SINOSURE Blacklist

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What are the two types of Sinosure blacklist records?

Temporary bans from Sinosure

Companies with this blacklist status will receive a temporary block on their credit limit if their payment is overdue, but the situation is still being investigated or processed. These temporary bans and sanctions can be revoked by taking the appropriate actions.

Lifetime bans from Sinosure

Companies who have this blacklist status will have received a lifetime ban from Sinosure. A company will have received this blacklist status if Sinosure has had to pay the exporter's insurance compensation. This ban is, as a rule, established after 6 to 12 months have passed since the payment is due from the importer. If you are a banned company, with a permanent blacklist status, you cannot be taken off the blacklist.

What are the four reasons companies get blacklisted by Sinosure?

1. The supplier delivers goods of a subpar or defective quality
This is one of the main reasons why companies get blacklisted by Sinosure. There are some situations a Chinese supplier might deliver goods that the importer considers to be subpar. For this reason, disputes or differences of opinion can occur between the company and the supplier.

The company that imports the products might refuse to make any payments to the supplier unless they receive some form of compensation. These disputes leave the supplier with limited options when it comes to getting paid, and they will, therefore, seek compensation from Sinosure instead of the importer, which is seen as a simpler, faster solution.

However, there are some cases where the importing company can still be blacklisted – regardless of whether the supplier has sent an insurance compensation claim or not. This often occurs because Sinosure keeps track of all shipments that have been insured, and if it is the case that you haven't made your payment within the allotted time, your credit limit will be stopped temporarily.

In certain cases, situations arise where the supplier might settle on a reduction in price for the defective goods, but might not remember to update Sinosure of this. As a result, Sinosure will not know that the payment due has been altered, and will register the discount as an outstanding debt.

This can lead to a ban.
2. The importing company may delay payment
Payment delays from the importer can occur for various reasons. The company might be experiencing a cash flow problem or a lack of capital. They might have logistics problems or find themselves in a force majeure circumstance. Payment delays of more than 30 days from the due date will result in a temporary ban from Sinosure.

But what can also happen is that Sinosure will communicate with your other suppliers, explaining that a payment dispute has arisen with one of your suppliers. This means that receiving new shipments covered by a Sinosure- guaranteed credit limit from other suppliers is no longer possible.

The key cause of the issues that occur in cases like these is either miscommunication or a lack of communication. An importer might assume that communication is unnecessary, might forget to update the insurance company of the situation, or ignore any communication they receive from Sinosure debt collectors. In situations where Sinosure cannot communicate with the importer, they will most likely receive a ban.
3. The importer trades with a fraudulent supplier
Unfortunately, there are cases where exporters seek to receive insurance compensation to claim money via fraudulent means or avoid being made bankrupt. In situations like these, a supplier will deliberately make various false insurance claims, corresponding to all of their importers, to claim a large amount of compensation. As an importer, you might not even be aware that your supplier has put in a false claim to Sinosure.

What you should do in these cases is to keep communicating with Sinosure and use the appropriate evidence to show that the claim was fraudulent.
4. The importer chooses not to make a payment to the supplier
This is another common cause that can lead to a ban. The importer might not think the goods are of a good enough quality, or that they are not worth the price they were offered at, but cannot explicitly prove how subquality the goods are. Alternatively, they might fail to communicate altogether and receive a ban as a result.
Our recommendations to you, if you want to avoid being permanently blacklisted from Sinosure are these:

Stay in contact with and do not ignore Sinosure

You might receive communication from the debt collection department at Sinosure's or Sinosure's third-party debt collectors. We advise that you should never overlook the importance of these communications and that you should not simply avoid communicating with Sinosure. Explain the situation clearly and back this up with details and documents.

Retain all company documents and keep them organized

You must retain all your documents and keep them organized to prove that you have kept up your end of the bargain and maintained all requirements necessary with your supplier. Some of the paperwork and documents you should retain include – sales contracts, proforma invoices, customs declarations, and (most importantly) the proof of payment documentation.

Settle disputes with internationally accepted standards

In cases where your supplier has delivered substandard goods, it is down to you to prove this and provide the required evidence of this. To this end, hiring an internationally accepted goods inspection organization, such as SGS, to make an official declaration of the defective goods is an important step.

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