Pre-order diligence
Frequently Asked Questions
Fifteen questions a procurement team asks before the first payment clears — payment terms, Incoterms, audits, NDAs, test reports and sample credits. Answered the way we answer them on a call: with the number, the threshold, and the part most suppliers leave out.
Last reviewed 30 October 2026 · Applies to orders confirmed from 1 November 2026
At a glance
- Deposit
- 30 / 70 T/T
- Incoterms
- FOB · CIF · DDP
- MOQ
- 100 pcs / design
- Audits
- SGS · TÜV · Intertek
Payment & Ordering
What we will and will not do with money. These are the terms that appear on every proforma invoice, stated the same way every time.
Which payment methods do you accept?
Four, and we do not accept a fifth. T/T to our corporate account is the default. L/C at sight — irrevocable, confirmed by a first-class bank — for orders above US$50,000, with all banking charges outside China for the buyer’s account. PayPal for sample fees and orders under US$3,000; we pass the 4.4% merchant fee through as a line item rather than burying it in the unit price. Alibaba Trade Assurance if your finance team needs escrow.
No cash, no personal accounts, no Western Union, no crypto. The beneficiary name on every invoice must read Ferpar Custom and must match the contract. If our bank details ever “change” by email, treat it as business email compromise and call the number on the PI before you send anything — that single habit prevents most of the losses we hear about in this industry.
What are the deposit and balance terms? Can we hold retention?
30% deposit, 70% against a scanned bill of lading — not on arrival, and not after inspection at destination. On a first order that ratio is not negotiable, because the deposit is what buys the material.
For accounts with three shipped orders behind them we move to 20/80, and 10% retention for 90 days after arrival is available above US$100,000 against a bank guarantee — not against a promise.
Know when the deposit becomes irreversible, because this is the clause that causes arguments: fabric is committed to the dye house on day 3, since a Pantone match carries a minimum 300 m run, and the pattern is graded and the sample shell cut on day 5. A cancellation after day 5 keeps the deposit. The material has already been made in your colour and cannot be sold to another customer at any price.
How does the mixed-order MOQ work?
Base MOQ is 100 pcs per design for plush under 60 cm and 50 pcs above it; mascot costumes start at one unit, because the cost sits in the carving and not in a mould. A mixed order needs 300 pcs in total across no more than six designs, and no single design may fall below half its own MOQ — so 50 pcs of a 100-pc design is the floor inside a mixed run.
Colourways count as one design when they share the base fabric and differ only in trim or embroidery thread; if each colour is dyed separately, treat them as separate designs, because the dye run is what drives the cost, not the sewing. Sizes of the same design are free to split — 20, 30 and 45 cm in one order is one design to us and three line items on the invoice.
Can we pay in EUR or RMB, and do you offer open credit?
USD is the default and the only currency we quote without a surcharge. EUR is invoiced at the contract-day rate with a 1.5% conversion line, fixed for the shipment — we do not re-price a contract because the euro moved after you signed it. RMB with a 13% VAT invoice is available if you have a PRC entity to receive it; without one, the invoice is of no use to you and we will say so rather than issue it.
Open account at 30 or 60 days is available after 12 months and three completed orders, and it is subject to Sinosure credit insurance approval — the limit comes from the insurer, not from us. We do not extend unsecured credit on a first order. A factory that does is not being generous; it is pricing the default risk of its whole customer book into your unit price.
Standard terms, condensed
The seven lines that matter most on a first order. Everything here is repeated verbatim in the proforma invoice.
| Term | Standard | What it means in practice |
|---|---|---|
| Deposit | 30% T/T | Due on PI confirmation. Commits fabric to the dye house on day 3. |
| Balance | 70% against B/L copy | Not on arrival. Sight L/C accepted above US$50,000. |
| MOQ | 100 pcs / design | 50 pcs above 60 cm. Mascots 1 unit. Mixed order 300 pcs, max 6 designs. |
| Sample credit | 100% at 500 pcs | Credited on the first bulk invoice if the order lands within 90 days. |
| Price validity | 30 days | Fabric and ocean freight are both floating in 2026; the quote is re-struck after 30 days. |
| Currency | USD default | EUR at the contract-day rate, +1.5%. RMB with a 13% VAT invoice for PRC entities. |
| Bank details | Contract only | Never changed by email. Verify any change by phone against the number on the PI. |
Shipping & Customs
How the goods leave China, what it costs to compress them, and which documents actually reduce duty at the other end.
Which Incoterms do you quote, and which should we choose?
FOB Ningbo is our default; Shanghai and Yantian (Shenzhen) on request, and Yantian is usually the better LCL gateway for US West Coast. CIF is quoted to a named port with 110% ICC(A) cover — worth taking if you do not have a forwarder, but under CIF we choose the cover and you inherit whatever claims process comes with it — most large buyers prefer FOB and their own open policy.
DDP is available to a US or EU door through our forwarder, with two conditions stated up front. Duty and import VAT are collected as a separate advance; we do not absorb them into the unit price, because a tariff change would then be our loss on a contract already signed. And on EU DDP we cannot be the importer of record — that requires an EU establishment — so we work through a fiscal representative in Rotterdam at cost, and the EORI stays in your name.
One test for any DDP quote: ask whether duty is included. If the number looks like FOB plus a little, it is not — and the bill arrives at your door with your name on it.
Does vacuum compression damage the plush, and how much freight does it save?
On PP-cotton filled plush we compress 4:1 to 6:1 inside the bag. In practice a 40-foot high cube that takes about 9,000 pcs loose takes 22,000–26,000 compressed — the container gain lands nearer 2.5× than 4×, because carton walls, pallet voids and the payload limit take back the difference, and any forwarder quoting you the bag ratio is quoting a laboratory, not a container.
On a 30 cm toy that is the gap between roughly US$0.42 and US$0.16 of ocean freight per unit. On a 20,000-piece order it is a five-figure saving in exchange for a two-day recovery delay at the warehouse, which is why we compress by default and only pack loose when the product cannot take it.
Four things we will not compress, and will say so before you ask: memory foam (takes a permanent compression set and never fully recovers), PE pellet fill (bags burst and the pellets migrate through the cover), anything with a rigid insert or electronic module, and pile above 8 mm, which keeps crush marks along the fold for weeks.
Recovery is 72 hours at 20 °C, or 24 hours with a ten-minute low-heat tumble. Cartons are marked DO NOT STACK — RECOVER 72 H and carry a recovery card for the warehouse team, because the person who opens the container is rarely the person who read the shipping documents.
Do you supply CO, Form A and the rest of the clearance file?
Yes. Commercial invoice, packing list, B/L or forwarder’s cargo receipt, and a certificate of origin. We are a CCPIT-registered exporter and can issue a general CO, Form E for ASEAN under ACFTA, and an RCEP declaration of origin where the tariff line qualifies. Test reports, FSC packaging certificates and the declaration of conformity go in the same envelope on request.
On Form A, be careful what you ask for. It only has value where the destination still grants China GSP treatment. The EU removed China from its GSP scheme on 1 January 2015, so a Form A presented at Rotterdam or Hamburg is not usable and will not reduce a cent of duty. A supplier who offers you one for the EU is selling paperwork, not a saving. Ask for a general CO instead and check the duty rate against the TARIC code.
No solid-wood packaging leaves this factory: crates are plywood, and where a customer supplies their own pallets they are ISPM 15 heat-treated and stamped. That removes fumigation from the schedule and one more reason for a container to sit.
Can we use our own forwarder, and who files ISF and ENS?
Yes — FOB means you nominate. Send the booking confirmation 14 days before ETD with the forwarder’s CFS address and cut-off, and we deliver, load and release the shipping bill within 24 hours of handover. We do not add a documentation or handling fee for working with a forwarder we did not choose.
ISF for the US is the importer’s filing, but the ten data elements are ours: manufacturer name and address, seller, buyer, consignee, country of origin, declared HTS, container stuffing location and consolidator. We send them within 48 hours of booking so your broker is not guessing, and we re-send them if the sailing slips, because a stale ISF is the same as no ISF.
Under EU ICS2 the house-bill data has to be complete before loading at origin. A missing HS code or an EORI that does not match the consignee stops the container at the transhipment port, not at destination, and by then the only fix is a re-export. Send us the EORI with the purchase order, not with the arrival notice.
Factory Audit & Compliance
The three things a procurement team verifies before a first payment: can we be audited, will we sign, and what paper comes with the goods.
Do you accept third-party factory audits?
Yes — SGS, TÜV Rheinland, TÜV SÜD, Intertek, Bureau Veritas and QIMA, social and technical. Announced audits on any working day with three days’ notice. Unannounced audits need 48 hours’ notice for gate access only, not for the audit itself: client-owned designs run under NDA on shared lines, and we will not let an unbadged visitor walk a floor where a competitor’s unreleased character is on the table.
There is no hosting fee and no per-auditor charge, and we will not steer you toward a particular firm. Current documentation, copies under NDA: ISO 9001:2015, BSCI, SMETA 4-pillar, Disney FAMA, and GSV/c-TPAT for US programmes.
If an audit finds something, we send you the corrective action plan with owners and dates rather than a summary. You are buying the factory that fixes things, not the one with a clean report.
How does the NDA process work, and what will you not sign?
Mutual NDA, two business days, on your template or ours — PRC law or English law, your choice. It must be mutual: we sign confidentiality over your artwork, and we ask the same over our pattern construction and supplier list. Signed before a single file is opened, not after the quote.
Two clauses we will decline. An assignment of our manufacturing process IP — the pattern for your character is yours, the way we build a jointed arm is not. And an exclusivity clause that stops us working with your competitors, which in a factory running 40 designs a year is neither standard nor enforceable under PRC law, so a supplier who signs it is only postponing the argument.
Operationally: files are held under a project code rather than your brand name, tooling is coded rather than labelled, and client work is never displayed without written permission. That is why the case studies on this site name the category and the country, not the customer.
Which test reports do you provide as standard, and in whose name?
EU: EN 71-1, -2 and -3 plus the technical file behind the declaration of conformity. US: ASTM F963-23 with CPSIA lead and phthalate screening. AU/NZ and parts of Asia: ISO 8124. Physical and chemical both, tested on bulk material from the production run — not on the sample, which is the loophole most reports quietly rely on.
Two details decide whether a report is actually usable. It must be issued in your company’s name, because a report in the factory’s name is rejected by Amazon and by several EU market-surveillance authorities. And it must reference the exact material and colour, because a report on red fleece does not cover your navy fleece, however identical the construction.
Lead time 7–12 working days, cost US$400–900 per SKU depending on the market set. We pay the lab and you own the report; the invoice for it is a separate line so there is no argument later about who commissioned what.
Can you send us your CE certificate?
No — and neither can anyone else, because for toys it does not exist. Plush toys are self-certified under Directive 2009/48/EC. There is no notified body in the toy route and no EU-issued certificate; that machinery belongs to medical devices and PPE. What has to exist is a declaration of conformity signed by the manufacturer, backed by a technical file retained for ten years.
Any “CE certificate” PDF you are sent is one of two things: a test report from a laboratory, which is evidence but not a certificate, or an attestation a commercial body sells for a few hundred euros, which has no legal standing at a border. Both are routinely accepted by buyers and by nobody at customs.
What we send instead: the signed DoC, the EN 71 reports behind it, and the technical file index. We will also review your own DoC template free of charge, because a declaration citing a withdrawn directive or the wrong model number is worse than having none — it converts a documentation gap into a false declaration.
Prototyping Policy
Sampling is where a project is won or lost. Here is what the fee buys, how many revisions are inside it, and the exact point at which it comes back.
What does the sample fee actually pay for?
Set-up, not the toy. A prototype is priced by the labour inside it, not by the unit price: a 30 cm plush that bulks at US$3.20 carries a sample fee of about US$130–160 — roughly forty times the unit price, and that figure hardly moves whether the toy is 20 cm or 45 cm. Anyone quoting you “3× the unit price” has not costed the sample maker.
What the fee actually buys: pattern grading and a hand-cut shell, hand-embroidered eyes and nose because the production embroidery file does not exist yet, a dedicated sample maker for two to three days, the courier, and one round of photography on a grey card beside your Pantone chips.
It is not a markup on the product, and it does not fund tooling — there is no mould charge on plush at all, which is exactly why our MOQ is 100 and not 3,000. Where a project needs a carved mascot head, the sculpting is quoted separately and the prototype is a real cost, not a deposit.
For new accounts the fee is prepaid by T/T or PayPal; established accounts can take it on net-15. We do not offer free custom samples — the “free sample” in this industry is a stock item pulled off a shelf, and it tells you nothing about how your character will be built.
How many revisions are included, and what counts as a new prototype?
Two rounds included in the sample fee: proportions, colour, embroidery placement, trim. A third round is charged at cost, US$40–80 depending on size, because by round three the issue is almost always the artwork rather than the pattern — and charging for it is how we get an honest conversation about the artwork instead of a fourth sample.
A structural change is a new prototype at 60% of the original fee, since the 3D and the pattern already exist: seated to standing, adding a mechanism, swapping a plush head for a carved or PVC one, or changing the filling from fibre to pellet.
Timing: first prototype 7–10 working days from approved artwork, a revision 5–7. Artwork counts as approved when the vector file is final and the Pantone references are on it, not when the concept looks right on a screen. Every sample is photographed from four angles before it leaves, so a colour or proportion argument happens by email within a day rather than by courier within a week.
When and how is the sample fee refunded against bulk?
Credited in full against the bulk invoice once the order reaches 500 pcs (three units for mascots) and is placed within 90 days of sample approval. One credit per design, applied to the first shipment if the order ships in parts. It appears as a negative line on the invoice rather than a separate transfer, so your accounts team can tie it to the original payment in one look.
If you cancel after the bulk deposit is paid, the sample fee is not refunded — from that point the deposit terms govern, and we do not refund twice for one cancellation. If the order is placed later than 90 days, the credit lapses, because the pattern has been stored, re-graded and re-costed at new fabric prices by then; ask and we will usually reinstate half.
And the clause that runs the other way: if we fail the pre-production sample against the approved standard twice, we refund the sample fee in full and release the pattern files (DXF and AI) to you. The pattern is your property once it is paid for — including the day you decide to take it somewhere else.
Still unanswered
Didn’t find your answer? Contact our OEM specialists today.
Send the question with the order context — destination country, quantity, target ship date. You get an answer from the engineer who will actually run your project, within one working day, including the times the answer is no.
What we need to answer properly
- Destination country and port
- Quantity per design and total
- Size, filling and target unit price
- Any test standard your retailer demands
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