Defects, Damage, and Shortage: Who Is Responsible

15.10.2026·6 min read·Delivery Pro China

Defects, damage, and shortage in imports from China – three distinct areas of responsibility. Find out who is liable and when the issue can still be resolved without losses.

In brief: Defects, damage, and shortage are three different situations with three different areas of responsibility. Product quality issues are resolved with the supplier before shipment. Shortages are caught during acceptance at the warehouse in China. Damage in transit is a matter of packaging – insurance does not cover it.

Current as of 2025. Figures on insurance coverage and packaging costs are based on DPC's current terms.

Why "the goods arrived defective" Is Not a Claim

When an importer says "the goods arrived defective," that phrase typically conceals three entirely different situations. The problem is that each has its own area of responsibility and its own point at which it can still be resolved without losses.

The supplier responds: "We shipped in good condition." The carrier says: "We transported a sealed consignment." Both are right – if you have not established exactly what happened. Conflating three cases under one word is costly.

Quality Defects: the Only Moment When This Is Inexpensive

If goods do not conform to the sample or technical requirements, this falls within the supplier's area of responsibility. It is resolved before shipment: factory inspection, a clear specification in the contract with tolerance descriptions, and photographs of the reference sample.

Once the cargo has left the factory, options narrow considerably. The supplier will argue that the goods were accepted without objection. Proving otherwise without documented pre-shipment control is difficult and time-consuming.

Warehouse acceptance in China covers checking the number of packages and weight against the supplier's declared figures, the condition of packaging, labeling, and – where agreed – a unit count inside packages. Product quality is not assessed during standard acceptance; a separate arrangement is required, along with a clear understanding of what exactly needs to be checked.

Shortage: Why It Must Be Caught at the Warehouse

The only point at which a quantity discrepancy can be resolved without significant losses is acceptance at the warehouse in China. Here, the number of packages and weight are compared against the supplier's documents, and a unit count inside packages is carried out if necessary.

Beyond this point, the cost of the issue grows at every step: - after dispatch – carrier documents and the carrier's explanation are required; - after customs clearance – an explanation to customs is also required as to why the actual quantity differs from the declaration.

Agreement on a unit count must be reached before the cargo is accepted, not after a shortage has been discovered.

Damage in Transit and Why Insurance Does Not Cover It

This is something important to know before dispatch, not after. Insurance coverage applies to loss, theft, and non-delivery. Breakage and cargo damage are not covered by insurance.

At the same time, damage during transshipment is one of the most common claims in the segment. Cargo is handled multiple times between the factory and the consignee's warehouse, and each transshipment is a risk for a weak box.

The only measure that genuinely works against breakage is packaging before dispatch. Crating costs 15–25 $ per package; a palleted crate costs 30 $ per cubic meter. This is almost always less expensive than a damaged shipment. Packaging and insurance terms are published at dpc.pro.

How to Calculate: When Voluntary Insurance Is Warranted

Mandatory coverage is provided by the carrier and varies by route. Its amount is not calculated as a percentage of value but as a fixed sum per kilogram of cargo. For example, on the road route to Kazakhstan, mandatory coverage is 5 $ per kg.

Example: a consignment of electronics weighing 200 kg with a value of 40,000 $ is covered under this rate for 1,000 $. Formally, insurance exists; in practice, this is approximately two and a half percent of the value.

The decision rule is straightforward: divide the value of the consignment by its weight. If the result is noticeably higher than the mandatory coverage on your route, voluntary insurance makes sense. If it is not, mandatory coverage is sufficient.

Voluntary insurance is arranged only at the client's request. If you decline, the difference between the cargo value and the mandatory coverage remains your risk. Current rates by route are published on the insurance page at dpc.pro.

FAQ

Question: What should I do if I discover a shortage after receiving the cargo?

Proving a shortage after delivery is significantly more difficult: the carrier will point out that the cargo was accepted without objection, and customs will refer to the declaration data. Record the fact at the time of acceptance and retain all documents and reports. Next time, arrange for a unit count at the warehouse in China before dispatch – this is the only point at which the issue can be resolved without major expense.

Question: Can I receive compensation for goods that were broken during transit?

Insurance coverage does not extend to breakage and cargo damage – only to loss, theft, and non-delivery. Carrier liability for damage is a separate matter governed by the contract and the applicable convention. In practice, the only effective protection against breakage is proper packaging before dispatch: crating and pallets.

Question: How do I know whether voluntary insurance is needed for my consignment?

Divide the value of the consignment by its weight in kilograms. Compare the result with the mandatory coverage on your route. If the value per kilogram noticeably exceeds the carrier's coverage, voluntary insurance is justified. If it does not, mandatory coverage is sufficient to cover potential loss.

Question: Is it necessary to arrange a unit count at the warehouse in China in advance?

Yes. Standard acceptance includes checking the number of packages, weight, and the condition of packaging. If a unit count inside packages is required, this is carried out by prior arrangement and must be agreed before the cargo is accepted, not after.

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