Defective Goods from a Chinese Supplier: Inspection, Notice and Evidence Before a Claim

A foreign buyer who receives defective or short-delivered goods from a Chinese supplier should organize inspection, a specific notice and evidence preservation together. Waiting for the final laboratory report before saying anything can put a claim at risk. Conversely, a signed delivery receipt or discovery after seven days does not automatically decide every quality claim.

This guide concerns business-to-business contractual nonconformity claims against a mainland Chinese seller. Personal injury, product recalls, consumer rights and claims against carriers or insurers require separate analysis. Legal sources were checked on 22 September 2026.

1. Identify the goods and the promised standard

Start with the signed contract, purchase order, controlling technical drawing, approved sample, specification changes and agreed inspection method. Identify the seller’s legal entity, the shipment, batch or serial numbers, quantities ordered and quantities actually received. A photograph of a damaged component alone may not establish which order it came from or which contractual standard it failed.

Record arrival and unpacking dates, packaging condition, seals, storage conditions and the first observed problem. Separate an apparent manufacturing defect from possible transport damage or damage after receipt. Preserve the relevant logistics records as well: notifying the seller does not necessarily preserve a separate claim against a carrier or insurer.

For contract preparation before shipment, see our guide to negotiating inspection and quality clauses with Chinese suppliers. The immediate question here is what to do after a problem has appeared.

2. If the CISG applies, inspect promptly and describe the nonconformity

The United Nations Convention on Contracts for the International Sale of Goods (CISG) may govern an international goods sale. Check the parties’ places of business, the transaction, applicable dates, any exclusion or contractual variation, and relevant State declarations; nationality alone is not the test. The Convention entered into force for China on 1 January 1988. China’s declaration concerning Article 1(1)(b) also needs consideration when assessing the route to application. See the official status and declarations.

Article 38 requires examination within as short a period as is practicable in the circumstances. Where the contract involves carriage, examination may be deferred until arrival at the destination. Further deferral after redirection or redispatch depends on the specific conditions in Article 38(3), including the buyer’s lack of a reasonable opportunity to examine and the seller’s knowledge, actual or constructive, at contract formation of the possibility of onward shipment.

Under Article 39(1), the buyer must give notice specifying the nature of the nonconformity within a reasonable time after discovering it or after it ought to have been discovered. There is no universal seven-day or thirty-day period for all goods. Article 39(2) imposes an outer limit of two years from actual handover, unless inconsistent with a contractual guarantee period. That outer limit does not permit the buyer to postpone a notice that was already due within a reasonable time.

The exceptions are narrow. Under Article 40, the seller cannot rely on Articles 38 and 39 where the nonconformity concerns facts it knew or could not have been unaware of and did not disclose. Article 44 can preserve price reduction or damages other than loss of profit where there is a reasonable excuse for failure to give the notice required by Article 39(1); it does not override Article 39(2). These provisions require supporting facts, not an assumption that the factory must have known. Read the official Convention text, Articles 38–40 and 44.

3. If PRC domestic sales law governs, distinguish agreed periods from hidden defects

Articles 620–623 of the PRC Civil Code establish a different framework. Where the parties agree an inspection period, the buyer should inspect and notify the seller of quantity or quality nonconformity within that period. Without an agreed inspection period, inspection should be timely and notice should be given within a reasonable period after discovery or when discovery should have occurred; Article 621 also provides a two-year outer period from receipt. An applicable quality guarantee period replaces that two-year rule, not the obligation to give notice within a reasonable period.

A short contractual period does not necessarily dispose of hidden defects. Under Article 622, if the agreed period is too short for a complete inspection considering the nature of the goods and trade usage, it is treated as a period for apparent defects; hidden defects are assessed under Article 621(2). An agreed inspection or guarantee period shorter than a period prescribed by law or administrative regulation yields to that prescribed period.

Article 623 addresses a particular receipt scenario: without an agreed inspection period, signing a delivery or confirmation document listing quantity, model and specifications creates a rebuttable presumption of inspection of quantity and apparent defects. It is not blanket acceptance of every latent defect. Under Article 621, a seller that knew or ought to have known of nonconformity cannot rely on the notice periods in that article’s first two paragraphs. This wording should not be treated as identical to CISG Article 40.

The Supreme People’s Court’s amended sales-contract interpretation requires a contextual assessment of a reasonable period and identifies the two-year period as fixed, rather than a limitation period subject to suspension, interruption or extension. Timely objections are not automatically waived merely because the buyer paid, acknowledged an outstanding balance or used the goods, unless otherwise agreed. Sources: Civil Code, Articles 620–623, effective 1 January 2021; Fa Shi [2020] No. 17, amendments to the sales-contract interpretation, effective 1 January 2021.

4. Send a specific notice while the investigation continues

A notice should enable the seller to understand and investigate the actual complaint. A bare statement that “quality is bad” is risky. If testing remains incomplete, describe what is already observed, distinguish confirmed facts from suspected causes, and explain what further examination is underway. Supplement the notice promptly; do not assume a vague reservation of rights preserves unidentified defects.

Include	Make it verifiable
Order and goods	Contract or order reference, seller, delivery date, batch or serial numbers and affected locations.
Nature of the problem	The agreed specification and the observed departure: for example, the measured dimension, missing quantity or failed function.
Extent and discovery	When and how the issue was discovered, how many units were checked, and how many are confirmed affected. Do not extrapolate to the entire shipment without support.
Evidence and next step	Identified photographs, inspection records and retained samples; a proposal for joint inspection and a clearly dated response request with time zone.

Use the contractual notice channels and address the contracting seller, with the responsible sales contact copied where appropriate. Notice only to a forwarder, unrelated factory or platform may be insufficient. Preserve complete emails, attachments, message exports and dispatch or receipt evidence. A requested response date is not a substitute for the legal deadline governing the buyer’s own notice.

5. Preserve samples before repair, return or disposal

Keep identifiable samples and record who selected, sealed, stored and transferred them. Preserve photographs and original files, inspection methods, instruments, test conditions, the population sampled and the chain linking the sample to the shipment. Check the laboratory’s relevant competence and whether the parties agreed a testing method. A privately commissioned report is evidence to assess; it does not automatically bind a court, tribunal or the seller.

Invite the seller to participate in a documented inspection where practicable. Before returning, modifying or destroying goods, consider how the other side could verify the complaint and how representative evidence can be retained. If urgent safety measures or mitigation are needed, record the reasons, alternatives, condition of the goods and reasonable costs. Evidence preservation is not a reason to continue unsafe use or allow avoidable loss.

6. Separate notice from remedies and filing deadlines

A timely, detailed notice does not itself establish a right to reject the whole shipment or obtain a full refund. Repair, replacement, price reduction, damages and contract termination have different conditions. Assess the seriousness and scope of the defect, opportunities to cure, contractual provisions, causation and evidence of loss before selecting a remedy or withholding payment.

Choose the next step according to the outcome sought: assess the seller’s repair proposal before accepting or rejecting a cure; check the price-reduction calculation if keeping the goods; and coordinate return and repayment if a refund and restitution are legally available. The last guide also addresses used goods and preservation while repayment is disputed. These routes have different conditions; an inspection report alone does not select the remedy. Related guides added on 16 October 2026.

Inspection and notice periods, guarantee periods and the deadline for bringing proceedings are separate. Under PRC Civil Code Article 594, where applicable, the limitation period for litigation or arbitration over an international sale of goods is four years. That does not extend the inspection or notice periods. Applicable limitation law, accrual, interruption and the chosen court or arbitration agreement still need individual review.

If nothing was delivered, use the separate guide to non-delivery and recovery of prepayments. For a received-goods dispute, an initial legal review is more useful when it includes the Chinese seller’s registered name, contract and inspection clauses, amount at issue, arrival and discovery dates, notices already sent, the seller’s response and the available samples or reports.

For a concrete China-related supply dispute, see our cross-border business legal services or contact Jianxing Pan at panjianxing46@gmail.com. Send a brief chronology and the essential contract and notice records for an initial assessment of scope.

This is general legal information, not advice on an individual transaction. The cover is an AI-generated conceptual illustration, not a photograph of a real client, case or shipment.

Author: Jianxing Pan, Lawyer and Partner, Beijing Chang’an Law Firm. Beijing / Shenzhen.