30/70 means 30% deposit on order confirmation, 70% before shipment. It is the most common split with China suppliers below roughly $50,000 per order — faster and cheaper than an L/C, but the protective conditions live in the small print on the 70% leg, not the headline ratio.
1. The 30% deposit funds raw materials and starts the line. Most factories will not begin cutting, tooling, or material procurement until the deposit clears their bank account — typically 1-3 business days after T/T initiation. The 30% number is calibrated to roughly cover bill-of-materials cost for a single production run plus any one-time jig or print plate. Once cutting starts, the deposit is usually non-refundable. Cancel windows narrow fast, often to the 48 hours before material release.
2. The 70% balance is paid against pre-shipment documents, not after delivery. Standard practice is for the buyer to remit the 70% upon receiving a copy of the bill of lading (B/L) or the supplier's notice that goods are inspected, packed, and ready to load. The factory then releases the original B/L or telex release once the wire arrives. This is the leverage moment: hold the 70% until your pre-shipment inspection clears, and write that condition into the PO — not into a side email.
3. A third-party pre-shipment inspection (PSI) should be a condition of the 70%, not optional. Inspection bodies such as SGS, Bureau Veritas, or QIMA charge roughly $300-500 per man-day. The buyer schedules PSI when the factory reports 80-100% production complete and 100% packed for shipment. Defects found at PSI must be rectified before the 70% is wired — once the balance is paid and cargo leaves the port, your recourse drops sharply. Use the factory visit checklist for the on-site spec sheet.
4. Three common 30/70 pitfalls buyers hit on the first order. First, paying the 70% against a B/L copy rather than the original lets the supplier hold cargo at the port if a side dispute arises — insist on telex release written into the PO. Second, accepting a verbal PSI “we already checked it” in place of a third-party report. Third, treating the 30% as fully refundable when only the unspent portion typically is — cut fabric, printed boxes, and custom hardware are sunk costs.
5. When 30/70 is not the right structure. For first orders above roughly $50,000-$100,000, or for categories with long stability testing such as cosmetics OEM, an L/C shifts payment risk from the buyer to the issuing bank and is closer to the OEM standard. The 30/70 T/T split shines on repeat orders with established suppliers because it is faster, cheaper, and skips the L/C document-discrepancy headaches. Compare L/C vs T/T payment on cost and risk before defaulting to 30/70.
Looking for verified Greater Bay Area factories that quote clean 30/70 T/T terms with PSI conditions written into the PO? Gostoo Furniture (CMH-F-GST017, Foshan) is our verified custom upholstery and case-goods manufacturer · or browse all verified Guangdong manufacturers already through CMH's due-diligence screen.
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