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.
ministry has quoted a notice issued by the Chinese embassy
in New Delhi saying that Indian businesses were cheating
small Chinese exporters.
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.
notice said that many exporters finally abandon their
attempts to recover their dues due to communication
problems and legal costs.
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.
says its exports to India rose 63.2 per cent to $14.58
billion in 2006.