A Nigerian scammer colluded with bank staff to illegally obtain B/L

In 2008, a textile company in Zhejiang ,China(“Zhejiang Exporter”) , exported a batch of goods to a Nigerian company(“Nigerian Importer”)  with a value of more than 70,000 US dollars. The payment term was D/P at sight. Although the Zhejiang Exporter sent the original bill of lading and other documents to the local collection bank, First Bank of Nigeria via bank express, the Nigerian Importer failed to make the payment to redeem the documents. The Zhejiang Exporter contacted Chinese domestic freight forwarder, and the domestic freight forwarder informed that the Nigerian Importer had taken the goods away upon the original bill of lading.

After accepting the entrustment, through investigation we found out that the Nigerian Importer obtained the original bill of lading without payment through the collusion with the internal staff of the collection bank. We sent a lawyer's letter to the collection bank First Bank Of Nigeria, which confirmed that the collection documents  mailed to the bank's address has been intercepted by others.

Lessons and enlightenment:

1. International trade fraud can occur in any step. Under the payment term of bank collection and document against payment, holding the original bill of lading cannot guarantee the absolute security of the collection. foreign trade companies must well evaluate the risks of bank collections, especially where foreign importers appoint carriers.

2. For importers from countries and regions with poor reputation, exporters should try to use a letter of credit or partial payment in advance + full payment when the bill of lading is presented.