A field guide to cross-border paymentsSupplier payments, FX and import costs
From the payment desk

Notes on paying overseas suppliers.

Questions that come up while an order is in progress: checking an FX quote, agreeing a deposit, fixing a document discrepancy or funding the next batch.

12 ARTICLES · WITH SOURCES

ORIGIN CURRENCYUSDRECEIVING CURRENCYCNYONE PAYMENT. TWO CURRENCIES.

How to compare two FX quotes

Fix the amount your supplier must receive, then compare the dollars needed to fund it. A transfer with no separate fee can still cost more.

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ORIGIN CURRENCYUSDRECEIVING CURRENCYEURONE PAYMENT. TWO CURRENCIES.

Track FX exposure through the purchase order

After a deposit clears, the unpaid currency balance changes. Keep that balance and its due date visible as production and shipping dates move.

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ORIGIN CURRENCYUSDRECEIVING CURRENCYMXNONE PAYMENT. TWO CURRENCIES.

Reading an FX chart in dollars and pesos

A lower number on the chart can mean a larger dollar payment. The units tell you which calculation to use.

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BUYERUSDSUPPLIERCNYVERIFY. ROUTE. RECONCILE.

What should release the final 70%?

A 30/70 split still needs an event attached to the balance: inspection, shipment, document receipt or another agreed milestone.

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BUYERUSDSUPPLIERCNYVERIFY. ROUTE. RECONCILE.

Checking a supplier’s new bank details

Verify the new account through a contact channel you already trust, and make the change visible to whoever approves the payment.

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BUYERUSDSUPPLIERCNYVERIFY. ROUTE. RECONCILE.

Getting the documents ready for a D/P shipment

The collection instructions and cargo-release arrangements have to work together. Check both with the bank and forwarder before shipping.

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DOCUMENTARY CREDITL / CREVIEWED ✓

Turn the letter of credit into a document plan

Check who can issue each document, what it must say and when it must reach the bank. Resolve an impossible condition before committing the cargo.

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DOCUMENTARY CREDITL / CREVIEWED ✓

When the bank reports an LC discrepancy

Use the bank’s findings to assign the document corrections, then keep arrival and storage decisions on the same dated record.

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GOODSFREIGHT + DUTYFX + FEESΣ cost

Build the landed-cost estimate before placing the order

Bring the supplier invoice, freight quote and import assumptions into a warehouse estimate. Keep it open until the actual bills arrive.

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GOODSFREIGHT + DUTYFX + FEESΣ cost

What belongs in your tariff file

Keep the product evidence, origin analysis and entry date beside the duty input. That is the information needed to check the estimate.

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PURCHASE ORDERPOSUPPLIER PAYMENTFXUNIT ECONOMICSΣ

Who is importing your FBA inventory?

Name the importer of record before booking, confirm who pays the import charges and give the broker a complete shipment file.

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PURCHASE ORDERPOSUPPLIER PAYMENTFXUNIT ECONOMICSΣ

Funding the next order before this one is saleable

Put supplier payments, stock availability and cash availability on the same calendar. It will show where two orders need funding at once.

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12 articles

Pre-shipment checks

Check the order before it ships.

Review the invoice, bank details, documents and costs before releasing the balance.

Open the shipment checklist

Start with “China”, “FX” or “letter of credit”.