Coping Skills In Clothing Trade Fraud

With the continuous development of international trade, international trade frictions and disputes are increasing, and various trade frauds are emerging one after another.

Therefore, China's companies should be more vigilant and guard against this.

In the background of trade fraud, some countries have no restrictions on the import and export rights of their domestic enterprises, such as capital and trade volume. Therefore, the import and export traders are numerous and uneven.

Most of its investment entities are private. In addition to some large comprehensive foreign trade companies, the registered capital of trading companies compares with the import and export companies in the process of conducting international trade.

Because of its poor strength, small importers often default or even refuse to pay foreign customers when they have problems in capital or end users fail to pay.

There are 1. types of trade frauds. They are trade cards, letters of credit, trade credit cards (1).

The measures are: threatening the issuing bank's refusal to pay. Under the pressure of the customer, the issuing bank often criticize and find out the discrepancy of the Chinese documents.

This will force the Chinese side to agree to price reduction or change to T/T payment.

(2) importers use Chinese exporters to defraud the Chinese L / C fraud against their legal environment, local relations and loopholes in local law enforcement departments, and apply for "property preservation" ("stop payment order") to guarantee the insurance bonds with a relatively small amount of guarantee, requiring the issuing bank to stop payment.

The most common type of 2.T/T (1) is to put long lines into big fish. First, give a few small bills to Chinese companies and pay them normally, so that they can deceive the Chinese into trusting. After that, they suddenly give a large list of goods due to shortage of funds and tight delivery dates.

(2) when importers arrive at the port, the importers refuse to pay to the Chinese side on the grounds of quality problems and discrepancies of specifications. Some of them even demand first sales and later payment.

(3) using the provisions of importers agreed by the Customs on import refund or resale, they neither handle customs formalities nor pay, nor do they agree with the Chinese side's return or resale, thus causing the goods to stay in Hong Kong for a long time.

(4) the Incorporated Company is registered in the name of others, and the company's property and real estate are pferred to the bank in advance, or mortgaged to the bank. After cheating the money, it immediately enters the trade as the working capital, making it impossible for China to take property preservation measures.

(5) use local or Chinese small shipping companies or freight forwarding companies to manage slack weaknesses or collude with them to induce them to sell goods without delivery.

In some countries these small shipping companies or freight forwarding companies are "empty shells" and no assets can be implemented.

In the 3. processing trade, foreign trade parties often sign "Double Contracts", that is, a set of contracts for normal processing fees, and a set of false contracts that depress and falsification processing fees when going through customs formalities to the customs.

For the purpose of declaration of contract, the processing fees for foreign contracts are normally paid by foreign parties, and for the less part of the foreign parties, they are made up of underground banks or carrying cash out of the country, in the name of employing social idle personnel, or in the name of company employees, in the normal way of remittance within the limit of personal remittance.

Once the funds are tight, they refuse to pay or default on the above deficiencies. At this time, the Chinese side is often unable to recourse such debts owing to the suspected false declaration.

In addition, the foreign party usually takes advantage of the fierce competition between Chinese enterprises, requiring that the processing goods and processing fees be paid first, and the arrears of payments will be made step by step, and the Chinese party will gradually be locked up or suddenly give a large order.

In addition, some of my small and medium-sized enterprises do not sign contracts with some foreign companies. Once there is a problem, the Chinese side often fails to raise evidence of the failure to pay the foreign exchange normally, and at the same time, it is difficult to recover money for alleged cooperation in escaping from customs duties.

4., a foreign trading company set up an office or branch in China to defraud the Chinese company's trust and escape after closing the office or branch.

Some foreign companies import goods from their own countries in the name of a branch registered in China. They require the Chinese end-user or our professional agent to open a letter of credit on behalf of the importing company, or pay a portion of the deposit first, then issue inferior or expired goods and disappear after negotiation of the letter of credit.

The first thing to do is to make a necessary understanding of the partners.

We should clearly recognize that some countries are the market economy countries based on private ownership, and there are some basic national conditions such as bad credit. At the same time, considering that most of the pactions are small and medium enterprises, we should entrust a professional credit investigation company to conduct credit investigation.

Secondly, we should fully assess risks and avoid evasion.

If you can handle export credit insurance, or adopt a more secure payment method such as letters of credit, ask the other party to provide a guarantee or a bank guarantee to reduce risks, and include the above risk charge into the cost, and weigh whether the income and expenditure are cost-effective.

Third, in the course of trade, we must pay attention to the preservation of written documents.

In addition to signing formal contracts and detailed contracts, a series of minor requirements, such as changing specifications, changing delivery dates, and changing bonded warehouses after arrival, must be confirmed in writing by the other party's responsible person.

The arbitration clause is recommended in the contract. Because there is no judicial agreement between the two countries, the arbitration result is better in the two countries than in the court.

Fourth, once the other party is in arrears, they should stop cooperation immediately and ask the other party to do the next business after payment.

Fifth, after the emergence of trade disputes, we must quickly collect and collect all kinds of evidence, and immediately ask the other party to confirm the repayment responsibility in writing, and make repayment plans.

And further pay close attention to the management and credit situation of the other side.

If the situation worsens, our company should immediately notify the export insurance company to make claims or to preserve property through local lawyers.

According to the results of the credit investigation, our company should choose the most efficient method of recovery, such as criminal proceedings (accusing the other party of fraud, forcing repayment), civil litigation, and debt collection companies.

If the assets of the company have not yet been pferred and are not mortgaged, it will be easier to carry out, and the form can be directly filed for litigation.

Companies in some countries, such as legal persons, are mostly limited liability companies. Generally, they cannot be held accountable for their unlimited financial responsibilities.

If a foreign company maliciously defrauded or delayed payment, it would bankrupt the company's assets in advance (and cancel the company). It would be necessary to strengthen the pressure to achieve the purpose of recourse, such as criminal proceedings.

However, because the criminal proceedings are becoming more and more strict, the judicial institutions, such as the Procuratorate (instructing the police office), are required to confirm the fact of the pfer of assets and the purpose of suspected maliciously bankruptcy and fraud through financial inspection, to determine whether the criminal detention, the procedure is complicated and the time is long. The possibility of successful civil litigation is not affected by the freedom of action of the foreign parties, and can be appealed, and the time is more lasting, from 1 to 1 and a half years from prosecution to execution.