Customer Compensation Logistics

"Repair Customer Compensation Logistics" is not a standard international trade term (such as Incoterms), but rather an internal expression in foreign trade practice regarding compensation for logistics costs incurred in after-sales repair. It means: when an exported product has quality issues requiring repair, the customer (buyer) advances logistics costs to ship the defective item or replacement parts back or out, and the responsible party (usually the seller/supplier) ultimately compensates these costs. It is commonly used in after-sales claim negotiations, repair agreements, or warranty clauses. Notes: It is necessary to clarify the scope of compensation (freight only or including duties and insurance), liability attribution (whether it falls within warranty coverage), compensation method (cash refund or deduction from payment), and time limits. Unlike "return logistics," which involves full batch returns, this term focuses on one-way or two-way logistics compensation related to repairs; compared to "warranty costs," it specifically refers to the logistics portion, excluding repair labor or material costs.