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    Approach and method on claim for compensation in foreign trades

     
          What approach can be used on claim for compensation in foreign trades and how to conduct?
    1) In general, on claim for compensation in foreign trades due to problems
    caused by quality, quantity, weight, packing or security, senitation and etcs, it can be solved by following approach:
    ① Declare to Inspection & Quarantine Authorities to inspect and claim for compensation according to the inspection certificate issued by the above mentioned authorities;
    ② Report to the import company and let it contact with foreign tradesman to solve it through friendly negotiation;
    ③ Claim for compensation to relevant parties who were responsible according to documents issued by transportation units, such as, Overlanded/Shortlanded Cargo List issued by Tally units, commercial record by land transportation unit, and air or post accidents record.
    ④ In case foreign representatives come to inspect the cargo before opening the case or they should be responsible for installation and ajustment, the quality problems found should be recorded and signed by both parties or a memo should be made by them, then it can be solved via friendly negotiation. The results solved should be reported to the import company and Entry & Exit Inspection and Quarantine Authorities respectively.
    ⑤ In case the problem can not be solved according to usual approach, it can be solved through arbitration in accodance with stipulations in contract.
    ⑥ In case that all the above methods be used and the problem still can not be solved, it can be resolved by litigation.
    2) Different methods should be adopted on claim for compensation according to different claimed objects. In general, claimed objects could be divided into four parties: consignor(Seller), carrier(Ship’s party, airlines, railways and posts) Insurer and load/discharging party. Claim for compensation could be carried out through claim to relevant responsible parties by foreign trade operation units or foreign trade transportation units.  
    ① Claim for compensation to foreign tradesman can be conduct based on inspection certificate in the following cases: Quality, Specification, capability, Efficiency that did not conform to stipulations in trade contract, shortage of Weight & Quantity, inefficiency of Packing or cargo damaged due to the responsibility of foreign consignor, and cargo damage & shortage due to responsibility of foreign insurer.
    ② If the cargo damage & shortage were due to the responsibility ship’s party, the short-discharging quantity could be claimed according to shortlanded cargo list signed by ship’s parties. Claim for compensation arising from damaged cargo can be conducted by means of inspection certificate.
    ③ If the responsibility attributed to foreign railway, Claim for compensation could be conducted by delivery railway station according to its commercial record handed to delivery station. If the degree of damage and shortage of weight and quantity are needed to be determined, it is possible to apply Entry-Exit Inspection and Quarantine Authorities to survey and issue certificate, which will be used for claim together with business record.
    ④ If the responsibility attributed to foreign airline or post, Claim for compensation could be conducted by CAAC or GPO according to air accident or post damage & shortage record handed. If the degree of damage and shortage of weight or quantity are needed to be determined, it is possible to apply Entry-Exit Inspection and Quarantine Authorities to survey and issue certificate, which will be used for claim together with air accident or post damage & shortage record.
    ⑤ If the Responsibility attributed to civil transportation units or loading-discharging units, it is possible to claim civil transportation units or loading-discharging units to issue business record or damage & shortage record, and negotiated with parties concerned directly. 
    ⑥ If the responsibility attributed to insurance coverage by civil insurance company for damage or shortage, it is possible to report to insurance company in site to request examination and issue report, then conduct claim to insurance company according to examination report. If the insurance company has had reinsurance and so needed inspection verification, it is possible to apply Entry-Exit Inspection and Quarantine Authorities to survey and issue certificate. 
     
     
    Copyright :LiaoNing Entry-Exit Inspection and Quarantine Bureau
    Address:No.60,Changjiang East Road,DaLian,China Postcode:116001
    Supported by LNCIQ TEL:86-411-82583163
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