ID#106: Supply of fake product. Case 1

Claim amount: 129,600.00 USD

Status: Case closed


According to the terms and conditions of the Contract the Seller (ХХХ, CHINA) has accepted the obligation to supply Dioctylphtalate in the quantity of 80.00 tons on CIF, ХХХ, Russia for the total amount of USD 129,600.00.

According to the terms and conditions of the Contract the Seller accepted the obligation to guarantee the compliance of the goods´ quality with the quality specifications as stated in the Additional Agreement No. 1 (Addendum) to the Contract and by a confirmed certificate of analysis issued by the manufacturer.

Based on the Seller´s Pro-forma invoice the Buyer paid, as stipulated by the Contract, full amount of USD 129.600,00 which corresponds to 100% (One hundred percent) of the contract value.

Only 60.00 tons of goods arrived to the port ХХХ, Russia, because the 4th container (20.00 tons) is still in the European port due to leaks in the goods´ packages.

Acceptance of the goods by quality was performed in the presence of the Expert of the Chamber of Commerce and Industry of the Russian Federation. According to the CCI Expert’s Opinion: "Chemical product supplied by ХХХ, CHINA under the Contract is a caustic irritating brown liquid representing waste of organic substance, containing rubber particles and is not Dioctylphtalate."

On 28.01.2011 the Buyer made a Claim to the Seller for the recovery of the total sum of USD 153,478.18, including:

  1. Return of the money for undelivered goods in the amount of USD 129,600.00.
  2. Compensation of the costs connected to the customs fees and duties paid by the Buyer in the amount of USD 23,470.54.
  3. Compensation of the costs connected to the independent expert’s opinion in the amount of USD 407.64.

The Seller’s action in respond to the Claim:

  1. 01.03.11 after the receipt of the Buyer’s Claim for the compensation the Seller informed the Buyer that he had checked the quality of the goods supplied and it was found that the the quality was good. We asked the Seller to prove this statement by the Act of an independent expertise.
  2. 04.03.11 the Seller notified the Buyer of its intention to consider this matter.

We need help to get our money back.

To get complete information about the case and contact details of the claimant, you need to be a registered user

About fraud

IMPUNITY = MAIN MOTIVATION FOR FRAUD
Why do companies and private persons commit fraud? Let´s have a look at some of the most common reasons. More info

FAKE CHEQUE SCAM, PART 1
If the seller accepts payment by cheque, he has every chance of becoming a victim of a scammer. More info

COPY OF YOUR PASSPORT SCAM
A copy of your passport can be used for many illegal activities. More info

DISCREPANCIES IN THE L/C AS A REASON TO ASK FOR A DISCOUNT
In order to receive the goods without payment or demanding heavy discount, some fraudulent buyers set vague terms and conditions in the L/C. More info

DEAL WITH SEVERAL COMPANIES INVOLVED = LITTLE CHANCE TO CLAIM THE LOSSES
When several companies are involved in one delivery it might be difficult for the importer to claim compensation if there is any problem with the consignment. More info

PROFORMA INVOICE FRAUD
Be careful when an unknown company is asking for a proforma invoice. More info

IMPORT: RULES FOR SAFE BUSINESS
These 10 rules will help importers to avoid mistakes and to not become the victim of a fraudulent company. More info

LETTER OF CREDIT SCAM
Letters of credit work extremely well in international trade. Nevertheless, there have been several cases of successful fraud, committed by the sellers. More info

BL International Limited
Tel: +350-54015717  info@blintl.com
Member of The Gibraltar Chamber of Commerce