• Quality


    The quality of the coffee must be strictly as per contract. If there is a difference and the resultant claim cannot be settled amicably then it will go to arbitration, but a buyer cannot lodge any formal claim before paying for the shipping documents. Effective January 1st 2006 GCA contracts should stipulate whether they cover 'Commercial Grade' or 'Specialty Grade' coffee. This will determine the type of arbitration that would be held - if nothing is specified, then the contract is automatically assumed to cover 'Commercial Grade' coffee. Claims are usually settled by granting an allowance that the seller must pay, together with the buyer's costs and expenses. But if the coffee is unsound or the quality is radically different from that specified then the buyer may seek to have the contract discharged by invoicing back the coffee. In awarding invoicing back the arbitrators shall establish the price bearing in mind all the circumstances concerned. Basically this means they may order the contract cancelled and instruct the sellers to refund the entire cost of the coffee plus any relevant damages. Note that an excessive moisture level is one factor towards declaring a coffee unsound. (See 05.02, Logistics, and 12.00, Quality Control.)

    Under GCA all quality issues FCA, FOB, CFR, CIF and DAF are settled by allowance, except gross negligence and fraud. In the latter case the arbitration will be a technical arbitration that might convene a quality panel to verify negligence or fraud.

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