China Xuerui Corporation (Shanghai) Industrial Co., Ltd

Buyer’s Nationality:
Singapore

Seller:
China Xuerui Corporation (Shanghai) Industrial Co., Ltd

Seller Website:
www.china-xr.com

Seller Address:
Rm 1117 No. 1403 Minsheng Rd., Shanghai, Shanghai, China

Initial contact with the supplier:
Search Engine

Type of product(s) being purchased:
Aluminium Sheets

Value of the Purchase Order when the incident occurred:
25,001 to 100,000 USD

Destination market of order in question:
South East Asia

Type of Complaint(s):
contract violations, scams & other unethical activities

Stage of relationship with the supplier at the time of the incident:
Initial Order

User Experience:
China Xuerui (www.china-xr.com) is a Metal distributing company based in Shanghai/China. We have been contacted by their Sales Director Mr. Kelvin Kung via www.LinkedIn.com, his profile can be found here: https://www.linkedin.com/in/metal. (work email: Kelvin@china-xr.com, private email: kelvin85@vip.163.com) China Xuerui itself procured their material from Wenzhou Heng Yang Industry.

We are a Singapore based Metal Trading company and constantly looking for interesting suppliers from all over the world to remain competitive in our industry.

In order to engage into a commercial relationship with us, China Xuerui/Kelvin offered us competitively Aluminium sheets. Their payment conditions to us were 30% down payment and 70% balance against B/L. After negotiations, we placed two orders with them and needed to make the down payment for both orders worth ca. 30,000.00 USD.

After we submitted the money to them there was an awkward silence for many days. As we have sold the material under Letter of Credit conditions ourselves, we needed to monitor the delivery time closely. After an endless amount of pushing and calling, we received an email from Kelvin that he had quit the company and that his colleague Arthur took charge. Without further ado Arthur introduced himself with the words: “Kelvin will quit, I take charge. Price rised a lot. We need update price. pleaze send the specification again, thank you!”

This certainly was not at all acceptable and after an endless amount of arguing China Xuerui forced us to cancel the order and we had to buy for a higher price at a different supplier in order to fulfill our LC conditions we agreed on with our client. After asking for the reasons for this as the orders should have been keyed in upon confirmation, China Xuerui gave us the following explanation: “No profit, too cheap price. too tired to answern pushes”. An amazing answer 3 weeks after the order has been confirmed by both parties and the down payment has been transferred by our side.

Requesting back our money than turned into another nightmare (and still is). At first, there was no response at all to our requests, China Xuerui cut off their phone lines and took down their website and Kelvin did not respond to any phone calls or whatsapp messages anymore, but then we started doing our research and it turned out that Kelvin was so kind to list his new employer on LinkedIn.

So we started to call his new employer asking for him. A second later Kelvin was back online and responded via Whatsapp. We kindly explained to him that we make this an absolute nightmare for him calling his new employer every day and telling them what he did and that he ran with our money, if he chooses not to pay us back.

From that day onward payments started to come in. Until today, 26,000.00 USD out of 30,000.00 USD have been paid back to us, 4,000.00 USD are still pending and again the communication has frozen.

If interested, every single word written in this report can be proven, please contact us via supplierblacklist.com if you wish to obtain more information on how to prevent such bad experience. We are open to share our experience.

User Recommendations:

– Have them send you their ISO Certificate. And then have the issuing authority confirm it is an original certificate.
– Let them give you 2-3 customer names that you can call and ask about the performance of their product. If they decline this for some funny reason such as “we need to protect our customers information” walk away
– Do not accept down payment, chose LC.
– Do a third party inspection (SGS is the most common) before shipment/loading the container.
– Remember – China is cheap, but if you buy the cheapest, it is the cheapest for a reason. Chance of fraud, really bad quality etc its very likely.
– Have a written agreement what happens if material cannot be used, if not as supplied as agreed.
– Some sales people in china – if there is a claim – do not even show this to their boss or inform their production. So they just ignore you. So make sure the boss also is in the loop.
The best way is to speak to one of their existing customers – preferably located in your country.