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Since the end of last year, the Russian INCITY company Guangzhou has been liquidating and preparing to dissolve. Many suppliers have been in arrears for half a year or more. Suppliers who have received dissolution information have been going to the company's location to report to the police and collect payment.


Russia's INCITY clothing brand has a branch in Shanghai and an office in Guangzhou. The office address is Room 2802, 28th floor, World Trade North Tower, Guangzhou.


The company's approach is to use the same brand in China with three different companies (MK, FC and other companies) to purchase contract fraud. The same group of people doing business with you in the name of different companies.


The specific method is as follows: in the process of many times of cooperation, this time I will identify the production contract for you in the name of a European company. next time I will find a reason to sign the contract for you in the name of a Hong Kong company, but all the products are of the same brand of INCITY. Many suppliers think it is reasonable, so they signed a production contract and took a deposit to produce. In the process of cooperation, the amount owed is increased by snowballing. Suddenly one day, I didn't give you an order. You took the contract to recover the payment,


INCITY in Guangzhou will tell you that this has nothing to do with them,


The INCITY companies in Hong Kong and Europe went out of business and they didn't owe you money.


In fact, it is the same group of people engaged in contract fraud.


What is contract fraud? It is the use of loopholes to transfer responsibility, or in the case of the other side is not aware of the road.


Contract fraud is more destructive to suppliers than pure fraud. Because through a series of limited liability means of a limited company, a subjective malicious default payment can be turned into an economic dispute, and then through the legal means of limited liability to avoid the liability. When this series of actions are completed, it is often difficult for suppliers to protect their rights in a short period of time, which eventually leads to the inability to protect their rights.


Just like this INCITY, different companies A, B and C are registered. ABC three companies use the same name, but their registration places are Europe, Hong Kong and China respectively. They are operated by the same group of people. Today, A is used to sign a contract with the supplier, and tomorrow, B is used to sign a contract with the supplier. When the supplier comes to ask for payment, it will directly tell you that they are C company and AB company has nothing to do with them, if the Chinese are directly identified as fraud, it is a high probability event, just call the police directly to the company. But if it involves foreigners, you know, it can become a commercial dispute.


So, what defines Russia INCITY (Guangzhou) as a contract fraud rather than a commercial dispute?


Because INCITY Guangzhou in arrears with suppliers for up to half a year, until the dissolution did not fulfill the payment, before the dissolution did not notify the supplier, there is a malicious subjective behavior.


In the process of calling the police and blocking the payment for goods, the supplier heard from the property and the police that this was not the first time. So the other side is a certain subjective behavior.


What is even more abominable is that when a problem with this company is exposed, the other party can completely change another wave of people, re-register a company and cheat again, and play on. The most important thing is that as a Chinese supplier, you should be aware of the economic and legal risks of being defaulted by customers. This game can be played indefinitely, as long as you can catch fish.


In addition, the Chinese people's claims to the rights of foreigners must be a legal process. Sometimes even if the other party is illegal, they may leave calmly before you gain legal control of the judiciary. Once you leave, what is needed is a judicial extradition agreement between countries, which is likely to lead to the inability to defend your rights at all.


When can you not continue to play? Just like the Korean businessmen in those years, they can't play until everyone no longer trusts them. Therefore, from Koreans to Russians, theoretically speaking, there can be malicious businessmen from more than N countries in the world who can play this way. Therefore, foreign trade people can only do their own vigilance, nip in the bud.


How to prevent such things from happening?


First of all, if you are in the process of cooperation with the customer, from the beginning of the customer's performance is not credit, often in the end the customer is also no credit, the balance is not good to get back is a high probability event. 99% and delinquent customers already have predictable non-credit behaviors in the early stage-such as dragging money, picking bones on quality eggs, malicious deductions, etc., all of which exist in INCITY.


Secondly, as a foreign trade company, should establish the following mechanism:


Risk control mechanisms, when not paying according to the contract at the beginning, should be decisive and not allow the loss to expand;


In the process of business cooperation, do not take the main body of cooperation for granted, make empirical mistakes, contract fraud is often based on this as a loophole;


Deal with arrears quickly, do not have illusions, do not continue to wait, waste time, become completely passive.


Make more friends with peers to expand contacts, keep abreast of customer trends in arrears, and interact with people in the circle in a timely manner and help each other.


Finally, back to the beginning, everyone remember this Russian INCITY company and tell each other not to let other peers fall for it!