Recently Chinese flea market and counterfeit industry has evolved a new method of cheating this industry worldwide. (Involves purchasing). Anti counterfeiting tips -read exclusive report along with tips. Please read carefully to avoid potential hazards of scamist originating from china posing as genuine buyers.
1) Chinese brokers float buying inquiries and would ask for pricing, pictures, datecode, some of them are even ERAI members.
2) After receiving quotes, those scamist would ask for pictures, date code.
(this information is required for them to copy and reprint fake parts in advance).
3) China has huge potential of end user market as many domestic industries require genuine parts for their manufacturing activities. Some brokers (scamist) would really buy parts from you which will be immediately switched/replaced with already prepared fakes with your given d/c and picture info. (Rest (who do not buy)- price checker companies would use this information to produce counterfeits.)
4) Then you will be intimated in no time that your parts are failure and hence rejected. They would even involve ERAI and other forums to complete their scam and cheating.
5) Fake reports will be prepared on those fake parts which were already with them. (In Some cases China buyers may supply those parts to another broker, first broker would not know about scam. He may try to pursue refund by all means involving ERAI etc.)
6) Eventually you will send RMA for the fake parts which you never sold them.By this time scamist would have made good money by replacing your original parts. Though ERAI would have been ignorant in these type of cases initially. But they do know about these kind of scams off late, As usual ERAI would always try to ignore these aspects just to protect their interest and links with chinese counterfeiters.
Recently one such deal ERAI got involved and started forcing a genuine supplier in South Asia to issue a RMA on behalf of a Chinese buyer. That chinese buyer in Hongkong could have been genuine but their immediate next buyer played a scam who switched supplier's parts with the fake one.
ERAI as always supporter of their members, (irrespective of reality and truth) started blackmailing the supplier with their weekly reporting tool, when they did not comply, supplier was reported in their weekly broadcast - dishonestly by Kristal snider. The said supplier intimated ERAI with all the proof and evidences of part being genuine, but even then ERAI did not take care of incidence with fair mind. It clearly give indication of ERAI also being involved in this type of scams directly or indirectly.
What Kristal Snider (President of www.erai.com) & Terry Lively (Operations Manager of ERAI) cares most - is the annual membership (it is not wrong if we call it protection money or annual bribe) they receive from scamist or counterfeiters who are flooded across the globe like epidemic.
It is interesting to note that after weeks same part was offered by many ERAI members in China with doubled prices. Eg. GTZ trading, LRF, Tianma, Wins Electronics in shenzhen.
After Americans and Europeans started realizing malpractices and unfair trade activities of Kristal Snider, ERAI started looking for new base and new members in China to keep their business alive. With many hidden scams listed in their company's hidden agenda-ERAI cannot go a long way in this industry. Soon it will see its end by its own illegal activities, if they fail to realize truth and if they do not comply with broker community with proper moral and ethics.
Another scam which is practiced by Chinese brokers (Many chinese companies buy commercial grade parts to be used as Military parts, as China is banned country to import mil grade parts).
1) Chinese buyers would buy parts which they would convert them into military grade for eg- you may sell them AD534JD (COMMERCIAL GRADE) which would be reprinted as AD534TD/883 (MIL GRADE)-
by your broker or their immediate next broker.
2) Chinese broker would supply those converted or upgraded parts to their domestic or international user. (Parts may pass Normal electrical functional tests)
Please note that many mil grade parts listed on many globalwebsites across the globe are originated from china, which are fakes. What you buy from china is what is supplied from here, but you pay them five times more for same own parts, just because they came back with new label and print.
3) Converted Commercial Parts would fail or may fail, when it goes to real critical use in military application. Chinese govt need many military parts which are banned by US govt In such market situation many local brokers of China cheat their own domestic buyers including their own military organizations. Apart from selling locally, Chinese do sell Mil counterfeits parts globally with the help of forums like ERAI, ERAIescrow, TBF, parthunter.com etc.
4) If failed, your direct buyer would ask for RMA and full refund. The mistake is not with the parts, but with the wrong or upgraded usage of commercial parts to mil parts. Recently companies like Brokerforum, Erai were involved in such scams who supported the chinese buyer (SCAMIST), who was trying to convert commercial part into MIL parts. These forums were fully involved in protecting their scamist members who pay them subscription and/or annual bribe, They did not wish to solve the issue because of their business interest in Chinese market considering big share of subscription and links in Chinese flea market.
Some tips to avoid Chinese scams:
(while selling anything to china directly or indirectly)
1) be careful while quoting chinese brokers in China, do not give them
Pictures, date codes or any such critical information which would facilitate them in making counterfeits.
2) Be careful while quoting to anyone who is directly or indirectly selling to chinese brokers. Do not give them complete information without purchase order.
3) Make sure you have firm terms and conditions if parts are supplied to Mainland china/hongkong directly or indirectly by your buyer.
4) Have a policy of No Cancel / No return/ no guarantee/ no warranty if parts are sold directly or indirectly to mainland China or Hongkong or any Chinese buyers trying to buy even from their offices worldwide.
5) Make sure companies like Brokerforum or ERAI do not play a game with you to protect their members and to protect their business interest with such scamist.
6) Do not trust fake reports or reports created on fake parts of china. Even if you wish to accept their report, please make sure they did not perform wrong test to obtain the report. Get the name and type of test performed. Make sure they did not perform mil grade tests on your commercial parts.
7) Always keep records, documents, pictures of original parts, and if possible retain few samples of original parts which can be used to prove your parts AND for further investigation.
8) Take an affidavit from buyer that he/she would not sell to china and if they do so you will not be responsible.
9) No refunds/ No RMA shall be given to parts supplied to China or any parts go to china even if agencies like ERAI ask you to do so. In past some scamist successfully managed to use ERAI.
10) Avoid non-technical companies to do arbitration who has vested interest in Chinese business for eg. ERAI, TBF or any such platform.
11) Avoid doing escrow to Chinese companies which will facilitate them
in switching replacing your original parts with fake ones.
12) never give NET TERMS TO any known or unknown chinese brokers.
Find more reports on ERAI on: inconsumercomplaints.com
&
http://www.mil-embedded.com/news/db/? 7485
&
http://www.esourcetrade.com/contact/Soulsearchingabridged.pdf
various hidden associates of ERAI - follow the link:
http://badbusinessbureau.com/reports/0/252/RipOff0252898.htm
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