Claim Handling refers to the entire process in the performance of a foreign trade contract where, after one party files a claim for compensation due to the other party's breach of contract, non-conforming goods, damage, delayed delivery, etc., both parties accept, investigate, negotiate, settle, or reject the claim. Usage scenarios include the buyer claiming against the seller for quality defects, the seller claiming against the buyer for refusal to pay, or claims against the carrier/insurance company. Notes: Claims must be filed within the contractual claim period and supported by inspection reports, bills of lading, invoices, etc.; a distinction should be made between filing a claim and claim settlement—the former is making a demand, the latter is processing and concluding the claim; also pay attention to the linkage with force majeure and exemption clauses. Unlike dispute resolution, claim handling focuses more on business negotiation and the settlement process and does not necessarily involve arbitration or litigation.
📝 Examples
1. After receiving the goods, the buyer found that 30% were rusted and immediately sent a claim letter to the seller demanding compensation for losses; the seller initiated claim handling procedures, commissioned a third-party inspection, and negotiated a settlement plan. (Note: The buyer filed a claim, and the seller handled the claim.)
2. Due to improper custody by the carrier, the goods were short-delivered. While claiming against the carrier under the bill of lading, the seller also submitted a claim handling application to the insurance company to expedite the settlement process. (Note: Claim handling was conducted separately with the carrier and the insurance company.)
💡 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