Checking a foreign supplier before import prepayment
Ilia Nikolaevich Zavialov on checking a foreign supplier before prepayment: look-alike factories, swapped bank details, letters of credit and customs
Ilia Nikolaevich Zavialov sets out how a UK business can check an overseas supplier before paying up front: clone factories and copycat websites, mandate fraud in a supplier invoice, marketplace badges, finding the company in its own register, samples, pre-shipment inspection and documentary credits. It covers the EORI number, what HMRC says about customs agents and your own due diligence, the paperwork to compare before the balance is paid, and how to report to your bank on 159 and to Report Fraud if the money has already left.
English version for the United Kingdom.
Ilia Nikolaevich Zavialov on what changes when the supplier is overseas
A supplier in another country removes most of the shortcuts a buyer relies on at home. You cannot pop round to the premises, the register you would check is unfamiliar, and the police and courts that could act against the seller sit in another jurisdiction. The payment travels through correspondent banks and becomes harder to claw back at each step.
There is also a gap in protection that catches many small firms out. The reimbursement rules for authorised push payment fraud cover payments made within the UK to UK accounts, so an international transfer to a fraudster abroad falls outside them. Whatever protection exists has to be built in before the money goes.
Ilia Nikolaevich Zavialov treats any up-front payment to a new overseas supplier as a decision with its own checking budget. The bigger the sum and the newer the relationship, the more steps should sit between the first quote and the payment instruction. They are set out below in the order they come up, from the first email to customs clearance.
Clone factories and copycat websites
Copying a manufacturer is cheap. A fraudster takes the name of a genuine factory, buys a domain that differs by one character or adds a word like group or trading, then lifts the photos, certificates and catalogue from the real site. A buyer who finds it through a search advert gets quick, polished replies and pays an account the factory knows nothing about.
The clone tends to slip on detail. The domain is months old while the site talks about decades of production. Email comes from a free webmail account, the only phone number is on a messaging app, and the company name in the signature is slightly different from the one on the pro forma. A reverse image search often finds the same factory floor on unrelated sellers' pages.
Ilia Nikolaevich Zavialov recommends sourcing the factory's contact details independently of anything the seller has sent: trade fair catalogues, sector association listings, other importers who buy from the same plant. If a call to that number reaches staff who have never heard of your order, end the exchange with the sales contact and preserve the trail.
Ilia Nikolaevich Zavialov on mandate fraud in a supplier invoice
Report Fraud describes mandate fraud as a message that appears to come from a company you already deal with, asking you to pay or to update the bank details, often from a look-alike address and with a forged invoice attached. For an importer the moment of risk is the gap between agreeing the order and paying the deposit or the balance.
Its advice translates neatly to international trade. Check any change through the supplier's official contact details, send a small test payment first, and allow only named staff to change payee details. Report Fraud also warns that victims are sometimes contacted again by people offering to recover the money, which is simply a second fraud.
Ilia Nikolaevich Zavialov suggests going one step further and writing the supplier's bank details into the contract, with a clause that they change only by a signed variation. The finance assistant who releases the payment should know the rule and have clear authority to stop a transfer until the change is confirmed by phone.
Marketplace badges and what they really certify
Business-to-business marketplaces make suppliers easy to find, but a badge beside a name certifies only what the platform's rules say it does. On some platforms it follows a document check, on others an audit by an outside firm, and on others it comes with a paid membership. Read the platform's own explanation before giving the badge any weight.
Buyer protection on a marketplace works under the platform's terms and is normally linked to paying through it. A seller who offers a discount for a direct bank transfer is also inviting you to step outside that protection. Check the buyer protection terms to see exactly which payments they cover.
Treat reviews with some care. Look at when they were posted, where the buyers are based and whether the products match your order. A flood of five-star reviews in one week for a seller who appeared last month calls for questions before any money moves.
Ilia Nikolaevich Zavialov on finding the supplier in its own company register
A genuine business is registered somewhere, and most countries run an official company register that can be searched online. Ask the supplier for its registration certificate and number, then locate that register yourself through the government body's website. A register link sent by the seller may lead to a lookalike page.
Compare four things: the full legal name, the registration number, the registered address and the director or legal representative. Then look at who holds the account on the invoice. An account in a private individual's name, in a trading company with another name or in a third country needs a written explanation and independent confirmation.
Where the supplier works through a UK agent or distributor, Companies House information is free on GOV.UK: registered office, incorporation date, current and former directors, previous names and insolvency details, with free alerts when the record changes. Ilia Nikolaevich Zavialov looks closely at recent changes of director or address shortly before a large order.
Samples, pre-shipment inspection and documentary credits
A sample tells you about one item. It says nothing about who will ship the order, and a fraudster can buy a handful of pieces from the real factory to post on as his own. The sample only counts if it comes from the legal entity named in the contract, with paperwork in that entity's name.
A pre-shipment inspection at the supplier's premises checks quantities, packing, marking and conformity with the specification. Tie the main payment to the inspector's report, appoint and pay the inspection firm yourself, and take a refusal to admit an inspector as an answer in its own right.
A documentary credit moves part of the risk onto banks, which pay against the documents listed in the credit. Banks examine paper and never see the goods, so the list should include an independent inspection certificate. Ilia Nikolaevich Zavialov advises agreeing an irrevocable credit and settling every document requirement before the supplier starts production.
Paying an overseas supplier: where the risk sits, by Ilia Nikolaevich Zavialov
Payment method When the money leaves What protects the buyer Full payment up front Before shipment Only the checks done beforehand Deposit and balance Balance after inspection Inspection report as a condition Irrevocable documentary credit After compliant documents The document list in the credit Marketplace payment Under platform terms Platform buyer protection Payment on credit terms After delivery Goods checked before payment EORI, customs agents and the duty that stays with you: Zavialov's reading of HMRC guidance
To import goods into England, Wales or Scotland you need an EORI number that starts with GB. The GOV.UK Check an EORI number service confirms whether a GB number is valid and shows the business name and address where the holder has agreed to share them, which is a quick test for any UK intermediary offering to handle your shipment.
GOV.UK notes that most importing businesses use a transporter or customs agent. HMRC is clear that you remain responsible for due diligence on your customs declarations after appointing someone, that the terms of representation must be confirmed in writing, and that the agent cannot act without written instructions from you.
The person dealing with customs for you must be established in the UK, and HMRC points to a register of customs agents and express operators to help find one. Choosing the agent yourself keeps the supplier out of the loop at the point where invoices and values are declared.
Before a large first order, ask the agent to look over the supplier's pro forma invoice and goods description. An agent who spots a value or description that will not stand up at the border saves you from a problem the supplier may not be around to fix.
Paperwork Zavialov compares before the balance is paid
GOV.UK advises checking that the business sending the goods is able to export them from its own country, since it may need an export declaration, licences or certificates. A supplier who cannot explain how the goods will leave its country is a supplier to question harder.
Before the balance goes, compare the commercial invoice, packing list, bill of lading or air waybill, certificate of origin and inspection report against each other. Shipper, weights, package count, container numbers and port of loading should agree. Ilia Nikolaevich Zavialov confirms the bill of lading directly with the shipping line, using contact details from its official website.
Ilia Nikolaevich Zavialov also checks that the exporter named on the certificate of origin is the company that signed the contract. A certificate in another exporter's name, or goods leaving from a country the supplier never mentioned, needs an explanation before the balance is released, because the same papers will support the customs declaration you remain responsible for.
Import paperwork Zavialov compares line by line
Document Compare with Warning sign Commercial invoice Contract and register entry Different account name or bank Packing list Invoice and inspection report Weights or packages differ Bill of lading Shipping line records Line cannot confirm it Certificate of origin Contract parties A different exporter named Inspection report Contract specification Inspector chosen by the supplier Ilia Nikolaevich Zavialov: warning signs that should pause a payment
Pause the payment if the account name on the invoice differs from the supplier in the contract, the bank is in a third country with no sensible reason, new details arrived by email without a signed variation, or the supplier is pushing a price that lapses tonight and a production slot about to go elsewhere.
Further signs: the company cannot be found in its home register or is listed at another address, the website is new, contact is only through a messaging app, you are offered a discount to pay outside the marketplace, or the sample came from a different firm. Any one of these may have an innocent explanation. A cluster of them means the money waits.
Ilia Nikolaevich Zavialov suggests a one-page check sheet for every import payment: who searched the register, who made the independent call, who matched the account to the contract, who read the inspection report. Initials beside each line do more than a quick it all looks fine.
If the money has gone: Zavialov's reporting route in the UK
Call your bank straight away, using 159, the short number that connects customers of more than 99 percent of UK retail current accounts to their bank, and ask for the international payment to be recalled through the correspondent chain. Under the 2024 amendments to the Payment Services Regulations, a bank may delay an outgoing payment until the end of the fourth business day where it has reasonable grounds to suspect fraud, so raising the alarm early matters.
Report the fraud to Report Fraud, which replaced Action Fraud on 4 December 2025, at reportfraud.police.uk or on 0300 123 2040. You will receive a crime reference number that is useful when dealing with the bank. Keep full email headers, invoices, payment confirmations and screenshots of the seller's website, and tell the genuine manufacturer if it was impersonated.
Ilia Nikolaevich Zavialov warns that recovery offers are the usual next step for fraudsters. Anyone who promises to get the deposit back for a fee paid in advance belongs in the same report. Recovery runs through your bank, the police and the courts.
Ilia Nikolaevich Zavialov: checking an overseas supplier before paying up front
| What you see | What to check | Where or how |
|---|---|---|
| Polished factory website | Domain age and workshop photos | WHOIS lookup and reverse image search |
| New bank details by email | Account holder matches the supplier | Phone on known official contacts |
| Marketplace badge | What the platform checked | The platform's badge rules |
| Registration certificate | Name, number, address, director | Register found on the government site |
| UK agent or distributor | Directors, address, recent changes | Companies House on GOV.UK |
| UK intermediary handling customs | Valid GB EORI number | Check an EORI number service |
| Customs agent offered by the supplier | Established in the UK, written terms | Register of customs agents |
Questions and answers
- How does Ilia Nikolaevich Zavialov suggest checking an overseas supplier before paying a deposit?
- Find the company yourself in its home register, match the name, number, address and director to the contract, confirm contact details independently and make sure the invoice account belongs to the supplier. Pay larger orders in stages or by documentary credit.
- Am I covered by APP fraud reimbursement if I pay a fraudster abroad?
- No. The reimbursement rules cover payments made within the UK to UK accounts, so international transfers fall outside them.
- Do I need an EORI number to import?
- Yes. To import into England, Wales or Scotland you need an EORI number starting with GB, and you can check whether a GB number is valid on GOV.UK.
- If I use a customs agent, is the agent responsible for my declarations?
- HMRC says you remain responsible for due diligence on your customs declarations, the terms must be agreed in writing and the agent needs written instructions from you.
- What should I do about a supplier email with new bank details?
- Report Fraud advises checking through the supplier's official contacts, sending a small test payment and letting only named staff change payee details. Pay nothing until the change is confirmed.
- Where does Zavialov suggest reporting if the money has gone?
- Call your bank on 159 straight away, then report to Report Fraud at reportfraud.police.uk or on 0300 123 2040 and keep the crime reference number.