Can you imagine believing that you have negotiated with a supplier in China and then finding out that it is a scam? During our 20 years in international trade, countless entrepreneurs have come to our offices to tell us about their bad experience in their search for manufacturers when trying to find them on their own.
They are businessmen who, after the time invested in planning their importation to increase their company’s profitability and earnings, had to assume that the supposed manufacturer has disappeared along with their money.
This is just one of the types of deception you may be exposed to when you embark on your search. Therefore, supplier verification is an indispensable step in any import to ensure a safe operation, whether you are a regular importer or someone who is making his first purchases in China. There is no other way to protect yourself from fraud!
Suppliers from China: the 5 warning signs that it may be a fraud
It is essential to make sure that the manufacturers with whom you are going to conduct negotiations are real and reliable. How? Taking the trouble to corroborate:
- Bank accounts
- Company Management
- Actual certificates
- Registration in the commercial registers
- Export licenses
- Business skills
- Capital stock declared
A Chinese supplier must have export references and corresponding documents proving that its products have been exported and accepted in other countries and markets.
In addition, the manufacturer must be legally incorporated and have a good reputation in China and abroad.
Contact information
Have you made sure that the address and phone numbers provided are real? For that you should check if the supplier’s contact details are consistent.
Company data
You have to check their identification in records, shareholding, capital and solvency.
Legal registration and website numbers
Most websites hosted in China must have an ICP number in the name of the company that has registered the site, which must match the name of the provider sending you a quote and the bank account details where you will make the payment.
Prices
If the prices are too low to be true, they are most likely not true. So before you get lured in, dig deeper.
Means of payment and shipping
If you detect any of these signs from the suppliers you have located, they should be discarded:
- If the account to which you must transfer the money is not from the same company that sent you the quotation
- If the supplier does not accept formal means of payment such as letters of credit or T/T wire transfer, he is a fraudster.
- If you are offered to make transactions to Western Union or Paypal. They may not necessarily be frauds, but it is important that you take precaution and verify with experts beforehand.
Order placed
If you have already reached the stage where you have convinced a supplier to carry out your import and have therefore made an advance payment of 30% of the value of the purchase, it is still essential that you hire an inspection to check the order before completing the total amount with the remaining 70%.
Why? You must make sure that all your requirements are met in terms of quality, quantity and that the goods are not defective or damaged.
In fact, before reaching this stage, it is best that you have arranged to receive samples for evaluation.
That’s not all!
The telematic verification of suppliers is essential to analyze if the manufacturer has the capacity to customize or create your product from scratch in case that is your search.
Planning your purchases in China without considering the verification of your suppliers leaves your investment and the whole import project at risk. This is an essential step, just like any other operation, which requires the support of experts to protect the money you put at stake.
Leave your suppliers in our hands and we will take care of verifying them so that you can move forward with your import with the least possible risks. Contact us now and we will tell you about the benefits that await you.
