The current COVID-19 epidemic is spreading around the world, and the demand for procurement of anti-epidemic materials by enterprises and individuals has increased sharply. At the same time, international economic and trade fraud has been carried out while taking advantage of the epidemic. Also began to appear in concentration. As the global epidemic breaks out, some unscrupulous overseas merchants are trying to “fish in troubled waters” and take advantage of exporters’ eagerness to get orders and destock their goods. Enterprises need to attach great importance to it and beware of “taking advantage of others” during the epidemic.
Be alert! A large wave of “foreign scammers” are coming
In the current fight against the COVID-19 epidemic, a large wave of “foreign scammers” have sharpened their knives and are attacking Chinese foreign trade companies. Whenever China’s foreign trade encounters a severe situation, “foreign scammers” will always fish in troubled waters, defrauding many companies and seriously threatening their export safety. So, which “foreign scammers” will come and go frequently during the epidemic?
01
“Li Gui” pretends to be “Li Kui”
Currently, the new coronavirus pneumonia epidemic It has caused great trouble for foreign trade personnel to enter and exit the country. It has become very difficult for domestic export companies and foreign importers to negotiate business face-to-face. They can only communicate by phone, email, etc., creating conditions for “Li Gui” to impersonate “Li Kui” . The trick usually used by “Li Gui” is to describe himself as the agent of a well-known buyer or directly pretend to be a well-known buyer, misleading export companies into thinking that the contract is signed with a well-known buyer, and the payment responsibility falls on the well-known buyer. Export companies and other companies were later owed money and demanded payment from well-known buyers. Only then did they realize that the well-known buyers were not their buyers at all and had no responsibility for payment, and “Li Gui” had already escaped. An important reason why “Li Gui” is easy to succeed is that international trade contracts are basically signed and do not need to be stamped. The cost of counterfeiting is low and it is difficult to identify.
02
Malicious refusal to lower prices
The new coronavirus epidemic has affected the resumption of work and the development of Chinese enterprises Logistics brings a lot of inconveniences, and many orders will inevitably be delayed in delivery. Delayed delivery can easily become a “justifiable reason” for malicious rejection by “foreign scammers”. “Foreign swindlers” will require Chinese export companies to significantly reduce prices or change the “payment and redemption order” to “pay after delivery”, otherwise they will threaten to reject the goods. In fact, in the case of delayed delivery, as long as the goods do not affect the buyer’s sales, it will generally not be a reason for the buyer to reject the goods. However, once they are taken advantage of by “foreign scammers”, they will be very passive. For export companies, if the goods are rejected, a large amount of demurrage will be incurred, and resale will also incur new freight charges, and the resale may not be smooth.
03
Using trade disputes to evade debt
Trade disputes have always been a major problem in international trade. Problems and trade disputes have even become a common means for many buyers to avoid debt. Trade disputes often raised by buyers include defects in product quality and late shipment of goods. According to U.S. law, it is difficult to label one party as dishonest before a commercial and trade dispute is determined by an official authority. On the other hand, if export companies choose to respond, they will face problems such as difficulty in obtaining evidence and high costs for lawyers and litigation. This has also become the reason why buyers maliciously seek trade disputes. Under the epidemic, the ability of exporters to perform contracts has been affected to varying degrees, and defects in contract performance have also increased the confidence of “foreign scammers” to evade debts.
04
Pick-up without bill of lading
Controlling the bill of lading is for foreign trade enterprises to manage receipts The most effective means of reducing foreign exchange risk are payment with a copy of the bill of lading or settlement through bank presentation of documents. In the practice of international trade, there are many cases where the buyer picks up the goods without a bill of lading. For example, the export company may not get the bill of lading issued by the shipping company, but the bill of lading issued by the freight forwarder; the shipping company or bank colludes with the buyer to operate illegally; FOB In this case, the freight forwarder is designated by the buyer, etc. The COVID-19 epidemic has had a relatively large impact on the logistics system, making it inevitable for export companies to change the traditional logistics model in order to complete exports, especially in order to meet the delivery date and change from sea transportation to air transportation, and the air waybill does not It does not have the function of controlling cargo rights.
Epidemic fraud has occurred repeatedly in many countries, and relevant agencies have issued official warnings!
In the context of the intensifying epidemic situation in various countries, some unscrupulous companies and individuals are also taking advantage of the various needs generated by the epidemic to commit international economic and trade fraud. The economic and commercial offices of many Chinese embassies abroad have issued early warning information:
Figure 1: Embassy of the Republic of Kenya Economic and Commercial Affairs Office
Figure 2: Economic and Commercial Section of the Embassy of the People’s Republic of China in Hungary
Figure 3: Economic and Commercial Section of the Embassy of the People’s Republic of China in the Republic of Poland
Accordingtothis,ChinaSinosureimmediatelylaunchedacreditinvestigation.Lookingattheindustryinwhichthehospitalwaslocatedinthecreditreportandtheunrelatedtransactionproductsofbothparties,theaccountmanagerofChinaSinosureimmediatelybecamealertandcontactedthehospitalimmediately.ContactMEnterprisetolearnaboutrelevanttransactions.Throughcarefulcomparisonofthebuyer’screditreport,itwasfoundthatthenameofbuyerNisverysimilartothenameofthewell-knownhospital(theformerisHOSPITALOFN****,thelatterisTHEHOSPITALOFN****),andthereceiptofbuyerNTheshippingaddressalsodidn’tmatchthehospital’saddress.Atthispoint,thetruthemergedandthescammer’strickswerefinallyexposed.CompanyMsuccessfullyavoidedlargelossesbyusingChinaCreditInsurance’s credit investigation services.
Faced with urgent new trade orders, these points need to be kept in mind!
1
Strictly control the risks of your first transaction. Proactively ask the buyer’s contact for business license, agency certificate, company website and other information, use credit reports and other third-party investigation data to check the buyer’s background through as many channels and all-round as possible, confirm the true identity of the buyer’s contact, and ensure the authenticity of the trade contract , legal and valid.
2
Negotiate to increase the advance payment ratio. Increasing the prepayment ratio is not only the best way to deal with trade fraud, but also the most direct way to reduce capital occupation during the epidemic. Pay attention to whether the buyer’s attitude changes significantly during the negotiation process.
3
Require a deposit from the company account. Even if the buyer’s contact is happy to pay the deposit, remain vigilant. You should proactively ask them to pay through the company account, and note the order contract number or invoice number.
4
Pay close attention to the epidemic situation in the destination country. The epidemic control measures taken by the government of the destination country are likely to prevent the buyer from taking delivery of the goods, but they should still be carefully identified, especially if the buyer proposes to temporarily change the port of destination or the third party for shipment on the grounds of epidemic control, credit sales should be avoided as much as possible.
5
Do not change the settlement method easily. After shipment, exporters should actively track logistics information, strengthen payment collection, and not easily change settlement methods or release goods at will.
6
Use the domestic market to reduce inventory. Unbranded and unpatented clothing, carpets and other easy-to-sell products are high-risk areas for trade fraud. Textile and apparel is one of the industries most severely affected by the epidemic. Many exporters may have inventory due to canceled orders, etc., and there is an urgent need to destock. It is recommended that relevant exporters actively take advantage of the current government policies to support export-to-domestic sales and connect domestic sales channels.
Beware International economic and trade fraud, you need to pay attention to these points!
Under the epidemic, the normal operations of enterprises have been affected, and there is an urgent need for more orders to resume production. However, risk awareness must still be raised to guard against new risks under special circumstances. In response to new forms of international economic and trade fraud, it is recommended that enterprises conduct preliminary credit investigations, information confirmation, contract signing, and evidence retention of trading partners to avoid undue losses.
01
Increase risk awareness and conduct credit investigation
Understand the credit status of the counterparty It is a prerequisite for commercial activities and an important means to avoid trade fraud. Judging from the cases accepted, most buyers find relevant information about overseas suppliers through the Internet and pay deposits or payments to the counterparty without investigating the identity information and credit status of the counterparty, resulting in economic losses. In this regard, before a company conducts a transaction, it can preliminary understand the relevant information of the transaction object through specific channels, such as checking whether there are any complaints against the company through the Internet, verifying the relevant business through the phone number provided by the company’s official website, or seeking help from professional institutions. .
02
Enter contracts carefully and make payments securely
In trade disputes, sign A written contract is the main basis for clarifying the responsibilities of both parties. For international goods sales contracts, the two parties can agree on the price, quality and quantity of goods, payment method, transportation method, liability for breach of contract, governing law, and mediation or arbitration clauses. To be on the safe side, it is recommended that enterprises or individuals always consider the conclusion of a contract as a preparatory procedure for commercial activities. In addition, companies should try to adopt safe and secure settlement methods, such as paying deposits, payments, and balance payments in installments, to reduce risks.
03
Attach importance to evidence retention and seek legal remedies
Important transaction-related matters Proof information should be recorded in written form, such as emails, social network communication records and other supporting materials, and these documents should be properly kept. When confirming the identity of the other party and before making payment, you can confirm relevant information with the transaction partner via video or phone call. If you suspect that you have encountered fraud, you should communicate with the bank on the payment channel as soon as possible to try to freeze the payment and call the police at the same time.
��Safe settlement methods, such as paying deposit, payment, and balance payment in installments, can reduce risks.
03
Attach importance to evidence retention and seek legal remedies
Important transaction-related matters Proof information should be recorded in written form, such as emails, social network communication records and other supporting materials, and these documents should be properly kept. When confirming the identity of the other party and before making payment, you can confirm relevant information with the transaction partner via video or phone call. If you suspect that you have encountered fraud, you should communicate with the bank on the payment channel as soon as possible to try to freeze the payment and call the police at the same time.
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