Contract Manufacturing Agreement China

Once this contract is signed, you can issue POs or you can have a pro forma (PI) invoice drawn up and confirmed to the supplier. The sales contract is probably the most important and misunderstood document for foreign buyers in China. This is the document that lists the terms and conditions of the transaction between you, the buyer and the supplier. Note: It is your responsibility as a buyer to present the sales contract and define the supplier`s terms and conditions. You are the only one who knows 100% how your product should go. Recently, we purchased and managed production for one of our Amazon FBA customers. We followed our usual process of passing and checking about 30 - 50 suppliers before limiting the best 3- to 5. Visited the factories, chose our supplier because of their experience and professionalism. Then we started to review the terms of sale with them. 1. Products and specifications: the products to be manufactured should be precisely defined in the contract, as well as the specifications of the products that should be described in detail in a facility. You may have already registered your patents, trademarks or copyrights in your main markets and in China.

Such registrations may prevent the export of counterfeit goods from China and prevent a competitor from registering the same intellectual property in China. If your basic IP know-how and trade secrets cannot be protected by formal registration, CMs should agree in the delivery agreement that you possess these know-how and business secrets as well as all new intellectual property rights, including new know-how and business secrets generated by the manufacture of your products as part of the delivery contract. Determine precisely whether the CM can work for other customers in a competing field (and the duration of such a period without competition) and, if so, whether and how production teams and production lines are separated. Also make sure to resolve any potential leakage product issues, including the disposal of defective products. IP protection is another area in which the prevention of damage in liquidation can be useful. The parts list is a list of components to use in the manufacture of the product. The inclusion of a specific list of parts as part of the delivery agreement is a must if you want to rely on the CM to obtain raw materials and product components. This will allow the CM to replace, at its sole discretion, cheaper materials and reduce product errors and recalls. In the order manufacturing process, a number of models can be made and optimized before approving the final. Make sure that you or your representatives in China, as well as at the factory, have copies of the approved sample to which they can refer.

It will help you determine if the quality of each lot meets the agreed conditions and the approved sample.