We have to be extremely careful in international trade because there are too many frauds. Sometimes, we purchase through some e-business platforms or trade platforms, which tend to have a low threshold and not strictly audited. In China, to register a shell company cost is simple and does not cost much. There are lawless persons who take advantage of those bugs and spend a few hundred dollars to register a company, and then release the information with a very attractive price. When people are interested, they act very formal by providing fixed-line phone numbers, bank accounts, emails and etc., quite deceiving. In case of this, we cannot fly to China every time for field survey, and when we pay a deposit, these people disappear.
There are many poorly managed factories which do not have the ability to handle orders, but they act this way for deposits. If you have the energy and time to fly to China and file a lawsuit, he may return the deposit and he will not refund the deposit if you have no time and energy. Very often, we can only choose to give up the deposit because the cost is too high, and we do not understand the lawsuit procedures in China. These factories simply take advantage of this.
There are a lot of lawbreakers disguised as an employee of a company in China, they negotiate with a very favorable price for orders, when you almost sign the agreement and you are supposed to pay the deposit, he would provide some seemingly true documents, including accounts, contracts with the company’s official seal, but what you do not expect is that these are forged, the bank account is private one. When you spot this company, you will find that you are deceived and there is no such a person there.
So, how should we avoid those frauds?
1. It is suggested to visit the company in person before the cooperation, or you can entrust a Chinese friend, if any, to help you.
2. All transactions should be paid with LC.
3. There are some companies online which charge to audit China’s factories or factories, but the charges are relatively high.
4. Ask your logistics company to review your suppliers. For example, in China there is a relatively large logistics company which offers such value-added services free of charge. More importantly, the logistics company can help you check where the salesperson you contacted is really from the company he said. The logistics company in China can be found with Google, its name is…
Post time: Apr-24-2022