Global Sources
SmartChinaSourcing.com
Ready to import from China? Find verified suppliers on Global Sources.
Share / Recommend:

Supplier stole 42500 USD from me. What to do?

WE ARE A TRADING AND WE ARE IMPORTING MATERIAL FROM ALL OVER THE WORLD , WE ARE ONE OF THE LEADING SUPPLIER OF ALL TYPE OF PIPES AND FITTINGS, QUESTION: ONE OF CHINESE SUPPLIER HAS CHEAT US WE PAID US$ 42,500 TO BUY PIPES FROM HIM.

AS PER THEIR QUOTE AND REQUEST WE TRANSFER MONEY BY TT IN TO THIER COMPANY ACCOUNT, IN THE MONTH OF DECEMBER 2011, BUT TILL DATE HE DID NOT SEND MATERIAL OR NOT REFUNDING OUR MONEY, WE COMPLAIN TO CHINA CONSULATE AT RIYADH SAUDI ARABIA , ABOUT THIS CHEATING , BUT THEY REPLIED THAT THEIR ARE MANY CHEATING CASES FROM CHINESE SUPPLIER ,,,NOW WE REQUEST YOU TO HELP US,,,KINDLY TELL US WHAT WE DO & WHERE WE COMPLAIN ABOUT THIS SUPPLIER.. REGARDS FAROOQI IN  SAUDI ARABIA

 

ANSWER:

 

Thank you for your email below. Sorry to hear of your problem. I have a couple of questions to help me advice on your options.

Reader/CSIC

1.      Do you have a clear record of payments and PO?

YES WE HAVE COMPLETE RECORD OF PAYMENT TRANSFER BY T.T TO CHINESE COMPANY ACCOUNT

2.      Does the company on the contract match the company who received the money?

YES FIRST WE GOT QUOTATION , WITH THEIR COMPANY ACCOUNT NUMBER THEN WE

TRANSFER MONEY TO THEM

3.      Did you do any audits of the factory, or inspection of the production before making payment? If yes, please     provide those reports.

NO WE DID NOT SAW ANY AUDIT REPORT OR INSPECTION THE MATERIAL. BECAUSE WE ARE IN SAUDI ARABIA. ALSO WE DID NOT APPOINT ANY THIRD PARTY INSPECTION.

4.      Where did you meet this supplier? Online, trade show?  If on-line, which website?

UNFORTUNATELY WE GOT THIS SUPPLIER NAME FROM ” ALI BABA WEB SITE “

THIS SUPPLIER SUPPLIED OUR FIRST ORDER , THEN WE TRUST THEM AND PLACE OUR SECOND ORDER

SECOND ORDER AMOUNT WAS US$ 42,500 (APPROXIMATE) ,THEY CHEAT AND NOW NOT REPLYING OUR PHONE OR E-MAIL

5.      Does the factory ignore you or do they reply and give some reasons for why no ship?

ACTUALLY THIS IS NOT A FACTORY OR MANUFACTURER , THEY ARE SUPPLIER FROM CHINA

WHILE THEY DELAY OUR SECOND ORDER THEN WE PRESSURIZED THEM TO DELIVER OUR MATERIAL

FIRST THEY SAID THERE ARE WINTER HOLIDAYS IN CHINA FOR 10 DAYS , AFTER 10 DAYS HE SAID

WE SENDED MATERIAL FOR SHIPPING TO DAMMAM , BUT SECOND DAY THEY AGAIN E-MAIL AND

SAID THAT TRAILER DRIVER GOT SERIOUS ACCIDENT AND HE IS IN JAIL , AND POLICE ALSO TOOK

TRAILER IN THEIR CUSTODY , HE DO NOT KNOW WHEN THE MATER WILL SOLVE…AT THAT TIME

WE CAME TO KNOW THAT WE BEEN CHEATED …

IF REQUIRED FURTHER WRITTEN EVIDENCE OR RECORD CAN PROVIDE

 

First off, next time you place an order, please do two things:

  1. 1. Conduct an audit to confirm the supplier is legit before you give a PO.
  2. 2. Conduct a product inspection before you make final payment.

Here are some videos that explain those options.

Evaluating Suppliers
Project Management and Quality Control


If you need support to manage vendors, you should check out the China Sourcing Service Center.

Returning to the problem at hand, I think you best option is to get a collections agency involved and or work with a local lawyer to issue a demand letter. The money in question is substantial and according to your notes you have a clear record of PO/Contract/Bank payment to a Chinese business.   I would be happy to introduce the collection agents and local lawyers I have used in the past.


Question answered by Mike Bellamy, an Advisory Board Member & Featured Blogger at the not-for-profit China Sourcing Information Center. Mike is also the author of "The Essential Reference Guide to China Sourcing" and founder of PassageMaker Sourcing Solutions.

 

 

Add comment


Security code
Refresh

Stay Connected

Get Import from China Headlines by E-mail

Attend the Global Sources Summit


  • For online & Amazon sellers
  • Interactive training led by sourcing & Amazon experts
  • Learn how to source profitably, avoid pitfalls
  • April 17 - 19, 2017 in Hong Kong
  • Co-located with Mobile Electronics and
    Gifts & Home shows


Learn More

Join the Smart China Sourcing Facebook Group
  • Connect with other buyers
  • Ask questions
  • Get advice from experts


Join Group

Join Global Sources on Facebook

Be our fan now for the latest sourcing news, practical sourcing guides and expert advice.

Follow Global Sources on Twitter

We'll keep you updated with tweets on sourcing news, trade resources & more.