Under The Epidemic Situation, How Can Foreign Trade Enterprises Fail To Fulfill The Contract? China Council For Trade Promotion Issued The First Proof Of Force Majeure In The Country

Affected by the epidemic, many enterprises have postponed the resumption of work, and the production and logistics supply chain has been seriously affected, resulting in the failure of international trade contracts to be implemented in varying degrees. In the near future, the China Council for the promotion of international trade has issued a notice, which can provide a factual proof of force majeure. At present, the online certification platform has been opened (http://www.rzccpit.com/). Enterprises can also contact the local council for the promotion of certificates through QQ group and telephone.

The following is the announcement:

CCPIT Business Certification Center Consultation and contact number: 010-82217027/7035/7010

For each province (municipality) and City Council for promotion, please contact: https://www.rzccpit.com/company/organization.html

Appendix: China Trade Promotion Council's commercial certification platform applies for new force majeure demonstration procedure.

Just yesterday morning. China Council for trade promotion has issued the first nationwide certificate of force majeure of a new type of coronavirus pneumonia to a auto parts manufacturer in Huzhou, Zhejiang. To help enterprises to minimize the responsibility for failing to fulfill contracts due to epidemic situations and safeguard the legitimate rights and interests of enterprises.

It is reported that the company turned to the French Peugeot Co Africa factory to turn to the supplier of the chassis, and was unable to deliver products to overseas customers on time. If the legal proof of the reason for the contract can not be provided in time, the enterprise will not only bear the loss of direct contract value of 2 million 400 thousand yuan, but also cause the loss of about 30 million RMB Yuan due to the two weeks' shutdown of the other production line, and the impact of goodwill will be immeasurable.

In February 1st, the company applied for certification of force majeure and provided relevant materials at the China Council for promoting trade promotion online certification platform. It was submitted online and verified by Internet on February 2nd. The fact proof of force majeure belongs to the factual proof behavior in the field of commercial proof. It refers to the proof that the CCPIT and its authorized sub branches and the claimants should apply to the applicant for the facts related to the force majeure. After the issue, the parties may be partially or totally exempt from performing the obligations of not performing, performing and performing the contract.

Yan Yun, deputy director of CCC's commercial certification center, said the fact proof of force majeure has been recognized by governments, customs, chambers of Commerce and enterprises in more than 200 countries and regions around the world. In order to help enterprises effectively cope with the adverse effects of the epidemic and provide more convenient services for enterprises, China Council for promotion and development (CCPIT) has reformed the certification platform (http://www.rzccpit.com/) since January 26th, adding the online application function of force majeure proof. In addition, nearly 1000 enterprises have launched online consultation on the force majeure factual proof to the China Council for the promotion of trade.

According to the practice of international trade and the statute of China Council for the promotion of international trade, China Council for the promotion of trade can issue force majeure certificates. Affected by the outbreak of pneumonia caused by the new coronavirus, enterprises that fail to fulfill the contract or fail to fulfill the international trade contract can apply for a factual proof related to force majeure and reduce losses.

What are the reasonable reasons for foreign trade enterprises to use?

Force majeure (FORCEMAJEURE) comes from French, and ACTOFGOD is often used as reference. This concept also exists in China's domestic law. The provisions of the 180th principles of civil law and the 117th article second of the contract law stipulate that force majeure means unforeseen, unavoidable and insurmountable objective conditions. The seventy-ninth article of the United Nations Convention on Contracts for the international sale of goods also has corresponding provisions.

In international trade, the parties to the contract will define the situation of force majeure after the definition of force majeure.

Unforeseen changes to legislation. (unexpected legislative changes)
Wars and other hostilities (such as terrorism). (war and other hostile acts, such as terrorism)
(Fires.) (fire)
Exceptionally adverse weather. (exceptionally bad weather)
Civil unrest, such as riots or revolution. (internal disorder, such as riots or revolutions)
Strikes (other than by the contractor or subcontractors).
Natural catastrophes such as earthquakes, floods and volcanoes. (natural disasters such as earthquakes, floods and hurricanes)
Epidemics or pandemics. (epidemiology or infectious diseases)

Of course, the parties may make some additions to the above items, and may also exclude some common factors listed above, such as changes in legislation.

Therefore, if a foreign trade enterprise is unable to perform its normal performance due to the impact of the epidemic, if we want to postpone or terminate the contract with the force majeure clause, we should first examine the contract agreement, especially the enumeration provision for the relevant factors in the force majeure clause. If the provisions clearly exclude the legislative changes, it is not recommended that we choose to communicate with the foreign party on the basis of the change of law or the government's need to postpone the resumption of work, but choose the outbreak of epidemic or infectious disease to communicate with the foreign party. But whether this factor can be fully accepted, we also need to consider whether the epidemic situation in the area where the Chinese company is located has reached the severity of the epidemic or infectious disease which leads to the failure to perform normally. At present, 30 provincial-level units have announced the launch of the first level response, and the WHO will also meet again in January 30, 2020 to assess whether the epidemic constitutes an international public health emergency PublicHealthEmergencyofInternationalConcern (PHEIC). Therefore, although the main outbreak of the epidemic is in Hubei Province, it is considered that the epidemic situation in other provinces and cities has reached the severity of the argument that the force majeure clause can be invoked.

How should foreign trade enterprises communicate?

For foreign trade enterprises, the loss of customers is far more serious than losses. Foreign businessmen sometimes need years of operation to form the basis for stable cooperation. And force majeure, although they can be invoked, does not mean that there is no loss, but only by force majeure clauses, so that each side can shoulder their own losses. And if force majeure can cause two kinds of influence, one is the effect of force majeure, which will be eliminated in the short term. This is what all Chinese people are eager for now. Then, foreign trade enterprises need to inform foreign customers as soon as possible, and strive to resume their performance as soon as possible and reduce their losses.

However, if the effect of force majeure exceeds a certain time limit, some foreign trade contracts shall limit the reasonable period of force majeure elimination to two weeks, and exceed the time limit, and have the right to terminate the contract. For such contracts with strict time constraints, timely communication is more necessary. Sometimes, foreign trade enterprises should take the initiative to retain customers by increasing the number of free spare parts and reducing the purchase price. But in the long run, as long as the customer relationship is still there, losses can be recovered through subsequent trade. This is even more important for companies that may experience PHEIC.

In addition, it is also necessary to remind foreign trade enterprises that a reasonable period of force majeure effect is not a force majeure clause. Enterprises can still fail to perform after the force majeure has disappeared. This will constitute a serious breach of contract responsibility.

In the process of communication, foreign trade enterprises should communicate in written form, and do not propose to communicate with telephone or other voice tools, so as not to be able to give evidence after future disputes. Moreover, enterprises should inform business personnel to communicate with each other cautiously. For example, some enterprises are not located in Wuhan, and the location is not closed to the city. If customers are told that goods can not be shipped from Changzhou to Shanghai Yangshan port due to traffic control, such an explanation will not be accepted by customers, because the Ministry of communications and the Ministry of public security have made clear the following terms, prohibiting road closures and ensuring access.

Therefore, if the enterprises encounter such problems, they need to inform the customers of the progress and practical difficulties of the contract in time, so that both parties can make follow-up arrangements as early as possible and reduce their possible losses.

It should be noted that for standardized enterprises, it is not news that China has a new crown pneumonia automatically recognized that China's foreign trade companies can invoke the force majeure clause, and there is a comprehensive assessment process within the company. Therefore, foreign trade companies need to submit a supporting document of force majeure in time. At present, China Council for the promotion of trade can accept such certificates.

How does a foreign trade enterprise handle a force majeure certificate?

According to the provisions of the constitution of the China Council for the promotion of international trade, the China Council for the promotion of international trade may issue a force majeure certificate. The impact of pneumonia caused by a new coronavirus infection can lead to failure to perform or fail to fulfill international trade contracts. Enterprises can apply for a factual proof related to force majeure.

The certification center of the China Council for the promotion of trade has developed an online certification platform, http://www.rzccpit.com/, to realize the fact that the "no meeting office" helps force a new coronavirus infection on the enterprise handle the epidemic situation. Enterprises can also contact the local council for the promotion of certificates through QQ group, telephone and so on.

In the process of bidding for such certificates, the supporting materials that enterprises need to submit are:

1. the certificate / notice issued by the government or institution in the place where the enterprise is located.

2. notification and proof of land, sea and air related delay, delay and cancellation.

3. export commodity contract, cargo booking agreement, freight agency agreement, customs declaration form, etc.

4. other materials that can be provided.

How should foreign trade companies fail to sign contracts?

Many small and medium sized foreign trade companies, because the trading process is not standardized, often only have orders, but do not sign contracts. There are no many provisions in the order, such as applicable law, dispute resolution, contract interpretation, force majeure and so on.

In the current environment, it is suggested that such enterprises should communicate in a timely manner to win customers' understanding and support. Especially for the export of food, toys, clothing and other civilian products enterprises, it is more necessary to prevent the foreign customers from terminating the contract because of the epidemic situation. In the process of developing the epidemic, foreign customers have concerns. Especially for the import of civilian products, foreign customers need to consider the feelings and safety of their own consumers. Therefore, it is suggested that such enterprises can take the initiative to purchase corresponding insurance and increase their own obligations in epidemic prevention, eliminate the concerns of foreign customers and stabilize bilateral trade relations.

Related links

The National Federation of industry and Commerce private enterprise investigation system has been opened.

In February 1st, the National Federation of industry and Commerce opened the national private enterprise survey system of the Federation of industry and commerce. Foreign trade enterprises affected by the epidemic can make feedback according to the actual situation.

No.1 there are no enterprises registered in the National Federation of industry and commerce.

The National Federation of industry and Commerce private enterprise investigation system website:

Http://www.acficnet.com/

Please register before you can complete the questionnaire after registration. (preferably registered by the boss himself, need to fill in the corporate social credit code).

Registration page:

No.2 click on the left "Questionnaire".

Questionnaire address:

Http://www.acficnet.com/f/wjgl/tSurveyDirectory/preview? SurveyId=c7bd3d6ede07475fa5e165cb573fdf21

No.3 registered users can make questionnaires by mobile phone.

Long click and identify the following two-dimensional code to enter the questionnaire.

Partial screenshots

Please tell each other that foreign trade enterprises affected by the epidemic will rush to deal with force majeure evidence or feedback to the National Federation of industry and commerce.