Grey Import | The Safely Sourcing China Blog

Posts Tagged ‘grey import’

A Comprehensive Source of China Links

Tuesday, March 2nd, 2010

Possibly The Most Comprehensive Listing Of China Governmental And Non-Governmental Info-Sources.

When embarking on trading with China, both you and your company need as much top-level information as possible, and it should be equally wide in scope and readily available at the click of a mouse at any time, day or night.

And that’s where a small family-run product sourcing and due diligence company in Beijing, are seemingly outstripping their larger competitors, by presenting quite possibly one of the most comprehensive sources of information and links to Chinese governmental and non-governmental information sites of interest and information, with particular emphasis on due diligence and trading safely with China; all readily available in one place, and at the click of the mouse, for foreign businesses, traders, and entrepreneurs on the internet.

YCTP China Trading Links

YCTP China Trading Links

This small company is saving a lot of people a lot of hard footslogging, or better said – key tapping – by opening to the public their own carefully garnered resources to the public domain.

Indeed, they even outstrip companies such as Alibaba with the comprehensive and ‘all-in-one-place’ format of their links – literally at your fingertips.

Indeed, there are many pages offering information on the internet regarding product sourcing, due diligence, background checking, and lodging formal complaints with governmental or voluntary agencies. However, few sites offer such a broad and comprehensive range of informational links to relevant and pertinent Chinese authorities and government sanctioned trade and commerce sites, where you can find connections to genuine Chinese businesses who have registered themselves with governmental authorities. This in and of itself doesn’t necessarily make these businesses one-hundred percent genuine or risk-free. However, it certainly does minimise the risk of being scammed.

Sectional headings on the links page at www.yourchinatradingpartner.com include – China Business Resources: the links in this section cover a variety of journals and blogs appertaining to trading with China and are replete with useful information, inside tips, news, data, and current trends.

In the China Government Business resources section there are a string of excellent links to The Ministry of Commerce to the Peoples Republic of China (national) and its’ associated forums and complaints sections. In the Invest in China – Government Website section you can confirm the validity, or determine whether a company is legally registered in China. However, it currently only deals with those companies who have joined voluntarily and/or are foreign/Sino joint ventures.

In The Local Administration for Industry and Commerce Section you can check local branches of The Ministry of Commerce to the Peoples Republic of China to determine the validity of a business and whether or not it is a legally registered entity.

Other sections include links to the Bureau of Fair Trade for Imports and Exports, Department of Foreign Investment Administration, and the World Importers Net (Ministry of Commerce PRC), which is a trade promotion website under MOFCOM Public Information Service (MPIS), aiming at promoting international trade by providing both Chinese and overseas companies with trade information. It is an important part of the China national public information service system for international trade and economic cooperation, and is funded by the Chinese government; all services provided are free of charge.

Further very useful sites linked to by YCTP are the Department of Foreign Trade, China Customs & Excise, and The Mediation Centre of the China Council for the Promotion of International Trade; where if something goes wrong with your transaction, and you have already tried to contact your Chinese business partner to resolve the issue without success, then you can refer your case to arbitration.

Another interesting and useful link is to the Trademark Office – State Administration for Industry and Commerce (CTMO); which department performs the registration and administration of trademarks nationwide.

CIETAC is now one of the busiest arbitration centres in the world.

CIETAC is now one of the busiest arbitration centres in the world.

Another immensely useful site is The China International Economic and Trade Arbitration Commission (CIETAC) which is the most important and permanent arbitration institution in China. Formerly known as the Foreign Trade Arbitration Commission, the CIETAC was set up in April 1956 under the China Council for the Promotion of International Trade (CCPIT) to meet the needs of the continuing development of China’s economic and trade relations with foreign countries after the adoption of the “reform and opening-up” policy, the Foreign Trade Arbitration Commission was renamed as the Foreign Economic and Trade Arbitration Commission in 1980, and then finally settled down as the China International Economic and Trade Arbitration Commission in 1988. Since 2000, the CIETAC is also known as the Arbitration Court of the China Chamber of International Commerce (CCOIC).

The CIETAC independently and impartially resolves economic and trade disputes by means of arbitration and conciliation (mediation).

The CIETAC’s headquarters is located in Beijing with two sub-commissions in Shanghai and Shenzhen, respectively known as the CIETAC Shanghai Sub-Commission and the CIETAC South China Sub-Commission. In order to meet the needs of the development of the arbitration practices, the CIETAC also successively established 19 liaison offices in different regions and specific business sectors to provide parties with handy arbitration advice.

After nearly 50 years of continuous endeavour, the CIETAC is now one of the busiest arbitration centres in the world. With its arbitration practices and academic activities, the CIETAC has also made great contributions to the legislation of the Chinese arbitration law and the development of the arbitration practice in China. Not only does CIETAC maintain positive relations and cooperation with all the major arbitration institutions throughout the world, it also upholds a respectable reputation at home and abroad for its independence, impartiality and efficiency.

YCTP also include an introduction to CHINA – THE LAW; which although not exhaustive does direct readers to General Principals of the Civil Law of the People’s Republic of China, Model Arbitration Clause for Contracts with Chinese Companies, and The Ministry of Public Security of the P. R. China Information Network & Security, which deals more specifically with cyber-fraud, or cyber-crime.

Additional links included are those for government run or sanctioned trade links and resources, such as: China Commodity Net (CCN), which is funded by the Chinese government. China Commodity Net (CCN) is one of MOFCOM’s Public Information Service (MPIS) projects. As an important part of China national public information service system for international trade and economic co-operation, CCN aims to enhance cooperation and trade between the Chinese and overseas enterprises.

Other trade links include BizMatching – A government run and approved (Ministry of Commerce) trade portal, and China Market; this is a business portal recommended by the Chinese government.

In all, Your China Trading Partner provide a fascinating, deeply informative, and educational collection of links, which will prove to be an extremely valuable resource for any company, large or small, or any individual wishing to trade securely and successfully with China.

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Originally posted 2009-08-13 04:15:54. Republished by Blog Post Promoter

Popularity: 22%

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Posted in Company News, General Information | 2 Comments »

Trading Safely With China

Saturday, February 27th, 2010

How To Trade Safely With China.

You want to trade with China, but you don’t feel safe. So what’s new?

Trading with China can be a very profitable way to do business, particularly for the small business or entrepreneur.

Beware Of The Dragon In The Machine!

Beware Of The Dragon In The Machine!

However, the safety of your transaction, and the possibility that you may, sooner rather than later, be a victim of cyber-fraud should be something which worries you very much, as is evidenced by the rise of cyber-fraud between China and the west in recent years. This eventuality is evident all over the internet on BBs and trade-sites where people are lodging their impotent complaints of having lost to the cheats of China.

There are, however, steps you can take to ensure the safety of your transactions, and to seriously mitigate your risk. The following information could help you save your investment, heartache, stress, and the personal shame and embarrassment – all of which will accompany such a loss.

So, what does a Chinese scam look like? What form does it take?

Well, before I go into this in any depth allow me to say that the majority of people out there attempting to trade with China seriously need to reconsider their approach in recognising or determining with whom they are dealing.

The Internet Is A Petrie Dish For Scammers!

The Internet Is A Petrie Dish For Scammers!

The one thing all of us should be aware of, is that the internet is infested with scammers in the same way that a homeless dog is infested with fleas; it’s an electronic Petri dish which breeds scammers on a vast and multitudinous scale.

Indeed, it would not be short of the mark to say that the internet is the most dangerous place to perform business.

Therefore, the first thing you need to understand is that the people who are going to scam you are very savvy and clever, running highly organised schemes of mass deception, which have been carefully designed and implemented to trick and mislead you. These people are professionals at what they do. And their systems become more highly tuned with every successful scam, as they learn from their experience as they go along.

Over the years I’ve read a lot of hard-luck stories written by victims and posted broadly across the internet. Sadly the majority of them leave me with a “Huh?” of disbelief at their naiveté.

Here’s what the scammer knows:

  1. There is always someone wanting products cheaply; even more so in the current financial climate.
  2. “If you build it, he will come” If they build a website offering incredible prices, then people will visit.
  3. If you like the incredible price you will email.
  4. S/he knows that a little polite conversation on MSN will further reel you in.
  5. They know and understand that the medium in which these frauds and deceptions take place is called the World Wide Web; and just like a real spider’s web, the spider (the scammer) patiently lies in wait for the flies (which is you).
  6. S/he knows that the law of averages is on their side, and not on yours.
  7. They know that they live in a hugely populous nation laden with heavy bureaucracy, and that chasing them up will be almost impossible for you.
  8. They know that it is easy for them to disappear, and setup the same web of deceit again elsewhere.
  9. They know and understand desperation.
  10. Lastly, they know that you want something for nothing (or at least at a ridiculously cheap price) – and so they give you nothing for something.

All of the above gives them a massive sense of self-confidence, and which in itself, provides them with more backbone than you could imagine.

Here’s what you know:

  1. Wow! This is an incredible deal, I was really lucky to find this.
  2. I can’t believe my luck.
  3. You feel a little nervous about the deal, but you just have to take the risk, and so you convince yourself that it’ll be O.K.
  4. You send the money, and then s/he stops communicating with you, or they begin to prevaricate, or even say they need extra money for your goods to clear Chinese customs.
  5. You received a tracking number that doesn’t work.
  6. You can’t believe what a complete and utter idiot you have been.
  7. You think, “How did I not see this coming?”
  8. You realise you did see it coming, but decided to ignore your own instinct because you thought that if it is real you will have found a great supplier at a great price.
  9. You’ve lost your money!
  10. You suffer a huge amount of personal pain, grief, humiliation, a deep sense of shame, and a sensation akin to having been raped.

You can save yourself a lot of heartache, misery, embarrassment, and personal shame by performing necessary Due Diligence before transferring any monies.

Otherwise, you may just find you’ve given away a lot of money, with little effort, to a stranger you’ll never trace on your own.

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Originally posted 2009-08-13 04:32:23. Republished by Blog Post Promoter

Popularity: 19%

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Posted in General Information, Scams And Scammers | 2 Comments »

Games Consoles, XBOX, iPhone Products From China

Wednesday, February 24th, 2010

China – Games Consoles And The Scam

More than a few people have discussed XBOX and Games Consoles, and I’ve often been asked about sourcing them.

I’d like to make specific mention of this issue briefly here.

The Parallel or Grey Importing of Goods.

Scammers Love You, Because You Love This!

Scammers Love You, Because You Love This!

I’ll talk about parallel or grey importing using computers as an example first, and then follow on to briefly discuss games consoles and Xboxes.

Brand name electrical goods and computers CAN be found here in China.

However, when you start trying to take them from China (or anywhere else) into other countries, then you fall into an area known as parallel or grey importing. Many companies are now really cracking down on this, particularly SONY™ for instance, in co-operation with the EU, there has a been a dramatic increase in seizures of goods at ports.

Scammers Love Your Money - And You Love To Give It To Them!

Scammers Love Your Money - And You Love To Give It To Them!

The parallel or grey market is the trade of something legal through unofficial, unauthorized, and usually unintended distribution channels.

For example: To export anything made by Dell™ in China, to the US, would be considered by Dell™ US to be poaching on their territory.

Sometimes the practice of parallel or grey importing is illegal, but not always so.

Many of the parties concerned with the parallel or grey importing of a good are usually the authorized agents or importers, or other retailers of an item in the target market. More often than not this is the national subsidiary of the manufacturer, or one of its related companies. In response to the ensuing damage to both their profits and their reputation, many manufacturers, and their official distribution chains will very often seek to restrict the parallel or grey market.

Such responses can breach competition law, particularly within the European Union.

Competition law, in the United States is known as antitrust law.

Refusal to Honour Warranties

Manufacturers have the right to refuse to honour the warranty of an item purchased from parallel or grey market sources, on the grounds that the higher price you should have paid on the non-grey market reflects a higher level of expected service.

To The Scammer, 'You' Are The 'Apple' of Their Eyes!

To The Scammer, 'You' Are The 'Apple' of Their Eyes!

Additionally, companies may provide the warranty service only from the manufacturer’s subsidiary only from within the intended country of import, and not in the diverted third country to where the parallel or grey goods are ultimately sold by the unauthorised distributor or retailer.

Are you prepared to make money at any cost?

Are you the kind of person who’d sell grey or parallel goods to someone, irrespective of the effective lack of any genuine warranty on those goods?

Do you not care about the end user, your client, and your own reputation?

Because, if your answer is ‘yes‘ to the first two questions, and ‘no‘ to the third one, then I really don’t see much difference between you and the scammers.

In my opinion, if you’re buying grey or parallel, then you’re obviously a bit shady yourself.

The response by scammers to the grey market is particularly evident in the electronic goods market, where I hear people crying loudly at having been ripped and burned regularly!

Have You Got Money To Burn?

Have You Got Money To Burn?

Yes, it seems to be the people endeavouring to buy games and game consoles, along with iPhones etc., who are the one’s who get burned most frequently by the scammers.

Just by virtue of wanting these goods grey or parallel, you put yourself at the scammers table, and if you’re unlucky (which you most probably will be) you’ll find yourself on a scammers dinner plate too.

If that’s you, or you’re thinking about entering this line of business, then I suggest you find another product line to trade in, one that you can get direct from a good OEM/ODM in China.

Remember, the scammers love those who love to buy grey!

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Originally posted 2009-08-13 05:31:50. Republished by Blog Post Promoter

Popularity: 23%

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Posted in Scams And Scammers | 1 Comment »

Fighting Cyber-Crime

Saturday, February 20th, 2010

YCTP – Fighting Cyber-Crime And Online-Fraud In China

Due to the increase in claims by small, medium, and even some quite large foreign firms, complaining of having been the victims of cyber-crime or cyber-fraud, Your China Trading Partner – Beijing (YCTP) have decided to open a new area of service for foreign clients, as a means of minimising or eliminating such risk.

YCTP Fighting Fraud

YCTP Fighting Fraud

YCTP is a small product sourcing company based in Beijing, China, and predominantly servicing small to medium sized foreign enterprises seeking to source products, or to have a representative presence in China.

As far back as November, 2006, the 17th Asia-Pacific Economic Co-operation Forum, held in Busan, South Korea, China endorsed the APEC Privacy Framework along with representatives of the other 20 member countries and territories, as a means of combating threats in the form of a then growing gang of highly-organized cyber-criminals.

Since then the government of the Peoples’ Republic of China has taken proactive steps in a targeted and co-ordinated approach, by bringing together a group of the World’s most practiced IT experts to devise and discover ways and means of mitigating cyber-crime. Yet still this form of crime is still prevalent on the mainland today.

In 2009 the Internet Crime Complaint Centre released its latest annual report on victims’ complaints received and referred to law enforcement departments in the US.

YCTP Fighting Cyber-Fraud

YCTP Fighting Cyber-Fraud

Between January 1st, 2008 and December 31st, 2008, the IC3 website was in receipt of 275,284 complaint submissions. This being a 33.1% increase on those of 2007 when only 206,884 complaints were received. The greater part of these submissions was composed of complaints primarily related to fraudulent activities perpetrated via the Internet.

Non-delivery of merchandise was the most predominantly reported offence, and which comprised a total of 32.9% of the total referred complaints.

To meet the necessity for security in trade, and its’ accompanying growth in demand from foreign businesses, YCTP have now incorporated a new background checking and referencing function into their business, as a means of assisting foreign buyers, private or B2B, in protecting their investments, or purchases, against cyber-fraud; this being achieved through on-the-spot face-to-face due diligence services.

Queries or information requests may be directed to Mr. Ken Stone via the YCTP company website on: www.yourchinatradingpartner.com

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Originally posted 2009-08-13 01:15:42. Republished by Blog Post Promoter

Popularity: 12%

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Parallel or Grey Importing And The Scammers Behind It

Thursday, February 18th, 2010

Parallel or Grey Importing & China

Firstly, with regards to a basic explanation of Parallel  or Grey Importing, and the scam effect, allow me to direct you to an article of mine which discusses this matter in the Scams & Scammers Category of my blog; the article is entitled “Games Consoles & XBOX in China“

I assume you’ve been and read it, and have now come back to continue.

So let’s get to my point.

Every region has its’ own official distributor(s) who are licensed and engaged to distribute for the producer into a given region.

That means, that even if you were to contact the relevant distributor for the Chinese market, that distributor would not allow me to purchase from him/her with the foreknowledge that you planned on having them shipped out of China, for fear of losing that very valuable license.

Parallel or Grey Importing - Worth the Risk?

Parallel or Grey Importing - Worth the Risk?

Even if they took that risk you’d only get them at wholesale in China, and by the time you’d payed for shipping, you’d probably have them held-up at customs at your end, or even impounded or confiscated, as companies are now on the march, with government assistance, to batten down the hatches on parallel or grey importing; as is evidenced by the rate at which these actions are now taking place in EU ports.

However, I don’t believe a genuine distributor would allow you to do that in the first instance.

Not for a heart-beat.

But that, in and of itself, isn’t the major issue – there’s more.

If he/she did agree, particularly with that foreknowledge, then you would have to suspect something dodgy was going; more dodgy than your request to the licensee to parallel or grey import these products into other regions of the world, not under his or her license mandate.

Want To Risk Your Money On Parallel Or Grey Imports?

Want To Risk Your Money On Parallel Or Grey Imports?

As you are perhaps aware, or perhaps not, China has a problem, in that foreign mafia regularly send people into China masquerading as representatives of very large corporations such as the Apple and Sony Corporations, and many others.

These people, then give product plans to their targeted Chinese companies and, after inspecting their factory, issue them with a fake license to produce and manufacture on behalf of these big names.

The Chinese companies genuinely believe that they are licensed to do so, as these mafia are very good at there jobs and have a strong financial backing to support their claims. They’re professionals.

They then go on to set up or give people (probably there own) “license” to act as “official distributors”.

However, when once YOU buy these goods (because that’s what even many chain stores end up buying) and sell them on, your own prospective client may find, should a problem arise, that their product identification codes do not coincide with those on the company database, and will be left without warranty, on a product that is a clone; and so will be left without recourse, but to turn back to you, who would then look back to the “distributor or licensed agent“, who in turn would have to look back to the “licensed manufactory” here.

ONLY TO DISCOVER THAT YOU, AND THEMSELVES, HAVE BEEN DUPED!

And that is exactly what is happening, and, morally speaking – in terms of the duty we owe to our prospective buyers, I really think you’d be better off out of it.

It’s a morass. It really isn’t a fun pool to swim in.

There are, however, a lot of legitimate high quality, great design, top of the range, as it were, “no-name” OEM/ODM products available, which compare technologically very well with many of the “big brands”.

Anecdotaly, I have a nice little Chinese made no-name 1 GB USB memory stick I bought here in Beijing, in a tech market, about two years ago. It’s great. I was shocked to discover one day that I’d had the thing in my pocket when my trousers went into a 3 cycle wash and spin.

That’s buggered then!

That’s buggered then!

When hanging out my clothes to dry I discovered it with a yelp, thinking, “That’s buggered then”. I put in a shelf for a day or so, then picked it up and stuck it in my computer in the forlorn hope that it might just work.

To my surprise, it opened up a window in the blink of an eye, as it usually did.

In fact, a large number of clients have brought data on USB sticks with big brand names, and they all open slower than my little no-namer, which is Blitz fast.

Anecdotes aside: My moral sense of what is right and wrong, in respect to the end user or buyer, baulks at the idea of even considering the potential risk to them as buyers, and to my personal sense of honour. Yes, some of still hold onto that old fashioned notion. Quaint, huh?

For me, it has always been about the road I take, and not simply attaining the final destination, without due consideration as to how I get there. I have always wanted to arrive at, or achieve, my destinations and goals – whole, intact, and more of, NOT LESS than, a person than I when I started out on the journey or undertaking.

International mafias are very pervasive and convincing.

Not my cup of tea I’m afraid.

The above mentioned scenarios are equally true for big brand apparel, trainers, cameras, and computers etc.

“Welcome to the real.”

Or…. not….

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Originally posted 2009-08-13 06:52:11. Republished by Blog Post Promoter

Popularity: 26%

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Posted in General Information, OEM And ODM, Scams And Scammers | 2 Comments »

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