Common EV Import Scams from China — and How Iraqi Buyers Can Avoid Them

If you are importing an electric vehicle, or any vehicle, from China into Iraq, you are operating in one of the most complex and risk-sensitive trade corridors in the automotive industry. This is not only because the unit value is high, but because the transaction itself is document-heavy, cross-border, and usually time-pressured.

That combination is exactly why scams in this space rarely look crude. On the contrary, they often look professional: polished company websites, seemingly complete documentation, fluent English, WhatsApp groups that feel official, and repeated references to ports, customs, inspections, and government rules. Everything feels legitimate — until the money is gone or the container never arrives.

This guide is written for buyers importing vehicles from China into Iraq, whether you are a dealer, a fleet operator, or a government contractor. It explains the most common scam patterns we see in this trade, how to identify them early, and what concrete verification steps actually reduce risk before you transfer funds or accept documents.

It also highlights Iraqi-side compliance and clearance realities — Iraqi Customs, the Ministry of Trade, COSQC, registration classification, and port handling — because scammers often exploit buyers’ uncertainty around these processes by “hand-waving” them away.

The Fast Reality Check

Before going into detail, here is the reality of most vehicle import fraud from China:

The most common scams include non-delivery after deposit, fake or altered shipping documents (especially Bills of Lading), grey-market “zero-mile used cars,” fake exporter identities, misrepresented vehicle specifications, and false warranty claims.

These scams succeed not because buyers are careless, but because the trade involves unfamiliar documents, tight timelines, and remote counterparties.

To avoid them, you must do four things consistently:

1. Verify the exporter’s legal identity and authority
2. Lock the vehicle’s identity and specification before paying
3. Control payment through verifiable milestones
4. Align early with Iraqi import, customs, and registration requirements

If any one of these is skipped, the risk increases dramatically.

Why EV Imports Attract “Document-Grade” Scams

EV imports are uniquely attractive to scammers because they combine three features:

• High unit price (often USD 25,000–80,000 per vehicle)
• Cross-border payments that cannot be reversed easily
• Complex documentation that most buyers do not deal with every day

Fraudsters do not need to steal a car. They only need to steal time, trust, and documentation confidence long enough to get paid.

Two recent trends have made the problem worse.

First, document manipulation has become easier. With modern PDF editing, template reuse, and AI-generated documents, it is now trivial to produce convincing invoices, certificates, and even Bills of Lading that look real to someone who does not work with shipping lines daily.

Second, the growth of “zero-mile used cars” has blurred the line between new and used exports. Vehicles are sometimes registered briefly in China and then exported as “used,” which can affect legality, warranty, customs classification, and resale — especially in markets like Iraq where import rules differ between new and used vehicles.

Scam Type 1: Non-delivery after deposit (the classic)

How it works: A “supplier” asks for a 30–50% deposit, then delays shipping with excuses (port congestion, inspection backlog, sudden policy change), and eventually disappears—or demands more money to “release” the vehicle.

Red flags

• Refuses Letter of Credit (LC) or credible escrow.
• Won’t provide a company bank account matching the business license name.
• Keeps changing the receiving account (“finance is updating accounts”).

How to beat it

• Use LC at sight, or staged payments tied to verifiable milestones (inspection passed, export cleared, BL issued).
• Require the exporter entity to match the bank beneficiary exactly (name + address).

General supplier-fraud warning signs (like unverifiable business identity and refusal of audits) are widely documented in China sourcing. 

Scam Type 2: “Too-good-to-be-true” pricing (bait pricing)

EV pricing moves fast, but extreme discounts often hide one of these realities:

• The car is not the trim you think
• It’s accident/repaired
• It’s a grey-channel unit with no support
• It’s not in stock (they’re selling you a promise)

How to beat it

• Ask for VIN + factory configuration sheet (or dealer system printout) and match it to the exact trim options you need.
• Demand a battery SOH report where applicable (or at minimum, diagnostic screenshots with timestamp + VIN context).
• Price check against multiple exporters; if one quote is radically lower, assume missing facts.

Scam Type 3: Vehicle identity fraud (VIN games, model year tricks, “clone listings”)

How it works: You’re shown photos/videos of a real car, but the delivered car is different—or doesn’t exist.

Common variants:

• VIN not shown, or only shown once in a blurry frame.
• A “2025” listing that is actually a different production batch.
• “Same car, different warehouse” excuses.

How to beat it (simple but strict)

• Require a VIN evidence pack:
  • VIN plate close-up
  • Odometer close-up
  • 360° walkaround video
  • A single continuous video showing VIN → dashboard → exterior (no cuts)
• Do an independent inspection before final payment (see Scam Type 7).

Scam Type 4: Fake documents (Invoice/COO/BL/Insurance) to unlock payment

This is one of the most damaging scams because buyers pay upon receiving documents.

Most forged / abused documents

• Commercial invoice and packing list
• Certificate of Origin
• Bill of Lading (BL) or telex release confirmation
• “Customs clearance proof”

Iraqi importers also need to align paperwork with ZATCA’s vehicle import document expectations (proof of ownership / origin-type documentation requirements). 

How to beat it

• Verify BL directly with the carrier or forwarder (not the contact introduced by the seller).
• If you use a freight forwarder, let your forwarder control shipment booking and BL issuance.
• Add contract language: payment triggers only after carrier-verifiable BL + export clearance proof.

Scam Type 5: “Official dealer / warranty” misrepresentation (grey import trap)

Some sellers imply:

• “We are official”
• “Full warranty in Saudi”
• “Service at any BYD dealership”

In reality, many brands’ dealer networks treat grey imports as out of warranty / unsupported (policies vary by country and brand). BYD dealer statements about refusing warranty for grey-channel vehicles have been reported in some markets. 

How to beat it

• Treat “warranty” as a written contract item, not a promise.
• Ask: Who is the warranty provider? Manufacturer? Local dealer? Third-party? What is the claims process in Saudi?
• If the seller can’t put it in writing with a real entity behind it, assume no warranty.

Scam Type 6: Fake compliance certificates (SASO/SABER, “pre-approved” claims)

For Saudi Arabia, sellers may claim:

• “SABER is already done”
• “SASO certificate included”
• “No inspection needed”

But SABER/SASO conformity is a real system and it’s process-based (product/vehicle category, importer role, documentation, and possibly inspection). SABER has become a core pathway for conformity documentation in Saudi imports. 

For used motor vehicles, Saudi has also moved toward mandatory conformity assessment inspection programmes under SASO technical regulations, with approved inspection bodies (example: Intertek’s announcement). 

How to beat it

• Don’t accept “certificate photos” as proof. Verify through the proper channel and ensure the documents are issued for your importer entity / your shipment.
• Confirm early whether your shipment is treated as new vs used, and what inspection/conformity route applies.

Scam Type 7: “Inspection theatre” (fake inspection reports)

Scammers know buyers ask for inspection—so they fabricate it.

Red flags

• Report has no traceable inspector identity, no serial number, no photo set.
• The inspector is “their friend” or a non-existent agency.
• The seller refuses legitimate third-party inspectors (SGS/TÜV/Intertek or other reputable agencies), or keeps delaying access.

Refusal to allow a third-party inspection is widely recognized as a major export risk indicator. 

How to beat it

• You choose the inspector, you pay the inspector directly.
• Inspection must include VIN verification, condition report, and (for EVs) battery/charging checks to the extent possible.

Scam Type 8: “Zero-mile used car” / grey export manipulation

A fast-growing risk pattern: cars presented as “used” with extremely low mileage, sometimes linked to sales-channel or subsidy-related distortions in certain markets.

Industry reporting has described “zero-mile” used cars and regulatory scrutiny around how some vehicles appear in the used market despite being effectively new. 

Why it matters to Saudi buyers

• Registration history and export classification can affect clearance, insurance, and resale.
• The commercial story (“new car”) may not match the paperwork story (“used car”).

How to beat it

• Demand clarity on the vehicle’s registration status and export category.
• Align the deal structure with Saudi rules and your intended use (personal import, commercial import, resale).

Scam Type 9: Shipping/port scams (fake fees, hostage containers)

How it works: After the vehicle ships (or claims to), you receive surprise charges:

• “Port storage fee”
• “Customs penalty”
• “Release fee”
• “Document legalization fee”

Sometimes the scam is simply: the car never shipped, and the “fees” are the second extraction attempt.

How to beat it

• Your forwarder should be the party receiving real shipping invoices.
• Make sure Incoterms are clear (FOB/CIF/DDP). If a seller offers DDP cheaply, treat it as high risk unless they are a proven operator.

The safest practical workflow (what we recommend Wuxi BYD buyers follow)

If you’re writing this as a Wuxi BYD blog, this section becomes your “value” core—clear, operational, and repeatable.

Step 1: Verify the exporter entity (before discussing price seriously)

• Business license / registration documents
• Company name matches bank beneficiary
• Track record and verifiable trade references

Step 2: Lock the vehicle identity

• VIN evidence pack (continuous video)
• Trim/options confirmation
• Battery/charging condition evidence (reasonable diagnostics)

Step 3: Confirm Saudi import pathway early

• Document checklist aligned with ZATCA import expectations 
• If used vehicle: confirm SASO/SABER conformity assessment and inspection route 

Step 4: Use inspection + payment controls

• Independent inspection (you appoint)
• LC / escrow / staged payments
• Contract clauses for mismatch + penalties

Step 5: Control logistics

• Use your forwarder when possible
• Verify BL with carrier
• Avoid document-only “proof”

A simple “red flag score” you can publish (very shareable)

If 2 or more are true, treat the deal as high risk:

• Seller won’t allow third-party inspection 
• Payment requested to a personal account or mismatched beneficiary
• No verifiable VIN evidence pack
• Documents provided only as photos, no verification route 
• “Warranty in Saudi” promised without a written provider 
• Pressure tactics: “pay today or lose the car”

Conclusion

Most EV import losses don’t come from “not knowing China”—they come from not controlling verification. If you (1) lock the vehicle identity, (2) use independent inspection, (3) tie payments to verifiable shipping milestones, and (4) align early with Saudi documentation and conformity requirements, you eliminate the majority of scam outcomes. 

FAQ

2) How do I verify the car is real before I pay?

Ask for a VIN evidence pack (continuous video), then hire an independent inspector to confirm VIN, condition, and key EV functions.

3) Are third-party inspections really necessary?

Yes—especially for high-value vehicles. Refusal to allow independent inspection is a major red flag. 

4) Can Bill of Lading documents be faked?

Yes. Always verify BL details with the carrier/forwarder directly, not via contacts introduced by the seller.

5) Will I get local warranty support in Saudi if I buy through a China exporter?

Not automatically. Grey-channel vehicles may be excluded from dealer warranty support in some markets, so treat warranty as “none” unless contractually guaranteed by a real provider. 

6) What Saudi documents matter most for import clearance?

ZATCA highlights the need for documentation proving ownership/origin-type paperwork (requirements vary by export region and case). Build your document set around ZATCA guidance. 

7) Do used EVs require SASO/SABER conformity steps?

Saudi has implemented conformity assessment programmes for used motor vehicles under SASO technical regulations and uses SABER as a key platform in the conformity system. 

8) What are “zero-mile used cars” and why are they risky?

They’re vehicles sold as “used” despite being nearly new, and reporting has noted scrutiny around such patterns. The risk is paperwork/registration mismatch and unclear channel legitimacy.