If you have sourced stone from China before, you have seen both offered. You may have picked one over the other without fully understanding why, or you may have followed your bank’s recommendation without questioning it. This guide breaks down how each term actually works in the stone trade, what they cost, where the risk sits, and when each one makes sense for a B2B buyer placing container orders.
At Top Stone Panels, we operate on T/T 30/70 as our standard term and have done so across thousands of containers to more than 30 countries. We also accept LC at Sight for larger orders and for buyers whose banks or procurement policies require it. Both work. Neither is universally better. The right choice depends on the size of your order, the maturity of your relationship with the supplier, and the internal rules of your own purchasing department.
What T/T 30/70 Actually Means
T/T stands for telegraphic transfer, which is simply a bank-to-bank wire transfer. The “30/70” refers to the split: 30% of the total invoice value is paid as a deposit when the order is confirmed, and the remaining 70% is paid before the container ships. The entire mechanism is built on a simple logic: the supplier needs enough cash up front to commit raw material from the quarry, and the buyer needs proof that the goods are actually loaded before releasing the balance.
How the money moves step by step
The deposit transfer happens within two to three business days of the buyer receiving the proforma invoice. The supplier uses the deposit to pull raw stone blocks from quarry inventory, schedule cutting and panel assembly, and book the container slot with the shipping line. Production typically takes 20 to 25 working days for a standard order, or 25 to 30 days for a first order that includes custom-branded cartons.
Once the container is loaded and sealed, the supplier sends the buyer three things: a loading video showing the container being stuffed, high-resolution photos of the packed cartons inside the container, and a scanned copy of the bill of lading issued by the shipping line. The buyer reviews the evidence, confirms everything matches the purchase order, and then releases the 70% balance. Once the balance hits the supplier’s account, typically within two business days, the original shipping documents are released to the buyer or couriered to their address.
Why 30% and not 20% or 50%
The 30% figure is not arbitrary. For a typical stone-panel container, the raw material cost — the quarried stone itself — represents roughly 25% to 35% of the FOB price. A 30% deposit covers the supplier’s material outlay without requiring the supplier to finance the entire production run from their own cash flow. A 20% deposit leaves the supplier exposed if the buyer cancels after production has started. A 50% deposit concentrates too much risk on the buyer before they have seen any evidence that the container has been loaded.
Variations on the 30/70 theme
Some suppliers offer 30/70 against copy of the bill of lading, which means the balance is paid after the vessel has departed rather than before. This variation favors the buyer slightly because the goods are already at sea when the second payment is made. It is typically reserved for buyers who have placed at least two or three successful orders and have an established payment track record with the supplier.
Another variation is 40/60 on first orders, used by some suppliers to offset the risk of a new buyer relationship. The deposit is slightly higher, the balance slightly lower. Once the first container arrives without issue, subsequent orders revert to 30/70.
What LC at Sight Actually Means
A Letter of Credit at Sight is a payment guarantee issued by the buyer’s bank, called the issuing bank, in favor of the supplier, called the beneficiary. The bank commits to pay the full invoice value as soon as the supplier presents a defined set of shipping documents that comply with the terms of the LC. “At sight” means there is no waiting period — the bank pays within five to seven working days of receiving compliant documents.
How the LC process works step by step
The buyer applies for an LC at their bank, specifying the supplier, the goods, the shipment date, the port of loading, the port of discharge, and the documents the supplier must present. The issuing bank sends the LC to the supplier’s bank in China, called the advising bank, which verifies the LC and forwards it to the supplier.
The supplier produces the order, loads the container, and assembles the document set specified in the LC: typically the commercial invoice, packing list, bill of lading, certificate of origin, ISPM 15 fumigation certificate, and any inspection reports. The supplier presents the documents to the advising bank, which checks them against the LC terms. If everything matches, the advising bank forwards the documents to the issuing bank, which pays. The issuing bank then releases the documents to the buyer so they can clear the goods at the destination port.
The documentary strictness of LC
The defining feature of an LC is that banks deal in documents, not in goods. If the bill of lading shows a container number that differs by one digit from what the LC specifies, the bank can refuse payment. If the certificate of origin lists a gross weight that does not match the packing list, the bank can refuse payment. The tolerance for documentary discrepancy under the Uniform Customs and Practice for Documentary Credits (UCP 600), the international rules governing LCs, is essentially zero.
For a stone supplier, this means that every number on every document must be typed correctly, weighed correctly, and cross-checked against the LC wording before presentation. A single typo can delay payment by two to three weeks while the buyer’s bank requests a waiver from the buyer.
Confirmed vs unconfirmed LC
An unconfirmed LC is guaranteed only by the issuing bank. A confirmed LC adds a second guarantee from the advising bank or another bank, which pays even if the issuing bank fails to do so. Confirmed LCs cost more — the confirmation fee typically runs 0.5% to 2% of the LC value per quarter — and are generally only required when the issuing bank is in a country with high political or banking risk, or when the issuing bank is small and not internationally rated.
Side-by-Side: T/T 30/70 vs LC at Sight
The table below captures the differences that matter most to a B2B stone importer.
| Factor | T/T 30/70 | LC at Sight |
|---|---|---|
| Deposit required | 30% upfront | None; bank guarantees full amount |
| Balance payment trigger | Loading video + scanned BL | Compliant documents presented to bank |
| Bank fees (buyer side) | $25 to $50 per wire | $300 to $800+ depending on issuing bank and LC size |
| Bank fees (supplier side) | $0 to $15 receiving fee | $100 to $300 advising and negotiation fees |
| Time to arrange | 1 to 3 days (wire transfer) | 7 to 15 days (LC issuance and advising) |
| Payment speed to supplier | 2 business days after wire | 5 to 10 working days after document presentation |
| Documentary strictness | Commercial tolerance; buyer reviews | UCP 600 zero-tolerance on discrepancies |
| Buyer risk | 30% deposit at risk until loading proof | Minimal; bank only pays on compliant docs |
| Supplier risk | Production cost at risk if buyer refuses balance | Minimal if LC is from a rated bank |
| Minimum practical order size | 1 container (~$20,000 to $40,000) | Typically $50,000+ due to fixed bank fees |
| Flexibility for amendments | High; buyer and supplier agree directly | Low; amendments require bank involvement and fees |
| Credit line impact on buyer | None; uses buyer’s own cash | Consumes buyer’s LC credit line at the bank |
When T/T 30/70 Is the Right Choice
For the majority of stone-cladding container orders, T/T 30/70 is the more practical term. It is faster to arrange, cheaper in bank fees, and flexible enough to accommodate the small changes that happen in every stone shipment — a last-minute color adjustment, a carton redesign, a container swap.
Ideal for orders under $50,000
The fixed bank fees on an LC eat into the margin on a $25,000 to $40,000 container. At $500 in combined bank fees on both sides, an LC adds roughly 1.5% to 2% to the cost of a $30,000 container. On T/T, the same container costs $50 to $75 in total bank fees. For a distributor running 10 containers a month, that difference compounds to thousands of dollars per year.
Ideal for repeat buyers with established suppliers
Once a buyer has placed two or three successful orders with a supplier and has physically inspected the stone on arrival, the trust required for T/T is already in place. The buyer knows the supplier loads what they promise, and the supplier knows the buyer pays on time. At this stage, an LC adds cost and friction without adding real protection.
Ideal when shipment timing is flexible
T/T does not lock the shipment into a rigid documentary framework. If the buyer needs to delay loading by a week to coordinate with a project timeline, the supplier simply adjusts the schedule and sends updated loading photos. No bank amendment, no amendment fee, no renegotiation of LC terms.
How the risk on the 30% deposit is managed
The buyer’s main risk under T/T 30/70 is that the supplier takes the deposit and fails to produce. That risk is managed in three ways. First, the buyer should verify the supplier before the first order — a factory visit, a third-party audit, or at minimum a video call showing the production facility. Our factory audit checklist for stone importers covers what to look for. Second, the buyer should request and verify third-party inspection reports before releasing the balance. Third, the buyer should start with a trial order small enough that a total loss of the deposit would be painful but not catastrophic.
When LC at Sight Is the Right Choice
LC at Sight is the right choice in specific situations where the risk profile or the internal rules of the buyer’s organization make it the only workable term.
When the buyer’s procurement policy requires it
Many large construction groups, hotel chains, and government contractors have internal procurement rules that mandate LC payment for all international purchases above a certain threshold, often $30,000 or $50,000. These rules exist because the procurement department is not the same department as the finance department, and the LC acts as an internal control mechanism. If your organization has this rule, an LC is not negotiable regardless of the supplier.
For first orders with an unverified supplier
If the buyer has not visited the factory, has not met the supplier in person, and has no reference from another buyer in their network, an LC at Sight is the safest way to place the first order. The bank will only release payment if the supplier presents compliant shipping documents, which means the container has actually been loaded. This removes the risk of the supplier taking a deposit and disappearing.
For high-value orders
For orders above $100,000, particularly those involving multiple containers or project-specific custom stone, the LC’s documentary discipline starts to justify its cost. The bank’s verification adds a layer of oversight that neither the buyer nor the supplier can easily bypass, which matters when a single order represents a significant capital outlay.
When the buyer is in a high-risk country
Buyers importing stone into certain countries in Africa, the Middle East, and South Asia may find that Chinese suppliers insist on an LC at Sight or even a confirmed LC. This is not a reflection of the buyer’s creditworthiness — it is a reflection of the political and banking risk in the buyer’s country. Suppliers have been burned by buyers who could not access foreign currency to wire a balance payment because their central bank imposed emergency capital controls.
What Chinese Stone Suppliers Actually Prefer — and Why
If you ask a Chinese stone exporter which term they prefer, the answer is almost always T/T 30/70. There are three reasons, and they are worth understanding because they shape how negotiations play out.
Cash flow speed
A T/T deposit hits the supplier’s account within two business days. An LC takes seven to fifteen days to issue, advise, and confirm. For a factory running weekly production cycles and paying quarry suppliers on delivery, the faster the cash comes in, the faster the next block of stone can be purchased. A factory running on LC terms effectively finances two to three extra weeks of production from its own cash reserves.
Documentary risk
Under an LC, the supplier’s payment depends on presenting documents that match the LC wording exactly. Stone shipments have more moving parts than most — the container number can change at the last minute if the shipping line swaps equipment, the gross weight can vary by 50 to 100 kg depending on how the container is loaded, and the certificate of origin may take an extra day to issue if the local customs office is backed up. Each of these small variances is a potential discrepancy under an LC, and each discrepancy gives the buyer’s bank grounds to refuse payment until the buyer waives it. Under T/T, these small variances are resolved between buyer and supplier directly.
Amendment cost and friction
Amending an LC costs money — typically $50 to $150 per amendment on both sides — and takes time. In the stone trade, amendments are common. A buyer may add one more pallet of corner pieces a week before loading, or change the destination port from Rotterdam to Hamburg because a project site shifted. Under T/T, these changes are absorbed into the production schedule. Under LC, each one triggers an amendment process that can delay loading by a week.
Other Payment Terms You May Encounter
T/T 30/70 and LC at Sight cover roughly 90% of stone-trade transactions out of China. The remaining 10% use one of the following terms, and it helps to know what each one means when it appears in a quotation.
T/T 100% before shipment
The buyer pays the full invoice value before the container loads. This term concentrates all the risk on the buyer and is almost never appropriate for a first order. It may appear in two situations: a very small sample order under $1,000 where LC and split T/T are disproportionate, or a long-established relationship where the buyer has blanket trust in the supplier.
T/T against copy of bill of lading
The buyer pays the full balance after the vessel has departed and the shipping line has issued the original bill of lading. The supplier sends a scanned copy of the BL to the buyer, the buyer wires the balance, and the supplier releases the original documents. This term favors the buyer because the goods are already at sea before the second payment is made. Suppliers typically offer it only to buyers with a proven payment history.
D/P (Documents Against Payment)
Also called CAD (Cash Against Documents), this works through the banking system: the supplier’s bank holds the shipping documents and releases them to the buyer only when the buyer pays. It is similar in spirit to T/T against BL copy but uses the banks as intermediaries. It is more common in European and Middle Eastern trade than in China-US stone trade.
O/A (Open Account) and net 30/60/90
The supplier ships the goods and invoices the buyer, who pays 30, 60, or 90 days after receipt. This term concentrates all the risk on the supplier and is reserved for long-term distribution partners or subsidiary-to-parent transactions. Most Chinese stone factories will not offer O/A to a buyer they do not know personally.
Western Union and PayPal
These appear in sample-order contexts only. The fees are high (3% to 5% on PayPal), the amounts are small, and neither method is appropriate for container-scale orders. A legitimate stone factory will not ask for container-order payment via Western Union — that is a red flag for a trading company posing as a factory or, worse, a scam.
Top Stone Panels’ Standard Payment Terms
At Top Stone Panels, our standard payment term is T/T 30/70. The 30% deposit is paid against the proforma invoice, and the 70% balance is paid after the buyer receives the loading video, packing photos, and a scanned copy of the bill of lading.
For buyers who require LC at Sight, we accept it for orders above $50,000, which typically means two or more containers per order. The LC must be irrevocable, transferable, and issued by an internationally rated bank. We ask that the LC wording be shared with us in draft before the formal application so we can confirm that the required documents are ones we can actually produce — this avoids the common LC pitfall where the issuing bank includes a document requirement that the supplier cannot meet.
For trial orders or sample-only orders under $3,000, we can accept PayPal or Western Union for convenience, though most buyers prefer T/T because the bank fees are lower and the paper trail is cleaner.
What the deposit actually covers
When we receive a 30% deposit, it is allocated in this order: first to the quarry for the raw stone blocks earmarked for the order, then to the production line for cutting and panel assembly scheduling, then to the packaging supplier for any custom-branded cartons, and finally to the shipping line for the container booking. The deposit is not profit — it is the working capital that moves the order from a quotation to a loaded container.
What happens if the buyer needs to cancel after deposit
Cancellation after deposit is rare but it happens, usually because a project was postponed or a building permit was delayed. Our policy is to refund the deposit minus any quarry and production costs already incurred, with a full cost breakdown provided to the buyer. In most cases, the incurred costs are between 50% and 80% of the deposit, depending on how far production has progressed. This is why we always recommend that buyers confirm their project timeline before placing the order. Read our guide on lead time and production scheduling for how to plan the order around your project.
How to Negotiate Payment Terms as a Stone Importer
Payment terms are negotiable, but only within bounds. Here is how the conversation typically plays out and what levers you can pull.
The trust curve
Most supplier-buyer relationships move through three stages. Stage one is the first order, where T/T 30/70 or LC at Sight are the norm. Stage two is orders two through five, where the buyer may negotiate 30/70 against copy of BL, which delays the balance payment until after the vessel departs. Stage three is order six and beyond, where established buyers with consistent volume may negotiate 20/80 or even monthly consolidated invoicing. Each stage is earned through on-time payment and consistent order flow.
What makes a supplier more flexible on terms
Three things give a buyer leverage in payment-term negotiations. First, consistent order volume — a buyer placing one container every month has more leverage than one placing two containers a year. Second, a clean payment history — if every previous balance payment has been wired within three days of the loading proof, the supplier trusts the buyer. Third, a factory visit — a buyer who has been to the factory and met the team is a known entity, and suppliers are more flexible with known entities.
What makes a supplier less flexible
Two things lock a supplier into strict terms. First, high raw-material costs — when quarry prices are up and the supplier is financing production from their own cash reserves, they need the deposit to cover material. Second, custom orders — a container of stone panels in a custom color mix or with private-label cartons cannot be resold if the buyer cancels, so the supplier will insist on a deposit that covers their full production cost.
Frequently Asked Questions
What does T/T 30/70 mean for stone imports?
T/T 30/70 means the buyer pays 30% of the total invoice by telegraphic transfer as a deposit when the order is confirmed, and the remaining 70% is paid before the container is shipped. The balance payment is released after the supplier provides the loading video, packing photos, and a copy of the bill of lading.
What is LC at Sight for stone imports?
LC at Sight is a Letter of Credit where the buyer’s bank pays the supplier’s bank immediately upon presentation of compliant shipping documents. It is called “at sight” because there is no deferred payment period — the bank pays as soon as the documents are verified, typically within 5 to 7 working days of presentation.
Which is safer for a first-time stone importer: T/T or LC?
For a first-time buyer with a new supplier, LC at Sight offers more protection because the bank only releases payment against verified shipping documents. However, LC adds $300 to $800 in bank fees and takes longer to arrange. Many first-time buyers compromise by starting with a smaller trial order on T/T 30/70, verifying the supplier in person or through a third-party inspection, and scaling up on the same terms once trust is established.
Do Chinese stone suppliers accept LC at Sight?
Most Chinese stone suppliers accept LC at Sight for orders above $50,000, but prefer T/T 30/70 for smaller orders because LC paperwork is disproportionate to the shipment value. Suppliers also prefer T/T because it releases cash faster, typically within two business days of the transfer, while LC payments take 5 to 10 working days to clear through the advising bank.
What is the typical deposit percentage for stone imports from China?
The industry standard for natural stone cladding imports from China is 30% deposit with 70% balance before shipment. Some suppliers offer 30/70 against copy of the bill of lading for established buyers, while first-time buyers may be asked for 40% deposit on the initial order. Deposits below 30% are rare for stone products because the supplier commits raw stone from quarry inventory once the order is confirmed.
Can I pay in RMB instead of USD?
Some Chinese stone suppliers accept RMB payment, particularly if the buyer has a Hong Kong or mainland China bank account. However, most export contracts are denominated in USD because the supplier’s quarry and shipping costs are also in USD. Paying in RMB introduces an exchange-rate variable that can complicate the invoice reconciliation.
What happens if the wire transfer is delayed?
International wire transfers typically take two business days, but transfers from certain countries or through certain intermediary banks can take four to five days. At Top Stone Panels, we do not hold a container hostage over a one-day wire delay — if the buyer sends the payment confirmation (bank slip or SWIFT MT103 message), we release the documents on the understanding that the funds will clear within the next 48 hours.
Conclusion: Pick the Term That Fits the Relationship, Not Just the Order
T/T 30/70 and LC at Sight are both proven payment terms for stone imports from China. Neither is inherently safer or cheaper in every situation. The right choice depends on the size of the order, the maturity of the buyer-supplier relationship, the internal rules of the buyer’s organization, and the destination country’s banking environment.
For most B2B stone importers placing one to ten containers a year with an established supplier, T/T 30/70 is the more practical and cost-efficient term. For first orders with a new supplier, for orders above $50,000, or for buyers whose procurement policies require bank intermediation, LC at Sight is the right tool.
The honest truth is that the payment term matters less than the choice of supplier. A reliable supplier who loads what they promise, documents every container, and communicates clearly will make either payment term work smoothly. A poor supplier will make either term feel risky. The real work happens before the first payment is made — in the factory visit, the sample review, the reference check, and the production timeline conversation.
If you are planning your first container of natural stone cladding from China and want to discuss which payment term fits your situation, the sales team at Top Stone Panels will walk through the options and send a proforma invoice in the format your bank or procurement department needs. No obligation, just a clear quote with clear terms.
