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Dispute Settlement and Penalty

Article 39  Members should seek to settle disputes among themselves through consultation. When consultation fails, they can approach Sinoruex for mediation. When the mediation fails, the parties concerned should settle the dispute through legal procedures applicable in P. R. China.

Documentary disputes arising from implementing the contract of importing natural rubber products shall be resolved according to the international commercial law and be judged through court proceedings or arbitration. Based on the results of court proceedings or arbitration, Sinoruex shall transfer the guarantee fund of the contract-breaching party to the contract-abiding party accordingly.

Article 40 Members are prohibited from -:
1. conducting colluded deals; 
2. providing false reports, documents or information to Sinoruex;
3. preventing Sinoruex staff from performing their duties; 
4. delaying the payment of due funds or fees;
5. damaging the facilities at Sinoruex; 
6. disrupting the trading order; and 
7. other behaviors that run against the Regulations. 

When a member is engaged in one or more of the above behaviors, Sinoruex will carry out punishments ranging from warning, serious warning, suspension or even termination of membership to compensation of economic loss in accordance with the severity of offense.

Article 41 When a member fails to increase the deposit to the required level within the given time, Sinoruex may suspend the members’ trading right, collect appropriate amount of funds from the member through effective means and take legal actions when necessary.

Article 42 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 of the contract-breaching party in accordance with the penalty provisions of the contract as well as the principle that the compensation does not exceed 10% of the value of the commodities traded. If the guarantee fund is not sufficient, the breaching member shall increase it to the required amount before the next trading day starts.

 

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