Preparation Time

Preparation Time refers to the period from the effective date of the contract or receipt of the advance payment/letter of credit, during which the seller organizes production, procurement, packaging, marking, and other preparatory work until the goods are ready for shipment. It is usually different from Delivery Time or Shipment Time: Preparation Time emphasizes the internal cycle of getting the goods 'ready', while Shipment Time emphasizes the date the goods are actually loaded onto the means of transport. It is commonly used in contract clauses under trade terms such as FOB and CIF. The buyer pays attention to the Preparation Time to arrange shipping schedules or space, while the seller needs to plan production accordingly. Notes: The Preparation Time should clearly specify the starting point (e.g., contract signing date, deposit receipt date, or L/C arrival date) and the end point (e.g., notice of goods readiness date); if custom products are involved, the Preparation Time may be longer and a buffer should be reserved. The difference from 'Production Cycle' is that Preparation Time also includes packaging, inspection, and other steps; the difference from 'Delivery Time' is that the latter may include transportation time. Reasonably agreeing on the Preparation Time can avoid dead freight or breach of contract caused by delayed preparation.