“What is MOQ?” MOQ stands for Minimum Order Quantity and is directly linked to price: the larger the volume, the lower the unit price; the smaller the volume, the higher the amortized cost of printing plates and cutting dies. When asking for a quote, clarify both the MOQ and the tiered pricing; don’t just look at a single unit price.
“What are the trade terms?” Trade terms determine who pays for shipping and where the risk transfers: FOB (Free On Board) means delivery at the port of shipment, with the seller responsible for getting goods there; CIF (Cost, Insurance, and Freight) covers costs, insurance, and freight to the destination port; EXW (Ex Works) means delivery at the factory, with the buyer handling pickup; DDP (Delivered Duty Paid) means the seller handles everything, including duties, for door-to-door delivery. Different terms lead to significant differences in quotes.
“What documents are required?” The Packing List, Commercial Invoice, Bill of Lading (B/L), and Certificate of Origin (CO) are the essential export documents; they are crucial for customs clearance, taking delivery, and tax rebates. Without complete documentation, you won’t be able to pick up the goods even after they arrive at the port.
“What are the payment terms?” Common ones include T/T (Telegraphic Transfer), L/C (Letter of Credit), and D/P (Documents against Payment). In the packaging export industry, the most common method is a deposit plus balance payment—usually a 30% deposit, with the remaining 70% paid before shipment. For first-time collaborations, ensure payment terms are written into the contract.
When dealing with export inquiries, the English acronyms on a quotation—FOB, CIF, MOQ, L/C—can be more intimidating than the product specifications themselves. If you don’t understand the terminology, you might lack confidence during price negotiations. This article explains the most frequently used terms in export packaging so you can read quotations without feeling overwhelmed.
“How should I use these terms when communicating with manufacturers?” Review all terms thoroughly upon receiving the quotation and clarify any uncertainties immediately. Ensure agreed-upon terms are written into the contract; a written agreement is far more reliable than a verbal promise. Using the right terminology doubles communication efficiency.
“How do I discuss samples?” “Sample Making” refers to creating the prototype, while “Sample Approval” refers to signing off on it. Clarify details regarding sample fees, free samples, and whether sample costs can be offset against bulk orders; don’t let sample fees become hidden costs.
