Buy Chemical Products from China: Beware of the Professional Scammers Part 2

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Trick No.4 Change Price, Change Payment Term after You Signed Contract and Make Deposit Payment.

You negotiated the price, and payment term and everything with the supplier, contract finalized, signed, deposit payment made.

And you wait, and wait.

You was told by the supplier that price of the products have significantly increased, so you need to pay 200% price to get the products. This is blackmailing. When the supplier signed contract with you, they should factor in the price change(we doubt if there is), and even if there is price change, they should still perform the contract, otherwise the contract is a JOKE.

But yes, contract to those suppliers is only joke, or trick. They can change their mind anytime.

So from legal standpoint, this is materially breach of contract, you requested to cancel the contract and refund the payment. The suppliers will find all the excuses not to send it back. If they send it back, they are not serious businessmen, if they don’t send it back, they are serious scammers.

Another scenario with contract is payment term.

We know fraudulent chemical suppliers don’t like L/C, because L/C will make them impossible to steal. Many of the scammers are straightforward, they ask for 100% deposit payment(I am not saying suppliers asking for 100% deposit are necessarily scammers), which you refused and make you suspicious.

Some of the scammers are smart, they ask for 10% deposit, and balance L/C. When the buyers send 10%, they ask you to send 30% or even 100% deposit, it is ridiculous, however, there are quite some buyers I know do go on to send another 20% or even 40%.

After that, the supplier either disappear, or find excuses not to send the products.

Trick No. 5 They Sell Products that China Need to Import or Can't Export.

For products like sunflower oil, rapeseed oil, China need to import rather than export. For products like 99.99% silver mercury, sodium cyanide, we have verified at least 50 suppliers, no suppliers are qualified to export, due to the control, however, some of them export illegally(when caught, the products will be detained), more of them are scammers.

We recently received emails from an American company and a Nigerian company, both of them are scammed by a same company in Hebei province, both of them are buying sliver mercury. One of them got the products, but it was another product, one of them was robbed rudely, they got the money and never bother to respond.

Also for products like sunflower oil, we have purchased top 100 exporters list for this product from China Customs, there is only 6 exporters, the No.1 exporter only export 100 Ton or so. When we contact those suppliers, they said this products are imported from overseas. However, searching on alibaba, made-in-china or tradekey, you will find hundreds of small trading companies or fake companies are trying to sell the products from China at unbelievable price.

If you step ahead, there is a big trap.

Trick No. 6 Register Company at City A, Operate Only at City B That is Thousand of Miles Away

Not all scammers operate this way, but if a company operates this way, they are 90% scammers. The only reason for this is that it will be convenient for them to run away.

We have a Dalian based chemical company stole 1 million RMB from a South African buyer, they registered in Dalian, but operate only in Shijiangzhuang city, Hebei province.

So when the buyer found it is a scam, they report the case to the police station where the company registered, they authorized the lawyer to sue them at local court, and they also bring in a debt collection agency, the problem is, all of them can’t find the scammers.

They change a mobile phone, change a website, go on to scam the world.


Related Article:
Buy Chemical From China: Beware of Professional Scammers Part 1
How to negotiate contract with factory
Manage relationship with china supplier
Why late delivery from your supplier
Why your products detained by China Customs

Chinawhy Service
Chinawhy has been providing sourcing, verification, QC, shipping and other trade related service to more than 500 overseas buyers since 2006. Email us at or call us at 0086 451 8333 0781 to book the service.

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