INCITY Brands Are Playing Contract Fraud And Malicious Debts. Many Textile And Garment Suppliers Are Suffering.

According to the fans of clothing foreign trade, Russian clothing INCITY brand malicious default payment!

The company used contract fraud methods, relatively subtle, so that many clothing trade companies deceived!

Since the end of last year, the Russian INCITY company Guangzhou has been dismantled in liquidation, and many suppliers have been in arrears for up to six months or even longer.

The Russian INCITY clothing brand has a branch in Shanghai. There is an office in Guangzhou, and the office address is 2802, 28 floor, North Tower, World Trade Center, Guangzhou.

The company's approach is to use the same brand in China to use three different companies (MK, FC and other companies) for procurement contract fraud.

The same group of people will do business with you on behalf of different companies.

The specific methods are as follows: in the process of multiple cooperation, we will identify the production contract in the name of European company. Next time you find a reason, you will sign the contract with the name of the Hongkong company, but all the products produced by INCITY are the same brand.

Many suppliers feel that they are reasonable. They sign the production contract and take the deposit production.

In this process of cooperation, the amount of arrears is increased by snowball.

All of a sudden, one day, if you don't order, you take the contract to recover the money. The INCITY company of Guangzhou will tell you that this has nothing to do with them. Hongkong and Europe's INCITY company went bankrupt. They didn't owe you the money.

In fact, the same group is engaged in contract fraud.

What is contract fraud?

It is the use of loopholes to shift responsibilities, or to run away when the other side is unaware.

Contract fraud is more destructive to suppliers than pure fraud.

Because by means of a series of limited liability of a limited company, a subjective malicious default payment can be turned into economic disputes, and then the legal responsibility of limited liability should be circumvented.

When this series of actions is completed, suppliers are often unable to maintain their rights in a short time, and finally fail to protect their rights.

Just like this INCITY, registration of A, B, C, different companies, ABC three companies use the same name, but the registered places are Europe, Hongkong and China, using the same group of people to operate. Today, they sign contracts with suppliers with A, sign contracts with suppliers tomorrow, and so on, suppliers will come to ask for payment, tell them directly that they are C companies, and AB companies have nothing to do with them. If the Chinese are directly identified as fraud, that is a big probability event.

But if foreigners are involved, you may become a business dispute if you know.

So, what is the definition of Russian INCITY (Guangzhou) as a contract fraud rather than a commercial dispute?

Because INCITY Guangzhou has been in arrears for half a year, until the dissolution has not yet fulfilled the payment, before the dissolution of the supplier has not been informed, there is a malicious subjective behavior.

In the process of supplier alarm and containment, the property and police said this is not the first time.

So the other side has some subjective behavior.

What is more abominable is that when the company is exposed to problems, the other party can completely replace another person, re register a company and deceive it again and play it down. The most important thing is to be aware of the economic risks and legal risks of being defaulted by customers.

This game can be played indefinitely, as long as we can catch fish.

In addition, the right of Chinese to appeal to foreigners must be a legitimate process.

Sometimes, even if the other party is illegal, they are likely to leave unhurried before you get the legal control of the judiciary.

Once leaving, what is needed is a judicial extradition agreement between countries, which is likely to lead to no rights at all.

When can't you play?

Just like the businessmen in Korea, they could not play when they were no longer trusted by their group.

So, from Koreans to Russians, theoretically, there are N maliciously businessmen in all countries around the world that can play this way.

Therefore, foreign trade people can only do their own vigilance and take precautionary measures.

How can we prevent such things from happening?

First of all, if you are in the process of cooperation with customers, from the beginning of the customer has no credit performance, often the customer is also no credit at the end, bad money back is a big probability event.

99% and the arrears of customers in the early days have already been able to foreshadow the behavior of no credit, such as: dragging money and behavior on the quality of egg picking, malicious debit and so on. INCITY all exist.

Secondly, as a foreign trade company, the following mechanisms should be established:

When the risk control mechanism is not paid according to the contract, we should make a decision and let the loss expand.

In the process of business cooperation, the partners should not take for granted and commit empiricist errors.

To deal with arrears, we must act quickly, do not have illusions, do not wait, waste time, and become completely passive.

A lot of contacts with colleagues to expand contacts, timely understanding of arrears of customer dynamics, and timely interaction with the circle, mutual help.

Finally, back to the beginning, remember the Russian INCITY company and tell each other not to be fooled by other peers.