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Wenzhou Huashang Steel Co Ltd
Wenzhou Huashang Steel Co Ltd
Central Industrial Zone Longwan District Wenzhou City, Zhejiang Province, China
Initial contact with the supplier:
Type of product(s) being purchased:
Fittings and Flanges
Value of the Purchase Order when the incident occurred:
100,000 to 1,000,000 USD
Destination market of order in question:
Type of Complaint(s):
Scams & Other Unethical Activities
Stage of relationship with the supplier at the time of the incident:
We are a Top Control Company located in Cairo Egypt Our address is:
7 Ibrahim Mohsen St. Elnozha Elgidida.
Please review the following details of issue raised during processing of a project between our company (Top Control Co.) and Wenzhou Huashang Steel Co. Ltd. :
WENZHOU HUASHANG STEEL CO.,LTD
Address: Central Industrial Zone Longwan District Wenzhou City,Zhejiang Province China
Xiangqun Zhang (Trade Manager)
Lucy zhang (English Name)
For the supplying fittings and flanges, we have accepted Wenzhou Huashang steel co. offer and on Aug.,26,2019 we have transferred to the 30% ($ 32,143.82) of their total invoice# HS20190826 as advance payment.
There were some technical points that must be finished before they start production and on Sept.,11,2019 Wenzhou Huashang sent us an email notified us that they will be on holiday from Sept 12, 2019 to Sep 15, 2019 due to Mid-Autumn Festival Holiday.
Due to some financial problems faced by our Egyptian client we have requested Wenzhou Huashang on Sept 16, 2019 to hold the production of our order till further notice.
From that date and after we did not request from them to restart production. We also notified them that we try to solve the payment issue with our client and we’ll notify them to start production then otherwise we’ll be ready to share the loss with them. If any also we notified them that we can replace the cited order with another’s in case if we get new orders for fittings or pipes from our Egyptian clients. They advised us that we have to pay 20% of the total order i.e. $ 21,429.22 to enable them to resell items already finished we advised them that we will not accept penalty unless we inspect the finished items (to be sure regarding the exact qty. already finished) thru our inspector and requested them to arrange for inspection but they did not accept any inspection and notified us that they already sold the finished items logically that means they did not
finish the production of any piece of any item of this project.
On May 04, 2020, we have notified them that we received a new order for carbon steel pipes so we can replace it with the old order of fittings and we requested them to send us their offer accordingly but they replied that they have already lost our advance payment.
We have much business since the year 2004 with many Chinese companies such as:
– Tianjin Xinyue Industrial and Trade Co., Ltd for supplying of pipes sizes 1,2,3,4&6 inch at the total amount of $137,450.00.
– Wenzhou Coosai Valve Co. Ltd for supplying valves (many orders).
– Xuanda industrial group Co., Ltd for supplying valves and fittings (many orders).
– XI’AN HOWAH for supplying cathodic anodes at a total $24,325.00.
Please advise what exactly we must do to clear this issue.
Please note that we can not attach a copy of the Wenzhou invoice plus the copy of our swift of advance payment as your system rejected the type of files.
So please advise how we can send these documents to you.
This is the first issue with a Chinese supplier as this is the first business with a cited company so in the future I will contact only the good Chinese companies we have a previous business with them.
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