China cautions small exporters while dealing with Indian businesses
05 Mar 2007
China has told its small exporters to exercise caution in dealings with Indian firms to avoid being to avoid being duped. The caution has been posted on the website of China''s ministry of commerce.
The ministry has quoted a notice issued by the Chinese embassy in New Delhi saying that Indian businesses were cheating small Chinese exporters.
According to the notice, Chinese exporters who ship goods to India in exchange for down payments as low as 10 per cent of the value, often discover that their Indian importers find excuses to delay taking delivery to force a price reduction or alter payment terms.
The notice said that many exporters finally abandon their attempts to recover their dues due to communication problems and legal costs.
The ministry has advised exporters to use sight drafts to ensure timely payment or have the shipments returned to them in the event of consignees not taking take delivery or attempting to alter the terms of payment.
China says its exports to India rose 63.2 per cent to $14.58 billion in 2006.
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