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Welcome to the FAQs page! We understand that you may have questions, and we’re here to provide you with the answers you need. Below are some frequently asked questions and their corresponding answers to help address any concerns you may have.
Safe Business
Strictly perform the terms of the contract.
First, we should regulate the conclusion of contracts. Before signing the contract, it is necessary to review the credit status, industrial and commercial registration, etc. of the opposite party of the contract, and also to review whether the contract signatory is authorized, so as to avoid apparent agency, authorization failure, etc., which will affect the effectiveness of the contract; Secondly, the order of performance of the contractual obligations of both parties should be clearly agreed to prevent disputes due to unclear agreement; Thirdly, the main terms of the contract must be expressly agreed, such as the time and place of performance of obligations, liability for breach of contract, etc. Once the contract is signed, it will be legally binding, and both parties shall strictly perform the contract. In case of failure to perform the contract on time, we must negotiate with the other party in time and strive to reach a new agreement. If the other party breaches the contract, it shall collect evidence and make a claim to the other party in a timely, reasonable and accurate manner.
Improve the awareness of evidence to ensure legal rights protection.
Sign a written contract, and the change or cancellation of the contract should also be reflected in writing. During the performance of the contract, written documents shall be obtained for the delivery of goods. If there is any objection to the quality after receiving the goods, it should be raised in writing in a timely manner within the time specified in the contract or the law. The second is to properly keep the evidence. In addition to paying attention to the custody of the written evidence in the above transactions, for the correspondence, fax, email, wechat, video materials between the parties, as well as the “delivery evidence” such as notification of delivery and demand for payment, special personnel must be arranged to summarize and keep it, so that it can be used.
Keep calm heart when meet difficult. If your goal is to get finished quality product, then do not go too far in your anger or demands. Then find the real problem: Listen, ask, take notes and ask again. Keep detailed notes of every conversation. Then you can know the essence of the problems, where the question is. Sometimes the suppliers will tell you lie, making you do not see the true problems are. So having the notes of the talk, you can see every step of the dispute. In litigation in China, the most important evidence is email; you must keep the email correspondences, then knowing the fault of the suppliers.
At end of a production can be especially risky. With other orders waiting to be filled and your deadline is approaching, your supplier may: run out of approved materials and use a substandard substitute. Rushing through your final units to finish on time, and produce so much disqualify products. And at last, you will not sell these fake products easily. It will cause so many losses to your business.
Before your order is completed and packed, perform a pre-shipment inspection to ensure there will not be last-minute, nonconforming products on board. If you have office in China, then better, if the product is not conforming to the quality, then you can deny paying the rest payment, then reducing the risk to minimum. Perform container loading check to ensure cartons contain the proper quantity, size, assortment, etc. All products are packed safely and loaded carefully. The container is sealed against tampering. You should find qualified shipping company.
- Sometimes, the exporter does not obtain the necessary export certificate, or the cargo delivering time is urgent, especially for those first dealing, because of lacking of trade experience, certificate is not ready. In such circumstance, exporter may buy these fake certificates such as, fumigation certificate/disinfection certificate, original certificate, phytosanitary certificate.
2. Sometimes, the exporters were defrauded by cargo forwarder. Forwarder gives fake certificate to exporter in order for avoiding custom fees, intending to obtain illegal profit from this procedure.
What is risk of fake certificates?
The exporter using fake certificate is high risk. For example, as to fumigation certificate, if the cargo without fumigation treating, and it will be reshipped because not conforming standard of importer country, or been destroyed at the destination port, this will bring huge economic damage to exporter or importer.
For example, one exporter exported marble to America, after the American custom inspected this cargo, they found that fumigation certificate is fake, the cargo have to return China. Causing damage, such as containers detention fee and sea voyage fee, perhaps the value the cargo was below freight cost.
Roles of Attorneys
Legal Due Diligence:
Our attorneys conduct comprehensive legal due diligence on behalf of foreign companies seeking to engage China suppliers. We examine the supplier’s legal standing, ownership, licenses, and regulatory compliance to ensure reliability and mitigate potential risks. Our attorneys identify any potential legal issues, contractual disputes, or non-compliance with relevant regulations. Through diligent research and analysis, we help foreign companies make informed decisions when selecting China suppliers.
Contract Negotiation and Drafting:
Our attorneys play a crucial role in negotiating and drafting contracts between foreign companies and China suppliers. We carefully review the terms and conditions, ensuring that we align with the parties’ expectations, protect their clients’ interests, and comply with laws and regulations. Our attorneys consider key provisions related to product specifications, quality control, pricing, delivery terms, payment terms, intellectual property rights, and dispute resolution mechanisms. Their expertise in contract law and negotiation strategies ensures fair and balanced agreements that minimize potential conflicts and protect the rights of both parties.
Dispute Resolution and Risk Management:
When disputes arise between buyers and China suppliers, our attorneys play a critical role in resolving conflicts and managing risks. We assist in negotiation, mediation, arbitration, or litigation processes, depending on the nature and severity of the dispute. Our attorneys strive to find amicable solutions that maintain the business relationship while protecting their clients’ interests. Their expertise in dispute resolution strategies and knowledge of legal procedures contribute to effective risk management for foreign companies.
Expertise in International and Chinese Law: Our attorneys specializing in international commercial law possess a deep understanding of both international legal principles and the intricacies of law. We are well-versed in international trade regulations, commercial contracts, dispute resolution mechanisms, and international conventions such as the United Nations Convention on Contracts for the International Sale of Goods (CISG). This expertise allows them to effectively navigate the legal complexities of cross-border disputes and provide tailored advice to their clients.
Dispute Resolution Strategy and Representation: Our attorneys are skilled in effective dispute resolution strategies tailored to the specific circumstances of each case. We carefully analyze the facts, legal issues, and potential risks involved, allowing them to determine the most suitable approach. Our attorneys guide their clients through negotiation, mediation, arbitration, or litigation, depending on the nature and preferences of the parties involved. Their representation in dispute resolution proceedings ensures that their clients’ interests are safeguarded and advocated for effectively.
Mediation and Alternative Dispute Resolution (ADR): Mediation and ADR methods are gaining popularity as efficient and cost-effective alternatives to traditional litigation. Our attorneys are well-versed in these dispute resolution mechanisms and can assist in initiating, participating in, and facilitating mediation and ADR processes. We help parties find common ground, facilitate open communication, and seek mutually beneficial solutions. Our attorneys’ expertise in negotiation and their understanding of cultural nuances are particularly valuable in international disputes involving our parties.
1.1 Different uses
Business negotiation mainly refers to the negotiation on the quality, price, delivery time, delivery place and other business terms of the proposed transaction; Legal negotiation mainly focuses on the provisions of breach of contract, dispute resolution, and litigation or arbitration jurisdiction, force majeure and so on. Lawyers mainly help to provide legal advice on legal risk prevention.
1.2 Different purposes
Business negotiation is an activity conducted by the buyer and the seller to facilitate the transaction or to solve the disputes between the buyer and the seller. In short, it is to make profits. For example, in order to meet the needs of customers, sign a contract and reach a consensus on the delivery time, service scope, product quality requirements, price, etc.
Legal negotiation mainly discusses and argues on some issues, such as the established laws and regulations of a certain place or country and the communication with the competent authorities, which are the contents of legal negotiation.
1.3 Different participants
Business negotiations are attended by the company’s internal personnel, manufacturers, customers, even the government and legal advisers. The participants in legal negotiations include the government, the state, competent departments and managers.
2 The role of lawyers in legal negotiation
2.1 Lawyers have professional legal knowledge, which can ensure the legitimacy of negotiation content, avoid negotiation traps and prevent legal risks. The substantive role of lawyers in the negotiation is to analyze the legal obstacles, potential risks, unclear rights and obligations encountered in the negotiation and contract terms according to the background and legal environment involved in the exchange, and timely submit the analysis results to the client for decision-making.
2.2 Professional lawyers have rich experience in legal negotiation, which is conducive to the negotiation and safeguard the interests of the parties as much as possible. Due to professional characteristics, lawyers often have to do negotiation, such as negotiation in the court mediation stage, negotiation in the out of court reconciliation stage, negotiation in helping others mediate and solve disputes, and lawyers need to help customers conduct business negotiations, etc.
Therefore, lawyers generally have rich practical experience in negotiation, which is very conducive to legal negotiation.
3 Characteristics of business negotiation
3.1 For the purpose of obtaining economic benefits
Different negotiators have different purposes to participate in the negotiations, and diplomatic negotiations involve national interests; Political negotiations are concerned with the fundamental interests of political parties and groups;
The business negotiation is very clear. The negotiator takes obtaining economic interests as the basic purpose and involves other non-economic interests on the premise of meeting economic interests. Although, in the process of business negotiation, negotiators can mobilize and use various factors, and various factors other than economic interests will also affect the outcome of the negotiation, the ultimate goal is still economic interests.
Compared with other negotiations, business negotiations pay more attention to the economic benefits of negotiations. In business negotiation, negotiators pay more attention to the cost, efficiency and benefit of the heavy or technology involved in the negotiation. Therefore, people usually evaluate the success of a business negotiation by the quality of obtaining economic benefits. Business negotiations that do not focus on economic benefits lose value and significance.
Chinese courts
How the Chinese court works?
This article provides an introduction to the seizure of properties in Chinese court litigation proceedings, exploring the legal basis, procedures, and implications of property seizure.
- Legal Basis for Property Seizure
The legal basis for property seizure in Chinese court litigation can be found in various laws and regulations. The Civil Procedure Law of the People’s Republic of China, enacted in 1991 and amended in 2017, serves as the primary legislation governing civil litigation procedures, including property seizure. Other relevant laws and regulations include the Property Law, the Execution Law, and various judicial interpretations and local court rules.
- Types of Properties Subject to Seizure
Under Chinese law, a wide range of properties can be subject to seizure to satisfy a judgment. These properties include real estate, bank accounts, vehicles, securities, intellectual property rights, and other movable or immovable assets. The court has the authority to determine which specific properties are eligible for seizure based on the judgment or ruling.
III. Procedures for Property Seizure
- Application for Property Seizure:
The party seeking property seizure must file an application with the court that issued the judgment or ruling. The application should provide detailed information about the properties to be seized and the reasons for the seizure. It is important to note that property seizure requires a valid and enforceable judgment or ruling.
- Notice to the Debtor:
Once the court accepts the application for property seizure, it will issue a notice to the debtor, informing them of the impending seizure. The notice includes the specific properties subject to seizure and provides an opportunity for the debtor to raise objections or provide evidence of any legal impediments to the seizure.
- Property Evaluation:
Before seizing the properties, the court may conduct an evaluation to determine their value. The evaluation is important to ensure that the seized properties are sufficient to satisfy the judgment. Qualified appraisers may be appointed to assess the properties and provide an independent valuation.
- Seizure of Properties:
Upon approval of the property seizure, the court will issue an enforcement order, authorizing the enforcement officers to carry out the seizure. Enforcement officers, under the supervision of the court, will physically seize the identified properties. The seizure can involve physical possession, freezing of bank accounts, or other necessary measures to secure the assets.
- Implications of Property Seizure
- Preservation of Assets:
Property seizure serves to preserve the assets of the judgment debtor pending the satisfaction of the judgment. By seizing the properties, the court ensures that they remain available to satisfy the creditor’s claim and prevents the debtor from dissipating or disposing of the assets.
- Public Record:
Seizure of properties becomes a matter of public record, creating a visible and official record of the debtor’s obligations. This can have reputational consequences for the debtor and potentially impact their business relationships and creditworthiness.
- Enforcement and Sale of Seized Properties:
After the properties are seized, the court may proceed with their enforcement and sale to satisfy the judgment. The court-appointed enforcement officers may auction the properties or arrange for their sale through other means, such as private negotiation.
The procedure for China international arbitration for solving disputes typically follows a structured process that is designed to be fair, efficient, and in line with international standards. Here are the general steps involved in the procedure:
Agreement to Arbitrate: Before initiating arbitration, the parties involved must have previously agreed to resolve their disputes through arbitration. This agreement can be included in the contract between the parties or can be a separate arbitration clause.
Selection of Arbitration Institution: The parties need to agree on the arbitration institution that will administer the arbitration. Commonly used institutions in China include the China International Economic and Trade Arbitration Commission (CIETAC), Shanghai International Arbitration Center (SHIAC), and Beijing Arbitration Commission (BAC).
Initiation of Arbitration: The party wishing to initiate the arbitration (the claimant) submits a written notice of arbitration to the chosen arbitration institution. This notice typically includes details about the parties involved, a summary of the dispute, and the relief sought.
Appointment of Arbitrators: The arbitration institution will assist in the appointment of arbitrators. In some cases, the arbitration agreement may specify the number of arbitrators and the process for their appointment. It is common to have either a sole arbitrator or a panel of three arbitrators.
Preliminary Hearing: Once the arbitral tribunal is constituted, a preliminary hearing may be held. This hearing allows the parties to discuss procedural matters, agree on a timetable, and clarify the issues in dispute.
Exchange of Written Submissions: The parties present their cases by submitting written statements, including the claims, defenses, and supporting evidence. These written submissions help the arbitrators understand the arguments and evidence presented by each party.
Hearings: Depending on the complexity of the dispute and the preferences of the parties, oral hearings may be held. During the hearings, the parties and their witnesses may be examined and cross-examined. The arbitrators may also ask questions to clarify the issues.
Mediation and Settlement: In some cases, the arbitral tribunal may encourage the parties to explore mediation or settlement options before proceeding further with the arbitration.
Issuance of Award: After considering all the evidence and arguments presented, the arbitral tribunal will render its final decision in the form of an arbitral award. This award is legally binding on the parties and will resolve the dispute.
Enforcement of Award: Once the award is issued, the winning party can seek enforcement of the award through relevant courts in China or in other countries that are party to international conventions for the recognition and enforcement of arbitral awards.
It’s essential to note that the above procedure is a general overview, and the specific steps and timelines may vary based on the arbitration institution, the complexity of the dispute, and any specific rules or procedures agreed upon by the parties.
We hope these FAQs have addressed some of your concerns. If you have any additional questions or need further assistance, please don’t hesitate to reach out to us.
If you encounter business dispute, let us analyze the case for you and protect your rights as soon as possible.
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