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May 24, 2017, 12:35 PM

Old Chinese B2B scam has hit a UK dealer - please watch out

By Thornton Kay

The Chinese cake

Kent, UK - A scam involving a trip to China to sign a lucrative contract, first heard of in 2006 usually in manufacturing businesses in Europe and America, has been seen by a London architectural salvage dealer who informed Salvo.

A company in China offers to buy a large quantity of, in this instance, 4m of reclaimed wood floorboards to build summers camps in China. The negotiations go well and the principle of the business is invited to China to sign a contract for which notary's fees of $3,000 will have to be paid - a piffling sum to pay for a 4m contract. When the principle gets to China he is wined and dined but has to pay, and according to Chinese business custom often has to 'buy a gift' for the 'finance manager'. The signing of the contract is strung out for three days. On the third day the contract is signed, the notary paid and the principle's bank account drained. Returning home he finds the company has disappeared with no trace.

Watch out!

Variations have included crooks fraudulently using legitimate trading companies with proper websites and appearing genuine but in fact having no connection with the legitimate business.

To visit China to sign a business contract it is likely that a work visa (type M) would be needed, not a tourist visa. It is likely that an invitation letter issued by a relevant entity in China would also be needed and this could expose the scam. The M Visa requires documents on the commercial activity issued by a trade partner in China containing information on the planned visit - purpose of visit, arrival and departure dates, places to be visited, relations between the applicant and the inviting entity or individual, financial source for expenditures -
and details on the inviting entity or individual - name, contact telephone number, address, official stamp, signature of the legal representative or the inviting individual.

The Salvo Code dealer involved above is willing to discuss the attempted fraud with other members of the trade. Salvo also has a contact in China who is willing to help with trade business dealings in China. For more info about either person please contact thornton.kay@salvo.co dot uk

Story Type:  News

ID: 100388

        
 
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