Short answer
For a first container, 30% deposit on order confirmation and 70% against a scanned copy of the bill of lading is the standard that both sides can live with: the mill has enough to buy raw material, the buyer holds the balance until goods are demonstrably on the water. An irrevocable letter of credit at sight is stronger for the buyer and costs bank fees both sides. Avoid full payment before production, and avoid open account with a supplier you have not verified. Whatever the terms, tie the final payment to a pre-shipment inspection report — that single clause converts payment terms into quality leverage.
Why 30/70 and not 50/50?
Because 30% covers raw material and the mill's exposure if you walk away, while leaving enough at risk on their side that they care about your inspection. At 50/50 the mill has recovered most of its cost before the panels are pressed, which quietly weakens every conversation you have afterwards about quality.
If a supplier insists on a higher deposit, ask why in specific terms. A genuine reason exists — an unusual raw material bought in advance, a custom overlay ordered for your job — and it is verifiable. A general answer about market conditions is not a reason, it is a negotiating position.
The three clauses worth arguing about
First, inspection: the balance is payable against a passed pre-shipment inspection by a named inspector, with the scope written into the contract — thickness, moisture, face grade against the signed sample, count, and loading photographs. Second, specification: the signed physical sample is the contractual standard, not the words in the email. Third, documents: list every document required for your import and make the final payment conditional on receiving them, because a container you cannot clear is worse than no container.
- Balance against passed pre-shipment inspection, scope written in
- Signed physical sample is the contractual quality standard
- Document list for import completion attached to the contract
- Bank details fixed at contract; changes verified by voice call
When is a letter of credit worth the fees?
When the order value is large enough that the fees are small in percentage terms, when you are dealing with a new supplier in a jurisdiction where recovery would be difficult, or when your own financing requires it. For a single first container at moderate value, the fees and the documentary discipline often cost more than they protect — a well-drafted 30/70 with an inspection clause does more real work.
Questions buyers ask about this
Can I pay after the goods arrive?+
On a first order, almost no mill will accept it, and one that does is either desperate or not the producer. Open account terms are earned over several successful shipments. Ask about them at order three, not order one — asking at order one mainly signals that you have not done this before.
What if the inspection fails?+
The contract should say what happens: rework at the mill's cost with re-inspection, a negotiated discount, or cancellation with the deposit returned less documented costs. Write the remedy in advance, because negotiating a remedy while a container is booked and a vessel is sailing is negotiating from the weaker position.
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LELOI EXIM GLOBAL CO., LTD · Tax ID 2802935153