Chapter 14 Claims & Arbitration

Chapter 14Claims & Arbitration By: Grace Xia xiahuiweihai@yahoo.com

Part I Introduction I. Disputes often occur in the following situations: a. the wrong goods delivered b. they quality of the goods delivered c. poor packing d. short delivered e. shipment delayed f. the goods damaged

II. When dealing with claims, pay attention to : a. the matter should be investigated completely; b. then study and find out the real cause; c. who should be held responsibility; d. the details of facts should be laid before the party of charge; e. When writing the facts, we should carefully choose the wording and avoid unclear or misunderstanding sentences.

III. Arbitration practices in China I) If no settlement can be reached through friendly negotiation, the both parties will usually refer the dispute to arbitration on voluntary basis of the both parties. II) A provision for arbitration is generally stipulated in the bilateral trade agreement. III) The FTAC (Foreign Trade Arbitration Committee) and MAC (Maritime Arbitration Committee) take cognizance of disputes on the condition that there is an arbitration agreement concluded between two parties.

IV) The arbitration agreement should be written in the original contract, correspondence exchanged between two parties. V) The following arbitration clause is usually included in the contract: “Any disputes arising from the execution of or in the connection with the contract shall be settled amicably through friendly negotiations. In case no settlement can be reached through negotiation, the case shall then be submitted to the FTAC or MAC of the CCPIT Beijing for arbitration in accordance with its provisional rules of procedure. The award is final and binding upon both parties.”

VI) The Chinese court of law don’t seize cases of foreign trade and maritime arbitration agreement is enforced. VII) Arbitrator shall be chosen from members of FTAC or MAC. VIII) The following items must be specified in the application for arbitration: a. the name and address of plaintiff and the name and address of defendant b. the statement of facts c. the claim of plaintiff and facts upon which the claim is based

d. the name of arbitrator chosen by plaintiff e. original relevant documents such as contract, arbitration agreement, correspondence between two parties IX) When submitting an application for arbitration, the plaintiff shall pay a sum equivalent to 0.5% of the amount of claims as a deposit for the fee of foreign trade arbitration or a sum equivalent to 1% of the amount claim as a deposit for the fee of maritime arbitration.

X) The date for hearing the case shall be decided by the chairman of FTAC or MAC in consultation with the presiding arbitrator or sole arbitrator, and then shall notify the disputing parties in time. XI) The disputing parties in person or through appointed attorneys attend hearing. XII) The award is decided by majority vote. XIII) The award shall be read to disputing parties at the closing session of hearing

XIV) The award shall be made in written within 15days from the day of reading. XV) The arbitration award is final and binding. XVI) The arbitration fee shall be written in the award. The amount of which shall in no case exceed 1% of the claim in the case of foreign trade arbitration or 2% of the claim in the case of maritime arbitration.

Part II Formula Expression I. Claims about the goods wrongly delivered 1. 我们收到的货与所订的货样不符，我们遗憾地说，我们不得不退回这些货物，并希望你们尽早代之以正确的货物。 C: GDSRCVD NTTALLYWZ SPLODRD RGRTHVTO RTNGDS HPRTGDS REPLACED 2.经检查，我们发现你方发送给我方错误的货物，请告知我方，你方希望如何处理这批货物。 C: AFRCHK FOUND YHVSENT WRGGDS PLSADV HOWTO DISPOSE THESEGDS

3. 我方在订单中规定货号应为HB101和HB102,但运来的却是HB103和HB104。我方目前不可能利用它们，尤其因为我们有很多这两个货号的库存。 C: ARTNOS HB101 HB102 STPLTD INOURODR HWVR GDSARVD HB103 HB104 STOP TWOITEMS WELLSTKD VCANT MKUSE

II. Settlements for complaint about wrong delivery 1.错发的货物请由下一班轮运回，费用由我们负担，但如能在你方市场处理，将是我们所盼望的。 C: WRGGDS MAYBERTND PERNEXTS/S BUTHP YCAN DISPOSE INYRMKT 2.你方愿意接受错发的货物非常感谢，我方可以按发票价值降低10%，希望你方同意。 C: TKS YWLKP WRGLYDLVRD GDS VRDYALW 10PCT OFFINVPRC HP YRAPRVL

III. Complaints about quality 1.在目的港复验后，发现“王子号”轮所载第1105号合同项下的一批货物质量与合同规定不符。 C: S/C1105 AFRINSPCTN AGN ATPORTOF DEST CONSMTQLY SHPDBYS/S PRINCE NTTALLYWZ STPLTNS 2.我方SD104号订单下运来的货物质量与协议规格不符，因此凭所附中国商检局的报告必须向你方索赔，金额计2万美元，请尽早结案。 C: OURODR SD104 GDSQLY NTTALLYWZ SPEC STOP CLAIM FORAMT USD20000 BASEON CCIB SURVEYRPT SENTHRWZ REQG STTLMTASAP

IV. Settlements about quality 1.产品与样品间存在的这种差异是正常的，也是允许的，所以要求索赔是不切实际的。 C: SUCH DEVIATN BTWN PRDCTS SPLSS NORMALLY ALWD STOP CLAIM INPRCTCBL 2. 我们对这批货物正在追查原因，一俟发现货物的问题所在，立即电告你方。 C: HVGCONSMT TRACED STOP TROUBLE ASALOCATD VSHLINFU BYCBL

V. Claims about poor packing 1.深感遗憾，我方不得不对来货包装提出申诉，我们发现每件都或多或少有渗漏。 C: RGRT HVTO COMPLAIN CONSMTPKG BCOZ EACHLEAKG MOREORLESS 2.经彻底检查表明，破袋是由于包装不良所致，肯定应由供货人负责。 C: THOROCHK SHOWD BROKENBAGS DUETO IMPROPER PKG RSPON BYSUPLRS

VI. Settlements about packing 1.包装公司不同意所用材料有缺点的说法，因为过去从未有过这种申诉，他们认为这一定是野蛮装卸、搬运所致。 C: PKRS NTAGREE DEFECTD MATERIAL USED NOCOMPLNTS B4 THEYTHINK ROUGHHDLG RSPON 2.我们惊讶地获悉你方第45号订单下20箱到货中有5箱受损。 C: SURPRISED YRODR45 GDS20C/S OFWCH 5C/S DAMAGD

VII. Complaints about delayed shipment 1.因为火灾我方工厂停产两周，尽管多方努力，我们仍不可能弥补火灾造成的延误。 C: PRDCTN HELDUP BYFIRE FORTWOWKS THOEFFORTS IMPSBL MKUPFOR DLAY 2. 对这次延误我们深为抱歉，你方一定了解，延误系在我方无法控制的情况下造成的。 C: SRYABT ZSDLAY YWLREALIZE DUETO CONDTNS BEYOND OURCONTRL

Chapter 14 Claims & Arbitration