Trade advisory Document released by Embassy of India Beijing China.
|
Dear Members,
The Embassy of India in Beijing has issued an updated trade advisory to assist Indian Small and Medium Enterprises (SMEs) doing trade with Chinese companies.
The advisory aims to mitigate risks and prevent disputes by providing a list of common problems faced by Indian companies, precautions to take, and a checklist of dos and don'ts. It also includes a list of Chinese entities involved in trade disputes with Indian companies from 2009 to July 2024.
Key issues highlighted include the supply of substandard goods, refusal to send consignments after payment, quantity disputes, and payment diversion due to email hacking. The advisory recommends verifying the credentials of Chinese entities through the Embassy or Consulates, consulting Business Service Companies for large transactions, and retaining copies of identity documents of Chinese company representatives.
Indian companies are advised to be cautious when dealing with companies from Shandong, Hebei, Guangdong, Jiangsu, and Zhejiang provinces, as these areas have been associated with a high number of trade disputes.
The advisory also covers the modus operandi of Chinese entities involved in trade disputes, such as requesting cash for gifts, disappearing after receiving advance payments, and delivering substandard goods.
It provides detailed guidance on how to avoid such situations, including using Letters of Credit (L/C) for high-value transactions, physically inspecting goods before shipment, and attesting documents through the Embassy or Consulates.
In case of disputes or clear cheating, Indian companies are encouraged to seek the Embassy of India Beijing help.
The detailed advisory document can be viewed on the link below
https://www.eoibeijing.gov.in/public_files/assets/pdf/Latest_Trade_Advisory_aug16.pdf
Members are advised to take note of this important update and do the trade with China accordingly.
Do write to us on pw@chemexcil.in with a copy to dg@chemexcil.in if you need any help.
Thanks and regards
Raghuveer Kini
Director General
CHEMEXCIL
Encl : Latest Trade Advisory – Aug16