Label Error refers to discrepancies between the label information on export goods packaging or products and the requirements of the contract, letter of credit, or importing country regulations, including errors in product name, ingredients, origin, quantity, warnings, barcodes, etc. Commonly seen in food, cosmetics, electronics, etc. Usage scenarios: customs detention, rectification requests, or fines during importer clearance; buyer rejection; e-commerce platform delisting. Precautions: Label regulations vary greatly by country (e.g., US FDA, EU CE), must confirm in advance; in letter of credit transactions, label errors may constitute discrepancies leading to bank refusal; responsibility must be clearly divided among factory, trader, or freight forwarder. Difference from 'Packaging Error': Label Error focuses on textual information, Packaging Error focuses on physical protection or specifications; Difference from 'Shipping Mark Error': Shipping Marks are transport identifiers, Labels are product information. Prevention: Verify label samples before shipment, third-party inspection, allow time for rectification.
📝 Examples
1. Due to a label error, the ingredient list on the goods failed to declare allergens, causing the entire batch to be detained by customs at the destination port; we had to arrange re-labeling and pay a fine. (Illustrates label errors causing customs clearance issues and extra costs)
2. The letter of credit required the label to state 'Made in China', but the actual label erroneously printed 'Made in PRC'; the bank refused payment on this ground, and we could only contact the buyer to amend the letter of credit. (Illustrates label errors leading to letter of credit discrepancies and refusal risks)
💡 Foreign Trade Tips
Foreign trade terms are the foundation of international business communication
Trade practices may vary slightly by country; pay attention when using them
When using terms in contracts, specify the applicable version (e.g., Incoterms 2020)
For unfamiliar terms, use GlobalSync's multilingual email helper to confirm with your partner