Guide and tips for you to verify Chinese companies!
(What every business needs to know)
Guide viewed: already 13,000 times! (on eBay previously)
this is vital information on using methods to verify Chinese companies so that you do not get scammed/cheated/played on. Based on the fact that nearly 80% of products come from China now days and are distributed globally to all Countries it is of essence for everyone to know how to deal and what to do when dealing with China and the Chinese, for getting a supplier/business partner from there. The more of a large player China becomes in products ”made in china” the more scammers will be out there to get you, deceive you and will be so good at it that you will not even realize it.
Some of the companies, even the Gold members of the well known B2B web-sites like Ali-Baba turn out to be business scammers in China. Your business cannot legally be protected by Chinese Government authorities if you’re dealing with illegal Chinese companies. Hence its very important to verify your business partner as more and more business frauds coming forth in China. Here are my tips for you to verify a Chinese company:
However, there is no English version of the above services so far in China, you have to know a little Chinese to check it all by yourself. Also some of the companies do not register themselves with China’s yellow pages. So yellow pages is not the key to judge a business scammer in China! The best way to check out a supplier is to visit them in person or check them out with local government authorities in China.
if you don’t know Chinese, still you can pre-verify your business partners from the following aspects:
1. Contact information
Please note that their contact information is right or not, most of the scammers don’t offer a right address, telephone and fax number online. Some of the telephone numbers are empty and some addresses and tel. do not exist at all, they do not offer a company tel number, a private number or mobile number instead.
2. Registered corporate number
Every legal company in China has to register itself with Chinese government authorities and obtain a unique company number. If your business cannot offer you a unique registered corporate number, definitely he is a scammer. Off course, he may give you a fake number, so you have to check it out with local administrative government organs with the number he offered. There is Chinese organ called Bureau of Industry & Commerce (have branches at all levels), which is the only government organ responsible for the registration of legitimate companies or enterprises in China. For example for any legitimate companies from Changsha or Hunan province, you can contact the local administrative organ for information: http://www.csaic.gov.cn/ Tel: 86-731-2891606 or http://www.hunancom.gov.cn/ Tel: 86-731-2287058, the problem is you have to report your case in Chinese sometimes because most of the local officials do not know too much English in China.
3. Incredibly low prices, esp for International Brands
Most of the Chinese scammers usually entice foreigners with a very low price. If the price offered is too low to believe, you may have a further investigation to your partner to know why their prices are so low. Most of the scammers profit a lot by selling replicas or fakes of some branded goods to the overseas market, this is very risky because the goods shall be confiscated or detained by Chinese customs in case its considered illegal in China. By the way, please remember that the price for authentic/original brands like Sony, Apple, Nokia, Dell etc should be almost the same anywhere in the world. You cannot import from the unauthorized distributors with cheaper price in China. They must be selling replicas, refurbished or copies of brands etc! Please simply forget such suppliers in China!
4. Payment and shipment terms
The scammers never accept L/S as their payment terms,they prefer Western Union,Paypal and T/T etc. Also they never deliver goods through formal channels in China.They prefer to deliver samples by Express like Fedex,TNT, EMS to avoid more examinations from Chinese customs house.
5. Warranty and after sale services
Scammers never take some measures to guarantee their quality and after sale services after your payment. It’s lip services only!!!Be careful with some of the Chinese suppliers!
With Chinese Customs House and its branches before his formal business with local Bureau of Inspection & Quarantine in case his products are in need of quality control. With out the registration from above local government authorities/ By the way,I have to mention that; it doesn’t mean the manufacturer has the right to sell or buy in case he has obtained a legitimate unique company number from local BIC in China,all the enterprises with the right to import and export has to apply and obtained a Certificate of import & Export from Ministry of Commerce of PRC and its authorized local organs in China after their registration at local BIC. Also a formal trade company has to register in China,no company can deal with you in formal channels in China. Hope all this information helps you out in finding you the right supplier for your business so that you can get ahead of all the others and not get ahead of all the others and not get cheated like many people out there. This can be ranging from small to massive amounts of money depending on the product/commodity/service.By the way pay a visit to my shop,selling a lot of product accessories at the moment especially on iphone/itouch/ipod/laptops/desktops.Peter
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