Jarry Air Cargo(HK) Limited

How to deal with unscrupulous Indian buyers who "don't pick up the goods and want to discount"?

When referring to Indian buyers, many foreign trade salesmen who do international trade will laugh at it. This money is not worth mentioning!

Yes, who is willing to make such a deal with one heart? The risk is too great. However, as a matter of fact, as long as we are fully prepared to understand each other’s situation and some of the other countries' policy regulations, many risks can be avoided and resolved. The following case is a good lesson for us.

       First place in prevention awareness


A foreign trade clerk in Shenzhen’s e-commerce industry once worked with an Indian buyer as an importer and exporter. The contract was then settled by T/T (30/70). However, after the goods arrived at the port of destination, local Indian freight forwarders found that Indian buyers could not be found to pick up the goods. Therefore, they could only be told by Chinese suppliers to tell him to hurry their buyers to the port for delivery. Surprisingly, the supplier on the Shenzhen side could not find the buyer.

In desperation, he had to wait for the Indian buyer to take the initiative to contact the Chinese supplier. After a month, the Indian buyer finally emerged. The strange thing is that he did not immediately pick up the goods, nor did he tell the Chinese why they did not pick up the goods and disappeared. Instead, he said, “Our demurrage is expensive, You quickly gave me the discounted goods, otherwise I wouldn't pick up the goods, and I wouldn't want the goods."

Seeing such emails, our Chinese supplier can only get rid of their teeth and swallow them. In desperation, in order to reduce the cost of this shipment during its stay in India, it was forced to accept the buyer’s request and eventually sold the goods to the other party.

Looking closely at this case, it is not difficult to see that, strictly speaking, the Indian buyer is not a real trade fraud. He does not want to sell, but hopes that the Chinese supplier will be able to sell him at a discount, so at the beginning he Agreed to prepay 30% of the deposit to buy this shipment. Then why did he then ask us to be sold to him by the Chinese supplier on the ground of demurrage?

In fact, this involves a trade risk issue and also reflects the professionalism of a foreign salesman. For the foreign trade clerk in this case, he is not familiar with the trade risks here, at least from the very beginning, he should have a sense of prevention.

Not to mention that the buyers here are Indians with very low ratings in international trade. They are buyers from other countries and they should do preventive work. In addition, he did not respond in time when the problem first occurred, and the risks here are in fact completely avoidable.

       Master special buyer policies

People who do international trade know that they can get their bills of lading 3-5 days after the goods are sent out. Then according to the payment agreement in their contracts, 30% of the money is paid in advance before shipment, and the remaining 70% of the money should be in the seller. Get the bill of lading and fax it to an overseas buyer. If the bank transfer time is counted, the payment will be made from the territory of India to China, and the related payment will be fully accounted for within 72 hours at most.

Therefore, it will not take more than 10 days as a whole, and our money should be fully paid. If the money has not been paid at this time, it means that there may be a risk, and attention should be paid to taking the initiative.

If we do not receive payment within ten days and our cargo is still at sea at this time, our first step should be to contact freight forwarding, request a change of order and change consignee. Because as early as this time, Indian local freight forwarders have a clear stipulation: If you want to change the consignee, you can only change to Indian buyers with a registration number in India. If you do so, it will be too much trouble and the limit will be very big. But now this provision has been relaxed. Basically, as long as it is changed to order Indian freight forwarding, it can be accepted.

Therefore, if we do not receive the corresponding payment within ten days, we can ask the freight forwarding to change the order and change the consignee. This is the first step. However, please note that freight forwarding can not be changed indefinitely. Usually the change of freight forwarding is 10 to 12 days. This is the maximum period. If within ten to twelve days, you do not make a change request, it means that you lose the right to change orders.

In the second step, if there is no right to change the order, it can only ask the freight forwarding company to notify the shipping company. Please keep our goods on board the ship, that is, insist that our goods do not come ashore, not on the Indian customs yard, only in this way can we guarantee Our ownership of the goods. Because once our goods landed and entered the Indian Customs Yard, the goods were within the scope of Indian Customs supervision. When Indian Customs wanted to carry out auctions on goods, there was no way. Even you wanted to It may be almost zero to pull back to China.

In addition, we all know that there is a statement of abandoned goods. Many ports in the world require that: When a product is involved in a return, the original buyer must sign a return statement and the seller can return the goods to the original export location. Like China and India, there are demands for a declaration of abandoned goods. In other words, once our goods enter the scope of supervision of the Customs of India, if we want to pull back the goods, we must obtain the consent of the original buyer. After confirming that the other party has no such goods, we can pull the goods back. This can be very cumbersome and cumbersome, and the fees will be higher.

In addition to requiring freight forwarding to change consignee, or to require the shipping company's cargo not to land, it is also possible to fight for more when initially negotiating payment options. Especially for buyers like India, who have low credibility and high risk, the issue of collection is particularly important. For example, it is possible to adopt a secure payment method, such as taking full T/T. Although this type of payment method is more difficult to win, it is not entirely impossible. The opportunity lies in people's confidence.

The reason why the Indian buyer in the case was successful was actually related to the special policy of the Indian Customs. The Indian Customs stipulates that if there is no mastership in the long term and no main goods remain in the port, the auction can be carried out by the Customs, and the original buyer of the goods has the right to bid. That is, if the original Indian buyer had no one to bid on this lot with him, he would be alone. Even if someone is bidding with him, he can get priority.

We often say that the characteristics of buyers from all over the world are different. Arab businessmen are especially good at bargaining. Indian businessmen are also famous for bargaining. Therefore, it is also such a policy that provides opportunities for certain Indian businessmen who want speculation.

       Effective complaints and help

Return to analyze the case again, if you really encounter such a thing, you can play psychological war with him. First find out the other's weakness.

The Indian buyer in the case did not pick up the goods in time after the goods arrived at the Indian port. During the unsuccessful contact between the freight forwarder and the seller, he found that the other party did not take any effective measures. Therefore, he deliberately disappeared from the Chinese supplier in an attempt to create a situation in which a demurrage fee had to be imposed, and even wanted to block the news.

This situation is in fact caused by the lack of experience of the Chinese supplier. If we understand local policies and find other Indian buyers at the first moment of losing contact with Indian buyers and change consignee to another Indian buyer in time, then this Indian buyer will really continue to disappear. ? Obviously impossible.

So in this case, what we can do is to spread the news as much as possible. He wants to play a closed strategy. Then we play an open strategy. However, because the Indian market is relatively concentrated, how to spread the news widely is also a problem.

At this time, the industry associations in India should be used, unlike the associations in China, whose functions are very large. Through industry associations, you can find the appropriate buyers with purchasing power. At the same time, the dissemination of such news is, for us, an advertising effect.

In another way, we can lodge complaints and file complaints with more powerful institutions, such as industry associations. We can formally notify this person in the form of an e-mail or official document, telling him: “You have caused me to be irritated by this kind of behavior. If you do not solve it within a few days, I will complain to you about this behavior. Your local industry association. At the same time, I can also complain about your behavior to the local CCPIT. In the future when you come to implement the procurement plan, you may not even be able to enter China.”

Once there was a Shenzhen boss who complained to a local consumer electronics trade association of a suspected Indian buyer of this fraud and at the same time copied it to the local CCPIT. When that Indian buyer learned of the news, Did not come out for 3 days, immediately flew over the last paragraph.

Therefore, we often say that if you want to complain, it is not that there is no way to complain, but that you have to complain to an effective department with actual power. This is crucial. From this we can see that when we trade with such poor Indian buyers, we must have basic trade measures.

In fact, many buyers around the world are very similar to India. For example, in Turkey and Pakistan, the overseas buyers’ credibility is similar to that of India. This reminds us that China’s export enterprises must be wary of the other’s policy loopholes when they engage in trade cooperation with these riskier buyers and avoid creating risks for us.