What to know
What is FTZ?
A Free Trade Zone (FTZ) is an area within the PRC, in or near a China Customs port of entry, where foreign and domestic merchandise is considered to be outside the country, or at least, outside of China Customs territory. Certain types of merchandise can be imported into a Zone without going through formal Customs entry procedures or paying import duties. Customs duties and excise taxes are due only at the time of transfer from the FTZ for China consumption. If the merchandise never enters the China commerce, then no duties or taxes are paid on those items.
The Free Trade Zone (FTZ) program was created by the China government to facilitate international trade and increase the global competitiveness of China-based companies. The program, which has existed since 1990, continues to thrive and change to better meet the needs of Chinese companies in the global economy.
What Does RMA Stand For?
A Return Merchandise Authorization or Return Material Authorization (RMA) is a transaction whereby the recipient of a product arranges to return defective goods to the supplier to have the product repaired or replaced or in order to receive a refund or credit for another product from the same retailer or corporation. In practice, an RMA is only issued after a series of tests.

The specifics vary between different retailers and industries, but in general the steps taken are similar.
What is Contract Packaging?
Simply stated, contract packagers package other companies¡¯ products on their behalf. Specifically, contract packagers provide a resource of equipment, facilities and labor that enables the manufacturer or marketer of a product to outsource specialized packaging projects or an entire packaging process.

Contract packaging services package and/or label products that are manufactured by other companies. They work on a contractual basis and often perform specialized applications. Some contract packaging services perform only basic assembly tasks. Others prepare and send products to customers, performing a range of activities such as taking orders, packaging items, shipping items, and reporting shipments. Package design services provide design support for packaging development throughout the entire design cycle, from project planning to presentation to final testing. Package testing services use equipment or other resources to subject assembled packaging to standard or custom testing. Contract packaging services are located throughout the world. 

There are many ways to package and label products. Some contract packaging services place materials in bags, bottles, boxes, cans, cartons, or pouches. Others put products in blister or clamshell packages, or on a tape that is rolled into a reel. Shrink banding fits packages with plastic wrapping bands that are heated until they shrink to fit tightly. Shrink or skin wrapping encloses packages in protective plastic wrapping that is heated and shrunk. Stretch or over wrapping is used to package groups of products such as cans. Machinery is often used to form, fill, and seal products. Custom hand-assembly is performed when automated methods are not possible or cost-effective. Labeling techniques include bar coding and radio frequency identification (RFID) tagging. Repackaging methods include wrapping or inserting cello packaging.

Contract packaging services can provide specialty packaging and labeling for bulk and original equipment manufacturer (OEM) supply shipments, industrial equipment and machinery, and freightliner cargo holds. Some companies specialize in packaging warehouse club products, promotional or display assemblies, gift sets, kits, or sampler sets. Others are experienced with packaging materials that consist of granular or fine powder particles, or that consist of thick, flowing substances such as paste. Specialty packaging is often necessary for liquid goods that have a specific volume and are only slightly compressible.

What to Know When Choosing a Contract Packaging Provider
When considering contract packaging solutions for your production needs, make sure your need is clearly stated and agreed upon inside your company. Be sure you can inform your prospective contract packaging partner with your needs and with your goals. If you foresee or have already encountered any problems in the process, be sure you talk about these with your contract packager before you commission the process.
You should consider ¡°outsourcing¡± your packaging operations when. . .

1. Your product volume under or over employs your own manufacturing lines, either short or long term.
2. There's a specific, short-term requirement that may be better served by specific experience or packaging equipment you don't have.
3. There's a short run for a new product market test, gift pack or seasonal appeal which may require your company to invest in new packaging equipment.
4. Promoting your product with increasingly popular marketing weapons of non-standard packaging or promotional inserts requiring special machinery or labor intensive work.
5. The pressure of new business or deadlines creates a heavy, short-term workload for which you require experienced help to supplement the efforts of in-house staff.
6. A product may more economically be shipped in bulk to a distant market, then unit packed locally.
7. New packaging forms unfamiliar to your staff and equipment may be specified.
8. There is no available in-house packaging equipment or expertise for a particular job.
9. The plant is closing for maintenance or faced with a labor availability problem.
10. A new package form is to be market tested before general introduction.
11. There's a corporate down-sizing.
12. The company is faced with a high investment to meet regulatory and environmental compliances. 

What is a 3PL (Third Party Logistics)?
3PL - Third party logistics companies provide services for OEMs, ODMs and Branded Companies. Some of these services include, but are not limited to: transportation, (including domestic and international) warehousing, distribution, fulfillment and packaging, customs brokerage, freight payment services and trade compliance.

Glossary
SHRINK WRAPPING - probably the most common of all packaging methods, shrink wrapping is accomplished by trimming a piece of shrinkable film around an object, and then sending it through a heat tunnel which shrinks the film to conform to the exact size of an outer box or product. This is a tamper resistant covering that is very common at the retail level on products such as gift sets, software, and games, to name a few. The gloss effect created by the film tends to give a product or box a richer appearance.
BLISTER PACKAGING - A packaging technique, which involves the heat seal of a rigid, thermoformed outer shell, which houses a product, to a coated back card. A method commonly used for retail items.

CLAMSHELL - a custom thermoformed PVC tray that is typically designed with 2 halves connected with a hinge. A more expensive option, this package is selected by companies who have a heavy or expensive retail item that requires tamper proof protection. These packages can be designed with a hang hole or with a foot, for a stand alone option.

COLLATING - the assembly or sorting of many different items in a pre-specified order or arrangement.

BUNDLE WRAPPING - a very popular method of packaging heavier items such as cases on juice, vegetables, soda, etc. The film is cut to size and is shrunk around product leaving a bull eye at each end of the package. This works great with high volume orders.

CLUB STORE PACKAGING - normally pallets of product packaged to conform to Club Store requirements. A lot of Club Store packaging consists of volume buys or variety type packaging.

CONTRACT ASSEMBLY - a term referring to a service that specializes in the assembly of a product through the use of manual labor, fixturing or automation.

CONTRACT PACKAGING - a general term referring to a service that is performed on a product utilizing various assembly and / or packaging techniques intended for the enhancement of a product.

CONTRACT SUPPLIER - a source that performs a manufacturing service for a customer.

CONTRACT WAREHOUSING - a term referring to a service that specializes in material handling, storage, inventory control and distribution of a company¡¯s product or products.

DIRECT MAIL - this service provides clients with a mail merge solution by down loading names and addresses from disk onto label format, which is then in return used for solicitation. Labels can be applied and shipped if needed.

FIN SEAL PACKAGING - or also known as Horizontal Wrapping. This type of packaging is very well known and very popular. You would find this packaging on a candy bar, two pack of cookies, etc. This can be done with foil packaging or plain film.

FULFILLMENT - the overall logistics associated with a product or products including but not limited to material handling, collation, incoming inspection, order processing & tracking, inventory control, warehousing, assembly and / or transportation.

HAND ASSEMBLY - tasks that are completed by human hands or manual labor.

HEAT SEALING - a process by which heat is introduced to 2 substrates to seal them together. Heat sealing is a generic term and is part of many packaging processes, but it mainly refers to the closure of polybags.

LABELING - a process in which a label is applied to a product, manually or automated on any surface needed.
LOGISTICS - the process of planning, implementing, and controlling the efficient, cost-effective flow of raw materials, in-process inventory, finished goods, and related information from the point of origin to the point of consumption for the purpose of conforming to customer requirements.

OUTSOURCING - the act of physically sending out a product to a contract supplier for assembly, packaging or manufacturing.


PACK OUT - this method and quantity is associated with the last step in handling a product that needs to be shipped out.

PICK & PACK - this is part of the order fulfillment process which includes the physical locating or picking of a part out of inventory, and then packing the part into a box for shipment.

POLYBAGGING - the placement of a product or products into a polybag and then heat sealing the bag closed.
POINT of SALE (POS) - the point where ownership of the product transfers to the customer

PRINT ON DEMAND - similar to Direct Mail, this service provides a client with a mail merge solution by downloading names and addresses from a disk onto a form letter which is then used for solicitation of some kind.
REFURBISHING - similar to reconditioning, except with perhaps more work involved in repairing the product.

RELABELING - this is a task that may include either applying a label over an existing label, removing an existing label prior to applying a new label or just applying a label to an original product or box.

REPACKAGING - redoing or undoing an existing type of packaging to reflect new standards.
RETURN MANAGEMENT - Returns Management is that part of supply chain management that includes returns, reverse logistics, gatekeeping, and avoidance.

REVERSE LOGISTICS - the total processing involved with taking in returned goods from the field and reworking or repackaging them to conform to the standards of original goods.

RF SEALING - the permanent sealing of the edges of a clamshell package through the use of Radio Frequency. Special RF sealing equipment is required for this process and it is designed to make a clamshell package tamper proof. This sealing technique would be commonly found in expensive or heavy retail items.

SECONDARY OPERATION - a manufacturing step that comes after the initial process because it cannot be done in line or simultaneously.


SKIN PACKAGING - a packaging technique whereby a film is sucked down over a product and onto a preprinted skin card. As heat is introduced, the adhesive coating on the card and the Surlyn film adhere together. This is an attractive packaging option and is preferred for retail because the product is displayed clearly yet is protected by the transparent covering. It is a cost effective solution for higher volume runs.

SORTING - the separation of good versus bad usually accomplishes through visual inspection.

STRETCH PACKAGING - a packaging technique that allows a product to be encapsulated between 2 halves of a hinged header card, with a Surlyn or clear film which is part of the card but acts as a window for the item. Following the heat sealing of the outer card together, the film in the window is then heated and then shrinks around the geometry of an item. This method is a combination of blister, skin, clamshell and shrink wrapping. It is an attractive option, but more expensive than some of the other methods. Batteries and Pharmaceuticals are commonly stretch packaged.

SUBCONTRACT - the act of outsourcing a product or service to another company.

VALUE ADDED - a reference to an additional operation or service that is done by a supplier to a product or products that provides a customer with a more complete solution.


PACKAGING AND PAPER TERMINOLOGY
80# Gloss Text: Standard glossy paper stock, about as thick as a light magazine cover. The shiny finish provides an excellent opaque base for rich process color printing. This is our most popular stock for: Brochures, Catalog Inserts, Flyers, Posters, etc.
100# Gloss Text: Similar to the 80# gloss text, but 25% thicker and heavier, for a more substantial feeling piece. Standard Uses: Brochures, Information Sheets, Self-mailers, etc.
80# Matte Text: This stock is finely coated with a non-gloss finish. It provides an excellent opaque base for easy to read, crisp typography. Standard Uses: Brochures, Catalog Inserts, and Flyers, etc.
80# Gloss Cover: As a "cover" stock, this paper is stiff, about like a postcard or baseball card. This stock is coated with a glossy finish, making photographs and other images look beautiful. Standard uses: durable, heavy-weight Brochures, Catalog Covers, Product Spec Sheets.
100# Uncoated Cover: An option for business cards, rack cards and bookmarks. This bright white smooth #1 grade cover stock is 14 pt in thickness and matches the 70# text-weight stock we use for letterhead and envelopes.
120# Gloss Cover: We use this stock exclusively for postcards, business cards and rack cards. The glossy, coated finish makes photographs and other images look beautiful. 12 pt thickness.
70# Uncoated Text: We use 70# Lustre for stationery and envelopes and 70# Cougar Opaque Offset on calendars and newsletters. These uncoated (non-glossy) white stocks are guaranteed safe for desktop laser printing. Many common stationery stocks are not appropriate for 4-color printing, so we have selected these for best results. Feels thick and substantial in your hands.
24# Uncoated and 28# Uncoated: This is a standard stock commonly used for envelopes, also called White Wove. The 28# is thicker and heavier than the 24#.
10-point C1S: A Bristol stock, gloss coated on the outside and uncoated on the inside. Used for Greeting Cards.
Aircell: a space created by forming a substrate into a shape to provide protection in a package.
Acetate Window: clear film covering a die-cut opening.
Applique: an secondary layer of material joined over an existing substrate that creates a multi-level finish.
Angle Ring: binder ring metal that appears like a backwards "D".
Aqueous Coating: a clear liquid topcoat applied to a printed sheet.
Assemble: to set up and finish into a fully completed format.
Bleach: a process used in paper making to whiten paper. Also a reference as to the whiteness of the paper.
Bleach/Oyster: corrugate term referring to the color of a sheet: bright white one side, egg shell white the other.
Bleach/Kraft: corrugate term referring to the color of a sheet that¡¯s bright white one side, brown Kraft the other.
Blind Emboss: the registration of an embossed area to a printed area. (see embossing)
Board: a generic term referring to the substrate.
Boosters: triggers at the ends of the ring metal that assist the opening of the ring.
C1S: paper coated one side.
C2S: paper coated 2 sides.
Caliper: the thickness of material measured in thousands of an inch often referred to as "points".
Capacity Pocket: a pocket formed with a double score along each side, to create a spine that gives the pocket a greater thickness, and capacity, than a flat pocket.
Cast Coated: Paper with a high-gloss clay coating that can rival the gloss of a photograph.
Cavity: recessed area of a package used to house an item (CD, VHS, promotional item, etc.).
Chipboard: a paperboard substrate, normally recycled and used primarily in consumer packaging.
Combo Form: a print form that combines more than one item for print and finishing.
Consignee: the party that is receiving goods.
Corrugate: flat paper joined together with a fluted medium or middle using starch and steam. (double face board).Can be flexo-printed, silk screened or litho labeled.
Corrugation Direction: the running direction of the flute or center of the material.
Corrugate Medium: the fluted or wave portion in the middle of a corrugate sheet.
Crease: a score or impression in a substrate that facilitates folding and bending.
Deboss: an area on a sheet that has a depression created using an engraved tool and a die-press.
Deckle Edge: feathered edge of a specialty paper.
Die-Cut: the process of cutting a material into its finished shape using a steel rule cutting die and a die press.
Discturnkey: The trades mark for Discturnkey Solution Co., Limited. It is the leading manufacturer of CD&DVD products in China.
E-Flute: corrugate material 1/169 thick.
Emboss: a raised area of the sheet created using an engraved tool and a die-press.
EPS: Expanded Poly Styrene. Styrene foam blocks are hotwire-cut to create inserts used to support the structure of a dimensional package.
Expandable Pocket: a flat pocket that can become a capacity pocket using a z-fold design technique.
Film Lamination: a layer of polypropylene or polyester that is applied to a printed sheet. It is available is gloss, matte, satin or a metallic finish.
Finishing: the process of converting a sheet into its final form.
Flaps: material extending off the ends of various panels on a package.
Flute: the wave or center section of a corrugate sheet. Available in several thicknesses: E is 1/169,B is 1/89, C is 3/169,
Foil Stamp: the flat application and transfer of foil to a substrate using heat and pressure. This graphic technique can be used in conjunction with debossing or embossing.
Fulfillment: collating, inserting ,and loading materials into a package for bulk shipment or mailing.
Gloss Lamination: see Lamination.
Grain: the fiber direction in a sheet of paper.
Gusset: a flat panel with a center score that expands to a given width. Gussets can be pushed in or out in manufacturing and should be specified at the time of order.
Hidden Hinge: a 3rd piece of vinyl that is sealed to the outside of a binder without the hinge bars.
Hinge: a score or crease that is used to open and close a panel.
Hook and Loop: generic term for Velcro.
Hot Melt: an extremely durable and reliable adhesive used in the construction of a package.
Hotwire: a technique for cutting and shaping EPS foam.
Inner Packing: materials used to position, support and protect an object inside its package.
KD: knocked down flat.
Kraft: paper color; natural kraft has a characteristic light brown appearance.
Lamination: (see also Film Lamination) the application of litho label to a corrugate sheet using a cold adhesive and pressure.
Laminator: a machine that applies film lamination to paperboard.
Litho-Label: usually a 80# or 100# C1S stock that is printed and applied with adhesive to an E-flute corrugated sheet. Film lamination is required to prevent cracking on folding scores.
Locking Tabs: tabs used in packaging for closure. They may be passive for re-opening a package, or positive for mailing or more permanent applications.
Machinable: the ability to automatically glue, die cut or finish a package.
Pallet/Palletize: a wooden deck-like structure for loading boxes onto for storage or shipping.
Panel: the face or side of a package.
Paperboard: solid fiber board used for making packaging.
Plant Load: a US Postal term: certification that allows manufacturing companies to mail packages or flats directly from their facilities into a US Postal vehicle, bypassing the local post office.
Score: an impression or crease in a substrate that is used for folding or bending.
Slip-sheet: to insert a material between two packages to prevent abrasion and scratching in shipping. Un-printed newsprint is often used.
Slit: a cut made in a substrate without removing any material.
Slot: a cut made in a substrate that does remove material.
Substrate: the core material (i.e.: corrugate or paperboard) used in a printing, finishing or packaging process.
Super Panel: a panel or page of a package that is printed on one side, but folded onto itself, presenting graphics on both sides.
Tuck Tabs: tabs that extend off a panel and are tucked into a mated slit; often used to close a package.
Turned Edge: litho-label wrapped over a fiber or chipboard edge, for instance on a slipcase, to provide a more finished appearance.
Window: an area cut out of a panel. Can be covered in cello.

PRINT AND PRE- PRESS TERMINOLOGY