Online foreign trade case

A foreign trade businessman talked about his foreign trade scam case.

He contacted an Indian buyer and reached an agreement for buying camp lights for tourism. The order was fulfilled by a manufacturer under the businessman’s control. The order total amount was about US$20,000.

When the order was completed, the Indian buyer arranged quality inspector to check the products. Then they said the products were defective, complaining battery problems or package problems and refused to buy the products.

In fact the manufacturer paid more attention on product quality because they cared more about such new customers.
The Indian buyer settled down payment about 30 percent of the total amount. It meant the Indian buyer deposited only 30 percent of the total amount. The Indian customer said they would not buy the products and reserved deposit back.

The suppliers was worried since they had only got 30 percent of the payment and the products had been marked with logos required by the Indian customers, such products can not be sold to other customers due to the logo. The supplier was a small factory who can not take the issue to the court.

The supplier had contacted the Indian buyer several times through email or telephone, but the Indian customer still kept negative attitude on the issue.

One month later the supplier asked the Indian buyer how to resolve the problem. The Indian customers said the supplier must offer big discount, or else no concession.

At the end, the supplier had to agree all the conditions, because the supplier had no other choice.

The supplier sold the products to the Indian buyer at a very low price.

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