Article 43 If one trading party breaches the contract upon the delivery and payment of goods, the parties concerned should seek to resolve the problem through consultation. When the consultation fails, Sinoruex may compensate the contract-abiding party appropriately with the guarantee fund in accordance with the penalty provisions in the contract and the severity of violation as well as the principle that the compensation shall not exceed 10% of the value of the commodities traded.

When the violation of contract is caused by quality problems, the contract-abiding party may return commodities for a refund or replacement of commodities. If the guarantee fund is not sufficient, the breaching member shall increase it to the required amount before the next trading day starts.

Article 44 When the seller fails to issue an invoice within the period specified in the Rules, Sinoruex shall impose a daily overdue fine at 0.5‰ of the commodity value involved if the delay is within three to ten days and the daily overdue fine shall increase to 1‰ of the commodity value if the delay is within eleven to thirty days. When the seller fails to issue an invoice after a delay of thirty days, Sinoruex shall set a deadline for issuing the invoice and impose a fine at 10% of the commodity value as compensation.

When the seller fails to report the issuance of a sales invoice to the local tax authority in the month of the invoice issuance and, as a result of that, the buyer is unable to claim tax deduction at the local tax authority, a fine of RMB 500 shall be imposed as compensation for each contract.

Article 45 When a member fails to perform the notification obligation in terms of payment or delivery according to the Rules, a fine of 1‰ of the commodity value involved shall be imposed for each day delayed and the daily fine imposition shall go on until the contract-honoring guarantee fund of the violating member is deducted to exhaustion.