Dispute Resolution & Quality Complaints

Issues arise in any commercial relationship. SEMITI's approach to disputes prioritizes investigation, transparency, and fair resolution.

Categories of disputes:

Quality complaints: - Material off-spec vs CoA / contract - Quality issue discovered during customer testing - Performance issue in finished product - Color drift, dispersion problems, contamination

Commercial disputes: - Pricing disagreements - Volume / delivery commitments - Payment terms - Trade documentation issues

Trade disputes: - Customs / regulatory issues at destination - Anti-dumping or trade restriction surprises - Currency / payment process issues - Force majeure events

Quality complaint process:

Step 1 — Initial notification: Customer reports complaint via email or phone to [email protected] or +86 156 3910 0440. We acknowledge within 24 hours UTC+8.

Step 2 — Information gathering (1–3 days): We collect: - Batch number from CoA - Quantity affected - Customer-side test results (if available) - Description of issue - Photos or evidence - Customer expectation of resolution

Step 3 — Investigation (3–10 days): Multi-track investigation: - Supplier-side: contact supplier QC team for batch retest of retained sample - Warehouse: review our incoming inspection records for the batch - Transport: check for transport damage indications - Customer-side: support customer's own root cause investigation

Step 4 — Findings and proposed resolution: Based on investigation, we propose: - If off-spec confirmed: free replacement of affected quantity + transport cost reimbursement, OR credit equal to affected material value - If complaint not substantiated: technical recommendation, possible training, no commercial action - If shared responsibility: partial credit + technical adjustment recommendations

Step 5 — Resolution and closure: Written confirmation of resolution. Customer signs off. Documentation archived for trend analysis.

Median timeline: 5–10 working days from complaint to closure.

For complex technical issues involving production-line problems or third-party testing, investigation may extend to 30 working days.

Commercial dispute process:

For pricing, volume, or payment disputes: - Direct discussion between SEMITI account manager and customer procurement - Mediation by sales leadership if needed - Reference to written contract / PI / commercial agreement - Mutual agreement on resolution

We avoid adversarial commercial dispute approaches. Long-term relationships are worth more than win-loss commercial outcomes.

Trade dispute approach:

For regulatory or trade restriction issues at customer destination: - Immediate notification of new regulations affecting shipments - Joint review of impact and options - Documentation support for customer's regulatory navigation - Commercial flexibility (renegotiation, extended terms, alternative arrangements) where needed

We treat trade disputes as shared challenges, not customer-cost-burden situations.

Track record:

Across the SEMITI customer base: - Quality complaint rate: ~0.3% of shipments - Customer-satisfaction-resolved rate: ~97% of complaints - Repeat customer retention: ~92% year-over-year - Median dispute resolution time: 7 days

Force majeure provisions:

For events outside our control (natural disasters, government actions, supplier production stops, port closures), our contracts include standard force majeure provisions. We notify customers immediately and work on alternative arrangements.

Escalation paths:

If standard dispute resolution doesn't produce satisfactory outcome: - Customer can escalate to senior management - Commercial mediation through Chinese trade industry organizations - Arbitration as specified in contract (typically CIETAC Shanghai or Hong Kong) - Legal proceedings as last resort (rare in established trade relationships)

The escalation paths exist but in 15+ years of operation, the parent Shanghai Semitech New Material Co. has used arbitration extremely rarely. Most disputes resolve commercially.