As I buy some vinyl for my sign business directly from China, I have had the opportunity to learn some things. While learning, I have found a few people who have allowed me to pay them for the privilege they provided…
- When I first paid the Chinese supplier with PayPal, she promptly refunded my money. She told me I could not pay for this quantity of vinyl in this way when it shipped by a boat. I then had to wire the money. This was complicated because I could not easily wire the money from my business account to a Chinese account due to AML (anti-money laundering) rules. I had to wire it from my personal checking account, and then transfer money from my business account to cover it.
- Once the product was preparing to leave China, I had to hurry to get an ISF (Importer Security Filing) form filed. If this was not filed in a timely manner, my cost would apparently go up to import the product. I had to pay to have the product brokered. To do this I had to wire the money to the broker’s bank (Bank of America) in Los Angeles.
- Once the vinyl was on the boat, the expenses kept coming in. It took three times for them to get the next invoice correct. (I paid with an online check from the second invoice only to see the size of the invoice more than double when the FINAL invoice arrived.)
This is where the “Third Party Deposit” comes in….
My wife, who works at a national bank, told me her bank does not allow Third Party Deposits, but Bank of America does. To complete this type of deposit, you need: a) all of your suppliers banking information (routing #, account #, name on account), b) a blank check, and c) a competent teller. The teller did the deposit slip after confirming the info I had from my supplier was correct. I wrote the check, and shortly thereafter I had the receipt. After arriving home, I scanned the receipt and emailed it to my supplier.
Now, if I was informed correctly, the only remaining fee is a warehouse fee for the storage of my vinyl in Dallas. I did pay for shipping from China to Dallas, but there are quite a few “important” charges along the way before it arrives. Once the $80ish is paid, I will have paid an extra $75 or so for each roll of vinyl. Certainly not a bargain, but far cheaper than shipping each roll FedEx. I saved myself nearly $800 BUT I had to make friends with a few bankers along the way.
