Technical error or how to avoid exceeding 2 million USD
23 February, 2023
10
Non-payment for the goods is a widespread problem in trade contract performance. The Client, UAE resident acting as the Seller under the Sale & Purchase Contract on Ukrainian corn, whereunder the Buyer was resident of the Netherlands, applied to Interlegal for assistance. Based on trade contract, the Seller should have delivered Ukrainian corn to one of the People’s Republic of China sea ports.
In order to facilitate compliance with Protocols of Phytosanitary & Inspection Demands on corn export from Ukraine to China, there are Lists of persons planning corn export to PRC and Lists of storages for corn export to PRC, both approved by General Administration of Customs of the People’s Republic of China (GACC). In fact, Ukrainian corn delivery to China shall be possible only if the exporter is accredited in China and is entered in the above GACC-approved lists.
Of course, the Exporter was included into above list – but with a technical error in company postal code. Therefore, the Buyer had doubt about registration of the Exporter in GACC-approved lists and import of corn under Chinese law with regards to error in postal code. Due to such circumstance, the Buyer rejected payment for the goods in full within the term prescribed by the contract, so indebtedness exceeded 2 million USD.
Following analysis of all the documents and negotiations in the framework of amicable dispute settlement, the Client received payment for the goods in full.
Due to correct tactics and legal support of the deal, Interlegal law team (namely, associate attorney Igor Kostov managed by partner Alexey Remeslo facilitated successful performance of trade contract by both Parties.
Our law firm provides comprehensive legal assistance to our client and help to solve the most complex cases.