Hello AgriPorters, Welcome to our Blog Again –
Here, we are going to cover an important aspect of Export and Import Transactions
These days, a lot of exporters have been Exporting and Importing a lot of Commodities (Food / Non Food / Chemical / Goods etc.) from India or Even around the world. There is a huge transaction of Economies that are directly impacted by it which we all aware of. India’s itself is aiming at a Trillion Dollar Economy just from Exports as dreamed by our Hon. Minister of Commerce & Industry, Mr. Piyush Goyal and Hon. Prime Minister Mr. Narendra Modi. Mind you, this brings in a lot of Fraudsters and Scammers around the globe who actually have been closely monitoring these huge transaction and want to capitalize in different WRONG ways and FRAUD many genuine exporters. If you an Exporter or an Importer, You need to be Cautious!!
The Fraudsters are quite well versed with how to scam and they have specific patterns in which they operate. Many exporters have already lost their hard earned money and costed them millions of losses and even severly ending up Exporters in Depression, loss of Retirement money, loss of money from Investors and so on. Sadly, there is no aid from the Government in such cases and even the Embasssies are not responsive when such activities takes place. However, there are some associations which have tried to help but not much has been gained.
So this is just one of the scenario’s, these Fraudsters/Scammers try to establish a connection with you and will also be quite prompt in sending payments for your initial shipments making it look Genuine to you or even will tell you they will pay in Cash on spot. They often ignite or play upon which we call “Profit Wish Emotion of Exporters” and give you assurance of payments. They have setup their companies in different fraud or Deliquent Company Names who are just built for Scamming Purpose. They even hire Asians to work for them under a negligent sponsor and built a racket around it. Infact, they will even send you the documents to see and verify which you will get convinced to some extent, but if you fall for it – Consider it pretty much loss.
In Some countries including Middle East where Law is quite Stringent, some corrupt government authorities are involved which sit at their back end and help these companies to wrap up easily after have achieved a targeted number of scams. These days, it’s quite easy to get trade license and do such fraud transactions to innocent exporters or importers. Remember, it’s a Racket.
AgriPort Life Team, Research and Development Division has been quite intensive in their research on these fraudsters/scammers and how they operate and spoke to many Exporters who have faced this at least once in a lifetime struggling to recover the lost funds or have simply lost hope, sadly some have even lost their lives. Even to some, have shutdown their business and moved on. It’s very important every Exporter understands that no matter how easy it may sound to transact but it isn’t true. What come so easy, should be questioned why!
If you ever end up shipping to them upon trust and faith, they might ask you to collect cash from their office, some of them actually might not exists and you will notice new registrations or latest registrations of these ID’s or take a close look, lots of photoshop used. Even in some cases, they might ask you to Surrender BL (Bill of Lading) of your shipment, so they can pay you immediately but this is never bound to happen especially with these Fraudsters.
AgriPort Life has built a Mechanism to Save you from these Hassles, Do Clean and Safe Transactions with the right set of Importers and build your business around the globe. It’s not necessary for you to learn the hard way. You can speak to our Team on globalmarket@agriport.life at anytime if you have queries or even run several background checks on your Importers. Headaches of Payment can be evaded if it’s done right.
Here are the some of the Points you need to keep in mind and ask yourself about the Importer with whom you planning to do Business –
- How well have you researched about the Importer ?
- How many Transactions has the Importer Made so far ?
- Learn the Statistics of your Importer and also No. of Sizeable Transactions of Shipment, Request for Data
- Ask the Importer to share their previous/recent BL (Bill of Lading) Copy and validate them by the Bank with whom they are doing the transaction with
- Make Sure you Open Bank LC before you even send a Single Shipment to them. The Bank LC should be “Irrevocable” and from a “Reputed Bank Only” with whom you can Communicate and Check their Background Reference. If for a large shipment, AgriPort recommends visiting the Country and Doing a thorough research on the Company before you do any transaction or commitment. Watch out for any Scammers!!
- Request for “Complete Bank LC” Payment or Partial Advance paid from the same bank which they will issue the LC from.
- Have a Trusted Vendor Source locally which valid Legal Documentations made at all times including terms of International Arbitration in Case of Default from the Importer or the Vendor you are sourcing from in case of Traders
- You will only be able to recover the funds that you have spent for the shipment if you made a legal approach and right set of documentations that includes approrpriate Legal Signed and Stamped Document (Interntional Arbitration Clause in case of Dispute), Signed Purchase Order – Signed and Stamped, you have complete Set of Government Recognized ID’s (For e.g. in UAE, it’s called EID – Emirate ID or in Qatar, its QID), these IDs need to be have the authority signing on the legal documentations, request for Passport and Commercial Certificate of the Company. Also, record each conversation over email, whatsapp, phone etc. for sufficient evidence in case the Importer plans to scam you. You will be protected if you take the correct measures.
- Make Sure you do all Insurance that includes Storage/Warehouse Insurance, Marine Insurance (In case of any mishaps) and speak to ECGC (Export Credit Guarantee Corporation) or Credit Guarantee Corporation in your Country to check Credit Lines of the Importer. If you do Transaction with such Corporations Specifically Recognized by your Government, it takes about 15 – 20 days post submission of your documentations and gives you assurance of 95% value of the total shipment even in case of Dispute.
Hope this Helps, additionally – you can contact AgriPort Life or Email us at globalmarket@agriport.life if you any doubts/concerns relating to your transactions and we will be more than happy to help you for Trade Consultation
Best Regards,
AgriPort Life Team (agriport.life)
India’s Trusted AgriCulture Service Provider