Monday, 5 February 2018

FEATURES OF FAKE CHINESE IMPORT BUSINESS

Recently one of our Indian clients lost more than 3000 USD by a 'fake’Chinese importer. They were offered a huge order valuing more than 500,000.00 USD and were invited to China to attend a so-called contract signing ceremony.

Features of Chinese import fraudsters:
1.Fully registered a NEW small trade company in Hongkong, with a created address and a created company name in Mainland China. Please note that they will use 'fake’identity cards to register the offshore trade company in China as well.
2.Leased a luxurious office temporarily, with at least three ‘actors’, one is to act as a‘president or CEO’,one acts as a financial director and the other acts as an‘importer manager’or assistant. 
3.The offer (contract value) is very attractive and huge, valuing more than 1 million USD at least or half a million of USD, with favourable payment terms,say, 30% in advance by T/T within 24 hours upon the signature of the contract in person. 
4.Claimed to be a big group company, with a wide range of business: trade, distribution, investment, manufacturing and so on. They claim to import all kinds of items from other countries. 
5.Constructed a website, with many items on, disguised to be a group company online. They used an official company email box as well. 
6.Used automatic Group Mailing system and they can sent tens of thousands of emails every day. If the receiver responds, then a guy will follow up by email and the trap begins. They never attend the trade fairs or shows in China. 
7.Insist on signing the contract in person in China and they will invite you to attend their so-called Contract Signing Ceremony. 
8.Insist on NOTARIZING the contract and they will appoint (designate) a local Notary Office (but normally this notary office is a NON-EXIST one in China.). 
9.Used‘fake’Chinese invoice and Chinese official licenses. 
10.Used‘fake’signature, they do not sign their names in full. 

According to the case-reports from our clients so far, 99% of above notorious scammers are from Shanxi (Xian), Henan (Zhengzhou city) and Guangxi (Guilin city) etc, China at present.

How they TRAP you STEP by STEP ? 
First: Use automatic group mailing software to send you attractive offers and inquiries, with created official websites and email boxes. Formal documents, formal address, websites and bank accounts etc, everything seems to be normal. 
Second: Invite you to sign a formal Purchase Contract in person in China.
Third: Insist on notarizing the contract and they will use a non-exist notary office to notarize the document, then all the notary fee will be in their pocket. 
Fourth: Asking you for‘kickbacks’or‘bribes’in lot of 'pretexts’in China. 
Fifth: After they get all those money, they will disappear and replica the scam again. 

What are the Countermeasures against these Professional Business Fraudsters?
First: Ask the importer for their Business License and Import License before your departure to China, then checking out their registered information with local officials first. 
Second: Book a professional Company Verification or Investigation service from a third-party service company, checking them out before further discussion.
Third: Appoint a local representative and visit them first before your departure to China, they are NOT able to cheat local experts. . 
Fourth: Never pay anything before receiving the deposit from the importer. 

No matter you're buying or selling, Due Diligence work is always important in China. Think it over before you pay out even one penny !

Monday, 29 January 2018

Use the top 50 professional markets to facilitate your sourcing in China

      Sourcing at professional markets is one of the best ways to source qualified factories here in China. In China, almost each industry has her own Professional Market, where buyers, sellers, factories and distributors can meet each other. Professional Market is the best place for businessmen to do market survey, source factories and look for qualified distributors etc in China. The Professional Market is normally located at the real manufaturing bases, for instance, if you're buying 'fireworks',you can go and source some qualified suppliers at Liuyang International Fireworks Market in Liuyang city,where you can find hundreds of fireworks factory information. Here is a list of the top 50 Professional Markets in China:

Button and Zipper Industry -- Zhejiang Qiaotou Button and Zipper Market
Website: www.niukos.com

Sweater Industry - Jiaxing International Sweater Market
Website: www.gjmsc.com

Clothing Industry -- Guangzhou Baima Clothing Market
Website: www.baima.com
Children Clothing Industry -- Zhili Children Clothing Market)
Website: www.huzhouqingfang.com
Clothing Industry -- Hangzhou Sijiqing Clothing Market
Website: www.sjq.cn

Food Industry -- Jiangsu Jiangyin Food Market
Website: www.jiangyinshipin.com
Food Industry -- Cixi Zhouxiang Food and Groceries Wholesale Market
Website: www.cixishipin.com
Food Industry -- Zhejiang Jiashan Business Centre
Website: www.jssc.zj.cn

Silk Industry -- China Wujiang Shengze Eastern Silk Market
Website: www.cesm.com.cn
Silk Industry -- Hangzhou Silk Market
Website: www.hzsichou.cn
Silk Industry -- Cocoon and Silk Market
Website: www.esilk.net

Furniture Industry -- Shenyang China Furniture City
Website: www.chinafc.com

Wool and Sweater Industry -- Zhejiang Jiaxing Tongxiang Wool and Sweater Market
Website: www.chinamzz.com
Tel: 0573-8818300 or 8817336

Textile Industry --- Shaoxing China Light & Textile Industrial City
Website: www.qfcgroup.com www.qfc.cn

Miscellaneous --- Yiwu China Commodities City
Website: www.yiwugou.com

Leather and Fur Industry -- Haining China Leather City
Website: www.chinaleather.com

Auto Parts Industry --- Zhejiang Auto Part City
Website: www.auto518.com
Others: www.ec0724.com or www.zgqpc.com
Auto Parts Industry --- Shanghai East Auto Part City
Website: www.oapc.cn
Auto Industry --- South China Auto Market
Website: www.iautos.cn

Flooring Industry --- Changzhou International Flooring City
Website: www.chinafloor.cn
Ceramics Product Industry -- Foshan Ceramics City
Website: www.fsctc.com or www.ceramicschina.com

Plastics Raw Material Industry -- Yuyao China Plastics City
Website: www.cnslc.cn or www.21cp.com

Textile Industry -- Shaoxing China Textile City
Website: www.zgqfc.gov.cn or
www.qfcgroup.com or www.qfc.cn
Textile Industry -- Guangdong Xijiao Textile City
Website: www.gd-textile.com

Seafood Industry -- Zhoushan International Aquatic Products City
Website: www.cfm.com.cn

Tie Industry -- Shengzhou China Tie City
Website: www.chinatie.com or www.tie56.com

Hardware Industry -- Yongkang China Hardware City
Website: www.hardwarecity.com.cn

Liquid Chemicals -- Ningbo Zhenhai Liquid Chemicals Trade Market
Website: www.nbzhlcm.net
Chemicals Industry -- China Chemicals
Website: www.chemnet.com.cn and www.chemnet.com.cn
Chemical Industry -- Jiangsu Chemicals Exchange (/Zhangjiagang)
Website: www.zjg56.com
Dangerous Chemicals Industry -- Tianjin and Shanghai
Website: www.tjwhsc.com and www.shjsw.gov.cn

Electronics, Phone and Digital Industry -- Shenzhen Huaqiangbei
Website: www.shhuu.com, www.okhqb.com
Electric Element Industry -- Shenzhen Huaqiangbei
Website: www.szdz.com.cn

Watch Industry -- Shenzhen and Guangzhou Watch Centre
Website: www.chinawatchnet.com or www.sbw.net.cn

Stone Product Industry --- Shuitou Stone Market
Website: www.shuitou.com or www.stone139.com

Mold Industry -- Ningbo China Mold City Dongguan 横沥
Website: www.zgmjc.com or www.mojuw.net

Steel Industry -- Foshan Lecong Steel Market
Website: www.lcgc.roboo.com or www.cn-steel.com
Steel Industry -- Shanghai Baoshan Steel Market
Website: http://market.gqsoso.com/103/

Wig and Hair Product Industry -- Xuchang Hair Product Market
Website: www.51wig.com or www.tohair.cn

Furniture Industry -- Shenyang China Furniture City
Website: www.zgjjc.com
Furniture Industry --- Foshan Lecong Furniture City
Website: www.newjiaju.cn or www.rata-china.com
and www.shunde-jiaju.com

Vegetable Industry -- Shandong Shouguang Vegetable Market
Website: www.sgvbot.com or www.vegnet.com.cn
Agricultural Product Industry -- Changzhou Lingjiatang Market
Website: www.ljt.cn
Fruit Industry -- China Fruit Wholesale Market
Website: www.cnfruit.com or www.guo68.com www.agrosg.com
Agricultural Product Industry -- Zhangjiagang Qingcaoxiang Market
Website: www.zjgqcx.com

Foodstuff Industry -- Jiangxi Jiujiang South China Cereal Trade Market
Website: www.cereal.com.cn or www.chinagrain.gov.cn
Foodstuff Industry -- Zhengzhou Grain Wholesale Market
Website: www.czgm.com

Hotel Supplies Industry -- Guangzhou Nantian Hotel Supplies Wholesale Market
Website: www.1628gd.com

Chinese Medicine Industry --- Hebei Anguo East Medicine City
Website: www.ortcm.com
Chinese Medicine Industry --- Haozhou Chinese Medicine Trade Centre
Website: www.zgycsc.com and www.yaocai8.com

Pearl Industry -- Zhuji Pearl Market
Website:http://www.zhuji.net/sc/pe/

Audiovisual Product Industry -- Guangdong Audiovisual Product City
Website: N/A Guangzhou

Package and Print Industry -- Guangdong International Package Market
Website: www.packgd.com

Sources: STIN SOURCING SERVICE TEAM

Monday, 8 January 2018

Purchased SBS LCY3501 but received sand: How we deal with such cases in China

One of our Mexican clients Mr. AZ is in trouble these days: He is losing his reputation and credit among his clients and he may face a lawsuit soon. Here is the story: He placed an order of chemical agents -- SBS LCY3501 from a Chinese supplier called Rizhao Laika Trade Co.,Ltd in Oct, 2017. In Dec,2017 he received a full container of sand, totally different from the items purchased in the contract. 
We studied this case and found following facts:
1.The supplier is a fully registered small trade company and they might be a professional scammer as their quotation is far below the market price in China.
2.The supplier did not use a right company chop to sign the contract,indicating that the PI signed is invalid in China. 
3.This supplier was registered only several months ago but they claim to be a well experienced factory and exporter online. 
How to cope with the current situations here in China?
1.Collect enough business proof, submit a report to local officials or local police station in Chinese, the relevant government organs can be: Market Supervision Administration (Administration for Industry and Commerce); Public Security Bureau (local police station)

The supplier may force to refund you if are able to get assistance from local officials in China. 
2.Investigate their registered information,then employ a local lawyer and take a legal action against them in China but please note that any legal action is time-consuming and costly. 
Here is the lesson for other clients in the future:
1.Check out the suppliers and audit the factory first before placing any large orders in China.

2.Book a third-party Loading Process Supervision service to stop such cases. 
Please keep it in mind that safety, quality, price and after-sale service play nearly the same role in doing smooth business in China. The first important thing is safety instead of the quality or price. 

Wednesday, 3 January 2018

Professional Supplier Sourcing: The First Step to your Successful Business in China

I received two inquiries today from our old clients, demanding for another professional supplier sourcing service, which is playing more and more important role in their import business these days.
Professional Supplier Sourcing refers to the sourcing service carried out in a very professional way. Some importers only source suppliers by searching online or simply attending a general commodity trade fair, which is regarded NOT professional enough sometimes in China.
How to conduct a Professional Sourcing service?
First of all, Professional Sourcing means product proficiency; you have to be very proficient with the product itself, covering the product name, specifications, descriptions, application and market price etc. You have to try to be an expert in this field.
Second, Professional Sourcing indicates the proficiency of related manufacturing bases. In China, almost every city or province has their own pillar industries, especially for some special items, say, ceramics, chemicals,furniture,fireworks etc.So before sourcing in China,you have to study the right industry cluster first. Most of the foreign importers try to source the suppliers by attending trade fairs, say, Canton Fair.With the information and internet development,more and more customers quit trade fairs now in China.The best place for you to meet and find out some qualified suppliers is the right manufacturing bases. For example, if you're looking for 'fireworks', you have to go to Liuyang city, which is called 'Home of Fireworks', where there are more than 400000 people directly or indirectly engaging in this business in China. 'Liuyang -- made' fireworks account for more than 60% global market at present. This is the same to other products; almost every product has their unique manufacturing bases in China.Say,Qingdao for tyres, Lecong for furniture, Zhuji for socks, Yiwu for general commodities, Xintang for jeans, Wenzhou for ties and shoes, Anji for bamboo products, Liling for ceramics, Yongkang for hardwares, Shenzhen for electronics, Guangzhou for clothes, Xuchang for hair products, Changzhou for floorings etc. Of course some products may have more than two or three manufacturing bases as China is too big. For example, in North China people to go to Tianjin to buy steel banquet chairs while in South China, Shunde is the largest manufacturing base for those items.Click here to find out more Professional Markets in China. 
Third, Professional Sourcing means that you have to attend professional trade fair instead of the general trade fairs. Say, if you're buying furniture you can have a try on Furniture China (www.furniture-china.cn), and this is the same for other product sourcing, Door industry -- www.door-expo.com, Lock industry -- www.lock-china.net and Tube industry -- www.tubechina.net etc. More professional fair information, please have a look at: http://www.chinabizservices.com/news/2013/0701/41.html
Lastly, Professional Sourcing needs professional verification skills, you have to be able to check out their export or import qualifications and obtain their full registered information in order to avoid future business scams in China. Some professional sourcing service company like STIN offers FREE Basic Verification Service on their suppliers after the client books their sourcing service in China.
Welcome to do business in China !

Thursday, 30 November 2017

The features of latest aluminum ingot business scam and the countermeasures

       We received a report from one of our Poland clients in early November, 2017, complaining that they were cheated by a Chinese supplier below, they placed an order of a full 20 ft aluminum ingot on June 22, 2017 and paid them the deposit (around 15000 USD) on July 04 but in late September, 2017 they received only three stacks of aluminum ingots from the supplier while the original contract quantity was 25 tons. This case has been formally reported to local officials and police station in China via STIN Case-Report Service, hoping local officials could help them out soon. Here are the scammer details: 

Handan Fubon Metal Technology Co., Ltd 
Attn: Mr. Li-Min Zhang - President   
        Mrs. Jennifer Chan (Sales)
Add: No. 1, Youyi Rode, Development Zone, Handan City, Hebei Province, China
Tel: 0086-310-5308662  Fax:0086-310-8051706
Email: timeless@hbfubang.com; admin@hbfubang.com
Website: www.hbfubang.com 

Let's tell you why this supplier might be a professional scammer without inspecting them in person. 

1.Fake contact names
The scammers normally hire an English translator to reply your email every day, using a fake name. You have no chance to know their real names in China, say, Jennifer Chan, this name is just created in English you cannot trace them in China at all. 

Also 99% of these business cheaters are from North China, covering Hebei, Tianjin, Liaoning and Shandong etc. 

Counter-measures: The client can ask them for their ID copy to know their real name in China before placing any large orders. 

2.Attractive payment terms
The scammer normally offers very attractive payment terms like: 30% deposit and 70% paid after checking the quality at the destination port. Please keep it in mind that the scammer only care your deposit, they do not care your rest balance at all. They will start to escape as soon as they receive your deposit in China. 

Counter-measures: If the order is large enough, the client is suggested to book an On-site Supplier Inspection or Investigation Service from STIN before placing any orders. 

3.Business address and business scope 
We note that this scammer did not use their full company address to sign the contract with the client. They used a fake address, which is also located in a rented residential area in China. In China, every company or exporter has their own limited business scope and lot of the businesses have to be licensed. We also noted that the items they sold online were far beyond their business scope in China. 

Countermeasures: STIN professional Company Verification Service can stop you from such cases in China. 

4.Fake company chop
We also noted that this scammer used a fake company chop to sign the contract in China. If they used a fake company chop, indicating that the client cannot take any legal actions against them as the contract is invalid in China. Please note that the official shape of any legal Company Chop is in a round instead of rectangular form. 

Countermeasures: We can help you check it for FREE in China. 

5.Full set of original documents with NO sufficient goods delivered
The scammer delivered a full set of original documents to the client but only shipped 1/50 of contract value. 

Countermeasures: The client is suggested to book an On-site Loading Process Supervision Service from STIN when the order is big enough to avoid such cases. 
 
Sources: STIN SERVICE TEAM (www.chinabizservices.com) - Your Eyes, Assistants and Office in China ! 

Wednesday, 18 October 2017

STIN Pre-shipment QC Inspection - To be your eyes at Chinese factories!

      STIN Pre-shipment QC Inspection is an inspection of all the finished products,documents,package,shipping marks,quantity etc of your order at the factory.This service shall be performed when the order is 80-100% completed.

     Key features for Pre-shipment QC Inspection Service: 

  - Performed prior to the delivery of the shipment

  - Cater for large orders or the order with strict quality requirements. 

  - Prevent any defective products before loading

  - Checking of quality, workmanship and measurements

  - Quantity check

  - Appearance check

  - Style, color & material check

  - Function test /safety check

  - Package details check: shipping marks, label, hangtag, manner of packing, packing qty, safety of packing etc.

     STIN provides a range of Quality Control inspection services for overseas buyers, manufacturers, retailers and bulk commodity traders, including pre-production, during-production, final random sampling, pre-shipment, and loading process supervision inspection etc.

     Our mission is to save you more and reduce the risks in your business in China, we are simply acting as your own eyes,assistants and office in China !

     Would you like to reduce the risks and smooth your business in China ? Try Us Now !

Wednesday, 6 September 2017

How the new Company Law Affect your Business Risk in China

When you are doing business with NEW companies (registered after March, 2014) here in China, you have to be more careful these days. We received most case reports these years compared to the periods before 2015. Some reporters said that the economic crime cases had been increased nearly 18% since the implementation of new Company Law, which came into effect on March 01, 2014. 
In order to streamline the whole corporation registration process and benefit more and more small businesses, China State Council adopted a new Company Law in early 2014, the new Company Law mainly involves following three amendments: 
1.On the registered capital
New Corporation Law of China modified the “statutory capital system” with a new system combining the “subscription capital system” and “statutory capital system”, indicating that the shareholders do not have to collect full capital to complete the company registration in China. 
2.On the license examination
New Company Law of China streamlined the official approval and assessment as well. The whole company registration used to have three different permits via three different official organs, that is Business License, Organization Code Certificate, Taxation Certificate respectively, now all these certificates are replaced by ONE unified Social Credit Identifier. With less annual official inspection and supervision, there are more and more business scammers springing up this year. It’s said that more than 28500 enterprises went bankrupt in 2015 only. 
3.On the least capital requirement inspection system
The new Company Law cancelled the Least Capital Requirement for some small business and also relaxed (eased) the policy on the registered capital for sharehold companies, further faciliating the market access for startups. Meanwhile, this policy also helped a lot to the crinimals as their crime cost has dropped substantially. 
All these measures dramatically facilitates the registration process and benefits lots of startups indeed, however, it also gives a hand to lot of criminals and lots of fly-by-night (shell) companies came out in 2014 and 2015. According to the statistics from STIN company, the demand for Company Verification and Supplier Auditing Service has increased 20% since late 2014. For any big business in China, a local Verification, Inspection or Auditing service plays a more and more important role in your safe business in China !