Canton Fair Payment Methods: What Suppliers Accept

Common payment methods

• Bank transfer to the company account, the most widely used method for small and mid sized orders.
• Letter of credit for larger orders, which gives both sides more security through the banking system.
• Secure trade payment platforms that hold funds until agreed conditions are met.
• A deposit and balance split tied to production milestones rather than a single upfront payment.

Pay safely

Never send large sums to a personal account, regardless of how the request is framed. Use company accounts that match the name on the supplier's business licence and invoice, keep a written contract or purchase order confirming price and terms, and stage payments so the final balance is due only after you have inspected goods or received confirmation of quality from a trusted source.

Plan your currency

Discuss currency and bank charges in advance so there are no surprises when funds land short due to intermediary bank fees. For Indian buyers, factor in exchange rate movement between quoting and payment, and understand which party absorbs bank charges on each end of the transfer, since this is often left unclear until the final invoice.

A typical deposit and balance structure

A common and reasonable structure for a first order is a 30 percent deposit paid to confirm the order and begin production, with the remaining 70 percent balance paid before the goods are shipped, sometimes split further with a portion due after a pre-shipment inspection. Larger or repeat orders may shift these ratios once trust is established, but a first time buyer should treat any request for 100 percent payment upfront, or an unusually low deposit paired with pressure to commit quickly, as a signal to slow down and verify the supplier more carefully.

FEMA and RBI basics for Indian importers

Payments to Chinese suppliers for imported goods fall under India's Foreign Exchange Management Act (FEMA) and Reserve Bank of India remittance rules. In practice, this means routing payments through your bank using proper import documentation, including the supplier invoice and, where applicable, your import export code (IEC) registration. Retain copies of every invoice, proforma invoice and payment confirmation, since these documents matter for customs clearance in India and for any GST or income tax reconciliation later. If you are new to importing, consult your bank's trade finance desk or a customs broker before your first international wire transfer to confirm the correct process for your business structure.

Payment red flags to watch for

Treat any last minute change of bank account details, especially after the fair when communication moves to email, as a serious red flag requiring a phone or video call to confirm before transferring funds. Similarly, be cautious of a supplier who suddenly offers a large discount in exchange for immediate full payment, since this pattern is sometimes used to rush buyers past normal due diligence. For a broader look at supplier verification and scam prevention, see our guide to avoiding Canton Fair scams and red flags, and our guide to verifying legitimate suppliers.

Keeping records for your Indian accountant

Save every invoice, proforma invoice, payment receipt and bank remittance confirmation in one organised folder as you go, rather than trying to reconstruct the paper trail later. Your accountant or customs broker will need these for GST input credit, customs valuation and income tax purposes, and having them organised from day one saves considerable back and forth once the shipment lands in India.

Frequently asked questions

How do I pay suppliers at the Canton Fair?

Use bank transfer or a letter of credit to the company account, with staged payments tied to production.

Is it safe to pay a deposit?

A reasonable deposit to a company account is normal. Avoid large deposits to personal accounts.

What is a typical deposit and balance split for a first order?

A common structure is 30 percent deposit to confirm production and 70 percent balance before shipment, though this varies by supplier and order size.

Do I need to worry about RBI or FEMA rules when paying Chinese suppliers?

Yes. Indian importers should route payments through proper banking channels and retain invoices, since import payments fall under FEMA and RBI remittance regulations.

Related Canton Fair guides

• Do I Need an Invitation Letter to Attend the Canton Fair?
• Canton Fair Visa Requirements for Indian Visitors
• Canton Fair 2026 Dates and Phases

Back to all Canton Fair guides