Settlement System

The Settlement System is a process-oriented tool or platform used in foreign trade to handle claims and settlements, typically involving scenarios such as insurance claims, cargo loss claims, and letter of credit disputes. Its core functions include: case registration, document review, liability determination, amount calculation, payment tracking, and archiving. It is commonly used when exporters claim against insurance companies for cargo damage, importers claim against sellers for quality non-conformity, or banks handle claims for letter of credit discrepancies. Precautions: ensure complete documentation (e.g., insurance policy, inspection report, invoice), timeliness (e.g., insurance claims must be filed within 60 days), and clear liability allocation (e.g., risk transfer point under FOB). Unlike a 'dispute resolution system,' the settlement system focuses more on economic compensation rather than legal adjudication; it differs from a 'payment system' in that the latter handles normal payment settlements, while the settlement system deals with compensation after breach or loss. Enterprises should establish standardized claims procedures to reduce bad debt risk and maintain customer relationships.