25 March 2008

Looking for legal council in China re: manufacturing dispute? Good luck!

Posted by Roger under: Business in China; Bad Suppliers .

I was poking around on the web recently and came across the trade forums on Furniture World Magazine. Aside from it being an excellent trade resource, its also fascinating being able to peruse the many threads of questions and comments from others who are specifically in the home furnishings and home decor industries. Its basically almost real-time access to the “buzz of the industry.” One thread in particular caught my eye entitled: “Looking for legal council in China re: manufacturing dispute

I think overall, the thread speaks for itself, but one thing that I want to point out is this comment:

I would suggest you not waste your time and money, but rather spend it to employ a QC company working for you in the future. It will add 5-10% to your first costs, but well worth it when you consider the sad alternative, which you are painfully experiencing.”

Am I pointing this out as self promo sales pitch about the reasons why you need the services of a reputable, establish company like ACF? Hell yes! What I think is more of an issue is that most customers (especially the newer ones) don’t realize they need such services and/or the reasons why…

Anyways, I will let the thread speaks the rest….

I am having some problems with a manufacturer in China and would like to get some information on my legal rights there. Any suggestions or info would be greatly appreciated.

Reply from Furniture World Magazine

12/7/2007 3:25:23 PM

Michelle, you can contact the PRC Commercial Office at: the following web address. This message board rejects any message that has an aitch tee tee pee before it, so just ad it to the beginning with no www.

://us.mofcom.gov.cn/

Regards,
Neil Doherty

Reply from Michele Stanger

12/7/2007 7:52:18 PM

Thanks so much for the info!

Reply from David Ballard

12/10/2007 4:18:48 PM

In the light of harsh reality, you are probably wasting your time if you have already paid the mfgr. Most importers, like my company, have a China based staff of Quality Contol inspectors who make sure all is to our specs before shipping, and we do not pay until we receive product at our US warehouses and also inspect there. Other than that, about the only clout you might have is the promise of more business, and maybe then they will replace defective parts or items.
Unfortunately, there are many small companies trying to source direct who don’t have the infrastructure in place to properly do so.
I have never heard of anybody in the furniture industry successfully using the China legal system for redress. I would suggest you not waste your time and money, but rather spend it to employ a QC company working for you in the future. It will add 5-10% to your first costs, but well worth it when you consider the sad alternative, which you are painfully experiencing.

Reply from Neil

12/11/2007 11:17:27 AM

David - I understand your position regarding the frustrations that Michele would realize in pursuing this matter.

But, Michele (and others) should indeed contact the PRC Commercial Office in matters like this.

If anything, it can contribute towards an improvement to the situation that exists regarding claims.

Many people do not understand the protocol of dealing with centralized economies. And, even though the factories there may be owned by interests outside of that centralized economies, the centralized gov’t there is in fact a great influence in each and every factory.

And, while you and I may understand their position towards quality or other claims, many people (like Michele) may not. They do not have the long term and broad experience in global trade.

If the PRC is going to continue being a major supplier of products to other economies, they will have to adjust to what is commonly accepted protocol in those marketplaces. And, the more buyers that do register their complaints with the commercial office will indeed contribute towardschange.

Their prices may be enticingly low - But, not so much that marketplaces will not demand conformity. There are always other options.

And, with all economic factors that are now occurring, these options can become more viable.

Reply from Michele Stanger

12/13/2007 12:34:14 PM

I am definitely going to contact the PRC regarding this. I will also be looking for another manufacturer for my project in the new year which maybe David can help me with. Thanks for this info guys. Very helpful.

Reply from Frank Wang

12/18/2007 9:17:58 PM

Michele

I come from China and worked over 7 years in furniture industry. I agree with David Ballard

No need to spend your time and money to settle this problem by legal system

The good suggestion is to purchase a China based purchasing agent to controll the quality

you know we have too many furniture manufacturers here
you can not afford to “try” every one and find the right factory

We based here in China, and we can controll the quality and we know the factory well

Thanks

Frank

Reply from Frank Wang

12/18/2007 9:19:57 PM

Michelle

I mean to purchase through a purchaseing agent based in China, they will controll the quality for you
only 5% commission

Frank

Reply from Michele Stanger

12/25/2007 12:26:05 PM

I believe that I was dealing with an intermediary in this capacity. I never dealt with the manufacturer directly. It was an American man living there that sourced out the manufacturer. Maybe someone knows him? His name is Scott Elkins. He signed the non disclosure agreement and said that I would have my first sample in 4 to 6 weeks. Well over one year later I got it. It needed alot of work. He then said that I would get a second sample within a month or so. Of course it never arrived. I obviously was getting very angry at the whole situation. Scott said that the manufacturer would not give me my money back. That they had invested money of their own in the project. Scott also said that he would not release anything until he was satisfied with the quality. All fine, but could he give me a timeline. No, of course not. Anyway, Scott Elkins now does not return any of my emails regarding this. I have wasted three years of my time. By now I was hoping to be producing several more fixtures into my line. It’s so frustrating. I am sick of people getting away with this type of behaviour. I will continue to pursue him even if I have to come to China. In the meantime, starting in early 2008 I will be looking for a reputable company to deal with my fixtures and hopefully get this off the ground asap.

Reply from Darwin

12/26/2007 8:52:32 AM

We do the manafacture in java indonesia
we ve been co operate with usa company name saxon wakefield, is there any some one knows , is this comapny still running?

Reply from Michele Stanger

2/1/2008 6:38:11 PM

Just to keep everyone who has given me advice on this in the loop. I have emailed and left several messages with the PRC Commercial office over the past month and have still not heard back from them.

Related posts:

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  3. Import Nightmares - Readers share their experiences when things go wrong

3 Comments so far...

Mylan Says:

30 March 2008 at 1:08 pm.

Zhanjin Furniture Co., Ltd. is scam/fraud business
I paid $1,094 US$ for supposedly a real marble dining table from Zhanjin Furniture Co., Ltd back in 9/2007 and they shipped the table to me using DHL carrier but table arrived broken pieces in the box which wasn’t wrapped very good at all consider is a marble table. I find out the table wasn’t made of real marble but made out of a compressed white crystal rocks. I sent numerous emails to my contact person, Josh Liang who worked for Zhanjin Furniture Co., Ltd and requested for my refund for the past three months and he avoided my emails. I have a strong feelings that the company took took my money and the reimbursement they got from their claim with DHL carrier. Alibaba rep informed that they have terminated their relationship with Zhanjin Furniture Co., Ltd. and the company is no longer posting their web site on Alibaba but I just find out that Zhanjin Furniture Co have their products on another web site:
http://zfcl01.en.china.cn/op/CorpContact/index.htm

I have already filed the complaint with International Better Business Bureau
and the Internet Crime Complaint Center (IC3). I’m hoping this will stop them from doing anymore exporting business on line with US and international consumers.[em6]

Neil Says:

6 April 2008 at 8:27 pm.

Roger, during my scanning the Internet today I came across this blog.

I am the Neil that posted the suggestion that the young lady contact the PRC Commercial Office.

And, I am a little disturbed by the anwers that you and the other gentlemen give in this matter.

Effectively, rather than address the situation, each of you “plug” for business.

I and others in the global business community do not accept this type of business environment. It is simply wrong for anyone to effectively say “Well, that’s the way business is done in the PRC”.

If the PRC Commercial office did not respond to Michelle, it’s a bad reflection on the PRC Government, isn’t it?

If anything, you and the others should look to improve the situation - not support it and try to profit from it. That makes you and the others part of the problem, and it is a disservice to the integrity of the PRC itself.

Roger Says:

8 April 2008 at 3:52 pm.

Hi Neil!

Thanks for your comment. I promise to rely in detail to your comment (its 12 AM here) tomorrow when I get a free moment. In the meantime, do me a favor and check out the “Brits get rich videos” here: http://www.acf-china.com/blog/2007/11/26/brits-get-rich-in-china/

I think it will probably give you a better viewpoint of just what we are all up against when dealing with Chinese manufacturers…

By the way, I agree with you - it is appalling the way business works here. I don’t condone it, I just have giving up fighting on some things which seem to be of no use/no effect.

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