WARNING TO EXPORTERS

Press, Volume CIX, Issue 31994, 22 May 1969, Page 12

WARNING TO EXPORTERS

Bogus Firms Overseas

The Export Guarantee Office (E.X.G.0.) had been warned about fraudulent overseas- importers some three years ago by a wellinformed correspondent in Nigeria, said the manager of i E.X.G.O. (Mr R. W. Prest-1 ney) in a statement. The informant had said; that while there were a number of highly respected and trustworthy business concerns in Nigeria, there was, unfortunately, a very active minority of unscrupulous importers. Allied with this, bogus

confirming-houses posing as bankers were issuing their own form of letter of credit. These organisations often quoted central London addresses which were no more than forwarding addresses. In the four years since the establishment of E.X.G.O. his office had conducted credit investigations on many thousands of buyers in almost 100 countries, said Mr Prestney. ■While prospective Nigerian buyers, because of the known problems, commanded particular attention, the situation reported by the Canterbury Manufacturers’ Association was by no means confined to Nigeria or to developing countries. E.X.G.O. had uncovered bogus buyers even in the United States.

Helpful as they were, even bank reports in many countries should not be regarded as the ultimate guide to trade relations without some other corroborative information, said Mr Prestney. He urged exporters to avail themselves of the advisory services provided by EXG.O. before negotiating any sales with unknown buyers. Credit investigation was one of the; functions of the Export Guarantee Office established by the Government to assist in export promotion.