Subject:

    You surely expect something better from us !

l         In this document, you will find out how is our procedure to excute your sample orders and / or production orders and what we need from your understandings and cooperation in order to better carry out our performance.

l         We actually don't  expect to ever solve all the problems, but with stronger hope that it will give both of us some help and better understandings in term of proper follow-up and execution of your orders.

l         In this document, you will find the following issues.

A)      Samples stage:  

By telling you what information you should supply us and how we are executing your samples in order to produce and send samples as per tartget time required.

B)     Our quotation & Quota cost:

By telling you how we will quote the price? and how will quota affect the cost.

C)  Our application for export textile quota certificate:

By telling you how we normally apply for export quota certificate

D)  Technical files & information & delivery time control.

By telling you what technical files & informations we need in order to  to well plan our production.

E)      Our suggestions & expectation:

By asking your possible understandings to support us.

F)       Information--Shipping  & document service & report :

By telling you our standard performance & service in shipping and documents.

G)  Credit checking system:

By telling you how we are supervising our capital flowing.

Total of pages incl.this page:

                                                     Sound Pond Asia Limited / Administration version no. 21/02-01

A ) Samples stage:

---When you are expecting our quick & correct samples and quick quotation, please try your best to supply us clear details within one or two time, and not in many times, as it will probably cause our confusion.

----Samples stage: consisting of following samples, each stage is to use different coloured handtag.

v Initial samples v

Either from our recommended styles or from your duplicating your original samples or from your own designs, we should absolutely need you to instruct us the following details make us able to understand easily and to execute with good understandings, and no need to spend lots of extra time to check and to confuse.

1)  Outsell fabric / construction needed and treatment & function expected on these samples.

2)  Inside Lining fabric…treatment & function expected or other details ref.to inside lining.

3)  Padding and resp.grams…or others you expect for the lining or quilting…

4)  Colour combination…and your expected outlooking

5)  Logo / embroidery if any…and where should be the location to be fixed?

6)  Size charter and measurement sketch…or what other size or deliveried styles to follow up?

7) Accessories, or any other special requirements ?

8)Quantities…and expected time to arrive you.

9) Or what other alternatives you can propose to us ?, in case, we don't have the exact same fabric / treatment, and / or colour available…

---Please understand that:

Sometimes, we don't have all exact fabrics and all colours available or without enough quantities in stock, we will then have to use some other alternatives (the nearest one), with this regard, we normally recommend you to allow us make only the first one sample in order to double check whether the style, the colour or other details are correct, before making further samples in order to save up both fabric and time.

---When you are requiring:

 more samples in different time, we probably were using some alternative fabric & accessories due to our stock situation or due to your own instructions…then we should request you to clearly advise us as to  what fabric & accessories  you may finally choose to use ? upon asking for our quotation or planning your orders, otherwise,

we would be  therefore confused and having to spend some unnecessary time to re-check.

v Pre-production samples & salesman samples v:

Normally you may require further more salesman samples or production samples soon after orders are placed with us, however, it would be a big problem for us to produce the correct samples in correct quantities right away, since we have to take necessary time to prepare and to book all necessary materials & accessories to arrive our factory before we can proceed any further correct samples unless we are lucky to have the same in stock.

With our experiences, you have to spend lots of time to push and to angry with us for been unable to send you the necessary samples right away, and we also have to spend lots of time to explain and to struggle a lot, in the end, it is still not advancing so much in presenting…It is therefore, totally necessary that we should come up to the following mutual understandings & agreement.

a)      For repeated orders or regular styles, as we may still have some extra fabric & accessories in stock, we are able to send you samples very soon, subject to your clear instructions. (only subject to our availability)

b)      For new styles and new colour comb of new orders, it is largely depending on whether you are giving us clear and structured information as well as to sketches with indication of all necessary details, and whether we have correct fabric in stock. If not, we will certainly inform you to check whether possible to use other alternatives or other nearest one. Upon your agreement, we will take about 10-25 days to finish, since we may still need to take time to move some fabric or accessories from different suppliers in case, we don't have in stock.

c)      If your orders are for immediate delivery, then we can book the fabrics right away and to obtain some yardages for pre-productions samples as well as salesman samples right away, this is not a problem.

Normally it will take about 25-35 days.

d)     However for your orders with future months delivery: We usually control to book fabric & accessories to arrive us 15-25 days before our actual production, since we are not possible to keep so many materials in warehouse for a long time stock due to financial pressure, therefore, here taking as an example: If you placed your orders during Feb./Mar. with planned delivery time say during Aug./Sept., it is not possible for us to give you salemans samples during Mar. or Apr. or May, unless we happen to have same fabrics in correct colour and correct quantities available.

e)  Our proposed solutions to solve this problem for our mutual benefit:

1)      We do understand the importance of salesman samples, and we will always try our very best to obtain the necessary materials & accessories, however, sometimes, it is very costly and difficulty, since we have to send our people to travel round to different garment factories and textile mills to check out whether they may have some stocks in the right quality and in the right colour, besides, we absolutely need to pay them the full cash money or some extra price before we can be allowed to take back…therefore, case by case,

We will inform you the progress and will also discus with you about the charges to share each others.

2)      The problem case, is like above points for example, your final delivery time is quite far behind, but you may request salesman samples already YESTERDAY. To solve this problem, we recommend you to schedule your order as followings:

a)You may have to allow some small deliveries much earlier than planned.

b)Then we will immediately start to book some mini-quantities of bulk fabrics in correct quality and correct colour to proceed for salesman samples.

c)Mini-quantities per colour requested should not be less than 1000 yards, if lower than this target, fabric mill will charge us for about 15% extra over the normal price standard, then we would be forced to charge on us accordingly.

d)We will have to ship you all the produced quantities soon after ready.

e)If you may request us to put in our stock, we will have to charge you the followings:

--- Within 20-30 days in stock: 3% more in price.

--- Within 40-50 days in stock: 6% more in price

v Pre-Production samples v:

1)      Soon after bulk materials / accessories arrived us, we will immediately send out production samples. (Normally within a week)

2)      When pre-production samples are sent, we will enclosed a “ Samples control form” where we request you to check our samples carefully and give us your comments right away without any delay (for details, please ref.to “ Samples control form”, as otherwise, it will greatly delay the production, since our factories have scheduled to produce your order your style soon after your confirmation, if you do not give comments on time, obviously factories would not be able to wait for too long time, (Normally within one week) they will have no other alternatives, but forced to put into production of other order or other style instead, in this regard, even after you may have confirmed in next weeks, it will probably cause many more days delay than expected, since factories are simply not possible to switch back easily.

3)      In case of above happening, we will have to re-check and inform you a new delivery time.

4)  Meanwhile, we will also send you : “Cutting report “  5-10 days before our actual production started, we invite you to carefully check once again your technical files and our resp.samples and advise us your comments / confirmation right away, since soon after production started, it is simply not possible, in any case to change easily.

v Shipping samples v:

Before our actual shipment or right on our shipment, we will arrange to send you resp.shipping samples for each one or two pcs at our own cost, however, please make sure you will inform us earlier if you would definitely need more samples, as otherwise, if we have already effected the shipment, it would be then difficulty for us to send you further more samples. For extra samples, we will have to charge on you both samples and speed post.

For some repeated orders, we may decide not to send you further shipping samples.

Shipping samples would be sent right before or after shipment, and not possible to advance.

1)  We have found out that we have always  been quoting price on CIF basis which is not workable for us indeed, since in many cases, your final ordered quantities are not up to full container load, and it will obviously cause us lots of extra expenses on ocean feright, we will now basically change to quote on FOB basis instead.

2)  Or we may still quote price on CIF basis, nevertheless, if your final order quantities are not up to full container load, we are entitled to charge you for extra ocean freight. (LCL)

3) With present ocean freight rate:( Main European port)

a)      1 x 20ft container is about usd1750.00

b)      1 x 40ft container is about usd3500.00

c)      1 x 40 HQ container is about usd3650.00.

Quantities able to be loaded in the container.( for your ref.)

a) For padded or fleece lined jacket or parka or 3 in 1 detachable jacket ( Polyester padding 160g-180grams)

b) For unpadded jacket with lining:

c) For padded bodywarmer:

d)     For padded thermo shirt:

For other items or items, which need to be consolidated, we need to check separately and case by case.

4) Export textile certificate (export quota) & its cost:

a)  As obviously quota price is very changable from time to time, we therefore, would always list out our price on FOB or CIF basis with indicating of  quota cost seperately.

b)      For those quota cat. Calculated by weight like cat.78 or 76 or 83 or others, we will always list out resp.weight considered in our quotation depending on some mutual agreed understandings.

c)  Soon after your orders placed with us, we will have to pre-pay full amount of money in order to secure the quota in hand right away to mini.our risk, then obviously lots of our capital will be blocked up to at least about 3-8 months until we produced, shipped and refunded which is absolutely too much burden for us.

d) We therefore, are considering to change our policy as below, in order to make sure that we are having enough capital to purchase necessary materials and pay our factories on time to secure the production running well.

1)  By asking you to pre-pay us at least 50% of quota charge, expecially for those relatively expensive quota, like cat.78 , cat.5, cat.21,cat.6,cat.83 etc…

2)  By asking you to support effecting immediate payment soon after presentation of our documents from your bank, but not after arrival of the actual containers.

3)  By asking some T/T payment soon after shipment effected. (We will fax full set of shipping documents ahead)

A few days' delay will eventually cause month's delay in final delivery.

C )  Our application for export textile quota certificate:

1)      We understand that you are always asking to have each invoice with independent export license, however, we have some problems to always perform like your expection, atthougth, we also well understand your possible difficulties and troubles in term of customer declaration.

2)      In order to cooperate the possibility, we suggest you to do the followings:

a) By preparing your orders relatively by independent container…and not with many consolidations.

b) In case, consolidation needed, we kindly invite you to very well prepare the resp.quantities for each item, not too much, not too less and mostly must be in one time…but not lasting for a long time, which obviously, we are not able to apply for quota immediately, and price maybe changed again. In case of such happening, we will unfortunately have no other alternatives, but to charge on you for the balance accordingly.

3)      We will try our best to cooperate, but eventually as far as production concerned, there are lots of unforeseen factors may still affect our original plan which will eventually cause our difficulties by applying export quota for each invoice, the reasons are:

a)  Soon your orders placed, we will have to purchase quota right away in order to mini our risk…and not possible to just apply when production ready, since it is too later, and quota may be not available or price may be very crazy higher for the time been.

b)  And / or we maybe not possible to get full quantities from one supplier, and therefore, would be forced to get from two or three suppliers..

c)  Quantities may be differed from delayed production for some items or from affections of over-loading or less loading, especially for those consolidated containers.

d)  Obviously, in the end of the days, we will have to apply some quota quantities in a way of relatively bigger quantities together so that you are able to use them multi-times in case needed.

D)   Your technical files / informations and our delivery time control:

This is the most important issue, which must need to be fully and frankly discussed here:

1) In fact, in many cases, when you finally placed the orders, the delivery time already calculated from the date we make out our sales contracts…nevertheless, sometimes, we have to spend lots of time, even repeatedly, to check with you for lots of details, lots of doubles, and sometime, we don't get your answer on time which has caused us lots of problem been unable to carry out our necessary producers right away, resulting out our difficulties to control the delivery time properly.

We therefore would like to suggest you the following steps :

On the time that you place us firm orders, you at least have to give us clear information as below make us able to book necessary fabrics firstly.

a)  What kind of fabric to be used?

b)  What colour comb. Of each style?

c)  What quantities and size assortment?

d)  What delivery time for each style and each month?

In this way, we can at least start to check, to prepare necessary lap-dip, and to book fabrics right away which event really will only arrive us 30-45 days after booking, and sometimes, if we have to send lap-dip for your approval, it will definitely take more time.

If we don't know when fabrics can be booked and when will arrive our factories, we are not able to book production capacities with our factories, since if eventually fabrics don't arrive on time to our factories, we will have to pay penalty to them due to capacity wasted and will probably cause chain reaction to other orders proceeding, the more worse thing is that some workers will decide to leave.

4)      Since fabric booking, producing, and arriving our factories would take up some time as mentioned above, you can therefore, take more time to prepare your technical files / accessories details etc…

5)      The technical files should contain all necessary important information and should have to arrive us at least 30-40 days before our actual production started, please refute separate files where you can find a template in word document suggested by us which you can easily know what information should be needed in our actual production.

Expecially,you would better  give us at least a simple drawing-sketch with clearly marked location for each accessory like logo / label / handtag,etc… to be put on. It is not advisable to  just give simple explaination without clearly structured-drawing indications

We would like to remind you that we would be probably forced to re-check our new possible delivery time according to changed situation if we unfortunately have to spend lots of time to check, to push, to wait for your technical files incl. label / handbag / Ean code,and/or your comments, confirmations to our pre-production samples etc…since  our factories are basically not willing to start their production even fabrics may have arrived them, due to the resason that they would probably be forced to stop further production somewhere in the mid. and wait …as obviously, workers will fight like hell and even some of them may choose to leave the factories, on the condition that you are not paid by the lost salary.( workers are, of course paid by proceeding pieces)

Meanwhile, we would like to let you know that normally factory will only accept a definite written order with definite quantities and size assortment, they  are  not going to take as an order even if we  tell them that we are going to place this or that order, they will not reserve production capacity for us anyway.

a)  Therefore, in some cases, if you are only telling us possible orders, but without finally confirmed or written order sheet, we are not able to book actual production capacity with our factories.

b)  And obviously factories are normally having several customers,expecially during the ordering season, if we are not able to give them actual orders on time, they will definitely choose to take up other orders from those earlier, which will probably make your orders' delivery time very differently-sometime, even only a few

E)     Our suggestions & expections :

1)  Normally most importers are requesting delivery time starting from Jun.to Sept. then during this period,most of factories are normally fully booked or over commited, some possible delay are actually causing almost every year to almost every customer.

2)  However, during Jan. or Feb. after Chinese new year until May, most of factories are relatively in low season and normally are willing to accept a bit lower price, and since they, by comparing are not so in such rushing status which can also be a good advantage to maintain a better quality standard.

3)  We therefore, are suggesting you to consider the following measurements in order to support both of us having more secured delivery control.

a)  You agree to take a bit earlier delivery time, and not only squeeze all into most rush season.

b)  We are also adopting a new policy by yourself to relatively book materials much earlier and therefore produce earlier, and accept to put them in our stock waiting for shipment.

c)  if you are able to place orders some earlier with shipment during Mar./Apr./May,then we would be ready to consider a better price allowance(to be discussed case by case)

d) We kindly invite you and ourself to be more aware of the potential risk may arise, if orders are placed relatively too later, or technical information are given too later,expecially during the rush seaon.To mini.our own risk,we would be more careful and consertive from now on, by confirming you a positive delivery time, and would not be sometime forced to accept your demand, although we may have seen the potential time-pressure like before.

F)     Information, Shipping  & document service & report :

As a standard serive,we will do our very best by giving the following information on time:

1)      Orders executing status:

As standard performance, we will pre-advise you appr. 15-20 days earlier before final planned delivery time regarding whether we are able to ship on time or not, if possible delay, how would be the new delivery time, and what are the reasons? 

2)      Pre-shipment advice:

a) We will inform you the shipping status upon the last stage of our production and vessel-booking situation. But please don't take quantities as final, since on our final inspection and loading stage, there may have some possible defects taken out or some more or less quantities on loading due to container space, expecially on consolidated status.

b) On this stage, we are not possible to fax you invoice and packing list as well as bill of loading, since we have not yet got final fixed information.

3)      Final shipping advice:

Soon after loading, we will fax you invoice, packing list and inform you number of bill of loading, container no. And estimated date of arrival in your port, but still having to wait for another 3-5 days until we can get original bill of loading from shipping company to fax you, therefore, you don't push us to fax you bill of loading when after you got invoice and packing list since normally shipping company will only release bill of loading when after vessel actually departured.

4) Documents status report:

When after documents been sent to your bank, we will inform you the speed post number and date of sending so that you would be well informed.

We will also inform you the status of textile export license / quota, if any.

5) Vessel status report

Appr. 10-12 days after vessel departured,we will check once again with our local shipping company regarding vessel-sailing status to make sure whether containers are timely transferred, and whether will arrive your port on time or not ?

H )   Credit checking performance:

As smooth capital flowing is so important to us in term of timely paying down to our suppliers in order to secure our scheduled production and delivery time,we have carried out a credit checking system in our computer,every customer has been assigned with a reasonable amount of open credit within reasonable period of time depending on sales valume and payment term, if delayed payment over the due amount in due date,computer will automatically refuse to allow preparing further contracts and further shipping documents untill situation cleared up and credit resumed therefore.

We kindly invite your good understandings and support in this particular issue, in order us to be able to participate in a better performance of delivery control.

Finally, we are expecting to hear your comments, suggestions by return so that we are able to furtherly improve ourself. In fact, we well understand that we are far away from perfection, but we are on the right way to reach that goad, and we know we are trying very hard with great determination nowadays.

Life is not easy for everybody, but let's do it a bit better with our joining efforts.

Dated: 03/29/2001

With very best regards

 Mr.Paul  Liu-(Liu Yulin)