Article I Solutions to Quality Objections of Export Steel Product

I. Problem Identification and Loss Evaluation

Once the exported steel is found short-shipped, contact the consignee immediately to verify the specific situation of short shipment: confirm the quantity of shortage, the reason for short shipment and the possible economic loss caused thereby; collect relevant evidences, such as invoice, packing list, sea waybill and acceptance report of the consignee, etc., and form a detailed loss report.

III. Communication with the Shipping Company and the Supplier

Once the problem of short shipment is identified, contact the shipping company and the supplier quickly, report the situation of short shipment to them and provide relevant evidences; require the shipping company/carrier to explain the causes for short shipment, such as omission, damage or theft in transit, and put forward reasonable claims; and negotiate with the supplier to solve the problem of short shipment by replenishment or refund.

III. Negotiation on Solutions

When negotiating solutions with the shipping company/carrier and the supplier, keep a calm and objective attitude, fully elaborate our own position and the loss situation, and strive to claim for reasonable compensation or indemnification. In the process of negotiation, the claims can be flexibly adjusted according to the actual situation to reach a mutually acceptable solution.

IV. Legal Channels

In case of failure to achieve satisfactory results through negotiations with the shipping company/carrier and the supplier, we can consider to resolve disputes through legal channels, retain lawyers to evaluate the case, formulate appropriate litigation strategies, and prepare relevant evidence materials; in the process of litigation, actively cooperate with lawyers and strive to win the case in court.

V. Strengthened Quality Control and Logistics Management

In order to avoid the recurrence of short shipment, quality control and logistics management should be strengthened:

1. Strictly control the quality of the supplier’s product to keep the supplied steel comply with the Contract.

2. Strengthen supervision and management on the full process of delivery, shipment and loading and keep the packing list identical with the physical goods.

3. Choose a reputable shipping company to ensure the safety and reliability of the transportation process.

4. Check and evaluate the transportation process regularly to find and solve potential problems in time.

VI. Improvement of Claim Process and System Construction

1. Formulate detailed claim flow chart and operation guide, and clarify the responsibilities and collaboration methods of each division.

2. Establish a specialized claim handling team to handle claims on short shipment and improve the handling efficiency.

3. Regularly train and assess the claim handling team to improve professional quality and response capability.

4. Establish a claim file management system to keep the integrity and traceability of relevant documentation and data.