How to avoid the risk of international business trade?

2011-9-6 14:08:41

This article will help you to avoid the risk of transaction,when you trade with a Chinese company.

There are 4 mainly risks to trade with a Chinese company to buy something from him
1st,You will lost the money you paid to supplier.
2nd,You will got bad quality goods(Or not same quality good of your order requirements) from the supplier.
3rd,You will got empty container or package.
4th,Delivery serious delay or never deliveried .

Where are the Chinese business cheaters?
Click here to view the list of the Chinese cheaters of 2010.
PDFList of Chinese cheaters 2010
Click Here to download the list.
PDF format,
click here to download PDF reader.

Situation Risk Ratio May caused consequences
 1.Trading with a trading company or personal SOHO. 70-100% 1st,2nd,3rd,4th
 (and or)
 2.Trading with a company without real and effective export license and  other necessary certificate.  99%-100% 1st,2nd,3rd,4th
 (and or)
 3.Trading with a Non-existent company 100% 1st,2nd,3rd,4th
 (and or)
 4.Trading with a company,but without a real and effective signed contract or proforma invoice. 70%-100% 1st,2nd,3rd,4th
 (and or)
 5.Seller's company name or other informations in export license and  other necessary certificate was inconsistent with the contract or proforma invoice. 100% 1st,2nd,3rd,4th
 (and or)
 6.Seller's company name other informations in Enterprise Legal Person Business License was inconsistent with the contract or proforma invoice. 100% 1st,2nd,3rd,4th
 (and or)
7.Supplier/seller quote a lowest,inconceivable price. 85%-100% 1st,2nd,3rd,4th
 (and or)
8.Without(or imperfectly)clearly defined details of the transaction in .contract or proforma invoice 90%-100% 1st,2nd,3rd,4th
 (and or)
9.transaction by a dangerous payment term.Like Western Union or T.T to personal account 90%-100% 1st,2nd,3rd,4th
 (and or)
10.delivery by express(Courier) 60%-100% 1st,2nd,3rd,4th
 (and or)
11.Did not request making samples before order 60%-100% 2nd,3rd(and or)
12.Did not request quality inspection On behalf of the buyer 60%-100%  2nd,3rd(and or)
13.Suppliers comes from Zhejiang province,Guangdong province,Fujian province 50%-100%  
1st,2nd,3rd,4th
 (and or)

To trade with a regular company or factory in China was very important for importer.There are 13 points need checking them out before order.
1.If the company you want to trade with was a trading company ,personal SOHO or manufactory?
To trade with a trading company and personal SOHO will face large risk,Cause the trading company or SOHO  can not control the price of the goods,can not control actual quality of the goods,can not control delivery time....and more.There is evidence that 80% of cheater in the name of a trading company and personal SOHO.(A cheater is difficult to impersonate a factory but a trading company or personal SOHO).

2.Did him have been got export license and other necessary certificate?
If a company in China who whitout a real and effective export license,That means he/she shall not be entitled to be engaged in export business.
You will face large risk if you trade with a company without export license and other necessary certificate.
Other necessary certificate contains Enterprise Legal Person Business License and Tax Registration Certificate and so on.

3.If a company which you want to trade with was real company?
If a company does not exist,you will face large risk.

4.If you have been singed a real and effective contract or proforma invoice before payment or deposit.
If No,you will face large risk.

5.If seller's company name and other informations in all the contract or proforma invoice was same as the name in Enterprise Legal Person Business License and Export license and Tax Registration Certificate?
If No,you will face large risk.

6.If the company name and other informationsin Enterprise Legal Person Business License and Export license and Tax Registration Certificate was complete congruent?
If No,you will face large risk.

7.If the supplier/seller quote you a lowest,inconceivable price.
If YES,you will face large risk.

8.If all the contract or proforma invoice which you singed with seller have been expressly pointed out name of trading items,detailed specifications,quantity,Price and price term.quality requirements,Packing and packing requirements.Inspection requirements,delivery time,delivery,Shipping requirements,payment term,seller's bank account and more terms which clearly defined details of the transaction.
If No,you will face large rick.

9.If the contract or proforma invoice declared a safety payment term?
If someone request payment by Western Union or telegraphic transfer to personal account BUT NOT TO HIS COMPANY ACCOUNT,you will face large risk.

10.If delivery by express(Courier)?
If yes,you will face large risk.

11.If you request seller making samples as your order  quality requirement(s) before order?
If No,you will face large risk.

12.If you request a agent to check the actual quality of the goods before shipment?
If No,you will face large risk.

13.If the supplier come from Zhejiang province,Guangdong province,Fujian province
If yes,especially pay attention to both of price and quality of the items.
Or you will got another kind of quality goods to your order.

So,how to avoid the risk of transaction with a chinese company.
Remember the above points,and do follow the points.
How to validate a company whether really or exist,May difficult for you.
Cause the certificates of Chinese company are in Chinese.

Now,they are easy for you,Our company-Tianbai plastic company provide professional certification service to let your transaction with a new chinese company more safety.

transaction security certification just cost US$50 per time(Or $500 per year)
quality inspection in supplier's factory as buyer's authorized agent(US$80 per time plus travelling expenses)

SAFTY TRANSACTION BETTER THAN BE CHEAT.

CLICK HERE to got more information about OUR SAFTY TRANSACTION SERVICE

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