Things which make me suspicious about a company

Hi guys,

We want to start to import paper products from China (this is our first time). We already evaluated several suppliers and have found one which seems to be good regarding product quality. However, there are some things which made us sceptical. Maybe someone has already done business with that company or can share his experience regarding the following things:

* They are advertising in 2 different trade platforms under 2 different company names. The contact person and the city is the same (Mr. Tiger Jing in Jinan), but the street address and phone/fax numbers are different! In Alibaba it’s Jinan Sunray Technology and Trade Co. (http://www.alibaba.com/company/10990175.html) and in the other platform it’s Jinan Kangoal Paper Co. Ltd (http://www.made-in-china.com/import-export/nqOJpmNXsxRDprofile1/Jinan-Kangoal-Paper-Co-Ltd.html)

* They say that they are a factory in Jinan and can’t export themselves but that they have an export partner company in Shenzhen (they provided their business license number and the export and business license number of their partner company which we yet have to verify). Their partner company is Jian An Pharmaceutical Company http://www.jianan-chinatrading.com/

* Their street address is something like “7th floor, room 102, ...” (although they claim to be a factory)

* The bank information they gave us is for their partner company in Shenzhen (Ping An bank)

* They asked to send the money for samples via WesternUnion, which we did. The samples arrived quickly, but the company which send the samples was located in Hong Kong (Naxing Co. LTD, #17 Jingxing Rd, Nan Shan Dist Shenzhen, Hong Kong) and not in Jinan or Shenzhen and it was not Jian An Pharmaceutical Company either (=their partner company)

* They do not want to disclose the companies which they already exported to and they want 15% of the money in advance before producttion and 85% before shipping, they only accept T/T

* The first time we inquired about a product they said the price is $2.80 per unit, then a week later they said it’s $2.95

Finally, is there a way to send private messages to Alibaba forum members? I am thinking of using a professional service of one of the chinese Alibaba members but I only find a contact option via the TradeManager chat.

Best regards and thanks,

Philipp

Quoting from [Chito]:

I understand your questions, i see your supplier is a free member on Alibaba since 2001, which is a plus point, and you have had your samples too, another good point.

Factories do use other companies to export their products if they have no Licence, you would pay the company with the Licence and not the factory, another point is who is the real factory? in this way you dont know for real, maybe many companies play a part, but for you to check the factories production would be a good choice, this way you know where the factory is and who?

Not sure about the payment details, 15% first is low, but pay balance before shipping? in this case you really need to make quality checks at production to protect yourself, and make sure the goods are sent, but if you have to pay before the ship, this is not easy, best is pay on sight of the B/L, in this way you can have someone check the order and the goods sent before you pay the balance.

The quotes, was this the same person that gave you the prices, for the same meterials and volumes or orders? how close was the first quote to the last one? material cost do change.

Many suppliers don't want to give their customer details, is this good or bad, all i can say in my dealings in China that's normal.

Checking the company Licence and reg, you was send samples by express maybe so they did not need the export licence? what did they say about the senders address for the samples sent to you? why sent from another company and not the real factory if sent by express? when Licence is not needed for express delivery.

Quoting from [Strongman Products]:

Quoting from [Chito]:

I understand your questions, i see your supplier is a free member on Alibaba since 2001, which is a plus point, and you have had your samples too, another good point.

Factories do use other companies to export their products if they have no Licence, you would pay the company with the Licence and not the factory, another point is who is the real factory? in this way you dont know for real, maybe many companies play a part, but for you to check the factories production would be a good choice, this way you know where the factory is and who?

Not sure about the payment details, 15% first is low, but pay balance before shipping? in this case you really need to make quality checks at production to protect yourself, and make sure the goods are sent, but if you have to pay before the ship, this is not easy, best is pay on sight of the B/L, in this way you can have someone check the order and the goods sent before you pay the balance.

The quotes, was this the same person that gave you the prices, for the same meterials and volumes or orders? how close was the first quote to the last one? material cost do change.

Many suppliers don't want to give their customer details, is this good or bad, all i can say in my dealings in China that's normal.

Checking the company Licence and reg, you was send samples by express maybe so they did not need the export licence? what did they say about the senders address for the samples sent to you? why sent from another company and not the real factory if sent by express? when Licence is not needed for express delivery.

Quoting from [Chito]:



Any input is welcome :-)

Do not pay the total amount before sighting the goods. You will most likely regret it. There are no business ethics in China.

I have been scammed by paying the money via TT in advance (to Xiamen Yilong Industry Co. Ltd.). They sent me the wrong goods and then suggested I sell it as best I could. I returned the goods and they refuse to answer emails or on TradeManager. Phone calls have been difficult due to the language barrier but have not produced any results either.

From now on it is COD (after inspection and testing of product) or using an Escrow company (in my country, not theirs).

Quoting from [Chito]:

Hi guys,

We want to start to import paper products from China (this is our first time). We already evaluated several suppliers and have found one which seems to be good regarding product quality. However, there are some things which made us sceptical. Maybe someone has already done business with that company or can share his experience regarding the following things:

 

 

 

* They are advertising in 2 different trade platforms under 2 different company names. The contact person and the city is the same (Mr. Tiger Jing in Jinan), but the street address and phone/fax numbers are different! In Alibaba it’s Jinan Sunray Technology and Trade Co. (http://www.alibaba.com/company/10990175.html) and in the other platform it’s Jinan Kangoal Paper Co. Ltd (http://www.made-in-china.com/import-export/nqOJpmNXsxRDprofile1/Jinan-Kangoal-Paper-Co-Ltd.html)

 

 

 

* They say that they are a factory in Jinan and can’t export themselves but that they have an export partner company in Shenzhen (they provided their business license number and the export and business license number of their partner company which we yet have to verify). Their partner company is Jian An Pharmaceutical Company http://www.jianan-chinatrading.com/

 

* Their street address is something like “7th floor, room 102, ...” (although they claim to be a factory)

 

 

 

* The bank information they gave us is for their partner company in Shenzhen (Ping An bank)

 

 

 

* They asked to send the money for samples via WesternUnion, which we did. The samples arrived quickly, but the company which send the samples was located in Hong Kong (Naxing Co. LTD, #17 Jingxing Rd, Nan Shan Dist Shenzhen, Hong Kong) and not in Jinan or Shenzhen and it was not Jian An Pharmaceutical Company either (=their partner company)

 

 

 

* They do not want to disclose the companies which they already exported to and they want 15% of the money in advance before producttion and 85% before shipping, they only accept T/T

 

 

 

* The first time we inquired about a product they said the price is $2.80 per unit, then a week later they said it’s $2.95

 

 

 

Finally, is there a way to send private messages to Alibaba forum members? I am thinking of using a professional service of one of the chinese Alibaba members but I only find a contact option via the TradeManager chat.

 

 

 

Best regards and thanks,

 

 

 

Philipp

As this matter concerns a Shenzhen based company, why not contact me, a lawyer in shenzhen? I have served many foreign clients and am sure will be of any help for your business here. Feel free to reach me by MSN: ************************

NO CONTACT DETAILS, MOD

Hi Philipp,


I'm in France and trade with China. Some details about your suspicions.

The fact that they send you samples as promised, is a good point that they probably are not scammers. When I started, I lose money but I tried to find real solution for not to be in the same position since. Prices may arise due to the increase of petrol and gas. Transport is a cost and actually there's a rise in China too.


Some companies present products that don't have yet, in order to advertise and bring you to buy other products  that they really owned.  Some companies  use  one licence  for different  companies and it's for them  to make more advertisement,  some kind of tricks not to pay  all taxes thus making better  profits.


The best answer for trading in China to my opinion is to put someone there. Today, I have somebody who checks the products that I wish to buy. Check the company personnally and test the goods whether its fake, or that all technical information and options are really to what the product is. We folllow the goods from the factory to the the final destination.


We make sure that all transactions are legal and done by bank transfer. So that by this way we can prove. By Western Union, once the money is transferred and the MTCN is given, ther's no way to catch either the goods or the money back.


Before leaving, there are so much companies who buy the right to be a Gold Supplier thus this technique give them the opportunity to put 4 other companies as Gold Supplier. Which means one real or fictive company + 4 scammers companies. Every cent stolen is a profit.


I find it better to pay some one who is a real partner and make him earn a good living while his role is specifically checking and making the trade to be sure.

Quoting from [Strongman Products]:

Quoting from [Chito]:

hi!

I am manufacturer of  textile machine and i have this customer from china/ which is an import export company.The machine worth 40.000 each and he wants to sign contract with me for 30 machines annually and he wants the payment to be L/C.

As a seller i am afraid that he will give me the down payment for %20 of 1.700.000usd

and he  wont pay for the rest .Because according the L/C i will have to send the machine  before the bank make the  payment.The L/C is irrevocable and confirmed type but still i cant trust them.

He didnt ask me so much about the machine and I offered him to make the contract and L/C for only 1 machine first so they could check our quality and we could built trust but he didnt want that.

Please give me some advice on this.

1.Is L/C  safe for the seller is there still a risk that i will not get the payment when i send the machine.

2. Does signing contract means anything in the legal system of china?

 

 

 



I understand your questions, i see your supplier is a free member on Alibaba since 2001, which is a plus point, and you have had your samples too, another good point.

Factories do use other companies to export their products if they have no Licence, you would pay the company with the Licence and not the factory, another point is who is the real factory? in this way you dont know for real, maybe many companies play a part, but for you to check the factories production would be a good choice, this way you know where the factory is and who?

Not sure about the payment details, 15% first is low, but pay balance before shipping? in this case you really need to make quality checks at production to protect yourself, and make sure the goods are sent, but if you have to pay before the ship, this is not easy, best is pay on sight of the B/L, in this way you can have someone check the order and the goods sent before you pay the balance.

The quotes, was this the same person that gave you the prices, for the same meterials and volumes or orders? how close was the first quote to the last one? material cost do change.

Many suppliers don't want to give their customer details, is this good or bad, all i can say in my dealings in China that's normal.

Checking the company Licence and reg, you was send samples by express maybe so they did not need the export licence? what did they say about the senders address for the samples sent to you? why sent from another company and not the real factory if sent by express? when Licence is not needed for express delivery.

Quoting from [Chito]:

Quoting from [Strongman Products]:

Quoting from [Chito]:

I understand your questions, i see your supplier is a free member on Alibaba since 2001, which is a plus point, and you have had your samples too, another good point.

Factories do use other companies to export their products if they have no Licence, you would pay the company with the Licence and not the factory, another point is who is the real factory? in this way you dont know for real, maybe many companies play a part, but for you to check the factories production would be a good choice, this way you know where the factory is and who?

Not sure about the payment details, 15% first is low, but pay balance before shipping? in this case you really need to make quality checks at production to protect yourself, and make sure the goods are sent, but if you have to pay before the ship, this is not easy, best is pay on sight of the B/L, in this way you can have someone check the order and the goods sent before you pay the balance.

The quotes, was this the same person that gave you the prices, for the same meterials and volumes or orders? how close was the first quote to the last one? material cost do change.

Many suppliers don't want to give their customer details, is this good or bad, all i can say in my dealings in China that's normal.

Checking the company Licence and reg, you was send samples by express maybe so they did not need the export licence? what did they say about the senders address for the samples sent to you? why sent from another company and not the real factory if sent by express? when Licence is not needed for express delivery.

Thanks for the answer, I really appreciate it. I read some of your other replies and you are doing a great job here.



Yes the person who gave me the quotes was the same. The second quote was 2.80$ per piece, the first was 3.00$.




Regarding the address from which the samples were sent: They said that Nanxing Co. is a DHL branch in Hong Kong, but then I wonder why do they send the samples f rom Hong Kong if they are in Jinan and their partner company is in Shenzhen.




Regarding the 2 different company names: They said, that the person whose address was supplied (Tiger Jing) used to work at that other company and is now the manager of their new company.




Any input is welcome :-)




Thanks!

Hi,

your question:Regarding the address from which the samples were sent: They said that Nanxing Co. is a DHL branch in Hong Kong, but then I wonder why do they send the samples f rom Hong Kong if they are in Jinan and their partner company is in Shenzhen.

Send form Hongkun DHL,is quite normal,the price can be almost half.

We normally  send the sample via hongkong DHL too.The Hongkong DHL collection posts from all over China,and may be they are big dealer,so they can offer good price.

I you want some one to go their to have a on site inspection about the company and quality,quantity,make sure the shipping We can do it.

Synge

ww.Impexwhiz.com

Quoting from [synge1983]:

Hi,

your question:Regarding the address from which the samples were sent: They said that Nanxing Co. is a DHL branch in Hong Kong, but then I wonder why do they send the samples f rom Hong Kong if they are in Jinan and their partner company is in Shenzhen.

Send form Hongkun DHL,is quite normal,the price can be almost half.

We normally  send the sample via hongkong DHL too.The Hongkong DHL collection posts from all over China,and may be they are big dealer,so they can offer good price.

I you want some one to go their to have a on site inspection about the company and quality,quantity,make sure the shipping We can do it.

Synge

ww.Impexwhiz.com

Hi,

My name is Alberto. 

I want to import wheel balance weights  from China. I asked some samples at a company named Ningbo Sobo Auto Parts Co. ltd  based in Shenzen.

 Today I received a Dhl pack  from Naxing Co. Ltd , 17 Jingxing Rd, Nan shan Dist, Shenzen,   Hong Kong.

it's exactly the address you are talking about .Should I be suspicious about this?

do you think is possible that a company which have the License to sell abroad earns money by selling for other companies not allowed to do so?  Or maybe this company is a fake company wich is used from a lot of company to avoid export taxes?

The last thing: I used to think that Shenzhen is in China and Hong Kong is considered as a foreign country.  So why as yuo can see in the red address Shenzen is cosidered as a city of Hong Kong?

Thanks everybody!  

Alberto