June. 2005

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‘The Legal System Forum of Market Credit‘ organized by The Research Institute of Economic Law of Beijing Municipal Law Association will be held this June, meanwhile as the member of the association, Steele contributes an article on the topic of ‘Enterprise Interior Credit Management System – Risk Control of Enterprise Interior’, for details please visit http://www.bjela.com

On May 15, 2005, Steele was invited to attend ‘the Economic and Trade Conference of Hungary’ held by China International Trade Promotion Commission, and communicating with attendees about our experience in investment risk control for enterprises. 

‘The 2005 Luoyang Polygraph Advanced Seminar’ will be held in Luoyang City , Henan Province from May 16 to 20, 2005, which organizes by Institute of Automation , Chinese Academy of Sciences, the Ministry of Security of P.R.C., and Luoyang Municipal People’s Procuratorate.

‘The 2005 China Financial Risk Management Conference’ organized by Institute of Economics System and Management, P.R.C National Development and Reformation Commission and Beijing DRC Economic & Financial Consulting Company will be held at Beijing New Century Hotel on June 18 to 19, 2005, and the topic is financial system reform and risk control in China .

Shanghai courts are implementing the simple procedure on civil and criminal cases, which reduces the litigation cost but enhances the judicial efficiency.

Guangdong General Chamber of Commerce has announced that Guangdong will set up the anti-dumping center against America and 337 investigation and legal support centers, which will provide relevant legal consultation and support for exporters.

The first law about people’s juror, ‘The Decision About People’s Juror System’ has been put in practice on May 1st, 2005, and subsequently on May 8th, 2005 three appointed people’s jurors by Shanghai Municipal People’s Congress have held court trials. 

‘The Tryout Credit Management Measures for Shanghai Enterprises’ has been put in force on May 1st, 2005, which aims at establishing the business credit system and creating the social credit environment, for providing the guarantee for the business dealings between enterprises.

On May 12, 2005, ‘The 2005 China Insurance Agents Conference’ has been held in Beijing , during the conference China insurance agents have signed “the Beijing Proclamation” for the healthy development of the insurance industry. 

The 2005 Annual Super conference of International Association of Insurance Fraud Agencies (IAIFA) has been held in Macao since May 11 to 13, 2005. 

Shenzhen Company of PICC announced that the E-business service has been opened for public, for more details please visit http://www.e-picc.com.cn

Polygraph Knowledge

The important role of STM

 Make the examinee to adapt the polygraph test.

 Prove the performance of the polygraph appearance, enhancing the psychological effect of the examinee.

 Verify the examinee’s adaptive degree.

 The most important role is that STM is the standard of the whole test in examining the veracity of    

     the examinee’s psychological effect.

a) By utilizing the trust of Chinese in L/C trade, the foreign party may intimidate its bank who issued the L/C refusing the payment by finding various pretexts, accordingly compels the Chinese party to reduce price or pay by T/T. b) Bringing an accusation against Chinese party acting L/C fraud by making use of Chinese exporters unfamiliar with foreign legal system or the foreign party may avail itself of public relations in local or the flaw in local enforcement, then will apply ‘the stop payment order’ and require the bank payment countermanded.

a) The most familiar means is the foreign party may entice Chinese enterprises by conducting small business for several time for getting the trust, accordingly the foreign party will order a big order but require COD on the pretence of the shortage of capital and the urgent delivery term, however the foreign party has never been heard of since the arrival of goods. b) The importer refuses to pay the payment by using the pretext that the quality or the specification or other groundless reasons of the goods doesn’t accord with the requirement, and then require a lower price. c) Utilizing the regulations of local customs such as returned merchandise or reselling has to be agreed by the importer, the foreign party does nothing neither handling the customs procedure nor paying the payment, much less goods returned or reselling, thus the goods have to be chronically resorted at the port, afterwards threatening the Chinese party cuts price. d) Registered a corporate company by using the third party and transferring or mortgaging the assets of the company and individuals in advance, as soon as the cheated goods payment arrives the party will use it as the circulating funds, and it is too late for the Chinese party to adopt the preservation in assets. E) Using the weak points of administrative management of transportation agencies or goods agencies in local or in China , the foreign party allures to ship the goods without the order by colluding with agencies.

a) Signing a ‘double contract’, one is the normal processing contract, and the other is the false contract which submits to the customs for depressing the processing charge. The processing charge in the declared contract will be paid by the normal transaction, but the balance will be paid via unusual modes. In case the foreign party refuses payment or purposely defaults the balance, the Chinese party cannot collect the balance by the legal way because of involved in submitting false documents to the customs. b) For as much as the competitive market in China, the foreign party will require the Chinese party delivering the processing merchandises in advance, accordingly fails to pay up, gradually the Chinese party be trapped in the trick or the foreign party suddenly orders a big order, and then may disappear after the arrival of goods. c) Even some small Chinese companies haven’t signed a contract, once the problem occurs the Chinese party cannot provide advantaged evidence requiring the transaction moreover involves in customs duty evasion, consequently causes the increasing difficulty in collecting the money.

Some foreign trade companies have branches or representatives in China in cheating the Chinese companies, as soon as the skin game is successful they immediately escape by closing up the branches or representatives in China .

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