What is T/T? Simple rules for small imports

2024 Author: Howard Calhoun | [email protected]. Last modified: 2023-12-17 10:16

It is so easy for an inexperienced person to become confused and deceived in the world of today's international e-commerce that it would be useful to learn about the conditions under which leading Chinese suppliers operate. We will talk about them in this article.

How often do you shop online?

The modern world is so hectic that sometimes we have neither the time nor the desire to go to supermarkets in search of gifts for loved ones or some pleasant surprises for ourselves. Yes, and progress does not stand still, and a considerable part of the advanced population has long gotten used to buying both household goods and clothes in stores offering their services via the Internet.

Let's not talk about Chinese sites - there are a huge number of them, and each one is replete with its attractive prices and a good choice. Of course, eyes widen, and not everyone first thinks about the terms of payment and delivery of such a desired product, but when it comes to this, and we pay attention to how to pay for the chosen pleasant little things, many at this stage have the question "what is T/T".

More sophisticatedthe consumer may be familiar with the international rules of supply set out in the Incoterms 2000 code, but what about those who have little experience in their lives with direct imports?

What is T/T?

So, the Chinese manufacturer offers to pay us for the selected product through the conditions set forth in two cherished letters, overcoming the misunderstanding of which, after a certain time you get the treasured interior items in your hands. What is T/T literally? Telegraphic transfer - telegraphic transfer or telex transfer, although these words are unlikely to say anything to an inexperienced Internet consumer.

To put it simply, this type of payment means an advance payment using the international banking system. You do not need to know anything special, except for the SWIFT code of the Chinese correspondent bank and the full details of the account being replenished. With these data, you apply to a financial institution in your country and fill out a questionnaire. Well, after your money is sent on an international journey, which also involves a third, so-called intermediate institution, which receives funds from your country and transfers them to the recipient.

Nuances of the system

Currently Payment Terms T/T are very common and, according to the Incoterms 2000 set of rules for international deliveries, are often used in the following way: 30% of the transaction amount is paid in advance and transferred to the supplier's account before the goods are shipped, well and the remaining 70% are reimbursed already at the fin althe stage of purchase, in other words, when the cherished goods are already in your hands.

However, do not forget about the amazing features of modern market relations, when there are more than enough scammers. That is why Chinese sellers prefer to work on a 100% prepayment, where only the consumer risks being deceived.

What risks do you bear

What is T/T? This is a convenient system of mutual settlements with business partners, but at the same time, a situation full of unforeseen surprises, when you risk being left both without money and without goods. Well, or the product will still fall into your hands, but only the thing will turn out to be of a completely different quality than that indicated in the supplier's catalog.

The situation should be especially alarming if the Chinese seller does not provide samples of goods in your country to the distributor or partner company. It is one thing if you buy cheap clothes, and quite another when it comes to jewelry. In this case, one can only guess whether this or that factory produced similar products before.

In general, the issue of quality should be considered in more detail. You must understand that the copy seen on the site is a single one and was created only for public display, and when you order a product in bulk, the conscientiousness of its implementation may leave much to be desired. But what can you do if payment through t t has already been made, and even in advance in the amount of 100% of the cost?

And the last thing, which alsoIt is worth paying closer attention to the packaging of ordered products. Often, Chinese manufacturers do not have this aspect, and more fragile goods run the risk of arriving to you already damaged.

How to protect yourself

You must understand that payment t t implies the transfer of all possible risks to the buyer, therefore, in case of dissatisfaction, you will no longer be able to prove anything, unless you decide for yourself not to work with this or that manufacturer anymore.

If possible, negotiate with the supplier about the amount of an advance payment of 30%, especially if it is a large deal, and you are communicating with the manufacturer for the first time. Online negotiations can also play an important role here, since the openness of a potential partner to dialogue is the first way to mutual trust.

Well, when filling out the declaration for sending a T / T payment, pay attention to which person is indicated in the details, and whether the name of the company matches the name of the company of the supplier with whom you agreed to work. After all, you see, it will be strange if the goods are supplied by one person, and the money goes to the account of another.