United Arab Emirates
Qingdao Fungchoi Packing Co,Ltd also know as Qingdao Perfect Luxury Packaging Co.,Ltd
www.fungchoipacking.com and http://www.qingdao-perfect.com/
Office (this address is for Qingdao Perfect): No 366, Huashan No 1 Road,Jimo,Qingdao,266200,China. Factory: No.178,Changjiang Road,North Industry Park,Qingdao, China., , Jimo, Shandong, 266200, China
Initial contact with the supplier:
Type of product(s) being purchased:
Printed Paper bags
Value of the Purchase Order when the incident occurred:
25,001 to 100,000 USD
Destination market of order in question:
Type of Complaint(s):
contract violations, scams & other unethical activities
Stage of relationship with the supplier at the time of the incident:
We first negotiated the pricing for the subject printed paper bags. We sent our sample to the supplier, who gave us a confirmed quote after checking our sample. They also sent us a sample of the paper that will be used for printing.
Our agreed payment term was 20% advance and balance on copy of Bill of Lading. We sent 10% advance to the supplier first, then after 1 month we sent them another 10% advance which completed the full 20% advance as per agreement. They shipped out the first container and sent us Invoice, Packing List and Bill of Lading (issued by shipping line showing laden on board date). The number of packages mentioned on all the 3 aforementioned documents tallied and we sent them a balance 80%. As this was a partial shipment, we only sent 80% of the invoice value for this shipment (as 20% advance has been given for the full order). The Invoice value was about USD20,000 and we sent them about USD16000 as balance.
After the supplier in China received our balance for the first shipment they sent out the original documents to us. We then cleared the goods from the destination port and on receiving the container in our warehouse we see that they have shipped less than 10% of the goods as mentioned on the Invoice and Packing List. This meant that they received a big amount from us and shipped us goods only wort USD3,000 (though we had paid them USD16,000 and their invoice showed the value of goods as USD20,000).
When the supplier sent us the copy of shipment documents, they had also sent us picture of the container being loaded with the goods. The picture shows the container is fully loaded whereas we received only half stuffed container.
After receiving the shipment we contacted the supplier and informed them about the quantity received. They replied to us acknowledging that they have shipped out less goods. But, here they have been very smart to not mentioned in the email what quantity they actually shipped out. When we demanded for the full balance quantity to be shipped they gave us various excuses and told us to send the balance payment, which was only about USD10,000 now as we had already paid them USD25000 (including the advance and balance for first shipment; total value of order is USD35000). I did not agree to this new payment term and they still insisted on it. After several days of communication via Skype chat I was told that I can visit the factory to see that the goods are ready. I agreed to this and clearly stated that if I see during inspection that the goods are ready then I will pay them the balance before shipment. They first kept delaying the date for my visit to their factory (there was also Chinese New year holiday in between). After demanding for a date they finally gave me a date of March 31 to visit the factory, by email, and said I can visit the factory to see the goods will be ready (finished production) for inspection.
I visited their factory in Qingdao, on April 3, 2015. Upon my visit I saw they had only finished 10% of our goods and the rest were still half finished. As the product involved is printed paper bags, they had only printed the sheets of paper with our design, and they were yet to be converted into bags with gluing and handle. I was furious to see that our goods were not finished and they made me wait for 1 month to inspect the goods. At this point, they demand us to pay the balance money before they can start the production to finish the goods. I didn’t agree to this payment term and left their office and went back to my hotel.
We have been trying to send them many emails, messages on Skype, but now they don’t even respond to our emails.
Points to be noted:
1. They cheated us by sending fake invoice, packing list and even Bill of Lading, showing higher quantity of goods than what was actually shipped.
2. They wanted to change the payment term and wanted us to pay them before shipment as their intention seems that they don’t want to ship the goods to us.
3. I made a mistake of placing a substantially big order to a new supplier i found through google search and not visiting their factory before placing the order. I usually visit new supplier before placing the order to them or visit them immediately after placing the order.
4. This supplier intention seems that they only wanted to keep the money with them and not ship the goods out. They have got our money which is about USD20,000. This easily covers the cost of their raw material. Perhaps much more than the raw material cost. I cannot also confirm whether they had printed all the ordered quantity bags.
5. They have cheated us and not willing to ship our goods or give the money back.
6. We are trying to appoint a lawyer to fight this case and get our money back. But, the supplier has been very clever (which I only noticed now going back through the old emails) that they never disclosed much information about our order. Whenever I asked them how many pcs they would ship out, for example, they would only give us number of cartons and miss out the pcs/carton of total number of pcs. They also acknowledged in their email that they shipped lesser quantity as mentioned on the shipment, but at the same time cleverly ignoring to mention how much less quantity was actually shipped. All this is making it a complicated case.
7. During my visit to their factory I am certain that its not their own factory.
1. Always visit the factory before placing the order or send a 3rd party to do an audit.
2. Have a proper contract/proforma invoice in original from the supplier, especially if they are new.
3. The description of goods on the Bill of Lading is always mentioned as per what the shipper gives to the shipping company. Hence, its not reliable and a good way for a supplier with the intention to cheat the client by showing higher quantity and actually shipping out much lesser goods.
4. If the supplier is changing their payment after the order and advance has been placed, then pay caution as most likely their intention is to cheat the client.