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Subject:

    We surely do our best to meet your better expectation from us!

l        In this document, you will find out how our procedures are to be executed from your sample orders and/or production orders. We always need your kind understanding and cooperation in the process in order to carry out better performance.

l       To have successful and better workmanship of your requests, both of us should exhibit collaboration in terms of proper follow-up and execution of your orders with constant communication without delay.

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

A)  Samples stage:  

By telling you what information you should supply to us, and how we are going to execute your samples in order to produce and send them according to your target time preference.

B)  Our Quotation & Quota Cost:

By telling you how we will quote the price, how the price is affected by the quota

C)  Our application for export textile quota certificate:

By telling you how we normally apply for export quota certificate

D)  Technical files & information and delivery time control.

By telling you what technical files & information we need to know in order to have a complete good plan for our production.

E)  Suggestions & expectations:

By asking your kind understanding and support to us for the success of our workmanship in order to meet your expectation.

F)  Information for Shipping & document services and reports:

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

G)  Credit checking system:

By telling you how we supervise our capital flowing.

Total number of pages including this page:

                                                     Soundpond Asia Limited / Administration version no. 21/02-01

A ) Samples stage:

Since you are expecting us to give you our quick & correct samples with price quotation, we are requesting you to please do your best to supply us clearly in full details of specifications and the like, if possible, at once or twice, without changing oftentimes, so that we can work on the samples immediately without misunderstanding and confusion.

Samples stages: Each stage is to use different colored hangtag.

v Initial samples v

In the making of initial samples, either taken from our recommended styles or from your original samples with your own designs, we absolutely need your clear and complete instructions for the sample details so that we can have full comprehension and understanding on how to execute the samples immediately without so much confusion.

1) We expect to know the Outsell fabric, its construction, treatment (if needed), and function of the sample.

2) Inside Lining fabric, its treatment & function expected or other details referred to inside lining.

3) Padding and its respective grams…or other matters you expect for the lining or quilting…

4) Color combination…and your expected outlook.

5) Logo / embroidery if any…and indicate the location where to fix them.

6) Size charter and measurement sketch…or whatever other size or delivered styles to follow up.

7) Accessories, or any other special requirements.

8) Quantities…and the expected time of arrival at your place.

9) Or any other alternatives you can propose to us. If in case we don't have exactly the same fabric / treatment, and / or color available…

---Please understand that:

sometimes, we don't have the exact fabrics or colors available, or not enough quantities in stock, we then have to use some other alternatives (the nearest one). With this regard, we normally request you to please allow us to make only one as our first sample just to double check whether the style, the color or other details are correct, before making further samples in order to save both fabric and time.

---When you are requiring:

more samples oftentimes, we might probably use some alternative fabrics & accessories depending on our stock availability or depending on your own instructions…then we should request you to clearly advise us as to what fabric & accessories you should finally choose to use before asking for our quotation or planning your orders. Otherwise,we will just be confused and might spend some unnecessary time to check and recheck.

v Pre-production samples & salesman samples v:

If you require us for more salesman samples or production samples soon after orders are placed with us, please try to understand that it might be a big problem for us to produce the correct samples in bigger 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 further the correct samples making unless we are lucky to have the same materials in stock.

Base on our actual experiences, customers might spend more time pushing us and even getting angry with us if failure to comply on time their urgent request of finished samples, please bear in mind that we really do our very best to make and finish a very presentable sample for your satisfaction, rather than having a quickly done sample yet not so presentable and satisfying, the more you might get mad with us. It is therefore, important that we should come up with mutual understanding and cooperation in doing our business.

a)      For repeated orders or regular styles, as long as we still have enough extra fabric & accessories in stock, we then able to send you samples very soon, subject to your clear instructions and our availability.

b)     For new styles and/or new color combination of new orders, it is really depending on whether you are giving us clear and structured information as well as sketches with proper indication of all necessary details, and whether we have correct fabric in stock. Or else, we will certainly inform you to check whether possible to use other nearest alternatives. Upon your agreement, we will take about 10-25 days to finish. We might need more time to fix some fabric or accessories from different suppliers in case we don't have available stock.

c)      If your orders are for immediate/urgent delivery, then we will book the fabrics right away to obtain some yardage for pre-productions samples as well as salesman samples. This is not a big problem.

Normally it will take about 25-35 days.

d)     However, if you put your orders ahead for future months delivery, then we can control to book fabric & accessories to arrive us around 15-25 days before our actual production. It is not possible to keep or stock so many materials in warehouse for a long time due to financial pressure. For example: If you placed your orders during Feb./Mar. with planned bulk delivery time say Aug./Sept., it is not possible for us to give you in advance the saleman samples in Mar. or Apr. or May, unless we have same fabrics in correct color and correct quantities available at that time.

e)     Our proposed solutions to 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, there are times that we can incur more cost and difficulty in canvassing and gathering corresponding materials from different garment factories and textile mills because most suppliers need us to pay them in full cash payment before we can take out goods from them.

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

2)      Another possible problem: If you have requested us to send you salesman samples as soon as possible because you want them to be shown to your clients in advance, while your final delivery schedule is yet so far. To solve this problem, we would recommend you to schedule your order as follows:

a)That you would 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 color to proceed for salesman samples.

c)Mini-quantities per color requested should not be less than 1000 yards. If lower than this target, fabric mill will overcharge us for about 15% more than the normal price standard. Then we have no choice but to accept their overcharge imposed accordingly.

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

e) But if you will request us to put the goods in our stock, then we will have to charge you of 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)     Right after the arrival of the bulk materials and accessories, we will immediately make and send out production samples. (Normally within a week)

2)     When we send the pre-production samples, we have to enclose a “Sample control form” where we request you to check our samples carefully and give us your comments right away without any delay (for details, please refer to “Samples control form”). A delay of sample comments implies a delay of production, because our factories are always booked for scheduled production and cannot be stopped longer for any delay. So, if you do not confirm for production within a week, then we will give chance to the next priority for production. If all our factories are fully booked, then we beg your patience to wait, until finished inline production, to be accommodated next.

3)     If in case above might happen, you should be well informed and will be requested for a new delivery time.

4)     Meanwhile, we will also send you “Cutting report “ 5-10 days before our actual production started, we will request you to carefully check again your technical files of the respective samples and advise us your comments / confirmation right away, because once production has started, it is quite difficult to makes changes with the process.

v Shipping samples v:

If you need to receive first the shipping sample/s before our actual shipment, we will then arrange to send you the respective shipping samples with one or two pieces at our own cost, provided you have to inform us ahead of time, or else we cannot send you anymore once the shipment will take effect. Please note, for extra samples, you have to pay charges for both the samples and the speed post.

For some repeated orders, it’s up to you to decide whether you need to be sent first the shipping samples or just no need.

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

1)  We will be quoting you the prices either at CIF or FOB term according to your preference.

2)  If you want to quote price on CIF basis, please take note that if your final order quantities are not up to full container load, you will be charged for extra ocean freight. (LCL)

3) Ocean freight rates for Main European port : (Subject to be changed for current rates)

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.

Possible Quantities that can to be loaded in the container.( for your reference)

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 that need to be consolidated, we need to check separately case by case.

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

a)  As quota price is very changeable from time to time, upon writing down our prices on FOB or CIF basis we have to indicate the quota cost separately.

b)   For those quota cat. Calculated by weight like cat.78 or 76 or 83 or others, we will always list down respective weights considered in our quotation depending on some mutual agreements.

c)  Soon after your orders are placed to us, we then have to prepay in full cash payment right away in order to secure the quota in hand to minimize our risk. So lots of our capital will be frozen for at least 3-8 months until we could have produced, shipped and received your payment. We gamble risk by spending money in advance just to cope with your order/s, so your good collaboration/cooperation is highly needed for the success of both of our businesses.

d)  To consider a part of our return capital, we amended some of our company policies to adopt a win-win situation, and to make sure that we could maintain enough capital to purchase necessary materials and pay our factory workers on time to secure a good and smooth production progress.

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

2)  By asking your support to effect immediate payment right after presentation of our documents from your bank, and not after arrival of the actual containers.

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

Please note that a few days delay might eventually cause to months delay in final delivery.

C )  Our application for export textile quota certificate:

1)  We understand that you will be asking to have each invoice with independent export license. However, there are times that we might encounter certain problems while trying to meet your expectation, although, we understand very well your possible difficulties and troubles in term of customer declaration.

2)   In order to achieve possible cooperation, we would like to suggest you to do the followings:

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

b) In case, consolidation is needed, we will suggest you to prepare the corresponding quantities for each item, not too much nor too less and then confirm immediately without delay, or else, we may not be able to apply immediately for quota, then price maybe changed again. In case this will happen, we regret to say that we have no other alternatives, but to charge you for the additional balance accordingly.

3)  It is our duty to do our best to cooperate with our clients to meet their expectations with respect to production. But, sometimes, there are lots of unforeseen factors that might create problems that would affect our original plan, which then eventually cause our difficulties in applying export quota for each invoice. The possible the reasons are:

a)  Soon after your orders are placed, we then have to purchase quota right away in order to minimize our risk. It is not possible to just apply when the production is ready, since it is already too late, and quota may not be available or price might be crazy higher for that time being.

b)   If we could not possibly get full quantities from one supplier, then we would be forced to get from two or three suppliers..

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

d)  Consequently, we always have to apply more quota in relatively bigger quantities together so that you will be able to use them multi-times as necessity arises.

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

This is the most important issue that needs to be fully and frankly discussed here:

1) By the time you finally placed your orders, the estimated delivery time is then calculated so we can make our sales contracts. Nevertheless, we have to spare more time to check and recheck with you all information and details, and please take note that we always need your full attention and prompt confirmation, because a delay of anything causes a delay of the whole production, and it will give us trouble and difficulty to control the progress in order to meet the projected delivery time.

We therefore would like to suggest you the following steps:

On the time that you place us firm orders, you should have to give us first clear information as below for us to be able to book necessary fabrics right away.

a)  What kind of fabric to be used?

b)  What are the color combinations of each style?

c)  What are the quantities and the size assortment?

d)  When is your target delivery date for each style?

In this way, we can at least start to check, to prepare necessary lap-dip, and to book fabrics right away, the fact that we need to wait around 30-45 days to arrive after booking the necessary materials. Besides, we also have to consider that if we have to send lab-dip for your approval, it might take more time.

We have to book first the fabric and know when is the expected arrival to our factory before we book the production capacities with our factories to avoid delay, or else we will have to pay penalty to them due to capacity wasted and will probably cause chain reaction to other orders proceeding, and the worst thing to happen is when some workers might decide to leave.

4)   For the mean time, while waiting for the booked fabrics to arrive, you can still have enough time to review and finalize your technical files and accessories details, etc…

5)   The technical files should contain all necessary information and, if possible, should arrive us in advance, that is at least 30-40 days before our actual production will be 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.

By the way, it is much better if you can give us at least a simple drawing/sketch with clearly marked the location for each accessory like logo, label, hangtag, etc. to be put on. It is not advisable to just give simple explanation without clearly structured drawing indications.

Another thing, we would like to remind you that we might change and recheck for our new possible delivery time according to changed situation if ever we unfortunately have to spend lots of time to check, to push, to wait for your technical files including label / handbag / Ean code, and/or your comments and confirmations to our pre-production samples etc., since our factories are basically not willing to start their production even if fabrics have already arrived to them, because they don’t want to stop in between the flow. They want to proceed smoothly and spontaneously without delay. We cannot argue with their firm decision to set a standard, or else, they have to insist to let us pay for any delay, or might eventually lead them to leave the factories if not contented ( workers are paid by proceeding pieces).

Meanwhile, we would like to let you know that normally the factory will only accept a definite written order with definite quantities and size assortment. The factory workers do not honor any verbal agreement; hence will not make any reservation for production capacity without written agreement.

a)  It also follows, that if you are only telling us possible orders without finally confirmation or written order sheet, then we are not able to book actual production capacity with our factories.

b)  Most of the time the factories are accommodating several customers, especially during the peak season. So, if we can not give them actual priority orders on time, then they will prefer to take up the orders from other customers who can book ahead. It is one of the factors for the delay of the production lead time.

E)   Our suggestions & expectations :

1)  Usually, most importers are requesting delivery time starting from June to September. During this period most factories are fully booked and over committed. So possible delays are inevitable at this peak season.

2)  However, after Chinese New Year around January to May, most of factories are relatively in low season. At this time, factories are willing to accept a bit lower price. It is more advantageous to put up orders at low season because with lesser demand, rush production can be avoided; hence a much better quality production is kept maintained. .

3)  So we would suggest you to take note of the following measures so that you can already have good idea when you put up your orders and then make considerations on how to have more secured delivery control:

a)  You have to agree to take a bit earlier delivery time, and do not just squeeze all into the most rush season (the peak season).

b)  We can also adopt new policy for you - to book materials much earlier and then produce earlier, then please allow us to put them in our stock waiting for shipment.

c)  Or, if you could place orders relatively much earlier than the target shipment, let’s say, around March, April or May, then we could probably consider a better price allowance for you, depending on a case to case basis.

d) It’s just a kind reminder that both of us should be more aware of the potential risk that may arise if orders are placed relatively too late, or giving technical information also too late, especially during the rush season. To minimize risk, we would be more careful and conservative from now on by confirming you a possible delivery time, and we also need your kind consideration and adjustment on your demand for delivery time. Anyway, we have already adjusted ourselves with this kind of situation based on our long time experiences and we have already foreseen the possible potential time-pressure.

F)   Information, Shipping & Document Service & Report :

With our standard services, we will do our very best by giving the following information on time:

1)     Orders execution status:

With our standard performance, we will pre-advise you approximately 15-20 days earlier before final planned delivery time regarding information of our actual shipment whether we are able to ship on time or not. For possible delay, we then have to inform you how we could arrange the new delivery time, and support with a very valid reason for the delay.

2)      Pre-shipment advice:

a) We will inform you the shipping status upon the last stage of our production and also the vessel-booking situation. Final quantities will be informed after having the final inspection and loading stage, because there might be some possible defects taken out after inspection. We also consider possible changes on the quantities to be loaded due to container space, especially on consolidated status.

b) On this stage, we cannot possibly fax you ahead the invoice and packing list as well as bill of loading until we can get the final and fixed information.

3)      Final shipping advice:

Soon after loading, we will fax you the invoice, the packing list and then inform you the number of bill of loading so with the container number and the estimated date of arrival in your port. But please, have patience to wait for the original bill of loading because we still have to wait for another 3-5 days to get the original bill of loading from shipping company because the shipping company normally releases the bill of loading only after the vessel has actually departed.

4) Documents status report:

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

We will also inform you the status of textile export license, quota, and anything that you need to be informed.

5) Vessel status report

Approximately 10-12 days after the vessel departure, we will check again with our local shipping company regarding the vessel-sailing status to make sure if containers are timely transferred, whether will arrive your port on time or not ?

H )   Credit Checking Performance:

Since spontaneous capital flowing is so important to us to maintain the business cycle, and to have prompt down payments 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 certain amount of an open credit within a reasonable period depending on sales value and payment term. For delayed payment (over the due amount and due date), the computer will automatically refuse to allow preparing further contracts and further shipping documents until situation is cleared up, then the credit will resume again.

We humble ask for your good understanding and support in this particular issue in order us to be able to participate in a better performance of delivery control.

Finally, would highly appreciate to hear your expected comments and suggestions by return so we could do more to further improve ourselves in terms of proficiency in service. We humbly accept that we are still yet far from perfection, but we will assure you there is always room for improvement, and that we are trying our very best to be in the right track to make our valued customers be pleased and be satisfied with our over all company performances.

Life is not that easy for everybody, but let us be optimistic to do it a bit better with our joining efforts.

With my very best regards,

Mr.Paul  Liu-(Liu Yulin)

Managing Director