Warning about trade fraud in some Middle Eastern countries

VCN - Currently, the situation of fraud in the Middle East market has appeared more than before, mainly concentrated in small-scale trading companies. Facing this situation, the Ministry of Industry and Trade recommends that Vietnamese enterprises when dealing with foreign enterprises must be cautious and carefully negotiate payment terms to ensure the safest.
No restricted zone in the fight against smuggling and trade fraud No restricted zone in the fight against smuggling and trade fraud
Hanoi Customs seizes more than 665kg of drugs of all kinds in six months Hanoi Customs seizes more than 665kg of drugs of all kinds in six months
Long An law enforcement agencies prevent and tackle dealers and large-scale smuggling rings Long An law enforcement agencies prevent and tackle dealers and large-scale smuggling rings
Warning about trade fraud in some Middle Eastern countries

Vietnamese businesses when dealing with foreign businesses need to be cautious and negotiate payment terms carefully. Photo: Internet

Transactions showing signs of fraud from the same buyer

According to a report by the Vietnam Pepper Association (VPA), recently, businesses that are members of VPA have traded and exported agricultural products to UAE includes pepper, cinnamon, anise, cashew nuts. However, these companies said the transactions showed signs of commercial fraud from the same buyer and the same bank based in Dubai, UAE.

Previously, there were 4 containers, worth $ 400,000, lost at Jebel Ali port, UAE. Currently, there is 1 container of anise flowers that is likely to be lost (the goods are expected to arrive at the port on July 26, 2023) with the same scam.

Specifically, according to the payment terms specified in the contract, all shipments are paid under the terms of payment for collection (D/P). This means that the original documents will be transferred by the seller's bank to the buyer's bank, then the buyer will pay the buyer's bank. After the buyer's bank receives the full amount, it will simultaneously transfer the money to the seller's bank. Only then, the buyer's bank is allowed to hand over the original documents to the buyer to receive the goods.

However, if the buyer's bank has not transferred the money to the seller's bank, the buyer will not be able to get the original documents to pick up the goods at the port. Thus, the above transactions have signs of fraud occurring at the bank where the Vietnamese company sent the D/P documents. These bank officials may be involved in this case.

Immediately after receiving the notices of the above units, the Asia-Africa Market Department, the Ministry of Industry and Trade sent a Note to the UAE Embassy in Hanoi and requested the Embassy to notify relevant authorities to consider and handle the case.

On July 25, 2023, the Ministry of Industry and Trade had an urgent meeting including: UAE Ambassador in Vietnam, representatives of the following units: State Bank of Vietnam, Vietnam Pepper Association, Import-Export Department and businesses that own export shipments to Dubai.

The Ministry of Industry and Trade has directed the Vietnam Trade Office in UAE to soon handle the above case. The deal has sent a Note to the UAE Ministry of Foreign Affairs, Dubai Police, UAE Central Bank and a number of related banks and shipping lines; work with the relevant bank branches in Dubai; work with Dubai Police and file a case report; Work with shipping lines and authorities of Jebel Ali port.

Scam over payment terms

In order to avoid unfortunate losses, the Ministry of Industry and Trade advises businesses on transactions of payment invoices, etc in high-risk markets.

Accordingly, at present, fraud in the Middle East market has appeared more than before, mainly concentrated in small-scale trading companies. The most common form of fraud today is that foreign businesses when signing sales contracts with Vietnamese companies often ask for TT payment terms or issue checks to the mortgage seller. These are the two most risky forms. By TT payment, it means that the buyer will receive the goods and then pay the seller.

The buyer issues a check valid for a certain period of time and then gives it to the mortgage seller, this is a risky method such as: the buyer issues a check without money in the account; The seller cannot go to the buyer's bank to receive the money because there is no identification card. The seller also cannot check the account information of the buyer because banks in some Middle East countries do not provide customer information to 3rd parties.

Therefore, the Ministry of Industry and Trade recommends that Vietnamese businesses when dealing with foreign businesses need to be cautious and carefully negotiate payment terms to ensure the safest. Notably, payment methods such as opening LC, or business representative to deliver documents and receive money.

Besides, the D/P payment method is also safer than TT payment and check, but note that the seller's banks must ensure safety when transferring documents to the buyer's bank, avoid situations like the ones mentioned above.

By Ngoc Linh/Phuong Linh

Related News

Ministry of Finance directs to strengthen fight against smuggling, trade fraud and tax evasion

Ministry of Finance directs to strengthen fight against smuggling, trade fraud and tax evasion

VCN - The Ministry of Finance's Steering Committee 389 has just directed the General Department of Customs, the General Department of Taxation and the Ministry of Finance Inspectorate to strengthen the fight against smuggling, trade fraud and tax evasion.
Lang Son: Evaluating the realities to handle acts of smuggling and trade fraud

Lang Son: Evaluating the realities to handle acts of smuggling and trade fraud

VCN - According to the assessment of the Steering Committee 389 of Lang Son province, the situation of illegal transportation of goods and poultry across the border is basically under control. However, there is still a situation of taking advantage of the import-export process to commit trade fraud.
Potential risk of smuggling in Quang Ninh border

Potential risk of smuggling in Quang Ninh border

VCN – Although complicated cases of smuggling, illegal transportation of goods, trade fraud and counterfeit goods in Quang Ninh province have not arisen, potential risks of sophisticated development may occur.
Identify many new smuggling methods and tricks

Identify many new smuggling methods and tricks

VCN – Although there are no hot spots or complicated cases, smuggling, trade fraud and counterfeit goods still occur complicatedly on border routes and the inland.

Latest News

Hanoi Customs on the front line of combating drugs via air route

Hanoi Customs on the front line of combating drugs via air route

VCN - Looking at the number of exhibits and drug cases seized by the Hanoi Customs Department in coordination with the competent forces in recent times shows the increasing severity of this type of crime.
Quang Ninh Customs controls e-cigarettes and heated tobacco products

Quang Ninh Customs controls e-cigarettes and heated tobacco products

VCN – Quang Ninh Customs Department has directed customs branches and Customs Enforcement Teams No.1 and No.2 and the Anti-Drug Enforcement Team to strengthen the fight against smuggling of e-cigarettes and heated tobacco products.
An Giang Customs combats smuggling during flood season

An Giang Customs combats smuggling during flood season

VCN - This year, the flood season has come early. Forecasting that smuggling and illegal transportation of goods on the border may increase, An Giang Customs Department has provided solutions to inspect and control the area.
Smuggled mooncakes is a persistent problem

Smuggled mooncakes is a persistent problem

VCN - Close to mid-autumn Festival, the competent force is struggling to deal with the smuggling of raw materials into the domestic market, even smuggled moon cakes whose quality is not declared and are not inspected by Vietnamese authorities for food hygiene and safety standards.

More News

Over 5,000 firms with tax debts at HCM City Customs publicized

Over 5,000 firms with tax debts at HCM City Customs publicized

VCN - HCM City Customs Department has just publicized the list of over 5,500 enterprises with tax debts, overdue fines and enforced overdue debts since the deadline for payment in July 2024, with a total debt of over VND2,453 billion.
Squadron 3, Anti-smuggling and Investigation Department: Proactively control and prevent smuggling of gasoline, oil and drugs at sea

Squadron 3, Anti-smuggling and Investigation Department: Proactively control and prevent smuggling of gasoline, oil and drugs at sea

VCN - Proactively grasping the situation and controlling the assigned areas in the southern sea, the Southern Sea Control Squadron (Squadron 3) and the Anti-smuggling and Investigation Department - General Department of Customs have coordinated to detect and prevent many cases of illegal transportation of gasoline, oil and drugs.
Ho Chi Minh City: Many violations in e-commerce business

Ho Chi Minh City: Many violations in e-commerce business

VCN - Since the beginning of the year, Ho Chi Minh City authorities have inspected and detected many violations in online sales.
Strengthening coordination in fighting drug crimes

Strengthening coordination in fighting drug crimes

VCN - To improve efficiency and promote the role and strengths of each agency in fighting drug-related cases and special cases, the specialized agencies need to unify regulations on coordination to implement professional measures. Mr. Phan Quoc Dong, Deputy Director of the Anti-Smuggling Investigation Department, General Department of Customs, discussed with Customs Magazine about this issue.
Customs, Border Guards in Lang Son strengthen coordination

Customs, Border Guards in Lang Son strengthen coordination

VCN - Lang Son Customs Department and Lang Son Border Guard handled 165 violations thanks to the cooperation in patrol, inspection and control.
Scraps "disguised" as ordinary goods

Scraps "disguised" as ordinary goods

VCN - Establishing businesses in many provinces and cities to commit violations in goods export activities is a new trick discovered by Hai Phong Customs when investigating recent violations.
Strengthen the cooperation to enhance the effectiveness of anti-drugs

Strengthen the cooperation to enhance the effectiveness of anti-drugs

VCN - The emergence of many new types of drugs and criminals constantly changing their methods and tricks have caused many challenges in the drug prevention of the authorities, including Customs force. Accordingly, in addition to improving professional skills, the Customs sector is strengthening international cooperation as well as coordination within and outside the sector to ensure effective prevention of drug-related crimes.
Smuggling in Ha Tinh mainly takes place on land route

Smuggling in Ha Tinh mainly takes place on land route

VCN – The trafficking and illegal transportation of large quantities of items such as drugs and firecrackers have emerged; and many frauds in illegally transporting electronics, household appliances, food... across borders have occurred. Many smuggling rings and suspects have operated impulsively, the Steering Committee 389 of Ha Tinh province said.

Combat smuggling of ruminant products

VCN – The General Department of Vietnam Customs (GDVC) has requested local Customs departments to take measures to promptly detect and prevent smuggling and illegal cross-border transportation of goods related to ruminant products used as raw materials for animal feed production.
Read More

Your care

Latest Most read
Hanoi Customs on the front line of combating drugs via air route

Hanoi Customs on the front line of combating drugs via air route

Looking at the number of exhibits and drug cases seized by the Hanoi Customs Department in coordination with the competent forces in recent times shows the increasing severity of this type of crime.
Ministry of Finance directs to strengthen fight against smuggling, trade fraud and tax evasion

Ministry of Finance directs to strengthen fight against smuggling, trade fraud and tax evasion

VCN - The Ministry of Finance's Steering Committee 389 has just directed the General Department of Customs, the General Department of Taxation and the Ministry of Finance Inspectorate to strengthen the fight against smuggling, trade fraud and tax evasion.
Quang Ninh Customs controls e-cigarettes and heated tobacco products

Quang Ninh Customs controls e-cigarettes and heated tobacco products

VCN - Customs Enforcement Teams No.1 and No.2 are required to strengthen patrols and controls at the managed areas and units, and comprehensively take customs control measures and grasp information in the area.
An Giang Customs combats smuggling during flood season

An Giang Customs combats smuggling during flood season

VCN - Recently, on August 9, the Investigation Police Department of An Giang Province Police issued a Decision to prosecute a criminal case of “Illegal transportation of goods across the border” at Khanh Binh Border Gate (An Giang).
Smuggled mooncakes is a persistent problem

Smuggled mooncakes is a persistent problem

Close to mid-autumn Festival, the competent force is struggling to deal with the smuggling of raw materials into the domestic market, even smuggled moon cakes whose quality is not declared and are not inspected
Mobile Version