Export Promotion Manual for Nepalese Missions Abroad - Chapter VII

Chapter VII

HANDLING TRADE ENQUIRIES AND TRADE COMPLAINTS

7.1 TRADE ENQUIRIES

7.1.2 TRADE ENQUIRIES ORIGINATED IN THE DUTY STATION

7.1.2.1 General Enquiries

Trade enquiries of general nature, such as list of export products, names and addresses of exporters of a specific product in Nepal, export rules and regulations in Nepal, etc. should be answered by the officials of the mission to the extent of the availability of information in the mission. All information furnished by the TPC and other organizations in Nepal should be well perused and frequently browsed by the mission officials.

7.1.2.2 Special Enquiries

The enquiries related to foreign trade and mainly related to import of products from Nepal which are not of general nature and which cannot be answered by the officials of the mission should be recorded in a form given in Annex VIII and forwarded to the Trade Promotion Center by fax, depending on the importance and urgency of enquiry, or by express mail, for necessary action.

The potential importer of Nepalese products is likely to make enquiries on some of the following subjects :

• Information on a product such as, quantity available, quality standard, technical specification, price list (CIF, C&F, or FOB), time of delivery, packing system, etc.

• Product literature, photographs, catalogues, samples etc

• Method of payment (Advanced payment or Irrevocable Letter of Credit through bank) and shipment by air or by ship via Calcutta Port,

• Export formalities and other rules of Nepal etc.

7.1.3 TRADE ENQUIRIES ORIGINATED IN NEPAL

A sample enquiry from the traders in Nepal should be answered based on the study and knowledge of the commercial regulations and import rules of the host country. Other trade inquiries from Nepal related to export should have full information on the product, method of payment, shipment, etc, and it should be accompanied by  photographs, catalogues or samples. If these information are not available in complete form, the officials of the mission should send a letter and ask the enquirer full details which should be supported by photographs, catalogues or samples also. In case or as and when a complete enquiry is received, the officials of the mission should do the following :

• Give names and addresses of the interested importers of the particular product, known or through the directory of the host country.

• The details of complete enquiry should be passed on to the potential importers or importing agents of particular products. In this case the addresses of such potential importers can be passed on to the enquirer for necessary follow-ups and direct contact.

Sometimes some privately organized companies may ask to  recommend suitable and potential agents to distribute the Nepalese goods in the host country. In such a case, the officials of the mission will have to select two to five potential agents or importers or distributors of products and collect the following information from them for the purpose of the enquirer in Nepal :

• Full names, addresses, telephone numbers and fax numbers

• Types of goods being handled in the market

• Territory covered and branches

• Type of business : commission agent, or distributor, or wholesaler, or retailer

• Total turnover of the companies

• Names of the responsible persons in the companies

• Name of the banks which can be referred for financial status. 

7.2 HANDLING OF TRADE COMPLAINTS

In the past many trade disputes and complaints were mis-handled and neglected resulting in a bad reputation of the country and the future export of Nepal. The official of the mission can handle complaints and disputes very tactfully or amicably without much delay and without much damaging the reputation and images of Nepal. Trade complaints may originate either in the duty station or in Nepal. Most of the complaints and disputes arises due to one or more of the following reasons:

• misunderstandings,

• late delivery of goods,

• non-delivery of goods,

• delay in payment or non-payment,

• dissatisfaction over the quantity or quality of goods,

• non-collection of goods

• ambiguous contract terms,

• differing customs and practices, and

• problem in quarantine laws, standards, and procedures.

There are three methods of settling disputes or complaints:

1. Amicable Settlement: The dispute can be settled through a factual investigation and the problem resolved in a friendly manner. In this case, the staff of a mission can help both the parties in settling the problems most positively under a cordial environment.

2. Independent Arbitrator:  Amicable solution may not be possible in all cases. A second alternative is to appoint an independent arbitrator.

3. Legal Procedures: Such of disputes or complaints may be settled by a National or International Court.

The official of a mission should be involved if amicable settlement is the possible solution to the problem of dispute or complaint. In case other alternatives are chosen by the parties, the Mission official will have no role apart from recommending or providing names and addresses of the competent and reliable lawyers if requested by the party concerned.

In case of amicable settlement, the Mission official should follow the following procedures:

• collect all facts from both parties,

• collect supportive documents, evidences from the institutions involved in the trade transaction, such as banks, post offices, customs, trade associations, chambers, Department of Commerce, carriers, forwarding and clearing agencies, etc.

• study all documents, and also the points of complaint or dispute,

• make his or her judgment, establish the reason for dispute and recommend the possible solution,

• get advice of the experts, services, inspection reports, if necessary before any possible solution is recommended and

• get advice and help of the Trade Promotion Center before the recommendation is made.