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.