Article II Solution to Average Claims for Export Steel

I. Problem Identification and Loss Evaluation

In case of average event in the process of steel export, losses should be identified and evaluated first, the cause of average, the specific quantity of damaged steel, the degree of quality loss and the possible economic loss caused thereby should also be verified; and relevant data should be collected to form a detailed loss report through communication with the shipping company, the insurance company and customers.

II. Communication with the Shipping Company and the Insurance Company

Upon ascertainment of damage, contact the shipping company and the insurance company immediately, report the average situation to them and provide relevant evidence; cause the shipping company to explain the cause of average and make a reasonable claim; and submit claims to the insurance company and provide necessary documentation and data so that the insurance company can handle the claim as soon as possible.

III. Negotiation on Solutions

When negotiating solutions with the shipping company and the insurance company, keep a calm and objective attitude, fully elaborate our own position and the loss situation, and strive to claim for reasonable compensation. 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 and the insurance company, 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. Risk Management and Precautionary Measures

In order to avoid the recurrence of similar average events, risk management and precautionary measures should be strengthened, which shall specifically include:

1. Choose a shipping company and an insurance company with good reputation, and sign specific and clear contracts with them to stipulate the rights and obligations of both parties thereto.

2. Fully package and fix the steel for export to ensure that the steel can not be easily damaged in transit.

3. Regularly supervise and inspect the transportation process to find and solve problems in time.

4. Strengthen direct communication with customers and ascertain the climate and port conditions of destinations in advance, so as to do a good job in risk prevention.

VI. Improvement of Claim Process and System Construction

In order to improve the claim efficiency and processing capability, we should improve the claim process and system construction, measures for which are detailed as follows:

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 average claims 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 record and file management system to keep the integrity and traceability of relevant documentation and data.