Receipt and inspection of equipment upon arrival

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Upon the arrival of the equipment, an inspection must be carried out using the delivery contract and packing list; once the inspection is successful, the corresponding procedures for storing the equipment are initiated. 1. Inspection upon arrival of equipment: The ordered equipment must arrive at the designated location on schedule, and no arbitrary changes are permitted. Especially for equipment ordered from abroad, there are many factors that affect the delivery timeline; both parties must carry out the inspection procedures as stipulated in the contract. ① Arrival too far in advance is not allowed. Otherwise, the equipment purchaser will have to bear increased land use fees and storage costs, as well as any potential damage to the equipment. ② Delivery cannot be delayed. Otherwise, it will affect the construction, commissioning, and operation plans for the entire project; in the case of imported equipment purchased with foreign currency, the owner must also bear the risks associated with fluctuations in exchange rates. Delays in the delivery of equipment are usually caused mainly by the manufacturer. However, with large-scale complete sets of equipment, especially those imported from abroad, delays in delivery are often associated with factors such as **, natural conditions, and international relations; it is necessary to clarify each of these aspects and make decisions in accordance with the terms of the contracts established by the International Federation of Consulting Engineers (FIDIC). The owner shall oversee the inspection upon arrival of the goods. In the event of a dispute with the manufacturer, or if there are differences or objections regarding the resolution of practical issues, the following steps should be followed to handle the situation properly: ① Both parties should resolve the issue through friendly negotiation ； ② Relevant experts recognized by both parties can be invited to assist in resolving the issue ； ③ Apply for arbitration to resolve it. In practice, if the manufacturer wishes to delay the contract delivery date, it should submit a written request to the owner in advance. Once the owner receives the notice of delay, the two parties shall reach a new agreement on the extended period within the shortest reasonable time possible. Among them, the manufacturer should make every effort to shorten the delivery delay of the equipment specified in the contract. 2. Equipment integrity acceptance: ① Upon the arrival of the ordered equipment at the port (airport, port, station), the owner assigns personnel to oversee the delivery process at that port, checking whether the quantity and type of equipment received match those specified in the contract, as well as identifying any damage resulting from shipping or unloading processes and documenting such damage. The relevant procedures, including obtaining approvals from the loading/unloading and transportation departments, are also carried out. Furthermore, upon receiving the delivery notice documents, customs clearance procedures should be prepared immediately. In addition to filling out the customs declaration forms as required, the customs declarant must also prepare the following documents: i. Delivery documents ； ii. Invoice and its copy ； iii. Packing List ； iv. Order contract ； v. Proof of purchase and shipment from the product’s place of origin ； vi. Other documents deemed necessary by the customs authorities. ② Ensure proper handover at the delivery site (pickup) and proper storage of the equipment after unloading. Equipment purchase contracts, whether domestic or international, stipulate that the responsibility for storing the equipment after it arrives at the **port** where the user or owner is located generally lies with the owner. For large-scale, complete sets of equipment imported from abroad, the owner should assign dedicated personnel to handle this task properly, to ensure the integrity of the equipment upon its arrival at the port. ③ Organize an unpacking inspection. In addition to domestic orders, for any imported equipment or certain spare parts (assemblies, components) brought in from abroad, an inspection application must be submitted to the commodity inspection authority prior to unboxing, and approval must be obtained before proceeding; otherwise, customs officials will be involved in the unboxing inspection of the goods. The items to be checked are as follows: i. Whether there is any damage to the outer packaging upon arrival ； For exposed equipment (components), it is necessary to check for scratches and other damages, as well as oil stains and damage caused by seawater exposure. ii. Before unboxing, check each item to verify the quantity and name of the goods delivered, ensuring they match the contract specifications, and keep a count record. iii. Whether the equipment technical documents (drawings, operation and maintenance manuals, spare parts lists, etc.), accompanying accessories, special tools, monitoring and diagnostic instruments, special cutting fluids, lubricants, and communication equipment are in line with the terms of the contract. iv. Perform an unpacking inspection to verify that the items match the order list (packing list), and check for any damage to the equipment caused by handling, transportation, or storage. If any damage is found, it should be left as it is; take photographs or videos of it. Have the relevant personnel at the inspection site, such as customs officials, view them together, and proceed with the procedures for filing a claim.  ④ Process the claim. A claim is the process by which the owner, in accordance with the contract terms regarding claims and arbitration, seeks compensation from the manufacturer and the insurance and transportation entities involved in the execution of the contract for damages to the equipment purchased. Whether the order is placed domestically or internationally, claims must be processed through the customs inspection authorities for them to be valid; moreover, claims need to take into account the following situations: i. If there are defects in the equipment itself, the manufacturer or supplier is responsible for compensation. ii. Damage caused during the transportation process shall be compensated for by the carrier. iii. It falls under the jurisdiction of the insurance sector, with the insurance company responsible for compensation. iv. The direct and indirect losses resulting from delays in delivery shall be compensated by the party primarily responsible for such delays. In accordance with China’s current inspection regulations, the assessment of damage to imported equipment shall be carried out at the port or station of arrival indicated in the foreign shipping documents ； However, for machinery, instruments, complete sets of equipment, and those whose packaging cannot be restored after unboxing at the port of arrival, thereby affecting safe domestic transportation, inspection can be carried out upon unboxing during installation at the location where the equipment (machinery, instruments) will be used ； For goods (instruments, equipment) transported in containers, inspection shall be carried out at the unloading site. However, in cases where the contract stipulates that joint inspection by the foreign seller is required, or where inspections need to be carried out jointly with personnel sent by the foreign party in the event of problems after delivery, the inspection must take place at the location specified in the contract. Therefore, the inspection location must be the place of acceptance. Furthermore, the \"claim validity period\" referred to in the commercial terms of a standard contract is the period for re-inspection of the goods, as agreed upon by both the buyer and the seller (i.e., the contract grants the buyer the right to conduct a re-inspection after the equipment arrives). The specific duration of this re-inspection period varies depending on the size and type of the equipment, and it is determined through negotiation between the buyer and the seller; it is generally between 6 and 12 months. If the applicant submits an inspection request after this deadline, the inspection authority may refuse to process it, thereby resulting in the loss of the right to file a claim.