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What if Different SGS Branches have Different Inspection Results when Purchasing from China?-CTD 101 Series

Thu, 13 Jul 2023
Editor: C. J. Observer

You’d better choose a branch of SGS as your quality assurance agency in advance.

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.

One of our customers from Indonesia purchased a batch of household chemicals from China and paid 30% in advance, and the rest should be paid within 90 days after delivery.

Upon receipt of the goods, the Indonesian purchaser took a sample and found the goods to be of unsatisfactory quality. It therefore commissioned the SGS Indonesia branch to provide an inspection report, which also supported his claim.

The Chinese supplier then commissioned the SGS Shanghai branch to provide an inspection report, which showed that the quality was satisfactory.

How could this happen?

In our experience, there may be differences in quality standards between SGS branches(offices) in different countries. Therefore, the above scenario may occur.

What should traders do?

We suggest that the contracts clearly state which inspection body is responsible for the inspection results, and even which branch of that body shall be involved.

If you have not agreed this in the contract, you can also confirm this in the email.

* * *

Do you need support in cross-border trade and debt collection?

CJO Global's team can provide you with China-related cross-border trade risk management and debt collection services, including: 
(1) Trade Dispute Resolution
(2) Debt Collection
(3) Judgments and Awards Collection
(4) Bankruptcy & Restructuring
(5) Company Verification and Due Diligence
(6) Trade Contract Drafting and Review

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Photo by Mufid Majnun on Unsplash

Contributors: CJO Staff Contributors Team

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