This is a true story that one of our business partners from India has seen and wants to warn other companies:
The Indian company regularly imports ferro alloys and other raw materials from China.
Recently he placed an order for 25 MT Calcium Silicon from a supplier from Xingtai, Hebei Province, China.
He paid a 30% payment in advance and the balance on receipt of email copies of shipping documents along with test certificate of SGS sent by the supplier. TOTAL PAYMENT MADE USD 55000.
Shipment was cleared on arrival at Nahvasheva port after paying custom duties.
When the material arrived at the factory, they were shocked to see that instead of Calcium Silicon, all bags were full of stones and slag pieces. The company arranged inspection and analysis by the local SGS, they gave analysis report, CALCIUM: NOT TRACED
They complained afterwards to the supplier and received initially 2-3 replies claiming they will check with the plant and come back. (Supplier is trader), but thereafter there were no more responses, they just stopped. Phones calls were also not received.
Two weeks later, an advertisement appeared in the local Chinese daily announcing that they have applied for the cancellation of the registration of the company with the authorities.
Then the boss went there personally and he found that the office premises were in a residential building and had been closed for more than six months. No person was traceable. They made a police complaint with the help of local friends. The police said they will investigate, but nothing has come out it after two weeks.
The contractor complains and shares his experiences with others.
Maximum fraud cases are from Hebei, Tianjin, Shenzhen and Hunan provinces of China.
Buyers from Europe, USA, and other parts of the world also became victims of such frauds in ferro alloys, chemicals, electronics and other items. Year after year fraud cases have increased on multi folds. So be careful.