The goods arrived. They were accepted. Then came the "quality issues", the request for a discount, or simply silence. Below are seven steps worth taking — in this order — before the claim becomes unrecoverable.
We are an exporter who ended up in exactly this position: €73,993.91 still unpaid after a unilateral deduction announced a month after delivery. We wrote down what we learned along the way, so someone else doesn't have to pay for that knowledge the way we did.
See our caseBefore you call, before you reply to an emotional email — copy everything. Payment claims are won on documents, not on arguments.
Collect and archive in one place:
In "quality" disputes, the decisive question is often not whether the goods had a defect, but when the buyer gave notice of it.
Most cross-border sales fall under the UN Convention on Contracts for the International Sale of Goods (CISG). Article 38 requires the buyer to examine the goods within as short a period as is practicable in the circumstances. Article 39 requires notice of any lack of conformity within a reasonable time after it was discovered or ought to have been discovered.
What does "reasonable" mean in practice? It depends on the goods. For machinery it may be weeks. For fruit, vegetables or anything else perishable it is usually measured in days — because after a few weeks nobody can verify what condition the goods were in at delivery.
In the fresh produce trade there are also sector rules (COFREUROP) under which a quality claim is expected to be supported by an independent, approved surveyor's report. A deduction resting on nothing but the buyer's own assertion does not meet that standard.
This is the most common trap in disputes of this kind, and it is worth understanding before you walk into it.
The pattern usually runs like this: the buyer says they will settle the balance, but first they need a corrective document from you — a credit note. The pressure is real, because the money is already on their side of the table.
If you decide you must issue one — and sometimes it is the only way to recover any part of the balance — do it on the same day as a written statement confirming that:
Silence is frequently read as acceptance. Reply in writing to every defect notice, every discount proposal and every deduction, even if only in one paragraph.
A good objection is short and factual. It should state:
The letter of demand is the point at which the matter stops being a commercial conversation and becomes a claim for payment. A great many disputes are settled at exactly this stage.
It should set out the precise principal amount, the invoice numbers, a payment deadline (commonly 7–14 days), notice that interest is accruing, and a statement that legal proceedings will follow if payment is not made.
Send it in a language the buyer understands and, where practical, in the official language of their country. Keep proof of service — you will need it later.
Many suppliers overlook this, and it is a real part of the claim.
For commercial transactions within the European Union, late payment is governed by Directive 2011/7/EU, which provides for statutory default interest and a fixed sum as compensation for recovery costs. Outside the EU, the position depends on your contract and the applicable national law.
Which law actually governs your contract is not always obvious in a cross-border sale, and it drives the interest rate. Confirm this point with a lawyer before you put a number in your demand letter.
If the demand produces nothing, several routes are usually available. They are not mutually exclusive, and the cheapest is rarely the court.
Which one fits depends on the amount, the buyer's country, what your contract says, and whether the claim is genuinely disputed.
A collection agency operating in the buyer's own country is often faster and far cheaper than litigation, particularly for mid-sized amounts. It also keeps a settlement on the table. For many exporters this is the highest-return step after the letter of demand.
Usually the best cost-to-recovery ratioA simplified procedure for uncontested cross-border money claims within the EU, under Regulation (EC) No 1896/2006. It runs on standard forms and normally without a hearing. If the debtor lodges a statement of opposition, the case moves into ordinary proceedings.
Regulation (EC) No 1896/2006Where the claim is contested — and a quality allegation usually makes it so — you are looking at proceedings. The threshold question is which forum and which governing law. Check your contract first; if it is silent, jurisdiction follows the applicable rules, which within the EU means the Brussels I bis Regulation.
Brussels I bis Regulation 1215/2012 · ICC arbitrationIf the dispute involves a deduction or discount imposed unilaterally after delivery, it may amount to an unfair trading practice. Within the EU, Directive 2019/633 (UTP) was adopted specifically to protect weaker suppliers in the food supply chain, and each member state has a designated enforcement authority.
EU Directive 2019/633 · national enforcement authorityMost disputes of this kind can be avoided with a single paragraph. Here is the list worth running through before you sign.
Don't rely on "reasonable time". Write a specific number of days from delivery — for perishables, typically 24 to 72 hours.
Make it contractual that any quality claim requires an approved third-party report (COFREUROP standard for fresh produce), at the claiming party's cost.
Expressly exclude the buyer's right to deduct or set off any amount without your prior written consent.
Fix both in the contract. Leaving it open can turn a simple payment claim into a multi-year fight about jurisdiction.
With a new buyer: advance payment, a letter of credit, or documents against payment — at least until you have built a track record together.
The premium is typically a fraction of one percent of turnover. One unpaid shipment repays it many times over.
This guide was not written in theory. We are a Turkish citrus exporter. Of €133,383.20 invoiced, we received €59,389.29. The remaining €73,993.91 was never paid — withheld under a unilateral "quality deduction" declared about a month after delivery, which we did not accept.
We document the full timeline, the figures and the underlying records publicly and in measured terms. The other party's right of reply remains open.
Read the documented case →