Repair Customer Compensation Entrustment is a special arrangement in foreign trade after-sales service. It refers to a situation where the customer (buyer) needs repairs due to damaged goods, malfunctions, or quality issues, but handling it themselves is inconvenient or too costly. In such cases, the customer entrusts the seller (exporter) or a third-party repair agency to perform the repairs on their behalf, and simultaneously entrusts the seller to claim compensation from the responsible party (such as the carrier, insurance company, or supplier) for the repair costs. This term is commonly used in after-sales repair scenarios for mechanical equipment, electronic products, etc. Usage scenarios include: the customer returns the faulty product to the seller for repair and signs a compensation entrustment letter, authorizing the seller to claim repair fees, freight, and other losses from the insurance company or carrier in the customer's name. Precautions: It is necessary to clarify the scope of entrustment, the maximum claim amount, the division of responsibilities, and the authorization period to avoid disputes over the seller exceeding authority or the customer ratifying afterwards. Unlike 'repair agency,' which only handles repairs and does not involve claims; and unlike 'claim agency,' which only handles claims and does not handle repairs. This term combines repair and claim into one, improving after-sales efficiency, but attention must be paid to the completeness of legal authorization documents.
📝 Examples
1. Because this batch of motors was damaged by moisture during transportation, the customer has signed a Repair Customer Compensation Entrustment Letter, entrusting us to repair and claim repair costs and freight from the carrier on their behalf. (Note: The customer entrusts the seller to repair and claim, applicable to cargo damage caused by carrier liability.)
2. According to the Repair Customer Compensation Entrustment Agreement, after completing the repair of the faulty equipment, we submitted a claim application to the insurance company in the customer's name and ultimately received 80% of the repair cost as compensation. (Note: Successful entrusted claim, demonstrating the practical application of this term in insurance claims.)
💡 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