Settlement Process

The Settlement Process refers to the standardized procedures for handling claims and compensation in foreign trade, typically arising from loss, damage, delayed delivery, or quality discrepancies of goods. Its core steps include: filing a claim and notice of claim, submitting supporting documents (such as inspection reports, bills of lading, invoices, insurance policies), determination of liability, negotiation of compensation amount, signing a settlement agreement, and actual payment. It is commonly used in dispute resolution under letters of credit, documentary collections, or open account transactions, especially involving marine insurance or carrier liability. Precautions: first, observe the statute of limitations for claims (e.g., for sea cargo claims, written notice is usually required within 3 days after taking delivery, and the limitation period for litigation is 1 year); second, retain a complete chain of evidence to avoid claim rejection due to incomplete documents; third, distinguish the 'settlement process' from the 'dispute resolution process'—the former focuses on compensation execution, while the latter may include arbitration or litigation. Compared with 'claim', the settlement process emphasizes full-process management from application to case closure.