ID#106: Supply of fake product. Case 1

Claim amount: 129,600.00 USD

Status: Case closed


According to the terms and conditions of the Contract the Seller (ХХХ, CHINA) has accepted the obligation to supply Dioctylphtalate in the quantity of 80.00 tons on CIF, ХХХ, Russia for the total amount of USD 129,600.00.

According to the terms and conditions of the Contract the Seller accepted the obligation to guarantee the compliance of the goods´ quality with the quality specifications as stated in the Additional Agreement No. 1 (Addendum) to the Contract and by a confirmed certificate of analysis issued by the manufacturer.

Based on the Seller´s Pro-forma invoice the Buyer paid, as stipulated by the Contract, full amount of USD 129.600,00 which corresponds to 100% (One hundred percent) of the contract value.

Only 60.00 tons of goods arrived to the port ХХХ, Russia, because the 4th container (20.00 tons) is still in the European port due to leaks in the goods´ packages.

Acceptance of the goods by quality was performed in the presence of the Expert of the Chamber of Commerce and Industry of the Russian Federation. According to the CCI Expert’s Opinion: "Chemical product supplied by ХХХ, CHINA under the Contract is a caustic irritating brown liquid representing waste of organic substance, containing rubber particles and is not Dioctylphtalate."

On 28.01.2011 the Buyer made a Claim to the Seller for the recovery of the total sum of USD 153,478.18, including:

  1. Return of the money for undelivered goods in the amount of USD 129,600.00.
  2. Compensation of the costs connected to the customs fees and duties paid by the Buyer in the amount of USD 23,470.54.
  3. Compensation of the costs connected to the independent expert’s opinion in the amount of USD 407.64.

The Seller’s action in respond to the Claim:

  1. 01.03.11 after the receipt of the Buyer’s Claim for the compensation the Seller informed the Buyer that he had checked the quality of the goods supplied and it was found that the the quality was good. We asked the Seller to prove this statement by the Act of an independent expertise.
  2. 04.03.11 the Seller notified the Buyer of its intention to consider this matter.

We need help to get our money back.

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