Repair Exception

Repair Exception is a common clause in international trade contracts that allows the buyer or seller to return goods to the country of origin for repair when they are faulty or damaged, without having to re-pay import duties or be subject to import quotas. This term typically appears in after-sales service, quality assurance, or long-term supply agreements, and applies to high-value durable goods such as machinery and electronic products. Use cases include: free repair within the warranty period, paid repair beyond the warranty period, and recall repair due to design defects. Precautions: It is necessary to specify the repair period, the party bearing the costs, transportation responsibilities, and the procedures for re-importing the goods after repair; it should also be noted that 'Repair Exception' does not apply when goods are replaced or upgraded, otherwise customs may classify it as a new import and impose duties. The difference from 'temporary import and export' is that Repair Exception emphasizes the purpose of repair rather than exhibition or testing; the difference from 'returned goods' is that Repair Exception usually retains the original transaction relationship, while returns may involve refunds. In addition, companies need to cite relevant free trade agreements or customs regulations in the contract to ensure tariff reductions.