Path: Ask the Experts >> 

Is the practice of a making a down payment to obtain documentation for the initial registration for the country's FDA normal?

Posted: 2013-06-26

Full Question

I would like to import certain food products. However, I need to do initial registration with my country's FDA. In order to do that, there is some documentation required.. However, the food factory asked me to pay 50% down payment before they can provide me with the documentation. Is this practice normal? At the end of the day, there is no guarantee that the food-product will pass my country's FDA requirement. I may lose my deposit if I cannot legally market the product. I am looking forward to your answers.

Answer

If the documents required are readily available at the supplier, then it does sound strange to me that they would ask for a payment. But keep in mind that everything is up for negotiation when buying from China. So this may be just an effective sales technique. If the documents are common among suppliers, consider finding a new supplier who is more interested in your order.

If the documents require additional expenses on the part of the supplier, then I think it is reasonable to enter into some kind of understanding about who pays for what and why.

Let me know how things work out for you. Hope the ideas above help!

Have another sourcing question? Submit your question to our sourcing experts.

* Your E-mail address:
(Required, but will not be made public)
* Your Question: