DO's and DON'Ts
The Embassy has brought out a list of DOs and DON’Ts recommended for Indian companies interested in doing business with Chinese companies.
The list of DOs and DON’Ts is as follows:
i. Indian companies should run a preliminary internet check on the credibility of the Chinese company. Many a time complaints have been registered online against such fraud companies by other affected parties.
ii. Indian companies are requested to check the credibility of the Chinese company on which they are placing import orders.
iii. Indian companies should insist on the copies of the passport/national identity card (issued by the Chinese Government) of the representatives of the Chinese company with whom the Indian company is interacting. This would help to track down the offender in case they go absconding.
iv. Contracts entered with Chinese companies need to have arbitration clause and proof of existence (company registration document) should be certified by Embassy of India, Beijing or the relevant Consulate.
v. Quality / Quantity of any product to be imported from China to be physically certified by the Indian company either by visiting China or by appointing an agency. Embassy can be approached for list of such agencies operating in China.
vi. Physical inspection of the goods to be carried out by the importing company at the point of loading in China.
vii. Refer your trade queries to the Embassy of India or the Consulate Generals of India instead of B2B companies.
viii. Release the balance payment only after checking the quality of the consignment received in India
ix. Check the e-mail id of the dealing foreign company, whether China-based or third country-based, every time a correspondence is made. For fund transfer, Indian company must ensure that its bank account is properly communicated to the Chinese/foreign company through different modes of communications (fax, courier) and not through e-mail only.
i. Indian companies must desist from placing orders on Chinese companies listed on B2B sites in India and China.
ii. Never trust a Chinese B2B site which is just in English and has no Chinese version. Every website in China is inevitably in Chinese and sometimes, has an English version. A site only in English with no Chinese version is fraud in all likelihood.
iii. Advance payment through bank transfer is discouraged; unless the credibility of the Chinese company is proved beyond doubt.
iv. Never trust email communications while confirming bank details. Always supplement it with communication through faxes/courier.
v. Do not release LC if not sure of the quality and quantity of the product.
vi. Do not fall for offers of cheap products from the Chinese companies.