Customer Compensation Delivery

"Customer Compensation Delivery" is a non-standard term in foreign trade after-sales processes. It refers to a delivery action where the seller compensates the customer in kind (usually replacement parts, new batch products, or compensatory goods) due to product quality or repair issues. Common scenarios include: the customer complains that the product still cannot be used normally after repair, the repair cycle is too long causing losses to the customer, or both parties agree to offset repair costs with goods. Precautions: 1) The contract must clearly specify the trigger conditions for compensation delivery, the method for calculating the value of goods, and the party responsible for tariffs; 2) Compensation delivery may involve free replacement, but customs declaration still needs to be made under trade modes such as "free of charge" or "samples" to avoid being deemed as undervaluation; 3) Unlike "return and refund" or "discount compensation," this term emphasizes completing compensation through physical delivery rather than cash refund. Differences: Compared with "after-sales repair delivery," the latter only refers to returning the item after repair and does not include a compensatory nature; compared with "quality claim delivery," the latter may include penalties or additional compensation, while this term focuses more on directly offsetting customer losses through the delivery action. It is recommended to note "Compensation Delivery – No Commercial Value" in the PI or compensation agreement to simplify customs clearance.