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    Beware Of Pitfalls In International Trade Bidding

    2008/10/13 16:43:00 41907

    First, invite foreign enterprises' agents to invite Chinese enterprises to win the bid by bidding, and then let the bidding enterprises withdraw and set up traps.

    After bidding announcement, foreign companies require Chinese bidding enterprises to appoint a Tendering Company to tender for Chinese enterprises instead of Chinese enterprises bidding directly to tendering companies.

    In case of dispute, the bidding enterprise can not directly negotiate with the Tendering Company.

    Foreign agents shall collect agent fees and bid security from Chinese bidding enterprises or pay the bid bond by the agent company.

    This is often the beginning of the trap.

    A certain proportion of bid security, such as 5%, is forwarding to the Tendering Company by the agent.

    In the tender announcement, the tender company stipulates that after the bid, the Chinese enterprise must give the tender company 1 times the standby letter of credit (such as 10%), and the letter of credit for the unconditional and confirmed L / C.

    After receiving the bid 10% deposit, the tender company returns the bid security of 5% of the agent company to the agent company.

    The agency will not have any risk at this time.

    In terms of funds, the agency and the tender company are stripped clean.

    It laid the foundation for cheating China's products and enterprises' deposits.

    Two, do not operate according to international common practice, unilaterally stipulate arbitrary soft clauses, forcing Chinese enterprises to submit.

    After receiving a letter of credit from a Chinese tender company, a foreign Tendering Company usually has an unusually tight delivery time after winning the bid. The packaging, cargo organization and so on must be determined ahead of time.

    However, the tender company will issue a letter of credit within one week or more than one week after receipt of the deposit.

    When the Chinese enterprise obtains the letter of credit issued abroad, the additional clause is obviously the relevant soft clause prohibited by the international letter of credit.

    Under the supplementary clause of the letter of credit, it is stipulated: "the goods must be packed in a carton of 10 kilograms (the designated company shall be inspected by the tender company or the applicant at the destination)."

    As we all know, the issuing or verification of the clause by the issuer or the applicant is not only contrary to the practice that a qualified and authoritative professional inspection institution is required to conduct import and export commodity inspection, but also violates the fourth provision of the uniform customs and Practice for documentary credits, third of which are independent of trade partners.

    It is particularly noteworthy that the International Chamber of Commerce No. 500th (UCP500), which was launched in 1994, changed the word "processing" of the original 400th document, fourth documents and goods from "DEALIN" to "DEALWITH". Once again, it emphasized that the letter of credit business only took care of the documents, regardless of the principle of absolute independence of goods, documents and goods, and the main characteristics of the letter of credit with soft clauses were to set traps for goods and attract people to be deceived.

    Three, foreign bidding companies use the letter of credit to impose on others, use soft clauses to collude with banks and bully the weak.

    This clause is obviously the collusion between the applicant and the issuing bank to entrap the exporter.

    As long as the Tendering Company does not agree to pay, the Chinese enterprises will not be able to get the payment.

      四、招標公司在標書上規定:招標公司必須派檢查官檢查后才允許出口企業發貨。檢查官代表招標公司的行為,完全依個人好惡或被授意制造事端,想盡一切辦法阻撓中方企業發貨,形成企業不能按期發貨的事實。

    Five, use layers of deductions to achieve the purpose of fraud.

    Since the letter of credit issued by the Chinese side is unconditional, the Chinese company will have to pay compensation if the tender company asks for compensation from the Chinese side.

    In the words of the inspector of the bidding company, "this is our killer."

    They forcibly withhold money by margin, and the excuses of quality, quantity, delayed delivery and so on can result in direct deduction of payment.

    Margin is a tool for claims. When the Chinese side is determined to lose the deposit and stop continuing to complete the order with the Tendering Company, the Tendering Company usually sends senior officials to coordinate and guarantee that no similar thing will happen again.

    Once the intention is reached, the Tendering Company agrees to deliver the goods, but if the goods are delayed, the Tendering Company will require the travel expenses of its staff members to be borne by the Chinese enterprises.

    Most of the Chinese enterprises insist on honesty, but after bidding the goods, the Tendering Company continues to deceit.

    For example, the upper part of their company disagrees with the deduction of deductions, and continues to deduct money or deposit from Chinese enterprises.

      六、與招標市場脫節,任意招標。一旦發生風險,勾結海關、檢驗部門,提高檢驗標準,以時間延遲為由,強行退貨,或就地銷毀,把風險轉嫁到中方企業身上。

    If the market for agricultural products is usually changed, the market will be rejected or returned for various reasons.

    In fact, no tests were carried out at all, even though inspection was the standard between their departments.

    The practice of intersecting each other and dealing with an enterprise is unique in the world.

    It is very difficult for a company to avoid such a risk, and it can only be exploited.

    Chinese enterprises are simply unable to defend themselves. They can only see the damage.

    In this regard, relevant departments and trade associations should increase publicity and management efforts to help enterprises prevent such fraud and traps.

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