QUESTION
Dear Mr. Old Man,
My name is Th., and I am currently living and working in Ho Chi Minh City.
At the moment, I am working on several projects related to international payments. However, to be honest, I know nothing about this field because my background is in construction. I have been struggling quite a bit with international trade contracts.
Through my research online, I came across your blog. I have read and studied your answers, but I am still lost. I would like to take this opportunity to express my admiration for you—an expert in international payments with vast and outstanding knowledge. More importantly, you have a kind and generous heart, always willing to share your knowledge with others.
Because of this, I am sending you this email, hoping to meet you for a cup of coffee and to hear you share your valuable experiences.
I would love for you to be my advisor on international trade contracts because I am currently struggling a lot with them. Right now, I have an import contract for scrap metal to Vietnam, and I am facing many difficulties with the requirements from the partner.
Would it be too bold of me to invite you to join me in this project? I have attached the contract I am working on and would greatly appreciate it if you could take some of your valuable time to review it and provide any support if possible.
My mobile number is 0969 xx xx xx. I hope to receive a call from you in the near future.
Thank you very much.
Best regards,
Th.
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ANSWER
Dear Th.,
I have skimmed through the contract, and based on my experience, there are several unusual terms and conditions. Here are a few red flags:
- The transaction volume is excessively large (185,000 tons) with monthly deliveries for 12 months. The price is also suspiciously low and fixed for a whole year, which is highly unusual for a commodity like scrap metal, which has fluctuating prices.
- The contract states that the buyer only needs to make payment after inspecting the goods at the destination port. This is not an easily accepted condition, especially for a first-time transaction with a new partner.
- The requirement for the buyer to provide an LOI, BG, or proof of funds via MT799 (Verbiage of POF by Swift MT799) is a classic red flag, commonly seen in suspicious transactions.
- Other contract terms are also vague and contradictory. The clause stating that the contract is governed by ICC Law (“This contract is governed under ICC Law”) has no legal basis. The ICC only issues rules, not laws.
Try googling “metal scrap scams,” and you will see that scrap metal is a commonly used commodity in fraudulent schemes.
If you are serious about proceeding with this transaction, your company should consult with its bank regarding this contract. Ask the bank to investigate the credibility and financial status of your potential partner to determine whether the transaction is legitimate. I believe that any experienced bank would quickly recognize the suspicious nature of this contract.
My sincere and personal advice is that your company should exercise extreme caution with this deal to avoid wasting time and facing unnecessary risks.
Good luck.
Mr. Old Man
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FROM TH.
Dear Mr. Old Man,
First of all, I would like to sincerely thank you.
My company and I will take your valuable warnings into careful consideration.
I never expected to receive such a prompt and heartfelt response from you. Now I understand why so many people admire you on various blogs. You work and support others selflessly, even on weekends. Thanks to you, I now believe that there are still kind and generous people in this world.
May your integrity guide you. I wish you good health and continued success so that you can help many more people in the future.
I hope to have the chance to meet you one day.
Wishing you happiness.
Best regards,
Th.
