Settlement Record refers to a written document in foreign trade business that records the final compensation or handling decision made by an insurance company, shipping company, or buyer and seller regarding claims for cargo damage, cargo shortage, short delivery, delayed delivery, etc. It usually appears in insurance claims, carrier liability determination, or trade contract dispute resolution, and is an important basis for subsequent financial write-off, liability tracing, and credit evaluation. Usage scenarios include: exporters obtaining a settlement record after claiming against an insurance company; importers claiming compensation from a shipping company for cargo loss and forming a record; or in letter of credit transactions, banks requiring the submission of a settlement record as one of the negotiation documents. Precautions: A settlement record should state the case number, claim amount, compensation amount, responsible party, processing date, and signature/seal, and should not be confused with a 'Claim Record,' which only records the claim request and does not include the final compensation result. Unlike a 'Notice of Rejection,' a settlement record reflects a settled claim. Foreign trade practitioners should properly keep settlement records to respond to tax audits, foreign exchange write-offs, and future dispute evidence.
📝 Examples
1. Due to a typhoon causing containers to fall into the sea, our company submitted all documents to the insurance company and received a settlement record two weeks later, showing a compensation ratio of 80% of the invoice amount. (Note: Here the settlement record serves as proof of the insurance compensation result and is used for financial entry and write-off.)
2. When reviewing documents under a letter of credit, the bank found that the settlement record issued by the shipping company was missing, so it refused negotiation and required the beneficiary to submit it. (Note: Here the settlement record is one of the documents required by the letter of credit, and its absence will result in a discrepancy.)
💡 Foreign Trade Tips
Foreign trade terms are the foundation of international business communication
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