1、 CHAPTER 16 INSPECTION,CLAIM,FORCE MAJEURE AND ARBITRATIONn Commodity Inspection n Claimn Force Majeuren Arbitration1 Commodity InspectionImportance of commodity inspectionnAn indispensable part in the transfer of the goods.nA buyer has not lost his right to reject the goods unless and until he has
2、had a reasonable opportunity of examining them.nOn most occasions,inspection by authoritative,impartial inspection bodies is required.nThe certificates issued by inspection bodies serve as proofs for transferring the goods,lodging and settling claims.2.Time and places of commodity inspection(1)Provi
3、sions in CISG (Article 38)The buyer must examine the goods,or cause them to be examined,within the shortest period.If the contract involves carriage of the goods,examination may be deferred until after the goods have arrived at their destination.If redirected in transit or re-dispatched,theseller kn
4、ew or ought to have known of thepossibility of such redirection or re-dispatch,examination may be deferred until the goods havearrived at the new destination.(2)Three ways of stipulating the place and time of inspection in the contract Shipping quality and weight;Landed quality and weight;Inspection
5、 at the port of shipment and re-inspection at the port of destination.()3.Commodity inspection bodyGovernmentalAQSIQ:General Administration of Quality Supervision,Inspection and Quarantine(China)FDA:Food and Drugs Administration(USA)SGS:瑞士日内瓦通用鉴定公司瑞士日内瓦通用鉴定公司UL:美国保险人实验室美国保险人实验室 Lloyd Surveyor,B.V.英国
6、劳合氏公证行英国劳合氏公证行NKKK:日本海事鉴定协会日本海事鉴定协会Non-governmentalThree basic tasks of the State Commodity Inspection authorities(China):Statutory InspectionFormulate the List of Import and Export Commodities Subject to Inspection Enforced by the Commodities Inspection Authorities System of import safety license a
7、nd export quality license.Hygiene registration system.Quality certification marks.Commodity inspection marks.Supervision and controlSurveyAccept the entrustment for surveying service of import and export commodities4.Commodity inspection standardsThe mandatory standards;(2)The standards stipulated i
8、n the contract;(in the absence of mandatory standards or the mandatory standards are lower)(3)The standards of the producers country.(if the above two are not available)5.Commodity inspection clause “It is mutually agreed that the Inspection Certificate of Quality and Quantity(weight)issued by the C
9、hina Import and Export Commodity Inspection Bureau at the port of shipment shall be part of the documents to be presented for negotiation under the relevant L/C.The Buyers shall have the right to re-inspect the quality(weight)of the cargo.The re-inspection fee shall be borne by the Buyers.”2 Claim L
10、iabilities of breach of contract(1)Implication of breach of contract Breach of contract:Actual failure or refusal to perform contract without a legitimate legal excuse.Seller:lfails to deliver the goods;lfails to deliver the goods within stipulated time;ldelivers the goods that do not conform to the
11、 contract.Buyer:lfails to open the relevant L/C;lwrongly refuses to accept the goods;lfails to dispatch vessel under FOB.(2)Liabilities of breach of contract 2.Claim clause in the contractDiscrepancy and claim clause “Claim:Any claim by the Buyers regarding the goods shipped shall be filed within 30
12、 days after arrival of goods at the port of destination specified in the relative Bill of Lading and supported by a survey report issued by a surveyor approved by the Sellers.”(2)Penalty clause Penalty clause regarding the Sellers delay in delivery “Should the Sellers fail to make delivery on time a
13、s stipulated in the contract,the Buyers shall agree to postpone the delivery on condition that the Sellers agree to pay a penalty which shall be deducted by the paying bank from the payment under negotiation,or by the Buyers direct at the time of payment.The rate of penalty is charged at 0.5%of the
14、total value of the goods whose delivery has been delayed for every seven days,odd days less than seven days should be counted as seven days.But the total amount of penalty,however,shall not exceed 5%of the total value of the goods involved in the late delivery.In case the Sellers fail to make delive
15、ry ten weeks later than the time of shipment stipulated in the contract,the Buyers shall have the right to cancel the contract and the Sellers,in spite of the cancellation,shall still pay the aforesaid penalty to the Buyers without delay.”Penalty clause regarding the Buyers delay in opening of L/C “
16、Should the Buyers for its own sake fail to open the letter of credit on time stipulated in the contract,the Buyers shall pay a penalty to the Sellers.The penalty shall be charged at the rate of 0.5%of the amount of the Letter of Credit for every ten days of delay in opening the Letter of Credit,howe
17、ver,the penalty shall not exceed 5%of the total value of the Credit which the Buyers should have opened.Any fractional days less than ten days shall be deemed to be ten days for the calculation of penalty.The penalty shall be the sole compensation for the damage caused by such delay.”3 Force Majeure
18、1.The meaning of force majeure n An impediment beyond control,which the contracting party could not reasonably be expected to have taken into account at the time of concluding the contract or to have avoided or overcome it or its consequences.n Natural phenomena:earthquake,flood,tempest,war Social f
19、actors:governmental prohibition of import and export of certain commodities,etc.2.The consequences of force majeureTermination of contract:If the basis of the contract has been damaged or destroyed.Example:the fire has burnt a famous painting by Pablo Picasso.Suspension of contract:If the performanc
20、e of contract is just delayed by a force majeure case temporarily or for a short time.Example:a delayed shipment because of industrial strike.3.Force majeure clause in the contract(1)The scope of force majeure events;(2)Time limit of notifying the other party;(3)The issuer of the certificate.“Force
21、majeure:If the shipment of the contracted goods is prevented or delayed in whole or in part by reason of war,earthquake,flood,fire,storm,heavy snow or other causes of Force Majeure,the seller shall not be liable for non-shipment or late shipment of the goods or non-performance of this contract.Howev
22、er,the seller shall notify the buyer by telex or fax and furnish the latter by registered airmail with a certificate issued by the China Council for the Promotion of International Trade attesting such event or events.”4 Arbitration The ways of settlement of disputes Conciliation:Disputes can be sett
23、led in an amicable way(2)Arbitration:Most popular method.(3)Litigation:expensive,slower,unfriendly atmosphere.2.Features of arbitrationA written agreement to resolve disputes by arbitration between the parties to a contract is required.The arbitration body is a civilian institute,which does not have
24、 statutory jurisdiction.Arbitration awards are final and binding without the recourse to appeal or retrial(复审复审).The arbitral award is legally enforceable.3.Advantages over court proceedingsSpeed:In many cases an arbitration can be heard without the long delay as it is possible to choose arbitrators
25、 to suit the timetable of the parties.(2)Flexibility:Parties to an arbitration contract are free to customize and refine the basic arbitration procedures to meet their particular needs.(3)Confidentiality and Goodwill:Without the consent of the parties,a third party will not be allowed to participate
26、 in the process.Hearings are usually held in a less adversarial setting.4.Arbitration agreement(1)Place of arbitration:in the country of either party,or in a third country.(2)Organization of arbitration:permanent or provisional;Permanent:Arbitration Court of International Chamber of Commerce,China I
27、nternational Economic and Trade Arbitration Commission.(3)Procedure of arbitration:(4)Applicable rules of arbitration:In principle,the rules in the arbitration place.But arbitration rules do not always go with the arbitration place.(5)Award of arbitration The arbitration clauses often bear such word
28、s that“The arbitration award is final and shall have binding force upon the two parties”so as not to cause ambiguities.(6)Fees of arbitration An arbitration clause shall provide that the arbitration fees shall be borne by the losing party.(6)Fees of arbitration “Any dispute,controversy or claim aris
29、ing out of or relating to this contract,or the breach,termination of invalidity thereof,shall be settled amicably through negotiation.In case no settlement can be reached through negotiation,the case shall then be submitted to the China International Economic and Trade Arbitration Commission of the
30、China Council for the Promotion of International Trade,Beijing for arbitration in accordance with its Rules of Arbitration.The arbitral award is final and binding upon both parties.The arbitration fees shall be borne by the losing party.”5.Enforcement of an awardn Must automatically execute;n In cas
31、e one party fails to execute,the other partyn may apply to the competent court for enforcement;n Within the territory of China,apply to the Intermediate Peoples Court;n Outside China,if the country in which the residence or the property of the losing party is located has already accede to“the 1958 Convention on the Recognition and Enforcement of Foreign Arbitral Awards”,the other party may apply to the competent court in that country.
