Exporting to China
Solving Legal Problems in China, easier than ever
Know who you are dealing with
Minimum you should do is to verify your importer or distributor
Majority of the international trade scams can be avoided by a simple legal due diligence to confirm the importer is a legitimate company.
To prevent payment defaults, you should confirm if your importer or the distributor is in good standing.
You should confirm if the importer, its CEO or its controlling shareholder has been named as a “untrustworthy” individual by a Chinese court order.
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Have an enforceable contract
Minimum you should do is to ensure you are protected by what you sign
Contract unambiguity is critical to avoid future disputes. Each sales contract should be tailor made to reflect the parties’ intentions.
Lawyers with local experience can help you confirm if a contract would be deemed binding on the counterparty and enforceable by a local court.
If a sales contract is signed in both English and Chinese language versions, it is necessary for a lawyer or a legal translator to review the consistency.
Protect your trademark and other IPRs
Minimum you should do is to avoid trademark infringement and cyber squatting
Different from the U.S. or Canada, China has a first-to-file system and your mark needs to be registered in China to get protected.
A quick trademark search can help you identify the existence of trademark squatting.
You probably have registered the .com domain, it is prudent to register the .cn and .com.cn extensions if your products are sold to China.
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Resolve disputes in the right way
Minimum you should do is to ensure you use the right legal option at the right timing
When the importer is behind payment schedule and does not return your emails or calls, it is a signal that you need to contact a local lawyer.
A demand letter prepared and sent by an experienced lawyer in China becomes the next option when the importer has kept ignoring your reminder for payment.
Before you start a litigation or arbitration against a Chinese company, you should consult a lawyer in China to understand you can get hold of their assets after you win the case.
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Demand Letter
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