Having Goods Manufactured Abroad - Taiwan

F

Fishy

Guest
I have a small company and recently obtained quotes from a Company in Taiwan who can make my products for me. As is usual in these cases, the company need a contribution toward 'Tooling' and we will retain ownership of said 'Tooling'

Given that the tooling (USD 12,000) will be in this plant in Taiwan and that our company is here in Ireland, how can be be sure of retaining ownership of the goods?
Should we have the Goods Invoiced to us here in Ireland but delivered to the Plant in Taiwan?
If ever the relationship/partnership with this company breaks down, are there ways of protecting our ownership of the tools?

Any information would be helpful before we start entering contacts etc.
Thanking you in advance.
 
if you are going to be putting a sizeable amount of work their way...the i would have thought its up to them to pay for the tooling.
 
Fishy said:
I have a small company and recently obtained quotes from a Company in Taiwan who can make my products for me. As is usual in these cases, the company need a contribution toward 'Tooling' and we will retain ownership of said 'Tooling'

Given that the tooling (USD 12,000) will be in this plant in Taiwan and that our company is here in Ireland, how can be be sure of retaining ownership of the goods?
Should we have the Goods Invoiced to us here in Ireland but delivered to the Plant in Taiwan?
If ever the relationship/partnership with this company breaks down, are there ways of protecting our ownership of the tools?

Any information would be helpful before we start entering contacts etc.
Thanking you in advance.
Click to expand...
No matter what agreement you put in place are you in a financial position to folow through if they just give you the proverbial two fingers?
Anyway, €12'000 is bugger all for tooling.
I know a Irish owned company with manufacturing facillities in China. If you are interested PM me. I have no connection with them.
 
From various enquiries made, it appears fairly standard that you make a Contrbution toward tooling (USD 12,000 in this case) when securing manufacturing in the East. Whether it reflects value or not can only be assessed on a case by case basis. In our case, the products are extremely difficult to make and we have had enormous difficulties in having the goods made in Europe - hence the search out East.

I reckon we could always get the proverbial 'two fingers' and I don't know if there is any protection that you can get hence the initial Post.

It's a bit of a shot in the dark but 'he who dares wins!' so will have a crack at it anyway.
Thanks again.
 
Fishy said:
From various enquiries made, it appears fairly standard that you make a Contrbution toward tooling (USD 12,000 in this case) when securing manufacturing in the East. Whether it reflects value or not can only be assessed on a case by case basis. In our case, the products are extremely difficult to make and we have had enormous difficulties in having the goods made in Europe - hence the search out East.

I reckon we could always get the proverbial 'two fingers' and I don't know if there is any protection that you can get hence the initial Post.

It's a bit of a shot in the dark but 'he who dares wins!' so will have a crack at it anyway.
Thanks again.
Click to expand...

Can I ask what type of product it is?
 
The Company would need Deep Metal Spinning / Forming capabilities with Aluminum & Stainless Steel.
 
I've done quite a bit of successful business in Chinese Asia (Taiwan, Hong Kong etc.) I've also had some unpleasant experiences. In my opinion you should go personally and 'meet' this company and 'manager(s). This is basic Asian business protocal #101. The rules of doing business are quite different then here in the West. You might shop around for quotes then go and personally meet these companies. Perhaps when you are there it may be in your best interest to create a local incorporated company to help faciltate your international transactions? If going to Taiwan is'nt feasable at the very least have someone (a local business lawyer perhaps?) check these guys out. It may not be wise to allow the development of a critical componant within your product line into the hands of a stranger. What are the risks for you if you end up losing the money or (worse yet) the component arrives defective? Can you afford to experiment? Tawain is a gret place to do business, just tread smartly.
 
Taiwan is generally a country with a good rule of law and quality workmanship, it would be a far superior option for a small business in Ireland to work with than dealing with the environment in China.
You should take the other poster's advice and go to Taiwan personally and see the facility. It's a safe country and very convenient and easy to get around. The tooling industry and mechanical engineering industry is very advanced and comprehensive and can almost certainly do the job you require at a fairly reasonable price. Even if one factor cannot handle it they will introduce it to a partner to take care.
 
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