International trade dispute makes US bank lose lawsuit

US-based Frost Bank was in arrears on an enterprise in the Ningbo Free Trade Zone in violation of related rules. After one and half years' lawsuit, the Ningbo Intermediate Court made the first-instance judgment on October 9 that the bank should make payment of about 170,000 US dollars of economic compensation, according to a Xinhua report in Hangzhou on October 10.

According to sources, US-based Platelite Inc. bought illuminated light products twice from Sanbang Industrial and Commercial Corporation in the Ningbo Free Trade Zone. At that time, both sides agreed to make payment by D/P (delivery against payment) at sight. The American side designated US-based Frosf Bank as due bank.

Unexpectedly, after China's enterprise's delivery of goods on shore, Platelite failed to make payment in advance as agreed upon by both sides and carried the goods away with all the documents from the Frosf Bank. Chinese company frequently asked for the payment, but the US-based bank refused to do so, saying that it did not receive the cash.

After the failure of several representations, Sanbang company submitted the case to the Ningbo Intermediate Court. The court issued a summons in August last year in accordance with related international regulations, summoning Frosf to take part in the lawsuit. Frosf failed to be present at the court without any explanation. So the court made a judgment by default on Monday and had the above-related verdict.

By People's Daily Online