Customer Compensation Assistance

Repair Customer Compensation Assistance is a special service clause in the after-sales section of foreign trade. It means that when a product has quality issues during the warranty period, the seller is not only responsible for repair but also assists the customer in handling compensation for consequential losses caused by product failure. It is commonly used in export contracts for machinery, electronic products, etc., especially when terminal user production interruption or personal/property damage is involved. Note: This term is not a legal transfer of liability for compensation, but a supportive service provided by the seller, such as assisting the customer in claiming from insurance companies, providing technical appraisal reports, and coordinating third-party repairs. It differs from 'quality assurance,' which only promises free repair or replacement and does not involve loss compensation; and from 'product liability insurance,' which is an insurance mechanism, whereas this term is a contractual obligation. Another difference is that compensation assistance usually has a monetary cap or conditions, and the scope of assistance must be clearly stated in the contract to avoid being misunderstood as the seller bearing full compensation liability. Foreign trade practitioners should distinguish it from 'after-sales repair,' 'return and refund,' etc., and specify the assistance process, time limits, and cost sharing in the contract.