More than 13 million yuan of Tongtuo's parent company was frozen, and the Yiwu card freezing storm continues...

Last year, a large number of foreign trade merchants in Yiwu had their bank accounts frozen. Yien.com had reported this twice before. What was unexpected was that the parent company of the recent big seller was also hit.

Recently, Yiwu Huading Nylon Co., Ltd., the parent company of Damaitongtuo, issued an announcement stating that more than 13 million yuan of funds in some of the company's bank accounts had been frozen.

Yiwu card freezing incident affects Tongtuo's parent company, more than 13 million yuan frozen

On April 21, Damai issued an "Announcement on the Freezing of Funds in Some of the Company's Bank Accounts" through its parent company Yiwu Huading Nylon Co., Ltd.

The announcement shows that financial staff of Yiwu Huading Nylon Co., Ltd. recently learned through online banking inquiries that funds in some of the company's bank accounts had been frozen .

As of April 19, 2021, the status of Huading’s frozen accounts is as follows:

As can be seen from the above figure, Huading has a total of 14 frozen bank accounts , with a frozen amount of 13,263,254.69 yuan (the US dollar account is calculated at an exchange rate of 1:6.5103) .

It is reported that the frozen funds account for 0.29% of Huading’s audited net assets in the most recent period and 1.42% of the monetary funds at the end of the most recent reporting period.

Regarding the reason for the bank account being frozen, the announcement stated that the company has not received any formal legal documents, notices or other information from the court, and the specific reason for the account being frozen is still unclear.

At the same time, Huading also stated in the announcement that it is actively following up and verifying this matter, and will fulfill its information disclosure obligations in a timely manner in the future. It also stated that the freezing of the above bank accounts did not have a significant impact on the overall production and operation activities of the listed company.

Although Huading did not specify the reason for the bank account being frozen in the announcement, I believe that when seeing the word "Yiwu", many people will think of the incidents of Yiwu foreign trade merchants' bank accounts being frozen that broke out since last year .

The scope affected Guangzhou, Quanzhou and other places, with Yiwu becoming the "epicenter"

According to statistics, more than 7,000 Yiwu foreign trade operators have registered their bank card freezing information at the assistance center, and it is estimated that the number of local operators affected by the card freezing storm has reached tens of thousands.

In fact, it is not just Yiwu that has been frozen. Wenzhou, Ningbo, Guangzhou, Quanzhou and other foreign trade developed regions have also experienced account freezing to varying degrees. However, due to the excessive concentration of foreign trade in Yiwu and the large number of merchants, the situation is serious.

It can be said that under this bank card "hunting", many foreign trade people have become like frightened birds, and are terrified at the mention of "freeze".

"Our company encountered this many times last year. Once a card is frozen, it is likely to be frozen for several months or even half a year, which will have an impact on the company's operations and cash flow." said a foreign trade company.

"Who says it's not true? My sister also works in foreign trade. The police in Inner Mongolia froze her card for a year, and asked you to go in person to take a statement. You were unfamiliar with the place and had to go so far, so I was afraid of being detained, so I never went." A netizen said helplessly on a social media platform.

"My 100,000 yuan has also been frozen, and now there is no one to help me." Another netizen said sadly.

The account is frozen, how difficult is it to “unfreeze” it?

The account has been frozen, how difficult is it for foreign trade merchants to "unfreeze" it?

On a social platform, a foreign trade person said that at the end of last year, he remembered that a client owed him 200,000 yuan and had not yet paid it. A year has passed, but when he called, he was still told that the card was frozen and had not been unfrozen. Yiwu foreign trade merchants are still the hardest hit area for frozen bank cards.

There are also foreign trade merchants who are eager to unfreeze their funds but have encountered many difficulties and obstacles. Although they understand the principle of this matter, they feel helpless and powerless. A foreign trade merchant also reminded everyone that Yiwu Bank Card Freezing Assistance Center has established more than 10 working groups. Try not to go to remote areas to take statements.

In order to solve the problem of account freezing, Yiwu City established a bank account freezing assistance center in November last year . The working group was jointly formed by the Commerce Bureau, Public Security Bureau and other departments . In addition to sorting out the registration account freezing information, promoting market entities to standardize the collection and payment of foreign trade goods, and providing unfreezing consulting services for merchants, they also visited public security organs in many parts of the country and actively assisted merchants in communicating with public security organs in other places. In addition to government departments, Yiwu's financial system is also trying to help merchants overcome difficulties.

Fortunately, with the support of many parties, some foreign trade merchants have received the good news of unfreezing their funds. After contacting the police, some "frozen friends" explained that their money was not involved in telecommunications fraud, and explained their merchant applications. They also sent relevant evidence materials to the other party via email, and their funds were unfrozen within 15 days.

In addition, some people on Weibo said that they had traveled more than a thousand kilometers and went to several Industrial and Commercial Banks, proving with their actions that it is very difficult to prove that your money is your own, and that it is safer to use a public account when doing foreign trade.

Some netizens even gave a detailed introduction to the entire thawing process:

——"The loans received on January 24 were frozen one after another by Bank of Communications, China Merchants Bank, and Agricultural Bank of China. Several banks unfrozen them on January 27. I thought it would take at least half a year."

——"This frozen card is not too far away and can be reached by high-speed rail in more than 6 hours. I decided to submit the documents here according to the instructions of the local criminal police brigade. It will be unfrozen in about a week after submitting the documents, and maybe the next day, depending on the approval time of the superiors. However, there is a high possibility that the money involved in the fraud will be deducted and transferred to the victim according to the remittance ratio."

Some foreign trade merchants remind all frozen merchants: "First, if you need the money urgently, you should quickly submit the materials to the local public security agency. The criminal police brigade said that if you don't submit the materials, it will not be unfrozen. Some friends also said that it will be unfrozen automatically after half a year. Second, don't put too much money on one card. Let customers transfer large sums of money in batches. It is best to use a spare card. Third, it is best to transfer US dollars. The risk is too great. If a large amount of funds is involved in fraud, not only will you work in vain, but you will also lose your principal and interest."

The previous article also mentioned a letter from Yiwu City Police to public security organs across the country . Yiwu City Police fully understands the current situation and problems of Yiwu enterprises and individual businesses in the foreign trade industry, and applies the use of witness testimony to obtain evidence from business owners who can provide business entity qualifications, order vouchers, shipping vouchers, foreign trade freight forwarding entities, and corresponding payment receipts.

The core of the police's handling of problematic funds is whether the merchant obtained the payment in good faith. The open letter stated that in judicial activities, the Yiwu Municipal Government and relevant departments have requested the higher authorities to set and clarify opinions on the handling opinions on the business owner's good faith acquisition of payment, the renewal of freezing regulations and other legal application issues. It also clearly stated that the Yiwu Public Security Bureau will not support some excessive and selective law enforcement, and will report to the relevant departments if it is considered to be at fault, and the organizer will bear the responsibility for the corresponding law enforcement activities.

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