The Chinese government is offering Force Majeure Certificates to businesses unable to fulfill their international contractual obligations due to delays caused by the coronavirus outbreak.
According to the China Council for the Promotion of International Trade, the documentation businesses need to provide along their application for the certificate includes proof of delays or cancelations for air, land or sea transport, as well as customs declarations.
What is a Force Majeure Certificate?
Force Majeure is a legal clause that can be initiated when unforeseen circumstances are impeding the fulfillment of obligations by one party, which are beyond the party’s control and are perceived as inevitable. When the Force Majeure clause is activated, the previous obligations are automatically waived.
The Coronavirus emerged recently in the Chinese city of Wuhan, it has spread to 18 countries including the UK and the U.S. and sickened 6,100 people globally. According to reports, 132 people have died across China due to the coronavirus and the outbreak has been declared by the World Health Organization (WHO) as “public health emergency of international concern” on January 30, 2020.