How would one be compensated for moldy, smelly, rotten dry beans, condemned by Port health authority, received in Africa from China and paid in full. The goods are not up to specs of the signed Sales Contract. The supplier is trying to pass the compensation claim to his insurers although the insurance contract is only a maritime cover. Also, the supplier’s refusing to reimburse our advance payment for future shipments that we have since cancelled. They are stating that the Chinese Exchange Control cannot allow them monetary reimbursement at all.
Based on the situation as you describe it, a Chinese lawyer could argue that the product was not fit for function and supplier should provide compensation.
Please advise if you wish to have my lawyer help out. I am on the board of advisors at www.AsiaBridgeLaw.com which is an English speaking, China based firm providing affordable and professional support to buyers like you.
BTW, “we can’t pay you because of current regulations” is a common stall tactic. Tell them you will accept RMB in Hong Kong and convert it to your currency yourself.
Also, here are some blog posts I did about lawsuits in China:
Hope the above information helps you. Let me know how things work out.
Question answered by Mike Bellamy, host of “Ask the Experts” at the China Sourcing Information Center.
Mike Bellamy is an Advisory Board Member & Featured Blogger at the not-for-profit China Sourcing Information Center (www.ChinaSourcingInfo.org). He is also the author of, “The Essential Reference Guide to China Sourcing” (chinasourcinginfo.org/book) and founder of PassageMaker Sourcing Solutions (www.PSSchina.com )