What to Confirm Before Sending a Deposit to a Chinese Supplier

You have agreed on a product and received the supplier’s proforma invoice. The price is workable, and you want to secure the production slot before the launch date slips. But the retail box artwork is still being finalised.

You may be able to pay the deposit and let the supplier buy agreed materials while holding printed packaging until the artwork is approved. But that only works if both sides agree which work the payment authorises, which approvals are still pending and who pays if the plan changes.

What happens after the deposit?

Before paying, agree on the product and quantity, the amount and payment terms, the receiving company and the work the supplier may start. If artwork or another detail is still open, name the approval needed before the affected work proceeds. Also agree who bears costs already committed if the plan changes.

What preparation may start after payment?

A supplier may need a deposit to reserve capacity or start buying standard materials. A buyer may need another week to finish the logo or approve a printed box. Those needs are compatible only when the order distinguishes commercial commitment from production release.

Consider an illustrative situation, not an ICW client case. The buyer has approved a standard bottle body and lid, but the retail box artwork is not ready. The supplier proposes to source the agreed bottle materials now and wait to print the boxes.

That arrangement could be reasonable if it is confirmed in writing:

• The product, quantity and relevant material are agreed.
• The supplier identifies which materials it may buy and what those purchases commit the buyer to.
• Printed packaging cannot be ordered until the approved artwork version is received.
• Any effect on price, MOQ and lead time is understood.
• The arrangement says what happens if artwork is delayed, the buyer changes the design or the order is cancelled.

If these points are not agreed, sending a deposit may permit work the buyer assumed was still on hold. Paying a deposit does not automatically establish a separate production-release process. If you want materials ordered now but packaging printing held, put that distinction and its cost consequences into the agreed order terms.

Which product is being purchased?

The order should identify the actual product version being purchased—not just a catalogue name or photo.

For this order, confirm the essential material, construction or components, size or dimensions, finish, colour, accessories, required market version and any performance or testing requirements that affect acceptability. A drawing, agreed product specification, versioned reference sample or clear written description may be sufficient for a relatively simple product.

Do not make the supplier guess which version to buy materials for. If an important specification is still open, say so and identify what work must wait for approval. Where the original enquiry is too loose, a better RFQ can resolve the ambiguity before payment.

Minor aesthetic choices can sometimes remain open; the material or component on which a committed production purchase depends generally cannot, unless the buyer has explicitly accepted the resulting risk and cost.

What has actually been approved?

An approved sample can be a useful production reference, but approval has to be specific.

Was it a stock sample, a customised sample, a pre-production version, a physical packaging proof or a photo or video review? What did it actually establish—and which production or packaging features still differ?

For example, a satisfactory stock bottle may confirm the base shape and lid fit but not the buyer’s custom coating or printed box. The agreement could allow standard component purchasing while holding coating or packaging production for a later approval. Whether that is practical depends on the supplier’s process and what is already committed.

Record the agreed reference and what remains unapproved. If you still need to arrange that first sample, what to ask before paying for a sample addresses that earlier decision. Once a sample is approved, the sample-to-production guide explains the separate production release in more detail.

The price and delivery basis

A unit price is not the entire order cost. Before a deposit, the buyer needs an agreed basis for the amount payable now and the total amount expected for the confirmed order.

Clarify whether the quotation includes the selected materials and accessories, retail or bulk packaging, logo work, tooling or mould fees, artwork or printing setup, any agreed inspection or testing, and the relevant domestic transport or handover charges. Identify separate one-off charges and items whose price is still conditional.

The delivery term also matters. A quote should identify the named place or port and Incoterms® rule and version, or otherwise state the delivery responsibilities clearly. Incoterms® rules allocate delivery, costs and risks; they do not determine deposit terms, ownership of goods or remedies if either party breaches the sales agreement. The ICC Incoterms® 2020 guidance explains that distinction.

If the quotation is still unclear, read the offer beyond its unit price before turning it into a payment obligation. A buyer choosing between viable suppliers can also compare the quotations on the same order basis.

The quantity commitment

The purchase order or proforma invoice should show the number of units actually being ordered, including relevant colour, size, model and SKU splits.

MOQ and quoted price quantity may differ. A supplier might quote its best unit price at 2,000 units while agreeing to a first batch of 500 at a different price. Or a 1,000-unit minimum may apply to each colour, not the total range. These details affect both the deposit amount and how much inventory the buyer is taking on.

If the order is to be manufactured in stages or shipped in more than one batch, distinguish the total purchase commitment from the production batch and shipment quantities. A staged shipment does not automatically mean the buyer has committed to fewer units.

For the business decision behind the minimum, see what to check before accepting a supplier’s MOQ.

Packaging approvals still open

Packaging can be both a sales requirement and a separate production job. A supplier may use an outside printer with its own minimum quantity, setup cost and lead time.

Separate what is approved now from what still needs proof: inner pack, retail box, labels, warnings, instructions, barcodes, inserts, export cartons and carton marks as applicable to the actual product and target market.

If the artwork is unfinished, the agreement should say whether any packaging materials may be ordered, which version must be approved before printing, and what a late artwork change would cost. A supplier should not be expected to absorb an unagreed redesign after printing has started. Likewise, a buyer should not unknowingly approve a packaging version just by paying the product deposit.

Where packaging or labelling affects market compliance, that requirement cannot simply be postponed until after goods are made. Clarify who is responsible for confirming it and when the approved version must be available.

When production can start

“30 days” is useful only if the buyer and supplier agree what starts the clock and what happens at the end.

The supplier may count production lead time after receiving the deposit and an approved sample, final artwork, available materials or a confirmed production slot. Deposit receipt alone does not necessarily start the period.

The endpoint may be completion of manufacture, readiness for inspection, packed goods available for collection, or delivery at an agreed place. It is not automatically the date inventory arrives at the buyer’s warehouse.

For a conditional start, identify which work can proceed now, which approval is still required, and how the estimated completion date would change if that approval slips. How to ask about lead time covers the timing conversation in more detail.

The seller, beneficiary and payment instruction

The beneficiary and payment instructions deserve a separate verification step. This is not legal, banking or financial advice; follow your own bank’s and company’s controls.

Before paying, match the seller and order reference to the proforma invoice or agreement, then confirm the currency, amount due now, balance trigger and named beneficiary. If the beneficiary differs from the seller, clarify the documented payment arrangement and verify the instructions independently. The person you negotiate with, the legal seller and the payment recipient are not always the same entity.

A different beneficiary can reflect an export or related-company arrangement, but the relationship and authorised payment route need to be documented and checked—not assumed to be legitimate or fraudulent. See why the bank beneficiary name may differ for that separate question.

If payment instructions arrive suddenly or change, verify them through a trusted contact method established independently of the change request—for example, a previously confirmed phone number. Do not rely only on the same message thread, a new number in that message or an apparently familiar sender address. The FBI’s business email compromise guidance specifically recommends independent verification of account or payment changes.

Do not release funds while an unexplained account change or recipient discrepancy remains unresolved. Payment verification reduces risk; it is not a guarantee of recoverability.

Review before balance payment

For a bulk order, the deposit may be followed by production, a pre-shipment review and a balance payment. If the buyer expects photographs, an inspection, tests or a document check before paying the balance, agree on the timing and scope before sending the deposit.

A useful arrangement states when goods will be available, whether they will be finished or packed, who arranges and pays for the review, and what happens if something needs correction. A photo set is not equivalent to a physical inspection; choose the review that matches the order and its requirements.

The balance payment follows the agreed contract milestones. If you need a pre-balance inspection or time to resolve defects, confirm those rights before the deposit; the presence of an Incoterms® rule does not create them. If the proposed payment terms do not allow the review the buyer needs, that is a commercial issue to settle before paying.

Changes after materials are ordered

A planned order can change. The important point is when a change becomes costly or affects a confirmed approval.

For instance, an artwork change before printing may be manageable, while the same change after thousands of boxes have been printed can mean replacement costs. A material change after a purchase order is placed may require a new sample or a revised delivery estimate.

Before paying, agree how requested changes will be recorded and approved, and who bears the additional cost of materials, tooling, work already done or rework. Also clarify cancellation and deposit treatment if the project stops, to the extent relevant to the arrangement. Do not assume deposits are refundable or non-refundable simply because they are called a “deposit.”

An agreement to start preliminary work is not permission for every later production step. Ask the supplier to identify which work is already committed and which remains subject to approval.

Keep the agreed release conditions in writing

The written record does not need to become a large corporate procurement manual. It does need to be easy for both sides to use: an agreed purchase order, signed or otherwise accepted order terms, proforma invoice plus explicit written confirmations, or another appropriate contractual record.

For a buyer whose packaging is still open, a compact record might look like this illustrative example, not a standard legal form:

These are example terms to negotiate, not rights created automatically by a deposit. The actual agreement must fit the order, supplier’s process and applicable law.

Where the team needs to track facts, claims and remaining approvals across several people, China sourcing decision support explains that broader recordkeeping approach.

A message before transferring the deposit

Rather than repeat every specification question from earlier sourcing stages, focus the final exchange on the payment and release decision.

For the illustrative bottle order, a buyer might write:

Thanks for the updated PI. We’re ready to discuss the deposit for the agreed bottle specification and quantity. The retail box artwork still needs approval. Could you confirm which materials or preparations you would start after the deposit, whether any of those costs would be committed if the artwork changes, and that printed boxes will wait for our written approval? Please also confirm the conditions that start the production lead time and the beneficiary details on the PI. Once those points are agreed, we can finalise the payment.

This is illustrative wording, not an actual ICW customer exchange. It does not imply that the supplier must accept partial release or that a deposit automatically reserves capacity. Those are terms to agree.

If the supplier needs something different—for example, immediate printed-box ordering to meet the date—the buyer can evaluate that trade-off before making a payment.

When paying can make sense

The deposit may be appropriate once the agreed product and order terms are clear, the payment instructions have been independently checked and both sides know what preparation may begin. Artwork or another non-critical detail can remain open if the affected work is held for approval and the cost of any early commitment is agreed.

The choice still depends on the cash at stake, the supplier relationship and the remedies available if the order does not proceed as planned. Clear terms reduce misunderstandings, not the underlying business risk.

When a payment should be held

More caution is warranted if the order version or quantity is still unclear, the supposed sample approval does not cover a critical material or function, the unit price excludes unknown major costs, or the supplier expects to start irreversible work without an agreed scope.

A mismatched or suddenly changed payment recipient deserves particular attention. So does a production schedule that promises a fixed delivery date while essential inputs or approvals have no agreed deadline.

These issues do not automatically establish bad faith. They do mean the buyer may be accepting obligations they cannot yet describe or price. Where a key term cannot be resolved, postpone the deposit rather than hoping that payment itself will settle the misunderstanding.

Which earlier questions still matter?

Each guide has a different job in the buying sequence:

• If the requirement itself is unclear, improve the RFQ.
• If the quoted offer needs interpretation, read the quote beyond price or compare offers.
• If the minimum is too large for the business, assess the MOQ decision.
• If the decision is still about learning from a physical product, see what to confirm before paying for a sample.
• If a sample is already acceptable and the team is preparing to make bulk goods, define the production release.

The deposit sits between agreeing commercial terms and the work those terms permit. It should make the next stage clearer, not silently settle questions that neither side has actually agreed.

Before sending the payment

Before sending a supplier deposit, know what you are paying for, who will receive it, what work the supplier may begin, and which approvals still stand between preparation and production.

That does not mean stopping everything until every detail is perfect. It means agreeing which decisions are final, which are conditional, and who carries the cost if something changes.