Handbook Of Common Trade Scams

With the continuous development of international trade and the increasing number of international trade frictions and disputes, this paper collated and analyzed the first-hand information to provide reference for international trade companies.

In some countries, some countries have no restrictions on the import and export rights of their domestic enterprises, such as capital and trade volume. Therefore, the import and export traders are numerous and incompetent.

Most of its investment entities are private. In addition to some large comprehensive foreign trade companies, the registered capital of trading companies is smaller than that of small and small import and export companies. In the process of international trade, they often make quick gains and gains and do not pay attention to long-term training of customers.

Because of its poor strength, small importers often default or even refuse to pay foreign customers when they have problems in capital or end users fail to pay.

Two, classification 1., letters of credit, trade.

1, some companies often use Chinese confidence in trade in letter of credit.

The measures are: threatening the issuing bank's refusal to pay. Under the pressure of the customer, the issuing bank often criticize and find out the discrepancy of the Chinese documents.

This will force the Chinese side to agree to price reduction or change to T/T payment.

2, the importer uses Chinese exporters to defraud the Chinese LC fraud by using their local legal environment, using local relations and loopholes in the local law enforcement authorities, and applying the "guarantee of property" ("stop payment order") to guarantee the insurance bonds with a relatively small amount of guarantee, requiring the issuing bank to stop payment.

2.T/T is the most common way to catch large fish. First, give a few small bills to Chinese companies and pay them normally. The Chinese trust is deceived. Then suddenly a large list is required, with cash shortage and tight delivery date, and the cash on delivery is required. After the arrival of the goods, there is no news of 1.

2. When importers arrive at the port, the importers refuse to pay to the Chinese side on the grounds of quality problems and discrepancies of specifications. Some of them even demand first sales and later payment.

3, using the provisions of importers agreed by the Customs on import refund or resale, they neither go through customs formalities nor pay, nor do they agree with the Chinese return or resale, so that the goods will stay in port for a long time, and the goods will be a threat to China's price reduction.

4, in the name of others, Incorporated Company is registered, and the property and real estate in the name of the company are pferred to the bank in advance, or mortgaged to the bank. After cheating the money, the trade is immediately invested into the trade as a working capital, which makes it impossible for China to take property preservation measures.

5) use local or Chinese small shipping companies or freight forwarding companies to manage slack weaknesses or collude with them to induce goods to be shipped without delivery.

In some countries these small shipping companies or freight forwarding companies are "empty shells" and no assets can be implemented.

In the 3. processing trade, foreign trade parties often sign "Double Contracts", that is, a set of contracts for normal processing fees, and a set of false contracts that depress and falsification processing fees when going through customs formalities to the customs.

For the processing fees referred to in the declaration contract, the normal payment of foreign exchange by foreign parties is made up for the insufficient part of the foreign party through the underground bank or carrying cash out of the country, in the name of employing social casual personnel or in the normal way of personal remittance within the name of the staff member.

Once the funds are tight, they will refuse to pay or default on the above-mentioned deficiencies. At this time, the Chinese side is unable to recourse to such debts owing to its assistance in false declaration.

In addition, the foreign party usually takes advantage of the fierce competition among Chinese enterprises, requiring that the processing goods and processing fees should be paid first, and the arrears of payments will be made step by step.

In addition, some small and medium-sized enterprises do not sign contracts with some foreign companies. Once there are problems, the Chinese side often fails to raise evidence for the failure to pay the foreign exchange, and at the same time, it is difficult for them to recover the money.

4., a foreign trading company set up an office or branch office in China to defraud the Chinese company's trust, to close the office after the goods were closed, and to escape after the closure of the branch.

Some foreign companies import goods from their own countries in the name of a branch registered in China. They require the Chinese end-user or our professional agent to open a letter of credit on behalf of the importing company, or pay a portion of the deposit first, then issue inferior or expired goods and disappear after negotiation of the letter of credit.

Three, coping strategies and preventive measures, first of all, we need to understand the partners.

We should clearly recognize that some countries are the market economy countries based on private ownership, and there are some basic national conditions such as bad credit. At the same time, considering that most of the pactions are small and medium enterprises, we should entrust a professional credit investigation company to conduct credit investigation.

Secondly, we should have a full assessment of risks and avoid evasion.

If you can handle export credit insurance, or adopt a more secure payment method such as letters of credit, ask the other party to provide a guarantee or a bank guarantee to reduce risks, and include the above risk charge into the cost, and weigh whether the income and expenditure are cost-effective.

Third, in the course of trade, we must pay attention to the preservation of written documents.

In addition to signing formal contracts and detailed contracts, a series of minor requirements, such as changing specifications, changing delivery dates, and changing bonded warehouses after arrival, must be confirmed in writing by the other party's responsible person.

The arbitration clause is recommended in the contract. Because there is no judicial agreement between the two countries, the arbitration result is better in the two countries than in the court.

Fourth, after the emergence of trade disputes, we must quickly collect and collect all kinds of evidence, and immediately ask the other party to confirm the repayment responsibility in writing, and make repayment plans.

And further pay close attention to the management and credit situation of the other side.

If the situation worsens, our company should immediately notify the export insurance company to make claims or to preserve property through local lawyers.

According to the results of the credit investigation, our company should choose the most efficient method of recovery, such as criminal proceedings (accusing the other party of fraud, forcing repayment), civil litigation, and debt collection companies.

If the assets of the division have not yet been pferred and are not mortgaged, it will be easier to carry out, and the form can be directly filed or directly charged.

Companies in some countries, such as legal persons and mostly limited liability companies, are generally not allowed to investigate the unlimited economic responsibilities of their own and their spouses.

If a foreign company maliciously defraud or delay payment, it will pfer the assets in advance and go bankrupt (write off the company). It is necessary to strengthen strong pressure to achieve the purpose of recourse, such as criminal proceedings.

However, because the conditions for filing criminal cases are getting stricter and stricter, it is necessary for the judicial organs such as the Procuratorate (to instruct the police office) to confirm the facts of their assets pfer and whether they have been suspected of malicious bankruptcy or fraud in order to decide whether to hold criminal detention or not through financial examination. The procedures are complicated and the time is longer. The possibility of success is higher than that in the school civil procedure, which can not affect the freedom of action of the foreign parties, and can be appealed for more time. It takes 1 to 1 and a half years from prosecution to execution.

Fifth, once the other party is in arrears, they should stop cooperation immediately, ask the other party to pay for the next business, and avoid any fluke and worry about the cancellation of the order by the ROK.