Commerce Department Alert : Trade Fraud at Port of Destinati
“Recently, the Economic and Commercial Office of the Embassy of the People's Republic of China in the Kingdom of Thailand issued a notice titled 'Reminder on Guarding Against International Trade Risks'.”
Recently, the Economic and Commercial Office of the Embassy of the People's Republic of China in the Kingdom of Thailand issued a notice titled 'Reminder on Guarding Against International Trade Risks'. The office reported that it has recently received feedback from several enterprises regarding encounters with customs investigations and fraudulent activities by trading partners in the course of their business operations. To assist enterprises in effectively mitigating risks and preventing financial losses, the following points are specifically emphasized for the attention of companies engaged in international trad: Ensure Compliance in Export and Import Procedures: Some enterprises have encountered issues where, while exporting to Thailand,they declared disassembled parts as bulk cargo, but the actual goods were assembled items, leading to confiscation and penalties by Thai Customs. We urge all companies to adhere rigorously to Thai laws and regulations, as well as the requirements set forth by Customs and other relevant authorities, when conducting customs clearance procedures for goods. Classification of goods and declaration information should align with Customs' requirements and accurately reflect the true state of the merchandise. For special regulated commodities, the necessary import and export licenses should be obtained in advance as per stipulated requirements. Conduct Thorough Due Diligence in Advance: Instances have arisen where a company, after making payments to a foreign entity for raw materials, found the seller failed to ship the goods as scheduled and subsequently became uncontactable, later uncovering that the seller was a fraudulent entity masquerading under a false identity. It is imperative for all companies to thoroughly vet the creditworthiness and authenticity of their trading partners, particularly when dealing with new entities. Exercise caution in verifying the identities of contacts and the legitimacy of bank account details to prevent financial losses. The Department of Business Development under Thailand's Ministry of Commerce provides a free online platform to search for registered companies' names, operational statuses, and principal business activities. Additionally, enterprises can leverage resources according to their specific needs, including the China Export & Credit Insurance Corporation, relevant industry associations, law firms, and consultancy agencies, to gather essential information. Mitigate Risks Throughout the Trading Process: Carefully draft written contracts detailing specifics regarding goods, pricing, payment methods, liability for breach, and dispute resolution mechanisms, and consult with professionals as needed. In managing payments, employ instruments like letters of credit and credit insurance to mitigate risks, and refrain from remitting funds to personal accounts. Collaborate with reputable freight forwarders and exercise caution against fraudulent practices, such as sellers altering consignee details on bills of lading post-shipment. Should you suspect a trade fraud scenario, promptly contact your paying bank to request freezing of the payment and report the incident to the police. Engage a specialized lawyer for counsel if necessary.
