Be Wary of Steel Procurement Traps: Unveiling Common Fraud Types
This page aims to assist foreign steel purchasers in identifying common fraud types they may encounter when sourcing steel in China, safeguarding their interests.
SteelGuard, as a professional service provider, with the experience of senior procurement experts in international trade and professional lawyers, has in - depth knowledge of these fraud types, providing reliable guidance for purchasers.
01
Product Quality Fraud
Some unscrupulous suppliers deliver steel that does not meet the quality standards stipulated in the contract. They may pass off inferior products as high - quality ones, reducing key performance indicators such as the strength and corrosion resistance of the steel.
02
Empty Container Fraud
Some unscrupulous suppliers collude with unethical freight forwarders or carriers. The supplier claims to have loaded the steel into containers and arranged for sea transportation. However, in reality, the containers are empty. When the goods arrive at the port of destination, the purchaser discovers that there is no steel inside the container.
03
Goods Shortage Fraud
The supplier delivers less steel than the quantity stipulated in the contract but charges the purchaser according to the contract quantity. They may deliberately load fewer goods during the loading process or privately intercept part of the goods during transportation.
04
False Inventory Fraud
Suppliers claim to have a large inventory, but in fact, they do not have sufficient goods or no inventory at all. They use this to attract purchasers to place orders and make payments, and then delay delivery or refuse to refund under various pretexts.
05
Price Fraud
Suppliers deliberately offer low prices at the quotation stage to attract purchasers. Then, during the contract execution process, they increase the price for various unreasonable reasons, such as claiming a sudden increase in raw material prices or a significant increase in transportation costs, which may not be valid or should not be borne by the purchaser when the contract was signed.
06
Forged Qualification and Document Fraud
Suppliers forge or tamper with relevant qualification certificates, production licenses, product certifications, etc., making purchasers believe that they have the corresponding production and supply capabilities, thus winning trust and concluding transactions.
07
Contract Clause Fraud
Suppliers set traps in contract clauses, such as blurring delivery times, locations, quality acceptance standards, or adding unreasonable exemption clauses and liability for breach of contract clauses that are unfavorable to the purchaser.
08
Counterfeit brand fraud
Some unscrupulous suppliers, aiming to obtain higher profits, sell steel products by counterfeiting well - known steel brands. They may imitate brand logos, packaging, and even forge quality certification documents. This makes purchasers believe that they are buying genuine well - known brand steel.
