Four consignments of exports worth $400,000 were taken out of a port without payment. Documents of another shipment were lost. The total value of the lost value, which pointed to signs of fraud, was about $500,000.

The Vietnam Pepper Association (VPA) has released a statement saying that the Vietnam Export Company, a member of the association, could have been the victim of fraud after exporting farm produce to UAE.

The company exported five containers of products, including two containers of pepper, one container of cinnamon, one container of sweet fennel and one container of cashew nuts. The exports docked at Jebel Ali Dubai, UAE.

The buyer was Bab Al Rehab Foodstuff Trading LLC (BARFT), at Office No 1006. Mai Tower, Al Nahda, Dubai, UAE, and the officer in charge of making the transaction in the deal was Naeem Chaudhry (Mr).

The buyer’s bank is Ajman Bank PJSC with the main office in Main Branch (UAE).

The goods delivery shown in the contract is in June and the docking time in June-July 2023.

According to VPA, four consignments have been taken out of the port without payment, including two containers of pepper, one container of cinnamon, and one container of cashew nuts, worth $400,000. Meanwhile, the consignment of sweet fennel, scheduled to dock at the port on July 26, valued at $126,300, has lost the underlying documents.

International scam 

VPA said in general transactions are carried out under the mode of D/P (documents against payment), which means that the original export documents are delivered by the seller’s bank to the buyer’s bank, and the buyer then comes to the buyer’s bank to make payment.

After the buyer’s bank receives enough money, it will transfer money to the seller’s bank and deliver the original export documents to the buyer, so that the buyer follows import procedures and takes the container of import out of the port.

Vietnam’s bank used a DHL service to deliver the original export documents to Ajman Bank PJSC, and the successful delivery of five sets of documents was confirmed by the bank’s officer.

However, later, the original export documents could not be found at Ajman Bank PJSC. Vietnam’s banks have repeatedly asked the buyer’s bank to make payment for the exports.

Realizing the deliberate delays by the buyer’s bank and the buyer, Vietnam’s export companies checked the shipping system and discovered that all four containers had disappeared from the port. 

When the problem was discovered, goods had been carried away, the buyer could not be contacted, and the company had closed down at the registered address. 

Export companies have asked Vietnam’s banks to contact Ajman Bank PJSC and ask the bank to give back the original export documents. 

However, the bank in Dubai said that it has forwarded information to the headquarters for settlement.

What will happen?

VPA had a working session with the Vietnamese Trade Counsellor of Vietnam Trade Office in the UAE, and sent a report to the Ministry of Industry and Trade (MOIT), and Vietnam’s Embassy in UAE.

On July 17, Vietnam’s Embassy in UAE sent a diplomatic note to relevant agencies of the UAE including the Ministry of Foreign Affairs, Central Bank, Dubai Police and Ajman Bank.

On July 20, the Vietnam Trade Office in the UAE worked with Dubai Police, requesting  a probe over the case of swindling Vietnam’s enterprises related to a 

Dubai client and Ajman Bank PJSC.

On the same day, the association continued to report to MOIT, the Ministry of Foreign Affairs (MOFA), the Ministry of Agriculture and Rural Development (MARD) and the State Bank of Vietnam (SBV) about the latest events and asked for help to get money for the four consignment of goods which were carried out of the port; and find the buyer or buyer’s representative who has the original export documents of the consignment and who got customs clearance.

If the Vietnamese side cannot intervene and work with the shipping agent, port authorities and Dubai police prior to July 26, the container of sweet fennel will also be lost like the other four consignments.

MARD on July 24 promised that it would help to send a diplomatic note to the UAE Embassy in Hanoi and request cooperation because of the seriousness of the case.

Vietnamese companies have many times suffered from fraud in the past. Most recently, clients of one exporter paid 15 percent of the value of goods in advance, received the goods, and then escaped.

Viet Nam Net