Tips to Verify a Chinese Supplier

This article is found firstly in [url]www.importers.com.[/url]
vKY8_A3l+E Some Chinese companies - even some paid members of trade websites - are scammers. Your business is not legally protected by Chinese authorities if you are dealing with an illegal company. Buyers need to verify potential suppliers first.C"~r8`.j

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l Unfortunately, while there are some Chinese websites that can help provide company verification, there is little support for us English speakers. So, here are some tips to help you be sure you are dealing with a valid supplier:
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sZ~SWEo5z 1 - Contact Information-jg'P^
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Most of the time, scammers do not provide correct business contact information. They submit a false address, telephone number, etc. TradeStaff recommend that ALL buyers make personal contact with suppliers before concluding a sale. @'`n|;O L"}

_ W;t7i OoA 2 - Company Verification
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r X9rE,Tp2F%puZ Every legal company in China needs to be registered with Chinese government authorities at the Bureau of Industry & Commerce (BIC). Once approved, each company is provided with a unique company number. Be sure to get this number from suppliers - if they cannot provide one, walk away. Once you have the number, check with the local BIC administration office to verify company information. (NOTE: You will likely need to have someone Chinese make the call, as English is not supported).
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In China, all companies that wish to import and export must apply for and obtain a Certificate of Import & Export from Ministry of Commerce and its authorized local agencies in China. This must be done after a company has registered at their local BIC. In addition, trade companies have to register with Chinese Customs House and its regional branches before conducting formal business with international businesses. Buyers should ask suppliers for their company number from BIC, as well as a copy of their Certificate of Import & Export. #[C
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3. Payment Terms.['R vLu\
Scammers never accept Letter of Credit (LC) payments. The fraudsters of the world prefer Western Union, TT and PayPal payments - as these cannot be traced. Buyers making a large purchase should definitely pay be LC. For sample orders and smaller shipments, consider using an escrow service (like Escrow.com).
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Y2Vx_^3Hww9` 4. Customer Referrals
*H~:V%]+Z7lA PBn[1G9o Professional suppliers understand the value and power of customer referrals. Before finalizing an order, ask the supplier to provide names and contact information for some of their satisfied buyers. You may wish to start by asking if they have shipped product to your country before. If they say yes, get customer referrals there. If not, ask what other countries they have sold to and get info for some of those customers.
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:C Q(q.Y6U 5. Unbelievable Prices
1T/N[Gr3M4^F0v*R'J Part of the lure of scammers is to offer products at truly unbeatable prices. But, the reason they can offer such low prices is that you will never get the product - so who cares what the sales price is? Consider this: If the deal sounds too good to be true, it probably is.
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;Y'~ h1j*e 6. Branded Products I%ZM{t.FE:L
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China is famous for selling copied versions of branded products, such as watches, electronics, shoes, handbags, golf clubs and more. At the same time, there are a number of legitimate Chinese producers of branded products, that sell surplus quantities illegally. Buyers should note that while a Chinese company may provide you with a certificate indicating they have the right to produce the branded item, this certainly does NOT authorize them to resell those items. Check the wording carefully.WoTf)fJ!p#t

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Chinese suppliers provide buyers with real opportunities for cost savings. Just remember that without conducting appropriate due diligence, you are going into the deal blind and putting yourself at risk. Like in the rest of the world, most businesses are professional. With a little research, buyers can trade confidently and develop valuable business relationships.