At the Canton Fair last year, a special seminar was held, the China Export Product Liability Risk and Countermeasures Seminar, which attracted the attention of many companies. Relevant experts pointed out that as China's accession to the WTO and more enterprises obtain import and export management rights, Chinese exporters should learn to protect themselves and strengthen the awareness of export product liability risks. Responsibility Accidents Raise Claim Risks On January 13, 1999, a brand new wooden villa in Washington State suddenly caught fire and the entire house was burned out. The owner thought that the fire was caused by a short-circuit of the open halogen floor lamp, and the lawyers brought a big American supermarket to court. It was verified that the lamp was exported to a US supermarket by a lighting factory in China. Fortunately, the halogen floor lamp has been insured for export product liability insurance, and the factory was able to pass the risk on to the insurance company. For domestic companies, the risk of export product liability is a relatively unfamiliar term. When the export product has defects or insufficient warnings in the design, production, packaging, etc., and the user suffers personal injury or property loss due to the above defects during the user's use, the export manufacturer will be held liable. For exporters, in the event of a product liability incident, they will likely face huge consumer claims and endless legal proceedings. More seriously, the reputation of export products will be impaired, and the development of overseas markets will be hindered. Domestic manufacturers are “passiveâ€. In general, export products are subject to local laws in the export market. In today's world, the United States, Canada and other North American countries and European developed countries, because of their relatively high level of economic development and citizens' cultural level, citizens have a stronger sense of claim, so the risk of product liability is higher than other countries. Dr. Peng Dezhi, General Manager of the Guangzhou Branch of AIU Insurance Company and Vice President of the American Chamber of Commerce in Guangdong, said: "In the United States, even if the product design and production have been perfect, the product manual and warning language have been strictly examined by experts and lawyers. It may lead to legal proceedings related to product liability.†At present, North America and the European Union are China’s considerable commodity export markets. Importers in these regions often consider the potential of products in the market when they cooperate with Chinese merchants. Risks usually require exporters to insure product liability insurance in China and list them as additional insured persons to enjoy insurance benefits. Specifically, they will purchase product liability insurance as one of the conditions for issuing a letter of credit. If the exporter fails to buy product liability insurance, they will have the right to refuse settlement. It is understood that at present, domestic exporters mainly purchase export product liability insurance at the request of importers, and there are very few risks to truly prevent and resolve the liability of export products. Relevant experts believe that Chinese exporters should have a clear understanding of local product liability, laws, etc. when they sell their products to Europe and the United States, and actively take relevant countermeasures, including product liability insurance and product recycling insurance. avoid risk. OEM manufacturers are not at ease. The so-called OEM manufacturers refer to manufacturers that OEM for others. At present, there are many manufacturers of OEMs in Guangdong, and lighting (lighting) companies are basically helping foreign companies to OEM. Although many profits can be obtained, many OEM manufacturers generally have a misconception that they will not bear the risk of export product liability if they produce according to other people's standards. It's not that simple. Experts pointed out that domestic OEM manufacturers have errors in product design, manufacturing or text description, and they have unshirkable responsibilities. There is an example that is more representative: a domestic company OEMs a grille lamp and a lamp for a foreign brand, and then exports it to the US city. During the course of use, it is found that the end of the lamp is a little black. The importer is sued and the importer sues the OEM. As a result of the final ruling, domestic OEM manufacturers did not produce according to the requirements of the entrusting party, and they needed to pay USD 1 million to the importer to make up for the cost of recycling products and loss of profits. In addition to OEM manufacturers, parts manufacturers also bear the risk of export product liability. Experts say that although parts manufacturers do not directly face consumers, as long as they prove that the parts they produce cause harm to consumers, parts manufacturers must also bear the responsibility for compensation. Therefore, relevant experts believe that exporting to Europe and the United States is not only a fragrant pie, but also a trap that cannot be touched. The most important thing is to see how Chinese export companies are familiar with the laws of exporting areas and protect themselves. 
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