30/70 Payment Terms for China Candy Orders: Mechanics and Pre-Deposit Checklist

Short Answer

A 30/70 payment structure normally means that the buyer pays 30% as an advance deposit and the remaining 70% after production is completed but before the goods are released or shipped. It is widely encountered in custom manufacturing, including private labelProduct made for the buyer’s brand. gummies, sour belts, marshmallows, freeze-dried candy, coated confectionery and printed retail packaging.

However, 30% deposit / 70% balance is not a complete payment clause. The commercial risk depends on the events attached to each payment:

• What exactly activates production?
• Is the deposit paid after the contract, specification and artwork are approved?
• Does the factory reserve a production slot immediately after receiving the deposit?
• What evidence proves that the goods are complete?
• Can the buyer inspect the goods before paying the balance?
• Does "ready" mean candy is produced, or also packed, labelled, counted and documented?
• What happens if only part of the order is ready?
• Who receives the payment, and does the beneficiary match the seller named in the contract?

For a buyer, the most important protection is not the percentage itself. It is a clear sequence: approved specification → deposit → production → readiness evidence → inspection or review → correction of material defects → balance payment → cargo release.

Who This Guide Is For

This guide is for brands, importers, retailers, wholesalers, distributors and private label teams purchasing products such as:

• molded gummies and jelly candy;
• sour belts, strips, ropes and coated gummies;
• marshmallows and foam candy;
• freeze-dried candy and freeze-dried fruit;
• air-dried or dehydrated fruit;
• chocolate-coated nuts, fruit, marshmallow and gummies;
• bulk confectionery and finished retail packs.

It explains commercial payment mechanics. It does not replace transaction-specific legal, banking, tax, sanctions, foreign-exchange or customs advice.

What 30/70 Payment Terms Actually Mean

The structure has two financial milestones.

The 30% advance payment

The initial payment is usually intended to give the factory enough commitment and working capital to begin the order. Depending on the project, it may support:

• raw-material purchasing;
• printed film, pouches, labels, jars or cartons;
• moulds, dies, printing plates or other tooling;
• packaging-machine setup;
• production planning and line reservation;
• subcontracted coating, freeze-drying or packing operations;
• laboratory, inspection or documentation costs;
• allocation of factory capacity to the project.

The deposit is not automatically a refundable reservation fee. Once the factory purchases custom packaging, begins tooling or produces goods that cannot easily be resold, part of the advance may already have been consumed.

The 70% balance payment

The balance is commonly due after the factory states that the goods are finished and before the factory releases them to a carrier. This protects the supplier from shipping a custom order without receiving full payment.

For the buyer, the key issue is the definition of finished or ready for shipment. A short message saying "goods ready, please pay balance" should not be the only trigger for a substantial payment.

30/70 Is Common, but It Is Not a Legal Standard

No universal rule requires candy factories in China to accept 30/70 terms. Actual terms depend on:

• whether the product is stock or custom;
• whether the buyer is new or established;
• the order value and production complexity;
• how much custom packaging and tooling is required;
• whether the factory must pay subcontractors in advance;
• the factory's cash-flow position and bargaining power;
• whether payment protection, a letter of credit or another instrument is used;
• the buyer's purchase history and creditworthiness.

A stock product in a plain bag may be available against full payment before dispatch. A highly customized product may require 40%, 50% or even 100% before production. A trusted repeat buyer may negotiate a smaller deposit, staged payments or limited credit after shipment.

The percentage therefore indicates bargaining and cash-flow allocation—not supplier quality and not transaction safety.

Quick Comparison of Common Structures

• 100% before production: often used for samples, very small orders, scarce stock or highly customized work. Buyer exposure is highest before goods exist; supplier verification and a precise specification are essential.
• 50/50: often used for new custom projects with expensive materials or packaging. The buyer should require objective evidence before the second payment.
• 30/70: common in customized B2BBusiness sales between companies. manufacturing. The deposit is exposed, but the buyer retains leverage until the balance; readiness and inspection rights must be defined.
• 20/80: more achievable for repeat orders or stronger buyers. It reduces deposit exposure but increases the factory's working-capital burden.
• Staged milestones: tooling, packaging, production and shipment are paid separately. This can align payment with evidence but requires precise administration.
• Letter of credit or documentary structure: useful for larger or formal transactions, provided the document requirements are workable.
• Open account: generally reserved for established relationships. It offers the buyer the lowest pre-shipment exposure and the supplier the highest non-payment risk.

The Deposit Should Not Be Paid Before the Project Is Defined

A deposit should normally follow—not precede—the commercial definition of the order. Before paying, the buyer should have at least:

• the correct legal seller name and company details;
• a quotation or contract identifying the product and total value;
• a product specification covering formula category, flavour, colour, texture, piece dimensions or weight, coating, filling and tolerances where relevant;
• an approved physical sample or an agreed sample-development plan;
• the packaging format, pack weight, units per inner box and units per master carton;
• artwork responsibility, dieline status and approval procedure;
• the Incoterm and exact named place;
• the production lead-time trigger;
• the balance-payment trigger;
• inspection, defect-correction and claim procedures;
• a list of one-time charges and costs excluded from the unit price;
• verified bank-beneficiary details.

Paying against a vague pro forma invoice creates disputes later. The factory may believe it is producing its standard SKUOne distinct sellable product unit., while the buyer expects a benchmark texture, stronger sour coating, a different colour, a particular retail arrangement or a more demanding packaging standard.

Deposit Received Does Not Always Mean Production Has Started

One of the most important distinctions in private label candy sourcing is the difference between:

• deposit received;
• order accepted;
• production slot reserved;
• raw materials ordered;
• packaging ordered;
• artwork approved;
• mass production started.

Factories often cannot run the order until both payment and technical approvals are complete. A buyer may transfer the deposit, but delay the artwork, final label text, QR code, colour standard or packaging dimensions. During that delay, the factory may allocate the line to another project.

The contract or production schedule should therefore state the true lead-time trigger, for example:

Production lead timeTime from order approval to readiness. begins after receipt of the agreed advance payment and written approval of the final product specification, packaging specification and print-ready artwork.

This wording is more realistic than promising a fixed completion date measured only from the bank-transfer date.

What the 70% Balance Should Be Tied To

The balance should be linked to verifiable readiness, not merely the passage of time. A practical readiness package may include:

• production completion notice;
• final quantity by SKU and carton count;
• dated photos or video of finished goods;
• packaging and label photos;
• net and gross weight summary;
• carton dimensions and packing list draft;
• inspection report or buyer-approved remote review;
• confirmation that critical defects have been corrected;
• required product documents available or scheduled;
• confirmation that the goods are segregated and identified for the buyer;
• agreed pickup or shipment window.

The exact evidence should match the project risk. A stock candy order in plain bulk bags does not require the same readiness package as a multi-SKU private label launch with printed pouches, display boxes, QR codes, sour-coating specifications and custom carton arrangements.

Define "Goods Ready" in the Contract

A robust definition separates product completion from shipment readiness. The goods may be considered ready only when:

• the agreed product has been manufactured;
• the product has completed necessary cooling, drying, stabilization or conditioning;
• retail units are packed and sealed;
• labels, date codes and required marks are applied;
• inner packs, display boxes and master cartons are complete;
• quantities are counted and reconciled;
• the agreed quality review or inspection is complete;
• material nonconformities identified before payment have been corrected or formally accepted;
• the packing list and other agreed pre-shipment documents are available in draft or final form;
• the cargo is available for collection within the agreed release period.

Without such a definition, a factory may call the goods ready when the candy itself is produced but packaging, labelling, palletizing or documents remain unfinished.

Inspection Before Balance Payment

Where inspection is part of the transaction, the schedule should give the buyer enough time to inspect before the balance deadline. Typical options include:

• factory photos and video for a low-risk repeat order;
• live remote inspection with the Export Company;
• review of production samples sent by courier;
• third-party pre-shipment inspection;
• loading supervision for higher-risk cargo;
• laboratory testing where a claim depends on measurable composition, microbiology or physical performance.

Inspection does not make the transaction risk-free. It uses sampling and can miss hidden defects. It also cannot compensate for a weak specification. Inspectors need an approved sample, acceptance criteria, defect classification and a packing plan against which to check the goods.

The payment clause should state whether the balance is due:

• after the factory's readiness notice;
• after receipt of the inspection report;
• after a passed inspection;
• after corrective actions are closed;
• or after the buyer waives inspection in writing.

What Happens If the Inspection Fails

The contract should not leave only two choices: pay the full balance or cancel the entire order. Possible remedies include:

• reworking or repacking affected units;
• replacing defective packaging;
• correcting labels or date codes;
• removing visibly damaged pieces;
• producing the missing quantity;
• re-inspection after corrective action;
• accepting a documented deviation with a credit note or discount;
• remanufacturing a materially nonconforming SKU;
• splitting conforming and nonconforming lots.

The appropriate remedy depends on severity, food safety, legal labelling, shelf lifePeriod product remains within specification., customer acceptance and whether rework can create additional damage.

A failed inspection should suspend the payment deadline for the disputed portion until the agreed corrective process is completed. This must be written into the contract; it should not be assumed.

Partial Readiness and Split Shipments

Multi-SKU candy orders are frequently completed unevenly. One flavour may be packed while another is waiting for printed film, a replacement label or a production slot.

Before the order begins, decide whether:

• the 70% balance is due only when the entire order is ready;
• each SKU or shipment lot has its own payment milestone;
• the buyer may pay and release conforming goods while the remainder stays at the factory;
• additional storage or handling charges apply;
• freight economics still support a split shipment.

Paying the full balance when only part of the order is objectively ready removes most of the buyer's remaining commercial leverage. A lot-based schedule is often clearer for long, multi-factory or multi-SKU projects.

Verify the Payment Recipient

The beneficiary account is a critical control point. The buyer should compare:

• seller name in the contract;
• supplier name in the invoice;
• bank beneficiary name;
• company registration details;
• manufacturer name, where different;
• export party, where different;
• reason for any third-party collection arrangement.

A manufacturer, contractual seller, exporter and payment recipient can be different entities in a legitimate structure, but the relationship must be explained and documented. The buyer should not discover the payment chain only after the bank transfer is requested.

Any last-minute bank-detail change should be verified through an independent communication channel using previously confirmed contact details. Email compromise and payment-redirection fraud can occur even where the underlying supplier is genuine.

Currency, Bank Fees and Value Date

The payment clause should identify:

• payment currency;
• exact amount or calculation method;
• who bears sending-bank, intermediary-bank and receiving-bank fees;
• whether the seller must receive the full invoiced amount;
• which exchange rate applies if the invoice and payment currency differ;
• when payment is considered complete: transfer instruction date or credit to the beneficiary account;
• what happens if the transfer is delayed for compliance review;
• whether a separate invoice is required for each instalment.

A factory may refuse to start or release goods if bank deductions leave a shortfall. A buyer should also keep the payment confirmation, bank reference and matched invoice for reconciliation.

Packaging, Tooling and Other Non-Refundable Costs

Candy projects often contain costs that behave differently from the main product value:

• mould or die fees;
• printing plates or cylinders;
• packaging deposits;
• custom film and carton stock;
• product-development charges;
• sample freight;
• testing and inspection;
• certification or document charges;
• special pallet or packing materials.

The contract should state whether these are included in the 30% deposit, paid separately or deducted from a refund. It should also state who owns reusable tooling and unused packaging inventory.

A statement such as "deposit refundable if order is cancelled" is incomplete unless it explains what happens after custom costs have already been incurred.

Changes After the Deposit

After payment, buyers often request changes to flavour, colour, sourness, pack weight, artwork, carton configuration or quantities. Each change can affect unit price, raw-material use, printed-packaging waste, lead time, tooling, inspection criteria and total balance due.

Every change should be recorded in a controlled change order or revised specification. The document should show the old requirement, new requirement, price effect, schedule effect and approval date.

Informal messages create a serious risk that the factory follows an older version while the buyer assumes the latest request is binding.

How 30/70 Interacts With Incoterms

Payment terms and Incoterms® rules solve different problems. Payment terms define when money is due. IncotermsRules dividing delivery responsibilities and costs. define delivery tasks, costs and transport risk.

Paying 100% before shipment does not mean transport risk has already transferred. Conversely, risk may transfer under the selected Incoterm even though ownership or title is defined differently in the contract.

The contract should avoid language that accidentally treats payment, ownership, cargo release and Incoterm delivery as the same event. For example, under FCASeller clears export and hands goods to the buyer's carrier at the named place., the seller may require full payment before handing cargo to the buyer's nominated carrier. The risk transfer then occurs at the agreed FCA delivery point—not when the balance payment is made.

Role Matrix: Client, Export Company and Factory

The Export Company should not simply repeat "the factory says it is ready." Its role is to translate factory status into objective evidence and identify what remains incomplete.

Practical 30/70 Workflow

Step 1: Verify the parties

Confirm the legal seller, manufacturer, payment recipient and export arrangement.

Step 2: Freeze the commercial scope

Approve the product specification, sample reference, packaging structure, artwork process, quantity, price, Incoterm and named place.

Step 3: Sign the contract or confirm the purchase order

The documents should state the deposit amount, balance trigger, bank fees, production trigger, inspection rights and remedies.

Step 4: Pay the 30% deposit

Use the verified beneficiary details and a payment reference that matches the invoice.

Step 5: Confirm that all production prerequisites are complete

Deposit alone may not start the lead time. Confirm final artwork, packaging files, ingredient or label approval and line scheduling.

Step 6: Monitor milestone evidence

Track raw-material purchase, packaging production, manufacturing, packing and expected readiness.

Step 7: Review readiness and inspect

Compare finished goods with the approved sample and specification. Check quantity, pack format, labels, cartons and critical defects.

Step 8: Close deviations

Record rework, replacement, shortages or accepted deviations in writing.

Step 9: Pay the 70% balance

Pay only against the agreed milestone and reconcile the final invoice amount.

Step 10: Release and hand over the cargo

Confirm carrier instructions, cargo-release authority, handover evidence and agreed shipping documents.

Common Buyer Mistakes

1. Paying because the quotation expires today.
2. Treating a platform badge or factory video as a substitute for verifying the transaction structure.
3. Approving a product from photographs.
4. Using "same as sample" without a sample code and written specification.
5. Deferring packaging and artwork until after the deposit.
6. Using 30/70 without defining the 70% trigger.
7. Ignoring tooling, printing, laboratory and logistics costs.
8. Assuming the deposit holds the production slot indefinitely.
9. Accepting a new bank account inside the same email thread.
10. Paying the full balance when only part of the order is ready.
11. Arranging inspection without measurable acceptance criteria.
12. Expecting Incoterms® or cargo insurance to resolve quality and refund disputes.

The Pre-Deposit Principle

A factory deposit is not simply a reservation fee. Depending on the project, it may trigger raw-material purchasing, printing, tooling, sample development, production planning or irreversible commitments to subcontractors. Once those commitments begin, part of the deposit may become commercially non-refundable even if mass production has not started.

The correct question is therefore not only "Is the supplier real?" It is also "Is the entire transaction sufficiently defined and controllable for this amount of money to be released now?" A genuine factory can still produce the wrong item, miss the slot, use unsuitable packaging, subcontract an operation without disclosure or request payment to an unexplained entity.

1. Questions About the Companies and Roles

Verify the seller in the relevant corporate registry and check the food-production licence for the actual manufacturing site where applicable. Export declarations and manufacturing site registration records are administered by the General Administration of Customs of the People's Republic of China (GACC).

2. Questions About the Product and Production Technology

3. Questions About Samples and Approval

A sample must be linked to a written specification. "Same as sample" is weak if the sample has no controlled identity, the factory has no copy, or it was produced differently from the proposed line.

4. Questions About Written Specification and Acceptance Criteria

• What composition, gelling system and dietary claims are confirmed?
• What flavour, colour, aroma and texture are targeted?
• What dimensions, piece weight and tolerances are set?
• What filling, layering or coating ratio is required?
• Which defects are prohibited and what limits apply?
• How is net weight, count and distribution controlled?
• What moisture, water activity or stability parameters apply?
• What shelf life is claimed and how is it evidenced?
• What test methods, sampling plan and acceptance criteria apply?
• Which document version takes priority over chat, quotation and sample notes when there is a conflict?

Different SKU categories need different control points: marshmallow requires compression, sticking and recovery; freeze-dried needs moisture, breakage and seal integrity; sour gummies need coating uniformity, surface caking and powder loss.

5. Questions About Packaging and Artwork

Do not trigger custom print until ingredient declaration, nutrition data, claims, barcode, language, importer details and destination-market review are sufficiently mature.

6. Questions About the Quotation, MOQ and Hidden Costs

• Does the unit price include the selected formula, flavour, coating, filling and shape?
• Does it include retail packaging, labels, inner boxes and master carton?
• Are printing plates or cylinders, moulds, dies and development fees additional?
• Are inspection, laboratory, palletisation, stretch wrap and loading preparation included?
• Are inland transport, export declaration and document fees included?
• What is the MOQ for each product, flavour, colour, packaging size and design?
• What over-run or under-run tolerance applies?
• How is excess or short quantity priced and accepted?
• How long is the quote valid and what triggers a price change?
• What currency, tax basis, bank fees and exchange costs apply?

Reconcile the full contract amount, deposit proportion, one-time charges and future logistics costs before paying.

7. Questions About What the Deposit Authorizes

8. Questions About Timing and Capacity

• What is the confirmed production slot and what does it depend on?
• What is the lead time from confirmed start to completed, inspected and packed goods?
• Is the slot guaranteed or conditional on sample, artwork or packaging?
• What is the current order backlog and are any parallel high-priority orders running?
• Which steps have the longest fixed lead time?
• What buffers exist for quality failures and rework?
• At what point does a delay become material enough to require notification?

9. Questions About the Balance Payment and Inspection

• What exact evidence defines "goods ready" for the balance payment?
• Is pre-shipment inspection permitted?
• Who selects and pays the inspection company?
• What are the acceptance and rejection criteria?
• What corrective action applies after a failed inspection?
• How long does the factory hold completed goods before storage charges apply?
• What happens when only part of the order is complete?
• What is the balance payment trigger for partial readiness?

10. Questions About the Bank Account and Payment Instructions

• What is the exact legal name of the payment beneficiary?
• What currency, bank name, SWIFT/BIC and account number will appear on the invoice?
• Why does the beneficiary differ from the factory if they are different entities?
• What is the correct payment reference to ensure the transfer is matched?
• Who should the buyer contact to verify if an account change is announced?
• Does the supplier use a platform escrow or a direct bank transfer?
• What is the internal approval process before the buyer releases the payment?

Any account change announced only by email should be independently verified through a previously confirmed telephone number before the transfer is made.

11. Questions About Shipment, Incoterms and Documents

• Which Incoterms® rule applies and what is the exact named place?
• Who books and pays for export customs clearance?
• Who books and pays for the international transport?
• Who is responsible for loading and sealing?
• Which documents will be provided: commercial invoice, packing list, transport document, certificate of origin, COACertificate reporting a tested batch., inspection report, food certificates?
• In what format, language and by what deadline will the documents be available?
• How is the cargo released if the balance is paid after the goods are shipped?

12. Questions About Delay, Cancellation and Refunds

• What is defined as a production delay and what notice is required?
• What cure period applies before cancellation rights are triggered?
• What refund applies if the buyer cancels before production starts?
• What refund applies after custom packaging is produced but before mass production starts?
• What refund applies if the factory fails to deliver?
• How are completed conforming goods treated at cancellation?
• Who bears bank charges and exchange-rate losses on a refund?

13. Questions About Change Control After Payment

• Which changes require a formal amendment?
• Who has authority to approve a change?
• How are price, MOQ and schedule impacts recorded?
• What happens to already-purchased packaging if the artwork changes?
• Is a new sample required after a formula or process change?
• Which document version controls production after a change?

Every material change should have a version number, date, cost impact, timing impact and named approver.

Buyer Checklist Before Paying the 30% Deposit

• Seller and beneficiary verified.
• Product specification approved.
• Sample reference identified.
• Packaging format and count structure approved.
• Artwork and dieline process agreed.
• Unit price and one-time charges separated.
• Production lead-time trigger written.
• Balance-payment trigger written.
• Inspection and correction process written.
• Incoterm and named place confirmed.
• Cancellation and non-refundable costs addressed.
• Bank fees and currency addressed.

Buyer Checklist Before Paying the 70% Balance

• Entire order or agreed lot is objectively ready.
• SKU quantities and carton counts reconciled.
• Packaging, labels and date codes checked.
• Inspection complete or formally waived in writing.
• Material defects corrected or formally accepted.
• Final invoice reconciled against changes and shortfalls.
• Packing list and document drafts reviewed.
• Cargo-release and pickup plan confirmed.
• Beneficiary details rechecked.
• Payment evidence retained.

Pre-Deposit Approval Sheet

Before transferring funds, create a one-page pre-deposit approval sheet listing: seller, manufacturer, packer, beneficiary, sample code, specification version, packaging version, contract total, deposit amount, non-refundable costs, production trigger, inspection plan, balance evidence, Incoterm, named place and the names of the approvers.

From Our Sourcing Practice

Working across more than 80 factories in Guangdong — from Dongguan's gummy specialists to Foshan's printing and packing hubs — we encounter one recurring pattern in first-time buyer projects: the deposit is transferred before the commercial scope is properly defined. In 3 out of 5 first-time buyer projects we manage, the artwork is not finalised when the 30% hits the factory account. That single gap — deposit paid, artwork pending — is enough to delay production by 4–6 weeks and quietly shift a confirmed lead time into a best-guess estimate. When the production slot is allocated to another customer in the meantime, the original schedule collapses.

For a European private-label client sourcing printed sour belt pouches from a Dongguan extrusion factory, we restructured the deposit mechanics before any funds moved. The full sequence was written into the purchase order: deposit on the day the artwork file passed compliance review, not on the day the quotation was accepted. That one change gave the factory a real trigger and gave the buyer a real timeline. The order shipped 11 days ahead of the original forecast.

The other issue we see in almost every first-order project is the 70% balance trigger. Factories often send a message saying "goods ready, please pay." Our standard practice is to require a readiness pack — photos of finished cartons, a completed packing list, a quantity reconciliation and an inspection report or video walk-through — before we advise our clients to release the balance. In a project involving marshmallow and coated gummies for a US marketplace seller, a readiness request revealed that one of three SKUs had an incorrect label date code. The correction cost two days and zero dollars. Discovering it after the balance had been paid and the container sealed would have been far more expensive.

— Amanda XUN, Head of Sourcing, AXTIMES

Recommended Next Step

Before paying a factory deposit, build a one-page payment milestone sheet that identifies:

• the legal seller and beneficiary;
• the exact 30% payment trigger;
• the conditions that start production lead time;
• the evidence required before the 70% balance;
• inspection and corrective-action steps;
• the cargo-release point;
• non-refundable costs;
• responsibilities of the Client, Export Company and Factory.

AXTIMES can review the proposed supplier structure, quotation, product and packaging status, contract wording and readiness evidence before a payment milestone is released.

Sources and Reference Framework

This guide uses operational experience from private label confectionery projects and general international-trade principles. The U.S. FDA guidance on importing food products and the U.S. International Trade Administration explain that advance wire payment reduces exporter non-payment risk but shifts performance and cash-flow exposure toward the importer. It also distinguishes advance payment from letters of credit, documentary collections and open-account terms. ICC guidance on documentary credits is relevant where parties use bank-controlled document conditions. Pre-shipment inspection should be defined contractually and supported by measurable acceptance criteria.