Tuohe Enterprise Group Limited Complaint - Tuohe Enterprise Group Ripped Us Off For $25,593.00
We have imported quality musical instruments from China for ten years. We recently decided to start marketing Scooters, Motorcycles and Go Karts from
China when the gas price had reached $4.00 per gallon.
We spent several weeks researching and contacting various scooter and motorcycle factories from China in order to place orders. One of the
businesses that we contacted was Tuohe Enterprise Group Limited of Shanghai through their web site for prices and information on shipping the product to us back in August of 2008.
When contacting Tuohe Enterprise Group Limited the very first thing I asked was "Are you a factory or just a trading company?". Shirley at Tuohe assured me that they were indeed the factory. Over several weeks we asked Shirley three more times if they were the Factory *For Sure* and she kept assuring us that Tuohe Enterprise Group Limited was indeed the factory and NOT a Trading Company.
It seems in the past dealing with many Chinese in our musical instrument business we found out that almost everyone claims to be the factory, when in fact most are nothing but a trading company that arranges orders for a profit by putting up a nice web site and providing brochures that shows them as the factory. They take a very nice profit by doing this and many operate on a shoe string for revenue.
We finally negotiated a price in late September 2008 for the product that we were buying. When we negotiated this price, we told Tuohe Enterprise Group Limited that we always import our own product and use our own freight people which is Fed Ex Trade Networks. Tuohe Enterprise Group agreed to this. We have used Fed Ex Trade Networks for many imports from China for several
years and understand clearly how the importing works. For the second time, before placing the order I asked Tuohe Enterprise Group if they understood that we would use our own freight people and if they had a problem with this, then we need to know. They told me it would be fine.
Once the contract was negotiated it is common procedure for the company that you are doing business with overseas to send a Pro-Forma invoice. This is an invoice with the break down of the prices, the quantities and the total
It is common practice to send the factory 30% deposit to get the order going. We bank wired the 30% ($25,573) to Tuohe Enterprise Group Limited as a deposit at that time. Once the order is finished then the balance would be due in full when the factory placed the goods on board the ship through our shipping agent and provided us with a Copy of the Bill of Lading. The Bill
of Lading proves the goods are on board and ready to leave on the ship once the balance is paid to the factory. Tuohe Enterprise Group Limited had
agreed to this.
In late October Tuohe Enterprise Group Limited notified us that our order was ready and that we must pay them the balance in full from pictures of the product only. Are you kidding just from pictures we were going to send $50,000 + to them!! We argued the point that this was not our agreement and that the product must be placed on board the ship through our Freight Forwarder and we would pay the balance by a Copy of the Bill of Lading. Tuhoe Enterprise Group refused.
Tuohe Enterprise Group approached us with two different options at that time. They would place the goods on their ship through their shipper and
then we could pay the balance from their shippers Bill of Lading. This gave us NO security at all because they could make up a shipper name and also a Fake Bill of Lading.
The second choice was to pay them 25% more money and then they would let us use our own Freight Forwarder after 25% more was paid. I immediately
requested all of our money back that we had paid. Tuohe told us that was impossible since all of the 169 Scooters and Motorcycles had been finished as well as our Decals placed on the scooters with our name. Tuohe said these
decals could not be removed and we must take the product and no money would be refunded.
We now knew we were duped. I told Tuohe that I was flying a relative six hours from Hong Kong to Shanghai to inspect the goods. Tuohe Enterprise
Group agreed to this. They assumed that my relative was American who spoke English only when in actuality it was a sister in law who originated from the Philippines that spoke and could read some Chinese.
In early December my relative flew in to Shanghai and went to the office of Tuohe Enterprise Group Limited and found no factory there. My relative
purposely spoke English all of the time she was there.
My relative was shuttled 2 hours to a factory whom Tuohe said was theirs to inspect the product of ours. Little did Tuohe Enterprise Group know that my relative read the Chinese written sign on the factory that said Shanghai Meitian Motorcycle Company. There were very few people in the factory and no one was working on a normal work day. Not much product was anywhere to be seen. Tuohe Enterprise Group had lied about themselves being the factory!
My relative asked to see all of our product. One, JUST ONE container was opened for her. The scooter had no Name emblem placed on it but rather it had the Name emblem under the seat. When my relative pointed this out Shirley from Tuohe Enterprise Group tried to quickly cover up the previous lie. The representative said the products could not have the emblems already placed on them
because it was against the law to place them on the scooter before importing them into our country. This was another outright lie by Tuohe Enterprise Group!
My relative asked to see the rest of our product. The representative from Tuohe Enterprise pointed to approximately 21 more cartons and said they were ours. This was a far cry from 169 cartons which were supposed to be ready.
Once the report was given to me by my relative I confronted Tuohe Enterprise Group by e-mail about the lack of product that was supposed to be ready and about the lies told to me. I demanded our money back in full or to be fair, I asked that only $25,573 worth of product be shipped to us at out expense.
The response from Tuohe Enterprise Group Limited was that they demanded the balance of all the money in full immediately and they would ship our product to us or if we refused to pay they would start a $50 per day per unit storage fee on each scooter and after 30 days it would become $100 per day per unit. After 90 days they said the scooters would become their property. In
fact this notice was given to me in Chinese writing by e-mail. They did not think I could decipher it.
The moral of this story is: If you want to get screwed by a bunch of liars and cheats then do business with Tuohe Enterprise Group Limited. We have filed paperwork with the US Embassy asking them to go through the Foreign Trade Ministry In China for help. We also have hired a Chinese Lawyers Fimr to go after Tuohe. Wish us luck retrieving over $25,000.