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The biggest risk involves problems with the foreign supplier. The biggest kinds of risk are receiving what you didn't order and receiving it after the date agreed.
1. Choose the right supplier
Such misunderstandings can be avoided by taking time to thoroughly vet the supplier. If purchasing from them for the first time, make sure you've asked for references. Request samples of the goods you wish to buy in bulk and make sure you are happy with the quality and that they meet all specifications.
We heard of one case where the Chinese supplier custom made and shipped valves that were slightly different from the specifications provided. The supplier refused to redo the order and improbably suggested that the buyer alter a part that they made in order to fit the botched valves. The buyer had prepaid for the order and thus had no leverage. Repeated requests to make good on the original order or provide a refund were met with increasingly preposterous proposed remedies.
2. Use letters of credit
Given the amount of imported goods, the volume of screw-ups and rip-offs is relatively small. It can be reduced further by selecting credible vendors, meeting them personally and visiting their faculties, and using letters of credit and similar tools that guarantee full payment only when you have inspected the shipment and determined that you got what you ordered and the shipment arrived according to the Incoterms contained in the letter of credit. Here's a video on the use of Incoterms.
Legal remedies are limited if things go wrong, you've prepaid for the goods, and the supplier refuses to do the right thing. You can contact officials from your embassy. In some cases they can help work out a settlement. If not, they'll have a list of lawyers with experience in commercial matters. In the case of China in the 1980’s, there were only 3000 lawyers in the entire country. Now, according to one source, there are more than 100,000 law school graduates--each year.
3. Rethink your supply chain
It's smart to rethink your supply chain as often as possible. New suppliers are popping up in Asia and also in Mexico, where the distance to market is much shorter than shipping across the Pacific, then via the Panama Canal, or via train from the West coast.
In addition, Mexico has a free trade agreement with the U.S., which if the Mexican goods qualify can shave 5-10 percent off the landed cost. When you take labor and shipping costs into account, you may discover a cheaper source of supply, one that may be in the same time zone.
4. Use a customs broker
Consider using a customs broker. You don't have to use one, but a broker can complete the shipping documents for you and make sure import regulations are followed. They can work with a freight forwarder in the supplier’s country to get you the best deal on shipping rates.
If you find that you have been overcharged duties by U.S. Customs, you can request a refund or drawback. Each year importers unnecessarily pay many millions of dollars. This video will show you how to get your money back. For an estimate of duties on your imported goods, the Tariff Schedule found at www.cbp.gov.
Goods coming into the U.S. for repair are generally not dutiable but the value of the repair may be subject to a VAT or national goods and services tax (GSA) if the ultimate destination country has such taxes.
| Product Model | Inside Diameter | Outside Diameter | Thickness |
| PCM050708E bearing | 5 | 7 | 8 |
| PCM101220B bearing | 10 | 12 | 20 |