Decision - making Matrix for Payment Methods of Imported Equipment

In the global trade environment in 2025,Equipment ImportsBusinesses face new challenges such as increased exchange rate fluctuations and supply chain restructuring. Choosing a suitable agency payment method requires comprehensive consideration ofThree core dimensions: transaction amount, supplier credit, and equipment delivery cycle.The mainstream methods include:

• L/C(L/C) – Applicable to first-time cooperation suppliers
  • The single - transaction amount exceeds $500,000
  • The equipment production cycle exceeds 90 days
• Wire Transfer (T/T) – Mature Supply Chain Partners
  • The advance payment ratio is controlled at 20% - 30%
  • The final payment is bound to the equipment acceptance clause
• Documentary Collection (D/P, D/A) – Medium and Long-Term Equipment Financing Projects
  • The payment cycle matches the equipment depreciation period
  • It is necessary to purchase trade credit insurance in a supporting manner

Key Control Points in the Operation of Letters of Credit

According to the latest revised clauses of UCP600, in 2025, special attention should be paid to the following in the operation of letters of credit:

• Identification of soft clauses
  • Authority to Sign Third - Party Inspection Reports
  • Description Method of Acceptance Standards for Equipment Parameters
• Calculation of Document Submission Deadline
  • Maritime TransportationRelationship between Bill of Lading Issuing Date and Letter of Credit Validity Period
  • Message Format Compatibility of Electronic Document Submission System

Practical Comparison between Telegraphic Transfer and Collection

In the scenario of payment before the equipment arrives at the port, the two methods show obvious differences:

• Fund Security
  • For telegraphic transfer, it is necessary to ensure the advance payment guarantee clause.
  • For collection, the supplier should be required to provide a bank guarantee.
• Control over Documents
  • Under the telegraphic transfer mode, it is necessary to independently verify the authenticity of the bill of lading.
  • For collection, document review can be carried out through the collecting bank.

Innovative Risk Mitigation Solutions

For the import of high - value precision equipment, the following can be used in combination:

• Installment Payment Mechanism
  • 10% advance payment + 40% payment after pre - shipment inspection + 50% payment after arrival at the port for acceptance
• Dual - currency Hedging Payment
  • Lock the exchange rate risk for the RMB part
  • Enjoy supplier discounts for the foreign currency part

Key Points of Policy Changes in 2025

• Implemented by the Chinese CustomsPre - ruling systemShorten Customs Clearance Time
  • The pre - ruling for equipment classification can be applied for 180 days in advance.
• Deepened Application of RCEP Origin Rules
  • The Regional Accumulation Rules Affect the Calculation of Tariff Costs
• New Cross - border Financing Policy of the State Administration of Foreign Exchange
  • Equipment financial leasing can apply for foreign debt quota.