**** name is not company name?
Post 1 of 17
Hi,
I am ready to place an order of power adapters to Ahead Electrical, they are Gold member in Alibaba:
http://ahead.en.alibaba.com/
They send me a proforma invoice of $1750 CIF. Everything looks good except the name of their ****:
BANK REF: HUA NAN COMMERCIAL BANK, LTD.
INTERNATION BANKING DEPARTMENT
ACCOUNT NAME: GALAXY INTERNATIONAL CO., LTD.
ACCOUNT No: 708-99-000221-7
I asked them why the name of the **** is different from the name of their company and this is their answer:
"GALAXY INTERNATIONAL CO., LTD" is our "paper company" which we establish
in HongKong to manage our company between Taiwan and China and handle OBU business.
Do this look normal to you ? Can I trust them and send the money ?
Please help me, this is my first time importing from China.
Thank you
I am ready to place an order of power adapters to Ahead Electrical, they are Gold member in Alibaba:
http://ahead.en.alibaba.com/
They send me a proforma invoice of $1750 CIF. Everything looks good except the name of their ****:
BANK REF: HUA NAN COMMERCIAL BANK, LTD.
INTERNATION BANKING DEPARTMENT
ACCOUNT NAME: GALAXY INTERNATIONAL CO., LTD.
ACCOUNT No: 708-99-000221-7
I asked them why the name of the **** is different from the name of their company and this is their answer:
"GALAXY INTERNATIONAL CO., LTD" is our "paper company" which we establish
in HongKong to manage our company between Taiwan and China and handle OBU business.
Do this look normal to you ? Can I trust them and send the money ?
Please help me, this is my first time importing from China.
Thank you
04 Oct 2006 11:37
Post 2 of 17
Replying to [manu83]:
Hallo,
it is a often use practise in China to make the export with trade companies, when they have no export license !
They are Gold Suppliers and pay about 7500US$ a year to get this status, so they will not loose this for a 1750US$ delivery !
Also you will have a support from Alibaba if problems with a Gold Supplier occurs !
rgds
Wilhelm
Hallo,
it is a often use practise in China to make the export with trade companies, when they have no export license !
They are Gold Suppliers and pay about 7500US$ a year to get this status, so they will not loose this for a 1750US$ delivery !
Also you will have a support from Alibaba if problems with a Gold Supplier occurs !
rgds
Wilhelm
04 Oct 2006 19:55
Post 3 of 17
Replying to [manu83]:
Can be quite possible. I have come across this many times. What a lot of Chinese companies do is form a "paper company" in Hong Kong to which all USD payments go. When they buy raw materials for their production, they then pay the USD out of their Hong Kong company. Saves going through the Foreign Currency Exchange Burea I suppose.
![[em3]](http://img.alibaba.com/images/eng/style/icon/emoticons_grin.gif)
Can be quite possible. I have come across this many times. What a lot of Chinese companies do is form a "paper company" in Hong Kong to which all USD payments go. When they buy raw materials for their production, they then pay the USD out of their Hong Kong company. Saves going through the Foreign Currency Exchange Burea I suppose.
04 Oct 2006 19:58
Post 4 of 17
Replying to [manu83]:
I think my reply can release your suspective.
As one of my client was also asking me the same question recently as you.
pls see my reply to him.
"I understand your meaning finally after studying your email carefully.
1) I would like to explain it for you according to my years working experience.
Now many supplier, especially the Shenzhen IT suppliers established a company in Hongkong. As HK is a free zone, it is easy to open up an office there. But it is much more difficult to get a business license in China mainland.
If they open up an office in Hongkong, the payment from foreign countries can remit to the Hongkong banking account easily..But In China mainland, there is very strict rule on foreign currency control. They have to follow a lot of procedures to get the payment from the bank everytime the supplier want to get the payment for the orders.
But HK office is only a title, in fact, no body works in HK office, it is only a title or a registered company name there.
Now most of my suppliers works this way, i mean, they have Hongkong company title, but everything is in Shenzhen. My other clients has no problems to deal with them..
Before, when I worked for a Turkey company,they also registered a company in Hongkong, but no body works there, and the clients and suppliers have to contact me in China."
My suggestion for you is: pls ask somebody to check if this company is exist or not.
And make sure the person you contacted is in that company or not.
Then you can remit the payment. wish you good luck.
If anything I can do to help, you can also add my TM..
I think my reply can release your suspective.
As one of my client was also asking me the same question recently as you.
pls see my reply to him.
"I understand your meaning finally after studying your email carefully.
1) I would like to explain it for you according to my years working experience.
Now many supplier, especially the Shenzhen IT suppliers established a company in Hongkong. As HK is a free zone, it is easy to open up an office there. But it is much more difficult to get a business license in China mainland.
If they open up an office in Hongkong, the payment from foreign countries can remit to the Hongkong banking account easily..But In China mainland, there is very strict rule on foreign currency control. They have to follow a lot of procedures to get the payment from the bank everytime the supplier want to get the payment for the orders.
But HK office is only a title, in fact, no body works in HK office, it is only a title or a registered company name there.
Now most of my suppliers works this way, i mean, they have Hongkong company title, but everything is in Shenzhen. My other clients has no problems to deal with them..
Before, when I worked for a Turkey company,they also registered a company in Hongkong, but no body works there, and the clients and suppliers have to contact me in China."
My suggestion for you is: pls ask somebody to check if this company is exist or not.
And make sure the person you contacted is in that company or not.
Then you can remit the payment. wish you good luck.
If anything I can do to help, you can also add my TM..
05 Oct 2006 11:32
Post 5 of 17
Replying to [hellojasmine]:![[em19]](http://img.alibaba.com/images/eng/style/icon/emoticons_great.gif)
,Good point. i think hellojasmine
has already made this point clear. Now it's very hot to run a trade on so-called 'company off shore'....
,Good point. i think hellojasminehas already made this point clear. Now it's very hot to run a trade on so-called 'company off shore'....
06 Oct 2006 22:57
Post 6 of 17
Replying to [manu83]: Hello!
You need also be careful. I had bad experience with one firm from China : MIJIA NAIL ART Co. Ltd. ROOM2-402 BUIDING 22# QIANCHENG DISTRICT YIWU ZHEJIANG CHINA.
They asked me to change beneficiary name to private person name. I have had really good experience about trade with other firm from China and Korea so I wasn't expect anything bad.
After I paid, they stopped contact me and tiill now I haven't got any goods or money back. It was at 27.02.2006
I'm going to try get money back by help of Police. Of course it doesn't have to be like that in this case. I just intend to put attention to dishonest people.
07 Oct 2006 03:31
Post 7 of 17
Quoting from [manu83]:
Hi,
I am ready to place an order of power adapters to Ahead Electrical, they are Gold member in Alibaba:
http://ahead.en.alibaba.com/
They send me a proforma invoice of $1750 CIF. Everything looks good except the name of their bank account:
BANK REF: HUA NAN COMMERCIAL BANK, LTD.
INTERNATION BANKING DEPARTMENT
ACCOUNT NAME: GALAXY INTERNATIONAL CO., LTD.
ACCOUNT No: 708-99-000221-7
I asked them why the name of the bank account is different from the name of their company and this is their answer:
"GALAXY INTERNATIONAL CO., LTD" is our "paper company" which we establish
in HongKong to manage our company between Taiwan and China and handle OBU business.
Do this look normal to you ? Can I trust them and send the money ?
Please help me, this is my first time importing from China.
Thank you
This is happening in other countries also:
The manufactureing company will have sister concern which have the export facility
SIGNATURE:
About Our Company
01 Jan 2007 09:22
Post 8 of 17
Replying to [manu83]:it is quite common in China. Some factories even use other company's bank account to receive payment. this is becasue: 1. they don't have export certificate
2. it is difficult for them to get the tax back if using their own account.
2. it is difficult for them to get the tax back if using their own account.
03 Jan 2007 01:09
Post 9 of 17
Replying to [manu83]: Quite Normal process in China, as from here many times transactions cost them heavily so they get account in Hongkong in another company name and get it done on that. Or sometimes they ask money in there freinds company account..
03 Jan 2007 20:36
Post 10 of 17
Replying to [manu83]:
![[em1]](http://img.alibaba.com/images/eng/style/icon/emoticons_smile.gif){kind=icon}
It's normal, but you have to be careful because everybody can register a ' paper company' in Hongkong with only hundreds of USD. This is why you have to verify your supplier first before your payment, to see whether they have a real factory and whether they have the right to export.
I agree with Jasmine above.
10 Jan 2007 01:15
Post 11 of 17
Replying to [Louise79]: Never send money to a private persons account in international trade.
22 Jan 2007 04:55