How to Send Money to Chinese Supplier from Morocco?

Mar 20, 2025 Chapter 1. Sourcing

Challenges of Importing from China to Morocco

Importing from China to Morocco involves several challenges related to logistics, regulations, costs, and cultural differences. Below are the key difficulties and their solutions:

1. Complex Customs Clearance

Challenge: Morocco’s customs process is strict, especially with the Verification of Conformity (VoC) program introduced in 2020, requiring additional certificates. Incomplete or non-compliant documents (e.g., incorrect HS codes) can lead to delays or fines.
Solution: Verify product compliance in advance, hire a customs broker familiar with Moroccan regulations, and ensure all documents (e.g., commercial invoice, packing list) are accurate and translated into English or French.

2. High Tariffs and Taxes

Challenge: Depending on the HS code, Moroccan import duties can reach up to 100%, with a VAT typically at 20%, plus additional fees (e.g., port handling), making costs unpredictable.
Solution: Research trade agreements (e.g., China-Africa cooperation benefits), select low-duty products, or negotiate with suppliers to adjust CIF prices to lower the tax base.

3. Logistics Time and Uncertainty

Challenge: Sea freight from China to Morocco (e.g., Shanghai to Casablanca) takes 30-55 days and is prone to delays from port congestion or seasonal factors. Air freight is faster but costly.
Solution: Plan shipping timelines early, work with a reliable freight forwarder, track shipments in real-time, and purchase insurance for unexpected losses.

4. Language and Cultural Barriers

Challenge: Chinese suppliers often communicate in English or Chinese, while Morocco uses Arabic and French, leading to potential misunderstandings in documentation or negotiations.
Solution: Partner with multilingual suppliers or hire intermediaries familiar with both markets to ensure clear contract terms.

5. Payment and Foreign Exchange Restrictions

Challenge: Morocco’s strict foreign exchange controls require import approval, delaying payments. Some Chinese suppliers demand upfront payment, increasing trust risks.
Solution: Use letters of credit (L/C) or third-party platforms (e.g., PayPal, Alibaba Trade Assurance), and secure Moroccan import permits in advance.

6. Product Quality and Certification

Challenge: Quality varies among Chinese suppliers, and non-compliance with Moroccan standards (e.g., safety, environmental) can result in rejected shipments.
Solution: Request samples for testing, demand certifications (e.g., CE, ISO), and specify quality terms in contracts.

7. Damage During Transit

Challenge: Long-distance shipping, especially by sea, risks damage (e.g., moisture, breakage), particularly for fragile or electronic goods.
Solution: Use appropriate packaging (e.g., moisture-proof, shock-resistant), confirm loading plans with forwarders, and insure shipments fully.

Conclusion

The challenges of importing from China to Morocco stem from differences in regulations, logistics, and business practices. Partnering with experienced freight forwarders, understanding Moroccan customs policies, and managing risks can streamline the process. For specific products or steps, further assistance is available!

Practical Insights

Trade data shows China’s exports to Morocco have grown steadily, with frequent reports of clearance delays and unexpected fees. For instance, textiles are sometimes returned due to quality issues.

How to Send Money to a Chinese Supplier from Morocco?

Sending money from Morocco to a Chinese supplier involves navigating Morocco’s strict foreign exchange controls and China’s regulations.

Here are the options:

1. Understand Moroccan Regulations

Morocco’s Office des Changes regulates foreign currency outflows. You’ll need a valid commercial reason (e.g., paying for goods) and documentation like an invoice or contract. For some methods, such as a Letter of Credit, additional paperwork may be required.

2. Choose a Payment Method

a. Bank Wire Transfer (SWIFT/Telegraphic Transfer)

How it works: Send funds from your Moroccan bank to the supplier’s Chinese bank via SWIFT.
Steps:
1. Get the supplier’s bank details (SWIFT code, account number, bank name).
2. Submit an invoice or contract to your bank.
3. Request the transfer in CNY or USD.
Pros: Secure and widely accepted.
Cons: Slow (3-5 days), with fees (~1-2% + $20-$50).
Tip: Confirm the supplier’s preferred currency.

b. Letter of Credit (L/C) – Including Documentary Credit at Sight

How it works: A Letter of Credit is a bank-issued guarantee that payment will be made once conditions (e.g., shipping documents) are met. A Documentary Credit at Sight means payment is released immediately upon presentation of compliant documents (e.g., invoice, bill of lading).
Steps:
1. Agree with your supplier to use an L/C and specify “at sight” terms.
2. Visit your Moroccan bank (e.g., Attijariwafa Bank) to open the L/C, providing:
  - Supplier’s bank details.
  - Purchase contract or proforma invoice.
  - Details of goods and shipment terms.
3. Your bank issues the L/C to the supplier’s bank in China.
4. The supplier ships the goods and submits required documents (e.g., invoice, packing list, bill of lading).
5. Once verified, your bank releases payment immediately (for “at sight” terms).
Pros: Secure for both parties; common in international trade.
Cons:
- Requires detailed documentation, including an invoice.
- Fees can be high (0.5-2% of the transaction value).
- Challenge with Yiwu Market: Many small vendors in Yiwu cannot provide invoices or comply with L/C requirements. These shops often prefer cash or direct transfers. Confirm in advance if sourcing from Yiwu.
Tip: Use L/C for established suppliers, not small Yiwu stalls. Specify “at sight” for faster payment.

c. Online Money Transfer Services (e.g., Wise)

How it works: Transfer MAD to CNY or USD via platforms like Wise.
Steps:
1. Sign up, enter supplier bank details.
2. Fund with your Moroccan account.
Pros: Low fees (~0.5-2%), fast (1-2 days).
Cons: May need Office des Changes approval; limited CNY support from Morocco.
Tip: Check Wise’s availability for MAD-to-CNY.

d. Western Union

How it works: Send MAD for cash pickup or bank deposit in China.
Steps:
1. Visit a Western Union location or use online services.
2. Provide supplier details.
Pros: Fast (minutes to 2 days).
Cons: High fees; cash pickup impractical for suppliers.
Tip: Suitable for small, urgent payments.

e. PayPal

How it works: Send money via PayPal if the supplier accepts it.
Pros: Instant.
Cons: High fees (2.9% + $0.30); rare in China.
Tip: Verify supplier acceptance.

3. Documentation

For all methods, especially L/C:

Commercial invoice or proforma invoice.
Proof of transaction (e.g., contract).
For L/C, additional shipping documents (e.g., bill of lading).
Yiwu Note: If buying from Yiwu, ask suppliers upfront if they can provide invoices. Many cannot, making L/C or bank transfers difficult.

4. Consider Chinese Restrictions

China caps individual foreign inflows at $50,000 USD/year without SAFE approval, but business payments with proper docs (e.g., L/C documents) are usually fine. Use banks like Bank of China or ICBC.

5. Compare Costs and Speed

Bank Transfer: $20-$50 + markup; 3-5 days.
L/C (at Sight): 0.5-2% fee; payment upon document verification (days after shipment).
Wise: 0.5-2% fee; 1-2 days.
Western Union: $10-$30; minutes to 2 days.
PayPal: 2.9% + $0.30; instant.

6. Recommended Approach

For Yiwu/small vendors: Use bank transfers or Western Union, as L/Cs are impractical without invoices.
For larger suppliers: Opt for a Documentary Credit at Sight (L/C) for security, or a bank transfer/Wise for simplicity.
Contact your bank to start the process and ensure compliance.

7. Final Steps

Verify all details (e.g., SWIFT codes, L/C terms).
Track the payment.
Confirm receipt with your supplier.

If sourcing from Yiwu, plan ahead—many vendors’ inability to invoice limits your options to cash-based or informal methods. Let me know if you need more details!