How to verify a Chinese Supplier from the internet
1.Google
Search for CompanyName fraud scam on Google.
Search also on Alibaba-forums
5. Whois search
If they have their own website , search some details for it :
www.dnsstuff.com
or any other domain-whois site. Most of times the owners details are masked. but you can be informed about geographical location at least.
6. Offshore / Shell Hong Kong Companies
When you see Hong Kong companies on Alibaba, with contact information in Shenzhen or Guangdong province (the address is in Shenzhen and/or the phone number start with 0755, not 852) then be cautious.
Search also on Alibaba-forums
http://resources.alibaba.com
2. Alibaba.com
Check the address.
The company address can tell you if a supplier is a factory or a trading company. 99% of factories are located either in rural areas or in the development zone, so if their addresses have village, Town, Development Zone, these are all good signs. However, if it says building in the address only, then they are trading companies.
http://www.yp.net.cn/schinese/
Check the phone number.
Check country and geographic codes. The first part means the country and the second part means the area-code. For example : 0086-755-99999999 , 0086 means China, 755 means Shenzhen.
Check here the phone-number http://www.numberingplans.com//?page=analysis&sub=phonenr
Avoid companies providing ONLY mobile phones.
Numbers beginning with the prefix +4470 or +4487 are forwarding numbers that are rarely used by legitimate companies and not used by Chinese either
Pick up your phone and call the business phone and ask for the sales-person you are talking with (use very slow-clear-simple English)
Some companies use same the phone number and fax number. I would suggest buyers stay away from them, as they are not even willing to set up 2 lines, one for telephone and one for fax. In extreme case, some “companies” only use mobile phone as contact information, no landline, no fax. In both cases, you often find the “companies” are not companies at all, but individuals.
3. Check if they have a bank account.
Ask them, or look at the PI, if they have a bank account in case to make your payment via Bank.
Only legal companies can have a bank account.
Check the address.
The company address can tell you if a supplier is a factory or a trading company. 99% of factories are located either in rural areas or in the development zone, so if their addresses have village, Town, Development Zone, these are all good signs. However, if it says building in the address only, then they are trading companies.
http://www.yp.net.cn/schinese/
Check the phone number.
Check country and geographic codes. The first part means the country and the second part means the area-code. For example : 0086-755-99999999 , 0086 means China, 755 means Shenzhen.
Check here the phone-number http://www.numberingplans.com//?page=analysis&sub=phonenr
Avoid companies providing ONLY mobile phones.
Numbers beginning with the prefix +4470 or +4487 are forwarding numbers that are rarely used by legitimate companies and not used by Chinese either
Pick up your phone and call the business phone and ask for the sales-person you are talking with (use very slow-clear-simple English)
Some companies use same the phone number and fax number. I would suggest buyers stay away from them, as they are not even willing to set up 2 lines, one for telephone and one for fax. In extreme case, some “companies” only use mobile phone as contact information, no landline, no fax. In both cases, you often find the “companies” are not companies at all, but individuals.
3. Check if they have a bank account.
Ask them, or look at the PI, if they have a bank account in case to make your payment via Bank.
Only legal companies can have a bank account.
4. Email address
A serious company uses their internal email boxes, belonging to their site.
Check if the CompanyName is after the @ symbol.
If the email address is like sales09@companyName.com then it is normal.
If they use free mailboxes like : Anny13@hotmail.com or companyName@gmail.com then you probably are talking with a very small company.
A serious company uses their internal email boxes, belonging to their site.
Check if the CompanyName is after the @ symbol.
If the email address is like sales09@companyName.com then it is normal.
If they use free mailboxes like : Anny13@hotmail.com or companyName@gmail.com then you probably are talking with a very small company.
5. Whois search
If they have their own website , search some details for it :
www.dnsstuff.com
or any other domain-whois site. Most of times the owners details are masked. but you can be informed about geographical location at least.
6. Offshore / Shell Hong Kong Companies
When you see Hong Kong companies on Alibaba, with contact information in Shenzhen or Guangdong province (the address is in Shenzhen and/or the phone number start with 0755, not 852) then be cautious.
The reason for people in southern China to set up companies in Hongkong mainly are: 1) Hongkong is tax heaven so many companies set up companies in Hongkong to avoid tax; 2) Hongkong have loose company registration regulation compared with mainland China so it is easy for many individual to set up a shell company there. The cost for setting up an offshore company in Hongkong is around RMB10000.
The danger for dealing with an offshore/shell company in Hongkong is that they don’t have a physical presence there in Hongkong, in that case, if any dispute arises from the transaction, you will have nobody/entity to make remedy against in Hongkong, meanwhile you are also not protected in mainland China as you are dealing with a company in Hongkong.
You can search for this company on http://www.icris.cr.gov.hk/csci/
You can search for this company on http://www.icris.cr.gov.hk/csci/
- you (or your inspector or your Chinese friend) can visit them in their office or factory
- they have any ISO / CE / TUV / CSA / UL or other certificate to support their quality claims.
- they can send you a scan of company's business license Pretend that your boss needs this documents even for small orders.
Nice Post Thanks for sharing
ReplyDeleteVerify Chinese company