Repair Contract

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📖 Detailed Explanation

A Repair Contract is a type of service contract in international trade for the repair, maintenance, or refurbishment of equipment, machinery, or products. It typically applies when exported equipment fails outside the warranty period, or when the importer entrusts the exporter to repair old equipment and then re-export it. Unlike a general sales contract, the core of a repair contract is the provision of repair services rather than the transfer of ownership of goods, so its subject matter, price, delivery method, risk bearing, and customs declaration are subject to special provisions. Points to note include: clarifying the scope of repair, ownership and cost of replacement parts, repair period, quality assurance, and customs procedures for re-import or re-export of goods after repair (such as temporary import/export, declaration of repaired items). Compared with an after-sales service contract, a repair contract focuses more on specific fault repair actions, while an after-sales service contract may cover broader content such as installation, training, and regular maintenance. In addition, a repair contract may involve intellectual property, confidentiality clauses, and limitation of liability, which need to be specified in detail in the contract to avoid disputes.

📝 Examples

1. Our company signed a repair contract with a German customer, agreeing that we would send technicians to Germany to repair their production line equipment. The repair fee is 50,000 euros, and the cost of replacement parts is charged separately. (Note: Cross-border repair services, involving personnel dispatch and cost composition) 2. According to this repair contract, the importer must declare the faulty construction machinery for export as 'items for repair', and re-import it after repair is completed. Customs will handle tax-free release procedures based on the repair contract and the original export declaration form. (Note: The repair contract is used for customs temporary import/export declaration, clarifying the re-import requirement)

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