In foreign trade practice, 'Customer Compensation Customer' is not a standard international trade term, but a description of a specific after-sales handling process. It refers to a situation where, due to quality or repair issues with the goods, the seller (exporter) provides compensation to the buyer (importer/customer), while the buyer may need to return the damaged or to-be-repaired goods or entrust a third party for repair. This term emphasizes that the compensation target is the 'customer' and is often linked to repair responsibility. Usage scenarios include: exported products malfunction, the customer requests repair or compensation; the seller agrees to bear repair costs or directly compensate, and the customer may arrange repair on their own. Notes: It is necessary to clarify the compensation method (cash, discount, replacement), the party responsible for repair, cost bearing, and return handling, to avoid confusion with 'Warranty' or 'After-sales Repair'. Difference: Warranty is the seller's promise to repair for free within a certain period, while 'Customer Compensation Customer' focuses more on compensating the customer's losses and may involve additional compensation after repair.
📝 Examples
1. Due to design defects in this batch of motors, we agree to provide Customer Compensation Customer, i.e., the customer finds a local repairer, and we bear all repair costs and additionally compensate 10% of the order amount. (Note: The seller bears repair costs and additionally compensates the customer's losses.)
2. Regarding the faulty equipment complained about by the customer, we propose a Customer Compensation Customer plan: after the customer repairs it themselves, we compensate 30% of the invoice amount and also send free replacement of wearing parts. (Note: The customer repairs first, and the seller compensates proportionally afterward and sends replacement parts.)
💡 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