CCPIT Offers Majeure Certificate to Companies Amid Coronavirus Epidemic

A Chinese global trade promotion agency said it could offer force majeure certificates to firms struggling to cope with the influence of the new coronavirus outbreak on their business with overseas associates.

The step by the China Council for The Promotion of International Trade (CCPIT), formally accredited with Beijing’s Commerce Ministry, was introduced late Thursday and came with the death toll in the nation from the virus hitting 200. The number of cases confirmed worldwide has risen quickly in what WHO has declared a global emergency.

It didn’t identify any firms affected, and didn’t disclose whether it had acquired any requests for pressure Majeure certificates, which can absolve parties of liability for contracts that may be fulfilled because of extraordinary circumstances beyond their control.

The CCPIT stated corporations that can present legitimate paperwork, together with proof of delays or cancellation of transportation, export contracts, and customs declaration, to its online system would be offered force majeure certificates. The agency writes on its website that its certification is recognized and accepted abroad.

The epidemic on the planet’s second-largest economy has disturbed global commodity markets, elevating fears of weaker demand and disrupting raw materials supply chains.

A Chinese authorities economist has forecast the nation’s economic progress could plunge to 5%, and even decrease, from last year’s 6.1%.

China has extended the Lunar New Year break to at least February 2. However, some areas, such as oil refining center of Shandong and auto manufacturers occupied Chongqing city, have requested corporations not to resume businesses before February 10, in a bid to stop the spread of the coronavirus.