiancess Plastic Co., Ltd. Zhejiang China Haining Hongshida Socks Co., Ltd. No.77 Phoenix Road, Dingqiao Town,Haining,Zhejiang 129

Province. Haining China Haining Irim Leather Co., Ltd No.623, Luolong Rd, Haining Jia Xing Zhejiang China No 5 Shuanglian Road, Haining Economic Development Haining Weiersi Knitting Co., Ltd Park, Haining, Chian Zhe Jiang China Floor 2,No.6,Xincheng Road,Xingai,Xucun,Haining Haining Xucun Boya Textile Ready-Made Factory Zhejiang China Jia Xing Zhejiang China Haiyang Qinghong Garment Co., Ltd. Bicheng Industrial Park Hai Yang China Block A, Aboard Economy District, 205 Heyuan Avenue, Hang Cheong (He Yuan) Garment Factory Ltd Guangdong Province, Yan Tai China No. 39, Shuikou Road, Shuikou Street, Huicheng District, Hang Shing Garment (Huizhou) Ltd Hui Zhou Guangdong China Hexi Villiage, Gongdao Town, Hanjiang, Yangzhou City Hangjiang Hongda Handicraft Product Factory Yang Zhou Jiangsu China No.1 Dunli Road,Renhe Sub District,Yuhang District Hang Hangzhou Dunli Store & Display Fixtures Co.,Ltd. Zhou Zhejiang China Wulian Village,Xintang Street,Xiaoshan District,Hangzhou Hangzhou Honor Industry Co.,Ltd Zhen Jiang China No.10-1,Xing Ling Road Xingqiao Town, Linping,Yuhang Hangzhou Tianyuan Pet Products Co., Ltd ,Hangzhou China No.51, Xinluo Road, Xintang Street, Xiaoshan District Hang Hangzhou Wellmei Home Textiles Co., Ltd. Zhou Zhejiang China Xia Jia Village, Puyang Town , Xiaoshan District, Hangzhou Hangzhou Xiaoshan Jiejie Craft Shoes Co Ltd. City, Zhejiang Province Hang Zhou Zhejiang China No.159 Yatai Road,Xiaoshan District,Hangzhou,Zhejiang Hangzhou Yuchun Home Textile Co.,Ltd China Hape International (Ningbo) Ltd. No.9-27 Nanhai Road Beilun Ningbo Zhejiang China No,2 Longchuan Road,Industrial Avenue, Economic He Lin Fujian Houseware Co.,Ltd Development Zone Of Shaowu City,Fujian, China No.999 Gaonan Road Dingyan Town Rugao City Jiangsu Healthcare Co Ltd Province China Huji Industrial Park Of Dancheng Town, Henan, Zhou Kou Henan Shuanglongjian Garment Co., Ltd Henan China No.3, Wanshun Road, Kamtang Industrial Zone, Niushipu Henggang Liuyue Hardware & Plastic Factory Village, Liuyue, Henggang Town, Longgang District, Shenzhen, Guangdong, China Heshan Jinlian Metal & Handicraft Manufacturing No.9,Minyuan Road, Taoyuan Town, Heshan City, Co., Ltd Guangdong Province, China Heze Fitex Apparel Co. Ltd Wanghaotun Town, Mudan District, He Ze Shandong China No. 601, Floor 6, Building 15, Fourth Industrial Zone, Yulv Hitech Industrial Co., Ltd Guangming New District, Shenzhen China HuaÂ LianÂ (FoÂ Gang)Â MachineryÂ Manufactu PoÂ XiaÂ Cun,Â JianÂ TaoÂ Town,Â FoÂ GangÂ County ringÂ Co.,Â Ltd. Â , QingÂ YuanÂ City,Â GuangÂ DongÂ Province,Â China Huaibei Laibote Photo Frame Manufacturing Suixi Economic Development Zone Huaibei City,Anhui Co.,Ltd Province,China Huai Bei Anhui Province China No.63, Meilin Rd, Huangshan Economic Development Zone, Huangshan Snugglebedding Products Co., Ltd Huangshan City, Anhui Province, China No. 57-2 Fenghuang Rd, Shabu Town, Huangyan, Zhejiang Huangyan Rijing Glass Products Factory Zhen Jiang China 2/F,No.85,Shoe City Road Of Jilong Town,Huidong County Huidong Jilong Yibaidu Shoes Factory Hui Zhou Guangdong Province China

130

Chenghai Village, Chenjiang Street, Huizhou , Guangdong - Huizhou City Mei Jian Metal & Plastic Co.,Ltd China 205 State Road, Changlong Village, Zhenlong Town, Huizhou New Hua Xin Industrial Co., Ltd. Huiyang District Hui Zhou China No. 3 Wanyi Road Xishan Office Liling Hunan China Li Hunan Hualian China Industry Co., Ltd. Ling Hunan China Block 15 Building, No1 Industrial District, Heshuikou, Gong Hung Bao Fung Toys (Shen Zhen) Co., Ltd. Ming Street , Shenzhbaoan, Shenzhen City China No. 198 Xifeng Road, Huzhou Economic And Technical Hu Huzhou Dhatr New Packing Material Co., Ltd. Zhou Zhejiang China Block 2, Tong Fu Industrial Zone, Shuitou Community, Inever Manufacturing (Shenzhen) Limited Dapeng Office, Dapeng New District Shenzhen China No 15 Gongjian Road, Beichan Town, Dinghai, Zhoushan Jiali Sports Instrument Co., Ltd City, Zhou Shan Zhejiang Pr. China Jian De Wan Li Lai Textile Co,Ltd Long Qing Temple , Qian Tan, Jian De, Zhejiang China Shouchang Town Development Zone,Jiande Jiande Junyue Home Textile Co.Ltd Hangzhou,Zhejiang Province,China No.6 Xinqu Houtang Industry Park, Genlou Street, Jiade Jiande Xinda Metal Craft Co.,Ltd. City Zhejiang Province Jian De Zhejiang China No.288, Feng Yang Rd(S), San Yang Town Haimen Nan Jiang Su San Yang Sporting Equipment Co.,Ltd. Tong Jiangsu China No.3, Liâ€™Anling Industrial District, Nanlu Country, Jiangmen City Kimleyda Hardware Product Co., Duruan Town, Pengjing Zone, Jiangmen City, Guangdong Ltd Province, China Jiangmen City Xinhui District Hualin Recycled Wengjiachong, Yaoqi, Yanjiang Village, Daze Town, Xinhui Plastics Co., Ltd District Jiang Men China Xiaoping Ind.Zone, Siqian Town, Xinhui District, Jiangmen, Jiangmen Guanlong S/S Cookware Co.,Ltd Guangdong, China Jiang Men China Liudaoyuan Industrial Area Longmian Village Duyuan Town Jiangmen Mantor Metal Products Co., Ltd Pengjiang District Jiangmen Guangdong China Jiangmen S-2 Science & Technology Development No. 1 Industrial Zone, Hecheng Town, Jiangmen City, Co.,Ltd Guangdong, China Jiang Men Guangdong China Dao Shu Town, Danyang City ,China Dan Yang Jiangsu Jiangsu Lilong Outdoor Products Co.,Ltd China No.39 Caohu Avenue,Xiangcheng Economic Development Jiangsu Midea Cleaning Appliances Co.,Ltd Zone,Suzhou Jiangsu China Weiyi Road, Economic Development Zone, Xing Hua Jiangsu Ruiyu Hospital Products Co.,Ltd Jiangsu China No.8 Xiangjiang Road Rugao Economic Development Jiangsu Shuanglongjian Garment Co.,Ltd Zone,Jiangsu Ru Gao China Group 11 ,Big Yin Community Of Rucheng Street ,Rugao Jiangsu Tianrui Mat Technology Co. Ltd City,Jiangsu China Nan Tong China Jiangxi Fengzhao Science&Technology Of Bamboo Jiangxi Fengxin Industrial Park Yi Chun Jiag Xi China Co.,Ltd No.12-8 Yungu Road, Zhutang Town, Jiangyin, Wuxi Wu Xi Jiangyin Chaoyu Kintted Co., Ltd China No 35,Huanbeixi Road,Zhutang Jiangyin City Tongchun Knitting Garment Co Ltd Town,Jiangyin,Jiangsu,China Jiang Yin China No. 9 Huayuan Road,Xinggong Village Industrial Jiangyin City Yujun Garment Co.,Ltd Zone,Gushan,Jiangyin City Jiangyin City Jiang Yin Jiangsu China Jiangyin Qingyou Garment Co.,Ltd No.25,Huanxi Road,Zhutang Town,Jiangyin Shi Jiang Yin 131

China Xizhangzhuang Village, Zhongzhan District, Jiaozuo City Jiaozuo Huayue Ceramic Co Ltd Jiao Zuo Henan China No. 2988 Xinggong Road, Zhongdai Economic Development Jiaxing Kamaqiao Luggage And Bag Co., Ltd Zone Pinghu, Zhejiang, China Zhen Jiang China Building 1, No. 3399, Shuanglong Road, Daqiao Town Jia Jiaxing Tongya Travel Goods Co.,Ltd Xing Zhejiang China No 99 Xingguang Guangxing Line Xindai Town Pinghu City Jiaxing Xingfa Luggage & Bag Co. Ltd. Jiaxing Zhejiang Jia Xing China No.1389 Xinsheng Road, Yuxin Town, Jiangsu City, Jiaxing Jiaxing Xushi Knitting Co.,Ltd Jia Xing China Jiaxing Yeyang Electrical Appliance Co., Ltd No. 475, Xiuzhuang Road, Jiaxing City. Jia Xing China No.1 Urban-Rural Overall Development Industrial Park, Jilong Plastic Products (Jiangsu) Co., Ltd. South Zhongchen Road Zhongyang Town Sucheng District,Suqian Jiangsu Province China Dongmen Industry Area Jindong, Caitang Guangdong Chao Jilys Footwear Corporation Limited Zhou Guangdong China No.900, Yifeng West Road (Huida Industry Park), Quangang Jingcheng Light Ind Co.,Ltd District Fuijian China No.3 Huifengjixiang Road,Dongxing Town Jiangjiang. Jingjiang Xinjiyuan Knitting Co.,Ltd Jingjiang Jing Jiang Jiangsu China No.1001 Bada Road Wucheng Zoon Jinhua City Zhejiang Jinhua Xingkang Sports Goods Co.,Ltd Province China Jin Hua Zhejiang China No.1 Weiba Road, Ditian Industrial Area, Xiaoshun, Jin Hua Jinhua Da-King Arts & Crafts Co. Ltd Zhejiang China Building 2, No.268 West Changchun Road,Jindong District Jinhua Lambert Frame Ltd Economic Development Zone Jinhua City, Zhejiang China Jinhua Tianhai Travelware Factory No.315, Xinye Street Jin Hua Zhejiang China Shanghe Village Fucun Town Jindong District Jinhua City Jinhua Yidali Daily-Using Factory Jin Hua Zhejiang China Gaohu Industrial Zone,Yinglin Town,Jinjiang Jing Jiang Jinjiang Libixing Garment&Weaving Co.,Ltd China No.189,Gaokeng Industrial Zone,Chengdai Town,Jinjiang Jinjiang Qucheng Shoes Co.,Ltd Jing Jiang China Xiongyi Shoes Ind Xibin Farm Ind Area Xibin,Jinjiang Jing Jinjiang Xiongyi Shoes Plastic Co., Ltd. Jiang Fujian China No.8 Yongjun Road Xibin Town Jinjiang City Fujian Jinjiang Yujin Shoe Making Co.,Ltd. Province Quan Zhou Fujian China Lubian Industry Park #8, Chaolian Town, Jiangmen City, Jinlong Industrial Co.,Ltd Guangdong Province, China 1117# Zhongxing North Road,Deqing County,Huzhou Joysun Bicycle Manufactory Co., Ltd City,Zhejiang Prov.China Hu Zhou Zhejiang China No. 01-05, West Plant Area Of Tianai Group, Houbai Town, Jurong Tianjiao Arts&Crafts Co., Ltd. Houbai, Jurong City,China Wuli Industrial Zone, Jinjiang, Fujian, China Jing Jiang Kalee Children'S Products Co., Ltd. Quanzhou China 1A, 2-5/F, Buidling C, 175 Huasheng Road, Langkou Keng Fu Jia Electronics (Shenzhen) Company Ltd. Community, Dalang Street, Baoan District Shen Zhen China No 5 Yongbin Rd ,Yonger Village Tanzhou Kind Pet Products Co.Ltd Townï¼ŒZhongshan,China Zhong Shan Guangdong Province China

132

Wulipo, Qi Xian Country, Shangxi Province Jin Zhong King Glass Co., Ltd China Xinghuang Industry Zone, Siqian Town, Xinhui Kong Seng Appliances Ltd District,Jiangmen City, Guangdong Province, China Laiyang Huayuan Garment Co.,Ltd Heshan Road,Laiyang Shandong,China Shan Dong China West Of Balamiao Village,Wenfenglu Street,Laizhou South Laizhou Lif Arts&Crafts Co.,Ltd Road,Laizhou City,Yantai,Shandong ,China Shan Dong China Xiaohanjiabao Village, Tangerli Town , Bazhou City , Hebei Langfang Senya Furniture Co.,Ltd Province,China Lang Fang Hebei China First Floor, Building C, #203 Zhenxing Ave, Gaogang Ledifuture Co., Limited District Gao Gang District Tai Zhou Jiang Su China No. 21, Longsheng Road, West Lake Investment Example Leonone 3D Electrical Enterprise Co., Ltd Area, Taicheng Town, Taishang Example Area, Taicheng Town, Taishang Jiang Men China No.22,Changjiang Road,Xinpu Development Lianyungang Senhuxi Foodstuff Co., Ltd. Zone,Lianyungang Lian Yun Gang Jiangsu China Lifeng Hardware Industry Co. , Ltd Of Jiangmen Yueshan Industriai Zone,Luokeng Town,Xinhui Area Jiang City Men Guangdong China No.568 Shanbian Road, Dongfu Town, Haicang Lifetime Plastic Product Ltd. District,Xiamen, Fujian Province, China Changpokou Village Banshan Country,Liling City,Zhuzhou Liling City Taiyu Porcelain Industries Co.,Ltd City Hunan Province P.R.China Sizhuping,Dongfu Town, Lling City, Hunan,China Zhu Zhou Liling Xinyi Ceramics Industry Limited Hunan China Block 18 , Electronic Product Sector Of Economic Lin Quan Ya Xi Clothing Co. Ltd Development Zone Lin Quan County , Anhui Province , China Linhai Longxiang Crafts Factory 28 Dalushang Linhai Tai Zhou Zhejiang China West Side Of Youyi Road, Shihou Village, Datian Street Linhai Taifeng Knitting Co., Ltd Linhai Tai Zhou Zhejiang Province China Dong Da Road Shuoda Electrical Park Da Tian Subdistrict Linhai Yule Lighting Co., Ltd. Offices Lin Hai Zhe Jiang China Middle Of Taian Road, Linshu County Lin Yi Shangdong Linshu Lingyun Arts&Crafts Co.,Ltd. Province China Hou Village , Ce Moutain,Luozhuang District, Linyi Linyi Jinli Ceramics Co Ltd City,Shandong Province,China Lin Yi Shandong China Zhidu Village Jiumen Town Gaocheng City ,Hebei Litbright Candle(Shijiazhuang)Co.,Ltd Province,China Shi Jia Zhuang Hebei China No. 18 Xiayang Road, Xingyang Indutrial Zone, Haicang Liven Sports Mfg. (Xiamen) Co. Ltd. Districtï¼Œ Xiamen Xia Men Fujian China New North Industrial Zone, Daibu Town Liyang China Li Liyang Double Horse Plastic Co.,Ltd Yang Jiang Su China Qianjia Village Hengshan Town Longyou City Zhejiang Longyou Hengyu Shoes Ltd. Province Qu Zhou Zhejiang China No.10, Lingjiang Road, Lingjiang Industry Area, Longyou Longyou Qinda Tourism Tent Co.,Ltd. County Qu Zhou Zhejiang China Gaoxing Road 52Th,Gaohu Industrial Zone, Yinglin Town, Lrx Costume Weaving Co., Ltd Jinjiang City, Fujian Province, China Luoyang Steelite Steel Cabinet Co., Ltd. Yibin Fuli Road,Nanzhai Village, Licun Town, Yibin District, Branch Luoyang Cityâ€‚ He Nan China

133

No 167 Min Sheng Road, Tai Ping Industrial Zone Lan He Maintown (Guang Zhou) Industrial Co., Ltd. Town Pan Yu District Guang Zhou Guangdong China Zhong Wei Road, Tie Song Village, Qing Xi Dong Guan Master Kids Toy Co., Ltd. Guang Dong China Tai Ping North Road, Da Bu Cheng Gui Ind. Ctr, Sanxiang Ming Yip Candy Food Ltd Town Zhong Shan Guangdong China Qinghu,Longhua Bao An,Shenzhen,China 518109 Shen Nadfinlo Plastics Industry (Shen Zhen) Co.Ltd Zhen China No.28 Jianghai Road Hehe Town Qidong City Jiangsu Nan Tong Meng Tian Clothing Co., Ltd Province China Nan Tong Jiangsu China No.13 Erst Wuchu Road,Hengxi Town,Nanjing,China Nan Nanjing Biaomei Hometextiles Co.,Ltd Jing Jiangsu China Shuanglou Industrial Zone,Haian,Nantong,China Haian Nantong Dacon Sporting Goods Co.;Ltd Jiangsu China North Area,118 Tong Yang Road, Chahe Town,Rudong , Nantong Magnolia Textile Products Co.,Ltd Nantong Jiangsu China Nan Tong Jiangsu China Beishou Xibangiao, Shizhuang Town, Rugao City,Jiangsu Nantong Shenbaoli Handcraft Garments Co., Ltd Province Nan Tong China No.1 Niusheng Road, Kengzi, Pingshan New District Shen New Union Candle (Shenzhen) Ltd. Zhen Guangdong China Yuting Road Cehnghua Chenghai Shantou Guangdong China Newqida Toys Factory Co.,Ltd Shan Tou Guangdong China 18 Building,B Zone,Wuliandui Indurstry Shangcun Newsun Silicone Products Co.,Ltd Community Gongming Town,Shenzhen,China Ningbo Aolbea Oral Care Products Co. Ltd Xizhengxiang Village Ditang Street Yu Yao China Xiaxiang, Tanjialing West Road, Lanjiang District, Yuyao Ningbo Bangshou Electric Co.,Tld. City, Zhejiang Province, China No. 78 Nanhai Road Dagang Industrial Area, Beilun District Ningbo Beilun Qianyuan Stationery Co., Ltd Ningbo China Ning Bo China No. 88, Yuzhaojiang Road, Chengdong Development Area, Ningbo Biyi Electric Appliance Co., Ltd. Yuyao, Zhejiang, China Yu Yao Zhejiang China Ningbo Borine Electric Appliance Co.,Ltd & Beilun No 11 Beihai Road, New Daqi Street, Beilun,Ningbo China Xinqi Branch Huanzhen East Road, Hengxi Town Yinzhou District, Ningbo Bronco Arts&Crafts Factory Ningbo City Ning Bo Zhejiang China No..628 Qiaosan Road, Qiaotou Town, Cixi City,Zhejiang Ningbo Chuanlang Industrial Co.,Ltd Provice, China Ning Bo China Ningbo Dahua Electric Appliance Co.,Ltd. Xiaodong Industrial Zone,Yuyao,Zhejiang,China Ningbo Dazhou Electric Appliance Co.,Ltd. No.78,Modaoqiao Road Yu Yao China No.128 ,Chezhan West Road,Huangtan Town,Ninghai Ningbo Deli Binding Equipment Co.,Ltd. County,Ningbo City Huangtan Town,Ninghai Ning Bo China No. 568 East Hexiao Road, Dongqiao Industrial Zone, , Ningbo Dollar-King Industrial Co., Ltd Dongqiao Town, Haishu District, Zhejiang Province, China Weiyi Road, Fanshi Industrial Zone, Longshan Town, Cixi, Ningbo Dongji Electronic Technology Co., Ltd Ningbo, China. No.100 Chuangye Road , Ningdong Economic Development Ningbo Fumao Outdoor Products Co.,Ltd. Zone Ning Bo China No.6 Jinhui Road Hengjie Town Haishu District Ning Bo Ningbo Haishu Boda Arts & Crafts Factory Zhejiang China Ningbo Haishu Dacheng Plastic Co.,Ltd. No.187-193, Gongmaoer Road Jishigang Industrial Area, 134

Haishu District Ning Bo Zhejiang Province China No.128 Xinfu Road, Gaoqiao , Haishu Ningbo , Zhejiang Ningbo Haishu Dulck Outdoor Products Co., Ltd China No.175, Jifeng Road, Fengcheng Village, Jishigang Town, Ningbo Haishu Jun Feng Plastic Co., Ltd Haishu District Ningbo Zhejiang China 5001# Jichang Road, Yinzhou District, Ning Bo Zhejiang Ningbo Haishu Ninglei Garment Co., Ltd China No. 288, Feng Cheng Road Wang Chun Industrial Area, Ningbo Haishu Yiping Commodity Co.,Ltd Ningbo China Guangsen Village,Jishigang Town,Yinzhou Area,Ningbo Ningbo Haishu Yonghui Metal Factory Citt,China No.500,Guangwen Road Xingguang Village Shiqi Street, Ningbo Haoting Article For Daily Use Co. Ltd. Yinzhou District Ning Bo Zhejiang China Ouchi Village,Gulin Town, Haishu District, Ningbo, Ningbo Henledar Plastic Co., Ltd. Zhejiang China. No.38 Longquan Road, Henghe Town, Cixi City , Zhejiang Ningbo Hongxu Heating Co.,Ltd Province ,China No.6, Gubei Road, Simen Industry Park Yuyao,Ningbo Yu Ningbo Huasheng Electrical Appliances Co.,Ltd. Yao Zhe Jiang China No.1969 Shunming Road., Jiangshan Town, Yinzhou Ningbo Huining Textile Co., Ltd. District, Ningbo,Zhejiang,China. Ningbo Huiyoudi Electrical Appliance Technology No.3 Xinyang Road,Ditang Street,Yuyao,Zhejiang, China Co.,Ltd Wenjiangan Gulin Town Haishu District Ningbo Zhejiang Ningbo Hys Swimming Pool Equipment Co.,Ltd ,China No. 888, Hexiao East Road, Dongqiao, Yinzhou, Ningbo, Ningbo Jinyuanhong Commodity Co., Ltd Zhejiang, China No. 6 Yuan 2 Road, Sanqishi Industry Zone, Yuyao, Ningbo, Ningbo Kaffee Electric Appliance Co., Ltd. Zhejiang P.R. China The Northern Industrial Park,Zhouxiang Town,Cixi315324 Ningbo Kaibo Group Co., Ltd Ning Bo Zhejiang China Baojia Cun Gulin Zhen Haishu District Ning Bo Zhe Jiang Ningbo Kwung'S Home Interior & Gift Co.,Ltd China Bangxing Road, Maoshan Industrial Zone, Jiangshan Town, Ningbo Little Star Cycle Co., Ltd. Yinzhou District, Ningbo City, Zhejiang Pr., China Lishe Village, Shiqi Street, Yinzhou District Ning Bo Ningbo Liyuan Garment Co.,Ltd Zhejiang China No 228 Hengpeng Road Henghe Town , Cixi, Ning Bo Ningbo Manhua Electrical Appliances Co.Ltd Zhejiang China No. 276, Qianjin, Xidain, Ninghai Ningbo Ning Bo Zhejiang Ningbo Messi Lighting Electric Co.,Ltd China No. 899, Tonghui Road, Jiangbei District, Ningbo City, Ningbo Ou Yimei Home Lighting Co., Ltd Zhejiang Province China Yuelai Shi, Yuncheng Village, Zhouxiang, Cixi, Zhejiang. Ningbo Oubeijia Kitchneware Co.,Ltd China 1St Floor, Block 4, No. 50, Jinji Road,Qijiashan Ningbo Penryn Stationery Co.,Ltd Street,Beilun District,Ningbo China 89-2# Baojia, Hexing Village, Xiaogang Street, Beilun Zone, Ningbo Pinsen Packaging Co.,Ltd Ningbo Zhejiang China No. 5 Xingke East Road Meiqiao Industrial Zone Ningbo Praise Stationery Co.,Ltd Ninghai,Ningbo City,Zhejiang Provice,China

135

No.1, 1 Building, No.338 Jiangbin Road Qijiashan, Beilun, Ningbo Ruifeng Packaging Machinery Co., Ltd. Ningbo Ning Bo Zhejiang China No.49 Zhennan Road,Ditang Street,Yuyao City,Zhejiang Ningbo Ruihua Electronics Plastics Co.,Ltd. Province,China No.247, Shuntai Road, Kanxi Industrial Zone, Kandun Ningbo Ryaca Electrical Co., Ltd Street, Cixi City Ning Bo Zhejiang China No.216 Long Jiao Shan Road, Bei Lun Zone Ning Bo Ningbo Senior Stationery Co.,Ltd Zhejiang China No.203 Yingzhou Road,Beitang Industrial Zone,Juexi, Ningbo Senle Garment Co., Ltd. Xiangshan County,Zhejiang Province,China No.1, Building 3, No.55 Chuangfu Road, Xiaogang, Beilun Ningbo Senyuan Paper Co,.Ltd Zone, Ningbo Ning Bo Zhe Jiang China 6 Yangui Road Industrial Zone ,Dongqian Hu Ningbo Springstationery Co.,Ltd District,Ningbo, China Ning Bo China Chongshou Industrial Zone,Ningbo Cixi City,Zhejiang Ningbo Taioor Cookware Co.,Ltd Province,China Ning Bo Zhejiang China Dongtang Development Zone Juexi Town Xiangshan Ning Ningbo Tianmei Knitting Company Bo Zhejiang China No.77,Fenghui Road,Fengcheng Village, Jishigang Ningbo Toyking Co. Ltd Town,Yinzhou District.Ningbo City,Zhejiang Province China Ningbo Trump Houseware Co., Ltd.â€‚ No.77 Shanhai Rd, Yinzhou , Ning Bo Zhejiang China Shidong Village, Industrial Zone East District, Guanhaiwei Ningbo Value Bicycle Cp.,Ltd. Town,Cixi Ning Bo Zhe Jiang China No.380, Shangpu Industrial Zone, Qiangjiao Town,Ninghai Ningbo Wanjin Electric Appliance Co., Ltd County Ning Bo Zhejiang China Ningbo Weifeng Houseware Co.,Ltd No.128 Buzheng East Road Ning Bo Zhe Jiang China Ningbo Wuji Electric Appliances Co.,Ltd. Lubu Industry Zone, Yu Yao Zhejiang China No.16, West Ruhu Road, Simen Town, Yuyao City Zhejiang Ningbo Xihe Children Products Co.,Ltd Yu Yao Zhejiang China No.23 Songyanwang Village,Gulin Town,Yinzhou Ningbo Yinzhou Chenyang Paper Industry Co., Ltd District,Ningbo Ning Bo China Science And Technology Park, Jiangshan Town, Yinzhou Ningbo Yinzhou East Camping Products Co., Ltd. District, Ningbo Zhejiang, China Building 2, No.111, Jingu South Road, Yinzhou Investment Ningbo Yinzhou Runzhi Jiaqi Plastic Co., Ltd. & Business Incubation Of Ningbo , Zhejiang Province,China No.22, Maowubei Road,Tang Ye Village, Jiangshan Town, Ningbo Yinzhou Shigao Sports Co., Ltd Yinzhou District Ningbo Zhejiang China Wanli Road Jianzhuang Shiqi Yinzhou Ning Bo Zhejiang Ningbo Yinzhou Taifeng Garments Co.,Ltd. China Xiangshan Huangbi'Ao Dalin, Ningbo China Ning Bo Ningbo Yongfeite Electrical&Science Co.,Ltd Zhejiang China Chenhenglou Cun Industry Park, Gulin Town, Haishu Ningbo Yuchuang Electronics Co Ltd District, Ningbo City, Zhejiang Province China. No.1001, Yinxian Avenue ( Gulin ), Yinzhou District Ning Ningbo Yunhai Cleaning Products Co., Ltd Bo Zhejiang China No.525 Xueyuan Road,Gaoqiao Development Zone Yinzhou Ningbo Zhenhe Electric Co.,Ltd. District,Ningbo,Zhejiang, China Yutang Industrial Zone, Dongqianhu Tourist Resort, Ningbo Ningbo Zhihao Plastic Co., Ltd Zhejiang China Ningbo Zhongcheng Stationery Co.,Ltd No1,Floor1,Building2,#50 Jinji Road, Qijiashan, Beilun, 136

Ningbo Huangxikou Xidian Town Ninghai County Ningbo City Ninghai Dingfeng Oak Mould Products Co Ltd Zhejiang China Houtang Village,Huangtan Town,Ninghai County, Ningbo Ninghai Shenglong Stationery Co.,Ltd Ning Bo China #349 Zhujia Bihai Industry Area, Xidian Town, Ninghai, Ninghai Xinguang Electric Appliance Co.,Ltd Ning Bo China Zhulin Burg Qiantong Town Ninghai County Zhejiang Ninghai Yuanming Stationery Co; Ltd Province China Ninghai Yuxiang Electric Appliance Co.,Ltd No.168,Laozhan Village,Xidian Town,Ningbo,China Industry Zone, Fengyang County Chuzhou Chu Zhou Anhui No. 11 Branch Of Anhui Deli Glassware Factory China Jin Feng Industrial Development Zone,Zhangzhou, Ocean Glory(Zhangzhou)Daily Necessities Co.,Ltd. Fujian,China No. 8-1 Xiangshaner Road, Songling Village, Duruan Town, Ossen Household Products Co.,Ltd Jiangmen City Pengjiang District Jiang Men Guangdong China #50 Longjing Road,Jianshan Industrial Pan' An Panye Molding And Plastic Co. Ltd. Park,Pan'An,Zhejiang, China No 20, Lufeng East Road, Lujia Town, Kunshan, Jiangsu, Paragon Child Products Co., Ltd Kun Shan China #58Xingping San Road,Pinghu,Zhejiang,China Ping Hu Pinghu Dajie Handicraft Product Co.,Ltd. Zhejiang China No.18 Chengxi Sub-Road Pinghu Zhejiang China Ping Hu Pinghu Gold Elephant Textile Co.,Ltd. China No.1389,Xinggan Road,Dushangang Town Pinghu Jia Xing Pinghu Mega Vacuum Flask Industries Co.,Ltd. Zhejiang China No. 1389, Xinggang Road, Qianjin Village, Quantang Town, Pinghu Mijia Child Product Co., Ltd. Pinghu City China No.358 Yousheng Duan, Provincial Highway 01, Dushan Pinghu Weikesi Children Toys Co., Ltd. Harbor Town, Pinghu City, Zhejiang Province China Zhenlou Industrial Gift Park, Wanquan Town, Pingyang Pingyang Benshida Shoes Co.Ltd County, Wenzhou. Zhen Jiang Wenzhou City. China No.1 Kuang Chi Road, Qian Feng, N.Avenue, Shi Ji Village, Play Safe Sporting Goods And Toys Co., Ltd. Shi Ji Town, Panyu District, Guangzhou City Guangdong China No.99-5.Yandang Road East, Wenzhou Economic Pritech Electric Appliance Co., Ltd Technology Development Zone ,Wenzhou, Zhejiang, P.R. China No.198 Hengsheng Road,Pujiang,Jinhua, Zhejiang,China Jin Pujiang Oushenglai Home-Textile Craft Co.,Ltd Hua China No166, Yidianhong Rd Eda Pujiang ,Zhejiang China Jin Hua Pujiang Yongqiang Quilting Technology Factory Zhejiang China Chuangye Road, Hualin Industrial Area, Chengxiang Distric, Putian Hongli Printing And Package Co.,Ltd Putian City, Fujian, China Pu Tian Fujian China Da He Liu Village, Zhang Ying Town, Jiao Zhou Qing Dao Qing Dao Blue Gate Food Co; Ltd. Shandong China (Zhougezhuang) 36 Weishi Road, Laixi, Qingdao, China Qingdao Arts And Framing Co. Ltd. Qing Dao China Qingdao Bolan Group Co.,Ltd 845 North Guangzhou Road Jiao Zhou Shandong China Zhongcao,Xiazhuang Chengyang District,Qingdao,China Qingdao Da An Industry Co.,Ltd. Qing Dao Shandong China

137

No.768, Beiershan Road, Jiaonan Sub-District, Huangdao Qingdao Huilu Silicone Co., Ltd Qing Dao Shandong China Export Machining Zone, Hongdao Economic Zone Qing Dao Qingdao Innopack Food Co., Ltd Shandong Province China Dongguoyuan Community,Chengyang Subdistrict, Qingdao May'O Arts&Crafts Co., Ltd Chengyang District,Qingdao Qing Dao Shan Dong China Xian Shen Industrial Zone, Zhaoyu Town, Qi County, Qixian Hongli Glassware Co., Ltd Jinzhong City, Shanxi Province, China No.5 Xihutang Street,Pingdong Community,Pingdi Street Quan Feng Toys (Shenzhen) Co., Ltd. Longgang District,Shenzhen,Guangdong Province, China Fosson Building Hengtai Roadï¼ŒQianyang Quan Zhou Fosson Bags Co,Ltd Zone,Shuangyang Industry Area,Luojiang Area, Quan Zhou Fujian China Quan Zhou Qunxin Underwear Manufacturing Co., Fuqiao Road, Quanzhou Xia Men China Ltd. Yingbin East Road, Chengnan Industrial Zone, Huian, Fujian Quanzhou Gimwoo Plastic Industry Co.,Ltd. China Hui Zhou China Xi'An Industrial Area, Anhai, Jinjiang, Fujian China Jing Quanzhou Hengjiada Stationery Co.,Ltd. Jiang China Quanzhou Hengsheng Bags & Luggage No.2,Zian,Nanhuan Road,Licheng Manufacturing Co.,Ltd Area,Quanzhou,Fujian,China Quan Zhou Fujian China Chitang Industrial Area, Chidian Town,Jing Jiang Fujian Quanzhou Rongxing Sports Goods Co., Ltd. China Feng Hui Road,Beifeng Industrial Area Fengze District Quanzhou Xingguang Wujin Gongyi Co.,Ltd Quanzhou,Fujian,China Xinghui Industrial Park, Xiadao Road, Shanghua, Rastar Group Chenghai,Shantou, Guangdong, China Rudong County Hengsheng Machinery Limited No.21 Tianshui Village., Caobu Town, Rudong Country, Company Nan Tong, Jiangsu, China Daitou Village, Xianjiang Street, Ruian, Wenzhou, Zhejiang Ruian Buffet Shoes Co.,Ltd Province, China A-888,Sun'Ao Road, Feiyun New District, Ruian Ruian, Ruian Running Co., Ltd Zhejiang China Building 1, 4Th Street, Hulu Industrial Area, Xian'Gang, Sanjiao Oral Health Co.,Ltd Simapu, Chaonan, Shantou , Guangdong China 3-4 F,Zhengxin Plaza 22# Chongyi Road,Qingmeng, Quan Santic (Quanzhou) Gmt & Knitting Co.,Ltd Zhou Fujian China South Of Geda Village ,Tangerli Town ,Bazhou City Tian Shan Xin Furniture Co., Ltd Jin China No.198 East Weigao Road,Gaoyou ,Jiangsu,China. Gao You Shandong Baiyi Textiles Gaoyou Co. Ltd China Bochang Industrial Zone Hubin Town Boxing County Bin Shandong Boxing Dadi Arts&Crafts Co.,Ltd. Zhou Shangdong China The South Of Yanggezhuang Village, Juchenghe Town, Shandong Fengdun Leather Shoes Co., Ltd Mishui District, Gaomi, Shandong, China Shandong Heishan Glass Group Co.,Ltd No.384,Heishanqian, Badou,Boshan,Zibo, Shandong,China East Of Qian Foshan Rd., Heze City, Shandong Province He Shandong Rongyang Garment Co., Ltd Ze Shandong China North Of Hongshankou Village, Boshan Town, Boshan Shandong Yueshi Glass Products Co.,Ltd. District, Zibo, Shandong, China No. 859 Shenglong Road Jiufu Development Area Jiuting Shanghai Bailaifu Appliance Manufacture Co., Ltd Town, Songjiang Shanghai China 138

333 Huasong Rd Feng Xian District Shang Hai Shanghai Shanghai Bluetech Co China 1848 Nanfeng Road, Qingcun Town, Fengxian Distinct, Shanghai Carry Joy Toys Co, Ltd Shanghai, China No.126,Lane 899,Guangtai Road,Jinhui Town,Fengxian Shanghai Comco Outdoor Products Co.,Ltd District Shanghai China Building 6Th, No.3415 Beiqing Road, Qingpu District Shang Shanghai Dingyue International Trade Co.,Ltd. Hai China No. 28, Shuangma Road, Dianshanhu Town, Kunshan, Shanghai General Sports Co., Ltd. Jiangsu, China Shanghai Hong Xin Wooden Arts & Craft Co, Ltd. G/F-2/F Tower 2, Jun Tian Industrial Estate, Liu Lian, Shenzhen Branch Pingshan Town, Longgang District Shen Zhen China No.1 Changye Road,201 Lane Sheshan Industrial Park Shanghai Jiashun Crafts Toys Co., Ltd. Songjiang District, Shanghai China Shanghai Jinyi Self Adhesive Material Co., Ltd. No. 7168 Daye Highway Fengxian District Shanghai China Shanghai Junda Auto Decoration Co., Ltd. No. 2189 Daye Rd Wuqiao Fengxian Shanghai China Shanghai Luckywood Co.,Ltd No,555 Changxiang Road, Nanxiang Area,Shanghai,China No. 2200 Huiwang Road, Waigang Industrial Park, Jiading Shanghai Merriers Household Co., Ltd. District, Shanghai, China 5553,Rd Wenchuan,Baoshan District, Shanghai,200942 Shanghai Shenxiang Lampshade Company Shang Hai Shanghai China No.2399, Shengang Road Songjiang, Shanghai, China Shang Shanghai Worth Garden Co., Ltd. Hai Shanghai China Shanghai Yongguan Commercial Equipment Co., No.999 Xianghua Road,Chongming Ltd. County,Shanghai(Factory) Shang Hai China 2-3/F Of Building B /Flat Building,West Block,Qianjin East Shantou Antai Development Co.,Ltd Road,Gangrao Industrial Zone Chaoyang District Shantou, Guangdong Province,China. Niuxdi Industrial Area,Fengxiang Street,Chenghai Shantou Chenghai Bohui Plastic Toys Co.,Ltd Dist.,Shantou City,Guangdong,China Yongxin Industry Zone, Lianshang, Chenghai, Shantou, Shantou Chenghai Jinjun Toys Co. Ltd. China Shan Tou China The Middle East Of 1St West Xingye Road, Laimei Industry Shantou Chenghai Taisheng Plastic Toys Factory Area,Chenghai District Shantou,Guangdong China Shantou Chenghai Xinan Qingyi Toys Factory Xinan Industrial Area Chenghai District Shan Tou China The Xindi Of Gaomaoba Area,Zhoupan Village Fengxiang Shantou City Daye Plastic Toys Co.,Ltd Street Management Chenghai District Shan Tou Guangdong China No.4 Of The 1St Lane, East Section Of Xiajiao Industrial Shantou Guanyu Toys Industry Co., Ltd Area, Chenghua Sub-District, Chenghai District, Shan Tou Guangdong China Jinxing Four Road, Jingyuan Industrial Zone, Chao Shan Shantou Huateer Toys Industry Co., Ltd Road West, Shantou, Guangdong China The Third Industrial Zone, Gurao Town, Chqoyang District, Shantou Yachao Underwear Co., Ltd. Shantou City, Guangdong Province, China Chao Yang China #9, Shu Nan Road, Ke Bei Indurstrial District, Shaoxing Shao Xing Xian Meng Fan Textile Co, Ltd Zhen Jiang China Renming Road #1430,Shaoxing,Zhejiang Shao Xing Shaoxing Boai Hometextile Co.,Ltd Zhejiang China Xujiaqiao Village Sunduan Town, Shaoxing Shao Xing Shaoxing City Fine Knitted Textile Co.,Ltd. Zhejiang China 139

Bai Mi Yan Industrial Area ,Cao E Streets,Shangyu District Shaoxing Fangao Stationery Co.,Ltd ,Zhejiang ,China Bai Mi Yan Industrial Area ,Cao E Streets,Shangyu District ,Zhejiang ,China Ruangang Village Lanting Town Shaoxing County Zhe Jiang Shaoxing Fulute Home Textile Co.,Ltd China Nianwu Mountain , Fusheng Town,Shaoxing County Shao Shaoxing Shihui Garment Co.,Ltd Xing China No.111, Shuangta Road, Economic Development Zone, Shaoxing Tangren Shoes Industry Co., Ltd. Shengzhou Shaoxing Shao Xing Zhejiang China Shaoxing Xingnuobao Garment Co.,Ltd Taoyan Town,Shaoxing County Zhen Jiang China 3/F, Building 4, Lianchuang Technology Park, Buji, Shen Zhen Trusda Industrial Co., Ltd. Shenzhen, China Sheng Xing Long Plastic & Electronic Products Building C No 24 Zhenxing Rd Liyuhe Industrial Estate (Shenzhen) Co., Ltd Loucun,Guangming Shen Zhen Guangdong China #28 Huafa East Road, Shengzhou, Zhejiang, China Shao Shengzhou Jialan Garments&Apparel Co.,Ltd Xing Zhe Jiang China Changle Industrial Area, Shengzhou, Zhejiang, China Shao Shengzhou Qi Rui Manufacture & Trade Co., Ltd Xing China 11Th East Half Floor And 12Th Floor, Mingzhuo Building, Shenzhen Adition Audio Science&Technology Mingzhuo Industrial Park, Lou Village, Gongming Town, Co.,Ltd. Bao'An District Shen Zhen China Second Building, 15 Zhangbei Villageï¼ŒAilian Shenzhen Danli Toys Co., Ltd. Community, Longcheng Sub-District, Longgang District Shen Zhen Guangdong China #201 2F And #301 3F Unit No.2 Building , Deren Electronic Guangming Industry Park , Guanguang South Road ,Phonix Shenzhen Dekon Electronics Co.,Ltd Community ,Guangming Street Office Guangming New District ,Shenzhen ,Guangdong Province ,China Building 2A,No.48 ,228 Industrial Area ,Henggang Shenzhen Forrest Health Equipments Co., Ltd Street,Longgang District,Shenzhen Guangdong China 3Rd Floor Building A2 Xinfu Industrial Park Chongqing Shenzhen Fuya Stationery Co.,Ltd Road Fuyong Town Baoan District Shenzhen China Building E, Hong Heng Tai Industrial Park ,Gongming Shenzhen Hanwang Rubber&Electron Co.,Ltd Town,Guangming District, Shenzhen Guangdong China No.6, Lang Sha Road, Lang Xia Community, Song Gang Shenzhen Hexin Wooden Products Co., Ltd. Street Shen Zhen Guangdong China Floor 8Th, Building 6, 3Rd Industrial Zone, Tangwei Shenzhen Huazeng S&T Co.,Ltd District, Gongming Street, Guangming, Shen Zhen Guangdong China Shenzhen Jiayinking Technology Holding Company No.11-1, Anye Road, Anliang, Henggang, Longgang Limited District, Shenzhen, China No.277 Pingkui Road, Shijing Community, Pingshan Street, Shenzhen Junlan Electronic Ltd. Pingshan New District, Shenzhen, China. Shen Zhen Guangdong China 132 Busha Road, Nanling Village Buji Town Longgang Shenzhen Nanling Toys Products Co. Ltd. Shen Zhen Guangdong China No. 57 Gaoke Avenue, Nanyue Community, Longgang Shenzhen Nanyue Nanbao Plastic Company Street, Longgang District, Shen Zhen Guangdong China 1403,1404,1405,1406, No.12 Building, Zhonghaixin Innovation Industry City, 6 Road Ganli, Ganli Industrial Shenzhen Powerqi Technology Co.,Ltd Park, Buji Street, Longgang Disctrict, Shenzhen Guangdong China

140

Room 301, Qiaohua Industrial Zone, Luo Tian Forestry Shenzhen Qiaohua Industries Ltd Center, Song Gang, Bao An Shen Zhen China Block-1 & 1-2/F Of Block 2 Zone D, The Third Industrial Shenzhen Wai Hing Kai Yip Metal Plastic Toys Zone, Tangtou, Baoan District, Shenzhen City, Guangdong, Limited China Shenzhen Xincang Plastic Article Co., Ltd No. 9 - 10, Xihu Industrial Park, Xikeng Community. Henggang Branch Henggang Street, Xili Town Shen Zhen Guangdong China Building A, Dawo Dechangsheng Industrial Zone, Longtian, ShenzhenÂ Touchbeauty Ind. & Exp. Co., Ltd. Kengzi, Pingshan New District, Shenzhen, China Shen Zhen Guangdong China Chenghua Industrial Zone,Wenguan Road,Chenghai Shifeng Cultural Development Co., Ltd. District,Shantou City,Guangdong China No.3 Fudong 2Nd Street,Dongmencun,Fuzhushan, Liaobu Shing Chuen Plastic Products Company Ltd Town,Dongguan City,Guangdong China Guang Zhou Guangdong Province China No.14(Yi Heng), The Railway Station South District, Chao Shing Fung Yuen Ceramics First Factory Zhou Guangdong China No.19 Beiyuan Road,Huangyan Economic Development Shixia Holding Co., Ltd. Zone, Taizhou City,Zhejiang,China Tai Zhou Zhe Jiang China Shuangma Plastic Manufacturing Inc. Shangjin Vilage Yanjiang Town Lin Hai China No.7 Dongfang Alley, Gaoguan East Road, Dongcheng Sihui Rainbow Kids Products Co.,Ltd District, Sihui, Si Hui Guangdong China Qingtang Industrial Area,Dongcheng District,Sihui Si Hui Sihui Yongxinglong Children'S Appliance Factory Guangdong China No.6, Songxia Industrial Zone, Songgang Town,Foshan City, Soleil Pet Products Manufacturing Co., Ltd. Guangdong Province Guang Zhou China Subian,Chashan Town,Dongguan City, Guangdong Subian Plant Of Strategic Sports Province. Dong Guan Guangdong China No.9 Longquan Road, Guangling Industry Zone, Yangzhou Sunny Jet Hosiery Co. Ltd ,Jiangshu,Chiina Yang Zhou Jiang Shu China Building A, Industrial Park, No. 1 Mengtuoli Road, Shayi, Sunny Toys (Shenzhen) Co.Ltd Shapu, Songgong Street, Bao'An District, Shen Zhen Guangdong China Sunvim Group Co.,Ltd Hometextile Company 2 No.1 Furi Steet Wei Fang Shandong China No.23, Tongda Avenue, Likou Town, Siyang County, Suqian Timely Rain Musical Instrument Co., Ltd Siyang, Suqian City, Jiangsu Province, China Wangzhuang Industrial Park, Shanghu Town, Changshu Suzhou Aertai Commercial Equipment Co., Ltd City, Jiangsu Province, China Pingshu Village(Zhangqiao) Xinzhuang Town,Changshu Suzhou Dai-Ichi Mannequins Co.,Ltd City Chang Shu Jiangsu China No.6 Xihenggang Rd. Yangchenghu Town,Xiangcheng Dist. Suzhou Easyclean Electric Appliance Co., Ltd. Suzhou China Suzhou Hongye Business Equipment Manufacturing Building 1&2 Cheluba Wangzhuang Shanghu Town Co., Ltd. Changshu City Jiangsu Province China No.28, Tianduoli Road, Yangchenghu Town, Xiangcheng Suzhou Ittar Electric Appliance Co.,Ltd District, Suzhou 215138, Jiangsu, China Building C9, No.1 Wangshan Industrial Park, No.2588 Suzhou Shunrong Garments Co., Ltd Wuzhong Avenue Wuzhong District Su Zhou China No.18 Yufeng Road,Fangbang Industrial Park,Yushan Town Suzhou Yaween Textile Products Co.,Ltd Chang Shu Jiangsu Province China

141

No.215,East Luoyang Road,Banqiao Ecnomic Zons,Taicang Taicang E&D Garment Co.,Ltd City,Jiangsu Province Tai Cang China No.88 Xintang Road Xintang Zone Liuhe Town Taicang Taicang Well-Chain Industrial Co.,Ltd City Jiangsu Province Tai Cang Jiangsu China No.2, Yongan Road, Binhai Industrial Park, Sanmen County, Taizhou Aiyisi Leisure Products Co.,Ltd Taizhou City, Zhejiang Province, China Tai Zhou Zhejiang Province, China Yuying Industrial Area,Muyu Town,Wenling Taizhou Chuangsen Shoes Co.,Ltd. City,Zhejiang,China Zhen Jiang China No.2, Building 3, Lvtian Dadao, Yangyushan Villiage, Taizhou Meiqile Handicraft Co., Ltd Hengjie Town, Luqiao, Taizhou, Zhejiang China Taizhou Na De Wang Shoes Co.,Ltd No 1 Road ,Industry Erea ,Wenling , Wen Ling China No.9,Zhuling Industrial Area, Beicheng Street, Huangyan Taizhou Shiny Plastic Co., Ltd. District,Taizhou Taizhou,Zhejiang, China No.36 Kangzhuang Road West Industrial Park Huangyan Tai Taizhou Teamwin Arts & Crafts Co., Ltd Zhou ,Zhejiang, China East City Industrial Park,( Yaowang Town ) Taixing, Jiangsu Taizhou Yuanda Furniture Co. Ltd Province, China Tai Xing Jiangsu China Taizhou Zhenuoer Shoes Co.,Ltd. Yuying Industry District Muyu Wen Ling Zhejiang China The Fifth Industrial Area,Nanzha Village,Humen Tak Yuen Plastic Products (Dongguan) Co.,Ltd Town,Dongguan City, Guangdong Province,China No.12, Lougang Avenue, Changsha, Kaiping, Tastychoco Foodstuff Co.,Ltd Guangdong Guangdong,China 529300 Jiang Men China No.53, Qingnian Road Shiyan Town Baoan District Shen Teamhold Arts & Crafts(Shenzhen) Co., Ltd Zhen Guangdong China Xiaxian Road, Xiamei Community, Fengze District Tec-Luck Gifts Factory(Quanzhou) Quanzhou, China Han Xi Shui Industrial Distric Cha Shan,Dong Guan Tian Run Garment Limited City,China Dong Guan China Xinzhuang Team,Fusheng Village, Yeshan Town,Tianchang Tianchang Fuding Gift & Toy Co. Ltd City,Anhui,China Tian Chang Anhui China Zhangzhuang Village, Tianchang Town. Tianchang City, Tianchang Tiansheng Toys Co., Ltd Anhui Province, China Taian Road,Southern District Of Jinghai Economic Tianjin Fuji-Ta Technology Co., Ltd Development Zone, Thanjin City, China. Tian Jin Tian Jin China Tianye Outdoor(Quzhou) Co.,Ltd 895# Century Ave, Qu Zhou Zhejiang China No. 89, North Duruan 2Nd Rd Jiangmen City, Guangdong Together Hardware Manufacturing Co.,Ltd Province, China Sunjia Village, Hengcun Town, Tonglu County, Hangzhou, Tonglu Fuwei Knitting Factory Zhejiang, China Hang Zhou Zhejiang China 66-3 Xingyuan Road,Mingxing Town,Tongxiang City, Tongxiang Zheyi Shoes Co.,Ltd. Zhejiang Province ,China Wu Zheng Zhejiang China Wujin Road, Huangshan Industry Zone Wenyan Town Toolrich Corporation Xiaoshan District Hang Zhou Zhejiang China No. 250 Dongfeng 4 Road Dongcheng Town, Yangdong, Top Autoline Industrial Co.,Ltd Yangjiang City, Guangdong Province China No.318-1 Hexin Road, Bailongshan Street, Yunhe County, Top Bright Animation Group Co.,Ltd Yunhe Lishui City, Zhejiang Province, China Li Shui Zhejiang Branch China Topshow Clothing&Accessories Co.,Ltd Of Suqian Building 7, Jinshajiang, Sihong, Su Qian Jiangsu China

142

No.33 Jinlong Street,Shilongkeng,Liaobu Town,Dongguan Vata Power Source Company Ltd. City,China Dong Guan Guangdong China #1 Keji Ba Road, Shangdi Industrial Zone, Xingtan, Shunde, Ventus Industrial Limited Fo Shan Guangdong China Sam Tuen Management Zone Hou Jie District Dong Guan Vtech ( Dongguan) Electronics Limited Guangdong China W&K Art Materials Co., Ltd Pangu Industrial Park,Liuji Town Yi Zheng Jiangsu China Plant1, Plant2, Plant3, Plant4,No.4 Chuang Ye Road, Long Wa Fai Printing & Paper Product (Sz) Company Village, Da Kang Community, Heng Gang Street, Long Limited Gang District Shenzhen, Guangdong, China Du Cheng Industrial Zone, Yunan County, Yunfu City, Wah Fai Toys (Yunan) Co., Ltd. Guangdong Province, China Building No A51-54, A70, A78, A80, Fu Cheng Ao Indl, Pin Wah Fung Toy (Shenzhen) Co Ltd Wu Town, Long Gang District, Shenzhen China Gao Tang Industrial Park Yuancheng Area Heyuan City Wah Tung (Heyuan) Toys Products Limited Guangdong China Sun Industry Park, Huidong Town, Guangdong Province, Wai Tat Die Casting Toy Fty. (Huidong) Ltd China No.999 North Of Railway Station Street,Changle Weifang Icher Garments Co Ltd County,Weifang City,Shandong Province China Weifang Icher Garments Huangbu Weaving Co., Huangbu Crossing, Chengnan Street, Changle County, Ltd Weifang City, Shandong Pro, China North Fenghuang Road ,Shangze Line Zetou Town Wendeng Weihai Xiewei Garment Co., Ltd Extra-1 Wei Hai China #42 Kunyu Road, Wendong, Shandong China Wen Deng Wendeng Wonder Drawn Works Co.Ltd Shangdong China Guanguang Industrial Area, Economic Development Zone, Wengyuan Zhenyuan Leather Product Co Ltd Wenyuan, Shaoguan City. Shao Guan Guangdong China Xujiawei Panlang Daxi Down Wenling City Zhejiang Wen Wenling Lidebao Shoe Co.,Ltd. Ling Zhejiang China Wenling Mingshi Hats Co.,Ltd Niwu Village, Ruoheng Town Wen Ling Zhejiang China Jian'An Road No.88,Shuitou Town,Pingyang Wenzhou Wenzhou Haojie Co.,Ltd City,Zhejiang Province Wen Zhou Zhejiang China No.26 Haoxin Road,Ouhailouqiao Industry Park Wenzhou Wenzhou Hongcheng Glasses Co.,Ltd Wen Zhou China No.281, Zhonghui Road , Luqiao Industrial Zone , Ouhai Wenzhou Lizhi Shoes Co., Ltd District , Wenzhou City , Zhejiang Province China 4-6Th Floor,No.81,Xueyuan Road,Louqiao Industry Area Wenzhou Shi Jujiu Shoes Co., Ltd ,Ouhai District, Wenzhou City, Zhejiang Province China Wenzhou Tiancheng Shoes Co.,Ltd 368,Jixian Rd,Ouhai,Wenzhou,China Wen Zhou China Wenzhou Union Fashion Industrial Co.,Ltd 2 Wenzhou Avenue Wen Zhou China No. 1 Dongjiao Road Nanyan Town Pingyang County Wen Wenzhou Vigorous Pet Products Co Ltd Zhou Zhejiang China No. 3 Industrial Park, Jinxiang Town, Cangnan, Wenzhou Wenzhou Xinfeng Composite Material Co., Ltd. Wen Zhou Zhejiang Province China No.729,3Path,2Road,Binhai Economic &Technological Wenzhou Xinshili Industrial Co., Ltd Development Zone. Wen Zhou Zhe Jiang China No.5-7,6Th Building,No.1790 Gaotong Road,Ouhai Wenzhou Yiming Shoes Co.,Ltd. District,Wenzhou,Zhejiang,China Wen Zhou Zhejiang China Xingye Road Chenzhuang Village Ouhai Town Wenzhou Wenzhou Yinmiao Shoes&Garment Factory City Zhejiang Province Wen Zhou Zhejiang China 143

2 Daxin Rd.,Huaide Community,Humen Town, Wingpet Manufactory Co., Limited Dongguan,Guangdong,China Dong Guan Guangdong China Shangqiao Keelwell Industrial Area, Dongcheng Dongguan Wonderful Industrial Co., Ltd Dong Guan Guangdong China 66 Huichang Road Huishan Industry Park Wu Xi Jiangsu Wuxi Jht Group Co., Ltd China Beiqu Village, Heqiao Town, Yixing City, Jiangsu Province Wuxi Jinhaocai Household Articles Co., Ltd. Yi Xing China Wuxi Maidenli Garments Co., Ltd 11,Zhouxin Road Taihu Town Wuxi Wu Xi Jiangsu China No.8, Donghuan Road, Yuqi Town, Wuxi City, Jiangsu Wuxi Quansheng Textile Co.,Ltd Province Wu Xi Jiangsu China Wuyi Hongsheng Leisure Articles Co.,Ltd No.9, Yingxiang Road, Huanglong Industry Zone China Jinlong Road No.7, Gangtou Industrial Zone,Lvtan Town, Wuyi Sansen Leisure Products Co., Ltd Wuyi County, Zhejiang, China Wu Yi Zhejiang China Wuyishan Ecological Venture Park Wuyishan City Zheng Wuyishan Homegrowing Enterprise Ltd He China Wuyuanxian Xinde Garments Co.,Ltd Jin Ji Ting Zi Yang Town Shang Rao Jiangxi China No. 3, Shijing Industrial Zone, Pingshan, Pingshan District, X.J. Electronics(Shenzhen)Co.,Ltd Shenzhen, China Shantang Industrial Zone, Silian Paibang Village, Henggang X.J.Electrics (Shenzhen) Co., Ltd Town, Longgang District, Shenzhen, China No.8 Lianmei 3Rd Road,Lianhua Industrial Xiamen Bincheng Wood Co.,Ltd District,Tongan,Xiamen,China Xia Men Fujian China 2/F No.19 Building, Siming Industrial Park, Xi Ke, Tong An Xiamen Comfier Technology Co.,Ltd. District, Xiamen, China Xia Men Fujian China No.161 Zenglin Industrial Area, Maxiang Town, Xiangan Xiamen Haida Co.,Ltd District, Xiamen City, China, Pc361101 Xia Men Fujian China No.53 Tongming Road,Tongan District, Xiamen, China Xia Xiamen K-Power Sports Co., Ltd Men Fu Jian China No.1043, Tong Ji Zhong Road Tong An District, Xiamen Xiamen Long Afterglow Co., Ltd Fujian China Xia Men China No.55-56, Simingyuan, Tongan Industrial Concentrat, Xia Xiamen Spark Sports Goods Co., Ltd. Men Fujian China Xiangshan Huayi Garment Col,Ltd Dongxi Xiangshan Ningbo Ning Bo China Zhangji Industrial Park Xiangshui Countyï¼Œ Yancheng Xiangshui E&D Garment Co.Ltd Yan Cheng China Economic And Development Zone, South Xi Kang Road, Da Xiangteng Home Textiles Factory Feng City, Jiang Su Province Da Feng Jiangsu China Dalu Industrial Zone Xianju Taizhou Zhejiang Tai Zhou Xianju Jiateng Arts & Crafts Factory China No.1, Xinxia Road, Industry Zone, Anfeng Town Xing Hua Xinhua Weitai Garment Co.,Ltd Taizhou Jiangsu China Batou Xingda Industry Zone Chenghai District Shan Tou Xinxun Aeromodelling Toys Co., Ltd. Guangdong China The Crossing Of Huchenghe Road And Guihua Xiping Huaye Ceramic Co Ltd RoadIndustry Cluster DistrictXiping Country Zhu Ma Dian Henan Province China South Of Xiaohe Road Peixian Economic Development Xuzhou Guohong Packaging Co,Ltd Zone Xu Zhou Jiangsu Province China Yahao Mechanical Mould Co Ltd Yahao Mechanical Mould Co Ltd No.3 New Street Road 144

Xin'An Community Dong Guan Guangdong Providence China Yangjiang Goodken Silicone Manufacturing Co., No.9, Mayan Gongye Middle Road, Jiangcheng District, Ltd Yangjiang City Guangdong Province, China No.10, Nahuo Industrial Zone Yang Dong Town Yang Jiang Yangjiang Home & Idea Co. Ltd. China Yuzhong Building Nawei Industiral Yangdong Yang Jiang Yangjiang Jintai Manufactory Co., Ltd China No 325 National Road, Bei Guan Li Zhi Mound Yang Dong Yangjiang Shuntong Furance Co.,Ltd District Yang Jiang China Yangjiang Yangdong District Beiguan Hongtu Beiguan Road Yangdong Yang Jiang Guangdong China Metal Products Factory No.78.Shugang West Road,Xihu Town, Yang Zhou Jiangsu Yangzhou Ciyang Arts & Crafts Products Co., Ltd China Industrial Zone, Fang Xiang Town, Hanjiang Area, Yangzhou Dongsheng Handicraft Products Co.,Ltd Yangzhou City, Jiangsu Province, China 225117 Yang Zhou Jiangsu China No. 67 Renmin Road, Gongdao Town, Hanjiang District Yangzhou Hanjiang Yongen Shoes Factory Yang Zhou China Yi Jia Village, Fang Xiang Town, Han Jiang District Yang Yangzhou Huabang Arts Making Co. Ltd Zhou Jiang Su China Dingzhuang Group (Industrial Zone), Dingzhuang Village, Yangzhou Kangle Machinery Co.,Ltd Gaoyou Town, Gaoyou City, Yangzhou Jiangsu China Hangji Town, Yangzhou City, Jaingsu Province, P.R.China Yangzhou Star Oral Care Products Co., Ltd Jiangsu, China Yang Zhou Yangzhou/Jiangsu China 13 West Hongcheng Rd, Fandxiang Town, Yangzhou, Yangzhou Tengyi Shoes Manufacture Co. Ltd Jiangsu Yang Zhou China Yangzhou Yuanjie Shoes Industry&Chemical Fiber Renmin Road, Gongdao Town, Yangzhou City, Co.,Ltd Jiangsu,China Yang Zhou Jiangsu China No. 27, Haixing Road, Fangyuan Industrial Park, Haiyang Yantai Langlang Fashion Co., Ltd . City, Shandong Province, China Hai Yang China No 188ï¼Œ Puwan Street Fushan District Yan Tai Shandong Yantai Pacific Home Fashion Fushan Mill China 5/F,No 50,Xin He Road,Shang Mu Gu Area, Ping Hu Yi Feng Watch &Jewellery Manufacturing Co Ltd Street,Ping Hu Town,Long Gang District,Shenzhenï¼ŒGuangdong, China 3Rd And 4Th Floor, 28 Yi Feng Lu, Shang Huang, Niu Yi Xing Shun Garment Fty Tang, Nan Lian Cun, Long Gang Shenzhen Shen Zhen China Fengda Industrial District,Hengdong Road, Yick Chi Confectionary Company Ltd. Dongkeng,Dongguan,Guangdong,China Dong Guan Guangdong China No. 38, Yanshui Industrial Zone, Pengjiang District, Yisheng Electric Appliance Manufacture Co., Ltd Jiangmen City, Guangdong, China. No.3 Second Street Wuhua Road Heye Tang Town Yiwu, Yiwu City Dengjian Accessories Co Ltd Zhejiang China Zhe Jiang China No.21,Chang E Road,Yiting Town,Yiwu,Zhejiang,China Yiwu Diyuan Apparel Co.,Ltd Yiting Town Yiwu Zhen Jiang China No.717 Huimin Road,Niansanli Street,Yiwu City,Zhejiang Yiwu Qinyang Textile&Knitting Co.,Ltd. Province, China Yi Wu China No. 1399 Chengxin Road, Niansanli Street Yi Wu Zhejiang Yiwu Zhihang Stationery Co., Ltd. China Yixing Great Plastic Product Co.,Ltd. Shidang Village, Dingshu Town Yixing City Jiangsu China 145

No.1198, West Songshi Road, Chengxi Industrial, Yongkang Fly-Cup Co., Ltd Yongkang, Zhejiang, China Yong Kang Zhejiang China Yongkang Meishang Drinkware Plastic Products The 2Nd Floor, No 99 Linghsi Rd Chengxi New Zone, Co.,Ltd. Yongkang Yong Kang Zhejiang China Lou Dian Industry Zone,Gu Shan Town,Yongkang, Yongkang Shengfei Leisure Products Co.,Ltd Zhejiang,China Yong Kang China No.383, Huaxia Road, Economic And Development Zone, Yongkang Tangsheng Industry Co., Ltd. Yongkang, Zhejiang, China Yong Kang Zhejiang China East Industrial Zone, Meixian Village Of Youxi Youxi Hexian Garment Co.,Ltd Town,Sanming City,Fujian Province San Ming China No. 128 Gujia ,Weijiaoqiao, Sanqishi Town, Yuyao ,Ningbo, Yuyao Bright Art&Crafts Co.,Ltd China Yu Yao China Yao Bei New Zone, Langxia Town Yuyao City, Ningbo Yuyao Jason Christmas Decoration Co.,Ltd Ning Bo Zhejiang China Miaojiawan Village,Shenhou Town,Yuzhou City,Henan Yuzhou Boyu Ceramics Co.,Ltd Province,China. Xu Chang China The Sima District Chang Ping Town Dongguan, Guangdong Zed Candy (Dongguan) Company Limited Province Dong Guan China No.899 Hujia Road,Changdong Industrial Zelin Industrial Co., Ltd. Zone,Nanchang,Jiangxi Province,China Nan Chang China No.298-18 Lianyi Rd,Luzhi Town, Suzhou, Jiangsu, China Zhan Xiang Co., Ltd Of Suzhou Su Zhou China Jingu Village Fenghuang Town Zhangjiagang City Zhang Jia Zhangjiagang City Runda Finery Co.,Ltd Gang Jiangsu China Shuanglong Village Fenghuang Town Zhangjiagangjiangsu Zhangjiagang Shenglong Garments Co.,Ltd Zhang Jia Gang China Gaoqiao, Houcheng, Jingang Town, Zhangjiagang City, Zhangjiagang Shibide Sporting Goods Co., Ltd Jiangsu Zhang Jia Gang Jiangsu China Textile Rd., Muogang, Zhaoqing City Zhao Qing Guangdong Zhaoqing City Golden Richtoys Co., Ltd. China Ling Xia Zhang Village Anzhou Subdistrict Xian Ju County, Zhejiang Xianju Jieda Fech Art Industry Zhejing Prov, China Zhen Jiang China No. 2 Keji Road, Economic Development Zone Wenling Zhejiang Aishida Electric Co., Ltd City Tai Zhou Zhejiang China No 268 Zhaohui Road, Nanhu District, Jiaxing Ciity Zhejiang Camelion Electric Industrial Co., Ltd. ,Zhejiang,China Zhejiang Charmingsports Industrial & Trading Co., Huzhailong, Jiaodao Town, Wuyi, Zhejiang, China. Jin Hua Ltd Zhejiang China No.23, Yuandian Road,Yuanqiao Town,Huangyan Zhejiang Delijia Stationery Co,. Ltd. District,Taizhou Zhen Jiang China 5,2Nd Danchen Road Beiyuan Industrial Zone Yiwu Yi Wu Zhejiang Goldtop Hat & Fashion Co., Ltd. Zhejiang China Anji Economic Development Zone,Tangpu,Anji Zhejiang Haoguo Furniture Co.,Ltd County,Zhejiang Province,China. Hu Zhou Zhejiang China 999 Jigong, Tiantai County,Taizhou Zhejiang, China Tai Zhejiang Helen Plastic Co.,Ltd Zhou Zhejiang China No.860 Beihu Street East Wukang Deqing Hu Zhou Zhejiang Hengfeng Top Leisure Co., Ltd Zhejiang China Dashuxia Huangchang Road Xicheng Huangyan Tai Zhou Zhejiang Hongji Toys Manufacture Co., Ltd. China No. 998,Jindu Road Yongkang Economic Development Zhejiang Huangtai Kitchenware Company Ltd. Zone Yongkang Zhejiang, China 146

Zhejiang Huangyan Jingcheng Mould&Plastic No.47,Ningchuan East Road,Ningxi,Huangyan,Taizhou Tai Factory Zhou Zhejiang China No.388 Minlian Road,Shimen Town Zhejiang Zhejiang Jinhao Solar Energy Technology Co.,Ltd Province,China Tong Xiang Zhejiang China No.1ï¼ŒKangji Road,Jindong,Jinhua,Zhejiang,China Jin Zhejiang Jinhua Runchn Tools Co.,Ltd Hua China Qiaonanshen Village,Chengxiang Town,Xiaoshan, Hang Zhejiang Jinlifa Down Products Co.,Ltd. Zhou Zhejiang China No,1211 Xianyuanroad,Jinhua City Zhejiangprovince Jin Zhejiang Jiuhe Hardware Products Co,Ltd Hua Zhejiang Province China No.180 Guang'An Road Tongxiang City Zhejiang Zhejiang Kangbao Household Textiles Co., Ltd. Provinceï¼Œ314500ï¼ŒChina Zhejiang Liantong Home Furnishing Products No.11 Industry Street, Fangqian Town, Panan Jin Hua Coã€‚ï¼ŒLtd Zhejiang China No 8, Likai Road,Jianglong Zone,Jiyang Street Zhu Ji Zhejiang Likai Shoes Co.,Ltd Zhejiang Province China Addï¼šNo.88,Â XinyuanÂ Road,Â AnwenÂ IndustrialÂ Par Zhejiang Lvlin Technics Co., Ltd. k,Pan'AnÂ County, Â Zhejiang,Â China Jin Hua Zhejiang China Zhejiang Mega Housewares Co., Ltd No.8 Yunan Road,Yucheng Town,Haiyan, Jiaxing China No. 1-1 West Side, New Bridge, Linpu, Xiaoshan, Hangzhou Zhejiang Multi Glory Home Textiles Co.,Ltd City, Zhejiang Prov, China Zongsi Road,Jinxi Economic Development Zone Jinhua City Zhejiang Onetime Leisure Products Co.,Ltd Jinhua City Jin Hua Zhejiang Province China Xiaozhai Village, Dongshan Street, Jingye Road, Ruian Zhejiang Povos Electric Industrial Co., Ltd Economic Development Zone, Wenzhou, 325200 Zhejiang, China No.3,Xinzhong Road, Xinbi Street, Jinyun County, Li Shui Zhejiang Qunying Vehicle Co.,Ltd. Zhejiang China No. 2858, Xicheng Road, Yiwu, Zhejiang, China Yi Wu Zhejiang Renpai Garment Co. Ltd Zhejiang Province, China No.26 Jinshan Avenue, Pingdu Comprehensive New Area, Zhejiang Sanjian Industry & Trade Co.,Ltd. Qingyuan Country, Lishui City, Zhejiang Province, China No.2 Dongsheng Rd., Businessman Investing Zone, Jiashan Zhejiang Shanghong Shelf Co., Ltd. County 314100, Jiaxing, China Baiyang Industrial Zone(Baiyang Ave.) Wu Yi Zhejiang Zhejiang Sunshine Leisure Products Co., Ltd China Shangjiaoyang Industry Zone , Luoyang Town, Taishun Zhejiang Taixing Child'S Toys Co., Ltd Country, Wen Zhou China Building 1-6, No.168,Xintan Road, Economic Development Zhejiang Textilene Industry Trade Co.,Ltd. Zone Taizhou,Zhejiang Province, China No.651 Jiuzhou West Road, Hardware & Scientific- Zhejiang Tianxin Sports Equipments Co Ltd. Technical Ind Yong Kang Zhejiang China #777ï¼ŒZongze North Road,Liuqing Industrial Park, Yi Zhejiang Vanqian Garments Co.,Ltd Wu Zhejiang China No.100 East Road Chaoyang,Fotang Town Yiwu City Zhejiang Wanyu Knitting Co., Ltd Zhejiang Province China Jiangu Country, Period 2, Crafts City,Xianju County, Zhejiang Xianju Sanding Crafts Works Taizhou, Zhejiang, China No.138,Xinggong Road,Huzhen Town,Jinyun Country, Zhejiang Yichun Industrial And Trading Comany Zhejiang,China Li Shui Zhejiang China Zhejiang Yinhai Stainless Steel Products Co., Ltd Guanyin Bridge,Jiacheng Road Xiuzhou District,Jiaxing, 147

Zhejiang,Cn Jia Xing Zhejiang China Unit 1: No.58,Jinxian Rd, Xincheng Distrct, Pan'An City, Zhejiang Youqiang Industrial Co.,Ltd Zhejiang P.R. China/Unit 2 :Houzhu Village, Fangqian Town, Panan County, Jinhua City, Zhejiang Province, China Zhejiang Youquan Care Products Technology Co., New Century Industrial Park, Lijiaxiang Town,Changxing Ltd County Hu Zhou Zhejiang China No.999 East Kaifa Road Zhouxiang Cixi Ningbo Zhejiang Zhejiang Yueli Electrical Co.,Ltd China Ning Bo Ning Bo China No.2-10,Buliding 10,Xiangyun Road,Yangliuhe Industrial Zhejiang Yunhe Bell Arts@Crafts Co., Ltd Park,Yunhe County,Lishui,Zhejiang,China Zhejiang Zhengyi Toy Factory No.78 West Chengnan Road, Yunhe, Zhejiang, China Zhejiang Zhongsheng Craft-Making Co.,Ltd No.3,Zhongsheng Road,Wuyi City321200,Zhejiang,China No.1 Guangming Village, Biancheng Town, Jurong, Zhen Zhenjiang Sky-Solar Co.,Ltd. Jiang Jiangsu China Zhong Shan Deng Hong Handicraft Product Limited No. 5, Yan Wan Street, Mao Wan Village San Xiang Twon Company Zhong Shan City Industrial Area, China Zhong Shan Jie Xing Commodity Manufacture Co., Shunjing Industrial Zone, Li Xi, Ban Fu Town, Zhongshan Ltd. City, China Zhong Shan Jinting Plastic & Hardware Products Side Of Du Xing West Road Du Tou Village South District Co.,Ltd. Zhong Shan Guangdong China Wan An Industrial District Wan An Chuen, Xiao Lan Ji Zhong Shan Kin Tak Garment Factory Ltd Dong 1 Zhong Shan Guangdong China No.22,Longshan Road, The 3Rd Industrial District, Tanzhou Zhong Shan Mei Yuan Cosmetics Company Ltd. Town,Zhongshan, Guang Zhou China Baishawan Industrial Park North Qiwan Avenue East Zhongshan Camry Electronic Co. Ltd. District Zhong Shan Guangdong China Zhongshan City Dachong Town Lifu Garment Nanwen Management Area Dachong Town Zhongshan City Factory Zhong Shan Guangdong China 1/F Of South Building 2, Maxin Industrial Zone, Xingpu Zhongshan Galanz Household Appliances Co., Ltd. East Road, Huangpu Town Zhongshan City, Guangdong China No.2 Nantou West Road,Nantou Town,Zhongshan Zhongshan Hengli Elelctrical Appliance Co., Ltd. City,Guangdong, China Zhong Shan Guangdong China Xinfa North Road, Huang Pu Town, Zhong Shan City, Zhongshan Horizon Outdoor Products Ltd Guang Dong Province, China No. 3, Science Park, Jiujiang Town, Nanhai Area, Foshan Zhongyuan Innovation Co.,Ltd 528203, Guangdong- China Zhu Ma Dian Jin Hui Knit Garment Co.,Ltd No. 7 Wu Tong Road Zhu Ma Dian China 1000M Southern Head Of East Outer Ring Zhuchneg Zhucheng Hengwei Clothing Co.Ltd Shnadong China Lanjiacun Industrial Park, Zhucheng, Weifang City Wei Zhucheng Huirun Garment Factory Fang China Zangkejia Road, Textile And Clothing Industrial Park, Zhucheng Tianyao Garment Co.,Ltd. Longdu District, Zhucheng, Chiina Zhu Cheng China Pule Industrial Zone, Mizhou Street, Zhucheng, Weifang Zhucheng Xinsheng Garment Co., Ltd City, Shandong Province Zhu Cheng China Zhuji Menglite Knitting Co.,Ltd Zhangjia, Caota Town, Zhuji City, Zhejiang Prov.China No.5 Yesheng Road,Sujiagou Village,Badou Town,Boshan Zibo Baoxiang Glass Co., Ltd District Zibo City,Shandong Province Zi Bo China Beigushan Village,Yuanquan Town,Boshan District,Zibo Zibo Jinxuan Light Industrial Products Co., Ltd City,Shandong Province,China 148

Huagou Village, Qifeng Areaï¼ŒHuantai County, Zibo Zibo Longtu Arts&Crafts Co.,Ltd City, Shandong Province, China

EGYPT Oriental Weavers International Industrial Area A-1, 10Th Of Ramadan City Ramadan Egypt

INDIA A.S.K. Apparels 11/1,Periyar Nagar West, Karur, A.S.K. Apparels Tamilnadu. Karur India Plot No 213 , Sector -4 , Phase-Ii , Imt Manesar Gurgaon Bindu Export Haryana India Ceela International, B-11 ,Sports & Surgical Complex, Ceela International Kapurthala Road, Jalandhar Punjab India Sf No.229, Vagarai Village, Poolampatti-Vagarai Road, Classic Knits India Private Limited Palani (Tk) Dindigul (Dt), Tamilnadu, Tirupur India Behind Sector 29 , Part 2 , Hudapanipat - 132103 , Haryana Crown International India Panipat Haryana India Golden Terry Towel Pvt Ltd G.T.Road Village- Jhattipur Aa Aa Aa Panipat Aa India Gupta International Pasina Khurd Road Sewah Panipat Harayana India Plot No. 153 I&J Hsidc Ind .Area Epip Kundli Sonipat Jagdamba Cutlery Pvt Ltd Sonepat India Jawandsons V And Po Bhamian,Tajpur Road, Ludhiana Jawandsons Punjab Ludhiana India Jvs Export, Plot No.1 & 2, Mitpl Campus, Thathampatti Jvs Export, Village, T. Vadipatti Taluk, Madurai Madurai Tamil Nadu India A-43, Sector 58 , Noida Noida (Gautam Budh Nagar) Uttar Kapoor & Company (Exports) India Pradesh India Keyur Kitchenware Kunal Indl. Estate, Unit No. 5-9, Near Keyur Kitchenware Sbi, Gauraipada, Vasai (E), Dist.- Thane- 401208 Vasai India Krishna Sports Industries S-10 Industrial Area Jalandhar Punjab India National Plastic Industries Limited Plot No 263, Demin National Plastic Industries Limited Road, Dadara Naghar Haveli, U.T. Of Dadara , Silvassa Silvassa India S.No.765/1A,1B,2A1, 2A2,766/3A,769/2A,2B Padur Road, Natural Products Export Corporation Ltd Kuthampakkam Village Irularpalayam, Poondamalle Tk, Thiruvallur District, Chennai â€“ 600 124, Tamilnadu, India Unit V 2/642A,Ncc House ,Mangalam Road Tirupur Network Clothing Company Private Limited Tamilnadu India Opp.Modern Public School Delhi Road, Moradabad-244001 Parth Overseas Moradabad India Plot No. 446, Udyog Vihar Phase V, Gurgaon, Haryana Pearl Global Industries Limited Gurgaon Delhi Haryana India 274, Udyog Vihar, Phase-2, Gurgaon, Haryana, India Pearl Global Industries Limited Gurgaon Haryana India Primacy Industries Ltd, Unit 2 Unit - 2, Plot No 199, 200, Primacy Industries Ltd, Unit 2 Baikampady Industrial Area Mangalore Mangalore India Primacy Industries Ltd. 7/A, Baikampady Industrial Area Primacy Industries Ltd.,Mangalore Mangalore Karnataka India 149

Prince Corp Private Limited 688/10(2) B, Somanth Kachigam Road India Sf.No.181, Kollupalayam, Arasur, Coimbatore Tamil Nadu Quantum Knits Pvt Limited India Ram Coir Mills P Bno. 34, Nedumbrakkad, Cherthala Po, Alappuzha India Sf No:255/2A,Vettaikaran Koil, Modachur Scm Garments Pvt Limited Road,Gobi(Tk),Erode(Dt) Erode Tamil Nadu India Shahi Exports Pvt.Ltd. Industrial Plot No. 1 Sector â€“ 28 Faridabad Haryana India Sharma International C-28, Site-C, Upsidc Induatrial Area Sikiandra Agra India E-42, Industrial Area E-42, Industrial Area, Panipat Panipat Sheen Tex India Haryana India Lakri Fazalpur, Near Mini Bypass, Delhi Road, Moradabad Shree Krishna Impex Up India 42 K.M. Stone, Delhi Rohtak Road, Near Asaudha Police Sumanglam Footwear Pvt. Ltd. Chowky Bahadurgarh, Jhajjar Bahadurgarh Haryana India T C Terry Tex Vill Sarsini, Near Ambala Chandigarh T C Terry Tex Highway, Tehsil Dera Basi, Distt Mohali, Punjab 140501 Mohali India The Shivalika Rugs Near Kohinoor Resort Risalu Road Panipat India India World Fa Exorts Pvt Ltd Plot No-449-450, Hsidc, Epip, Sonepat Haryana India

INDONESIA P.T. Sai Garment Industries Jawa Tengah Semarang Semarang Indonesia Dsn Demesan Desa Girirejo Kec.Tempuran Kab.Magelang Pt. Anugerah Abadi Magelang Solo Central Java Indonesia Jl. Pelabuhan Ii Km 15 Kp. Pasir Gabig Rt 03 Rw 03 Desa Pt. Citra Unggul Perkasa Garment Bojong Kembar Kec. Cikembar Kab. Sukabumi Sukabumi Indonesia Jalan Raya Karang Tengah Km. 14, Nomor 741A, Kp Pt. Daehan Global Selaawi Desa Karang Tengah, Kecamatan Cibadak, Kabupaten Sukabumi, Jawa Barat Sukabumi Indonesia Jl. Raya Sandang Subang Km . 138 , Dsn Cikadu , Ds. Pt. Daenong Global Mayeti, Kec. Dawuan , Kab Subang , Jawa Barat Jawa Barat Indonesia Jl.Raya Parung Kuda Km. 21 Desa. Sundawenang Rt.13. Pt. Doosan Dunia Busana Rw.02 Kec. Parung Kuda Kab. Sukabumi 43157, In Sukabumi Indonesia Jl. Raya Sukabumi Kp. Cipanggulaan Rt.06/02 Desa Kompa Pt. Doosan Jaya Parung Kuda Kab. Sukabumi-Jawa Sukabumi Indonesia Jl. Raya Cikuda, Kampung Cikuda Rt.003/Rw.006 Desa Pt. Fotexco Busana International Wanaherang, Kec. Gunung Putri, Kab. Bogor Bogor West Java Indonesia Pt. Tyfountex Indonesia Gumpang, Kartasura Sukoharjo Central Java Indonesia Blok Tetelar Sagandu Desa Tegalaren Kecamatan Ligung Pt. Visionland Global Apparel Kabupaten Majalengka Jawa Barat Indonesia L.Loji Kobong-Bongas Blok Ki Ireng,Rt.01/Rw.07.Desa Pt.Bintang Baru Sukses Loji Kobong Kecamatan Sumber Jaya Majalengka,Jaw Jawa Barat Majalengka Indonesia Jl. Raya Cileungsi Jonggol Km4, Desa Cipicung - Cileungsi . Pt.Cermai Makmur Abadi Internatioanl Bogor Kec. Cipicung Bogor Indonesia

150

Jl. Raya Sadang Subang Rt 10/03 Kp. Kiara Dua, Desa Pt.Eins Trend Cikumpay, Kec. Campaka, Kab. Purwakarta. Jakarta Indonesia Jl.Raya Pagaden Subang Gembor Ii Rt 18/06 Kec.Pagaden Pt.Kwanglim Yh Indah Subang Jawa Barat 41252 Jawa Barat Subang Indonesia

MALAYSIA Lot 669, Jalan Perusahaan Satu, Kawasan Perusahaan Cy-Handee Rubber Mouldings Sdn. Bhd. Satu,34200 Parit Buntar, Perak, Malaysia

PAKISTAN New Mianapura East Roras Road Sialkot Sialkot Punjab Barna International Pakistan Bismillah Textiles Ltd 1 Km Jaranwala Road Khurianwala, Bismillah Textiles Ltd Faisalabad Faisalabad Pakistan Gohar Textile Mills (Pvt) Ltd 3-Km Jhumra Road, Khurrainwala, Faisalabad Pakistan Liberty Mills Limited A/51A S I T E, 75700 Karachi Liberty Mills Limited Pakistan 2 Km, Sahianwala Road Khurrianwala (37630) Faisalabad Sadaqat Limited Pakistan

THAILAND 37/6 Moo1 Thakham Sampharn Sampran Nakhornprathom Rex Enterprises Co.,Ltd. Thailand 73/4 Moo.1 Khaelie, Krathumbaen, Samutsakhon Abohar Zenith Infant Products Co Ltd Thailand

VIETNAM Dai Thanh Furniture Jsc (Factory 2) Qui Nhon Binh Dinh Dai Thanh Furniture Jsc Vietnam Seshin Vn2 Khe Xoan Hamlet, Doi Can Village, Tuyen Seshin Vn2 Quang City, Tuyen Quang Province, Vietnam Binh Phuoc B, Binh Chuan Ward, Thuan An District, Binh Vietnam Housewares Co Ltd Duong Province, Ho Chi Minh City Vietnam Binh Phuoc A, Binh Chuan Ward Thuan An Dist. Ho Chi Vietnam Housewares Co., Ltd. (Building 2) Minh City Vietnam No 192, Trung An Road, An Binh Hamlet, Trung An Vietnam Housewares Co., Ltd. (Building 3) Village, Cu Chi District, Hochiminh City, Vietnam

151