You have chosen the machine and the factory. The last phase - money, inspection, freight - is where careful buyers convert a good deal into a good outcome, and where careless buyers lose leverage. Here is how to structure all three.

Payment Terms: Standard Structures

30/70 T/T is the industry standard for packaging machines: 30% deposit with order, 70% balance before shipment (after inspection). Variations:

  • 30/40/30: deposit, after factory test-run video, balance after pre-shipment inspection - common for lines above $50,000
  • 100% L/C at sight: banks add 1-2% cost and paperwork; factories accept it mainly for large projects. For a single machine, T/T is simpler and factories price accordingly
  • Avoid 100% upfront, even with a discount - you lose all leverage over build quality and delivery timing

Two payment rules protect you regardless of structure:

  1. Pay only the business account named on the proforma invoice. A request to pay a “financial colleague’s personal account” is the most common fraud pattern in this trade
  2. Never release the final payment before pre-shipment inspection. The factory’s willingness to wait for your inspection after seeing the machine run is itself a quality signal

Pre-Shipment Inspection: Your Last Real Leverage

Once the machine ships, your only remedies are warranty claims across an ocean. Before shipment, use one of these:

Video inspection (free, works for machines under ~$20,000)

Ask the factory to video call you at an agreed time: run the machine at contract speed with your product, open every cabinet to show wiring and component brands, show the nameplate, accessories and spare parts against the packing list. Record it.

Third-party inspection ($200-400)

For larger orders, an independent inspector (SGS, TUV, QIMA, or freelance inspectors) visits the factory with your checklist: specification compliance, safety, wiring quality, run test, packaging of the machine for export. A detailed inspection report also strengthens any later claim.

Inspect against the proforma invoice, not against memory: model, specs, component brands, voltage, included accessories. Discrepancies found here cost the factory, not you.

Shipping: What FOB Actually Means

Most Chinese machine quotes are FOB a Chinese port (Shanghai, Ningbo, Shenzhen, Guangzhou): the price includes delivery to the port and export clearance; you or your forwarder handle ocean freight, insurance and import clearance.

Practicalities that matter:

  • Freight forwarder: you need one. Most factories will recommend one; get your own quote before accepting theirs
  • Machine weight and volume: a VFFS line is typically 400-900 kg and 3-8 cubic meters; budget $1,500-4,000 ocean freight depending on destination
  • Transit time: 15-35 days by sea depending on route; air freight for urgent spare parts takes 5-7 days at 5-10x the cost
  • Import side: duties, VAT and any required import licenses are your responsibility - check your country’s HS code treatment for packaging machinery (typically duty-free to low-duty in most markets)
  • Insurance: ocean cargo insurance costs about 0.2-0.5% of value. Take it - machine damage in transit is rare but total

Commissioning and the First 90 Days

Most factories now commission by video: your technician connects power and air, the factory engineer guides startup and parameter setting over a call. Budget 1-2 days of an electrician’s time for installation, and confirm before shipment that:

  • Manuals, wiring diagrams and PLC program backup are included in English
  • The HMI language can be set to yours
  • The spare parts kit shipped with the machine matches the recommended list
  • Warranty terms (typically 12-18 months, excluding wear parts) and the remote support channel (WhatsApp/WeChat response times) are in writing

Keep every payment record, PI, inspection report and conversation in one folder. In the rare case of a dispute, that folder is the entire case - and factories know it.

For factories worth structuring this carefully with, start from the verified supplier directory - the verification you do before payment is worth more than every clause after it.