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. 

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