Advance payment fraud in international trade of wood-based panels
The advance payment is beneficial to the exporter, because for the wood-based panel exporter, if the wood-based panel goods have not been delivered and a payment has been received, it is equivalent to making use of others’ money or getting an interest free loan;
After receiving the payment, the goods will be delivered. The advance payment becomes a guarantee for the goods, reducing the risk of selling the goods. If the wood-based panel importer breaks the contract, the wood-based panel exporter can confiscate the advance payment; Exporters can even do a business without cost, and buy goods after receiving the payment.
