Paying for China Imports Safely: T/T, L/C, and Trust Checklist

The Standard: T/T With Deposit + Balance

The most common China export payment is T/T (telegraphic transfer): typically a 30% deposit to start production, balance paid against the Bill of Lading copy or before shipment. This balances the supplier's financing need against your risk of paying fully upfront.

L/C: More Security, More Paperwork

A Letter of Credit (L/C) protects both sides by having a bank release payment only when the seller presents compliant shipping documents. It's higher-friction and costs bank fees, so it suits larger orders or new relationships. For small first orders, T/T with a deposit is usually more practical.

Red Flags to Avoid a Scam

Be cautious if a supplier insists on 100% payment before production with no track record, uses a free email domain, has no verifiable physical factory, or the bank account country doesn't match the supplier country. Always verify the company's business registration and, for serious orders, ask for a factory visit or video tour.

Documents That Protect You

Keep these aligned to the payment milestones: the Commercial Invoice, Packing List, and for L/C the conforming shipping documents. Confirm the Bank of the seller matches the trading company's registration, and that the beneficiary name on the L/C matches exactly — mismatches are a classic source of delays.

A Partner Lowers the Risk

Using an established exporting partner with a verified registration (USCC) removes much of the supplier-selection risk — you're dealing with one accountable company with a track record and its own QC process, rather than vetting dozens of unknown factories.