Moving production to China, a trial lot before you switch

Firms that want a cheaper, larger-capacity or more reliable source, with an existing product and papers.

6–12 weeks, depending on product complexity and the number of factories in the check.

Product redesign or improvement, which OEM product development covers. Make of new tools and moulds if existing ones are not transferable. Legal disputes or contract termination with the current supplier. Buyout or compensation of existing equipment. Parallel production on two sites during the transfer, unless separately ordered. A sourcing fee for trial lots, because it is calculated only for commercial production.

Goods, samples, courier, QC, lab, freight, duty and taxes are shown separately from the Papillon fee.

Fees are on request. The quote depends on product family, number of SKUs, factories, customisation, timeline and operating scope.

When commercial production starts at the new factory with Papillon’s active running, a sourcing fee is listed separately in the quote.

Moving production to China is for a firm that already has a product and papers, and wants another factory for price, capacity or quality. The span is often 6–12 weeks to a trial lot, depending on complexity. Redesign is not in the package. If a change is also needed, that is OEM, separate in the quote.

Before a factory sees the drawing, an NDA sits. We do not send a full paper pack to five addresses without it. The check looks at machines, capacity and whether the plant can hold your tolerance, not a meeting room.

A tool that is not transferable is made again and paid separately. A trial lot is compared with your standard, in writing. The lot does not start because the price is lower. Legal termination with the old supplier is not our job.

When commercial quantity starts with our running, a sourcing fee is a separate line. Inspection above 2,000 USD is standard. Sea of about 35–52 days enters the plan only when the trial is approved, not instead of it.

Moving production to China makes sense when the product already exists and you have drawing, material and tolerance. It does not make sense as a way to invent the product by the way. A product change is OEM, a separate quote. Here the question is whether another factory can repeat what you already do.

The shortlist is up to four factories. Before anyone sees the drawing, an NDA sits. We do not send a full pack to five addresses. The check looks at machines, capacity and whether a certificate you need even exists in that plant. Span to a trial lot is often 6–12 weeks, then sample and quality comparison.

A trial lot is compared with your standard, not with the new factory’s catalogue. If measure drifts, a commercial lot does not start. A tool that is not transferable is paid separately and the contract states who holds it. Papillon does not terminate your old contract and does not buy old equipment.

When a commercial lot starts with our running, a sourcing fee is written separately. QC above 2,000 USD is the standard of that execution, before shipment. Sea still takes about 35–52 days. Plant research of 1–3 weeks is part of the shortlist, not a substitute for a trial.

Landed cost compares old and new figure with freight, duty and VAT. A cheaper EXW is not a cheaper address. The agreement from 1 July 2024 needs a new COO from the new exporter. An old paper does not follow a new factory. HS is checked again if the description changed.

The old factory and the new one do not run in parallel unless that is separately ordered. The transfer has a date after which the old line is no longer the plan. Without that date you have two independent buys and two origin papers.

A trial lot has a report: measure, material, scrap. If scrap is higher than on the old line, gate price must fall enough to cover scrap, freight and duty. Otherwise the move does not make sense.

Confidentiality also applies to a sample that stays in the new plant. We do not leave a standard without a note of who holds it. A commercial fee starts only on a commercial lot, not on a trial.