Due to the COVID-19 outbreak, many domestic export enterprises face such difficulties as slow delivery and difficult contract performance. In this regard, CCPIT has issued force majeure certificates to assist them in delaying delivery deadlines and reducing or exempting them from relevant responsibilities, so as to better retain contracts and stablize the supply chain.

According to CCPIT Commercial Certification Center, some enterprises apply for the certificate only as evidence for later use; some are still negotiating with clients after acquiring the certificate; and some who are close to the delivery deadline have reached agreements with their clients on delaying delivery through friendly consultation, after explaining the impact of the pandemic and presenting the certificate as part of evidence. Nearly 60% of the contracts concerned are expected to be maintained by delaying the contract performance. 

It is reported that after an enterprise in Hebei Province negotiated with and provided the certificate for its German customer, the latter not only extended the delivery term of more than RMB 700,000 of goods under the previous contract by half a month, but also signed a new purchase order with it. The enterprise said that the certificate had helped it avoid the risk of compensation, stabilized the supply chain and safeguarded its international reputation to the greatest extent.

In addition, in view of the situation that the COVID-19 is spreading worldwide, CCPIT Commercial Legal Services suggests that enterprises should not assign an overly precise performance date when negotiating with clients about delaying contract performance and may add relevant conditions to it. If the other party of a contract does not accept an enterprise’s claim and the two parties have disputes, they can settle the disputes through mediation, arbitration or litigation, during which enterprises still can use the certificate as supporting evidence.

As of March 25, 6454 force majeure certificates had been issued by 103 commercial certification agencies authorized by CCPIT, covering a total contract value of about RMB 632.1 billion.