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Action List for Late Delivery from Chinese Supplier-CTD 101 Series

Thu, 26 May 2022
Contributors: Meng Yu 余萌
Editor: C. J. Observer

Firstly, these are actions that you can take on your own in the event of late delivery from some Chinese suppliers, in case you want to try to push the supplier to deliver or terminate the deal yourself before seeking professional advice.

This post was first published in CJO GLOBAL, which is committed to providing consulting services in China-related cross-border trade risk management and debt collection. We will explain how debt collection works in China below.

Please take immediate action upon late delivery! Start in a friendly manner and move forward in a more “threatening” tone!

Step 1 – Remind of delivery or postponed delivery

  • Have the other party admit in an e-mail that he/she didn’t deliver on schedule.
  • You are probably willing to save the deal, so you will agree to the delivery on a later date. However, in any case, a new delivery date must be set in an e-mail.
  • Send these reminders in e-mail and save these e-mails for future evidence.

Step 2 – Remind of the delivery once again

  • If the goods are not delivered on the new date, please remind again and have the other party admit in the email that he/she has missed the delivery date.
  • Tell the other party again that his/her delay has frustrated the “contractual purpose” of the transaction essentially, so you will terminate the contract.
  • Tell the other party what kind of claims you will lodge in case of contract termination, and that you will engage a Chinese debt collection agency or lawyer.
  • If you can get the other party to agree with your termination and claims in an email, it will be better.
  • Give two reminders at most. (in order not to undermine the seriousness).

Step 3 – Terminate the Contract

  • If there is still no delivery after reminding the other party twice, you may consider terminating the contract by notifying the other party.
  • Once the contract is terminated, you may request the other party to refund all the money you have paid.
  • Once the contract is terminated, the other party will not have the opportunity to send deliveries to you at a time when you are reluctant to continue to pay him/her.
  • Tell the other party a date by which he/she shall compensate you, including the return of the down payment.

Step 4 – Engage a Third Party

If the other party fails to compensate you, you may consider engaging a debt collection agency or law firm to claim damages against the other party.

 

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(2) Debt Collection
(3) Judgments and Awards Collection
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(6) Trade Contract Drafting and Review

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Photo by Markus Winkler on Unsplash

 

Contributors: Meng Yu 余萌

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