Cancellation policies for import-export companies can vary depending on the specific terms and agreements you have with your clients and suppliers. Here is a general outline of key considerations for creating a cancellation policy for your JDM (Japanese Domestic Market) import-export company:

Contractual Agreements:
Ensure that all import-export transactions are governed by written contracts or purchase orders. These documents should clearly outline the terms and conditions, including cancellation and termination clauses.

Notice Period:
Define a notice period within your cancellation policy. This specifies how much advance notice is required for either party to cancel an order. Common notice periods range from 30 to 90 days.

Cancellation Fees:
Specify any cancellation fees or penalties that will be imposed in the event of a cancellation. These fees can help offset costs incurred in preparing for the shipment, warehousing, or other arrangements.

Force Majeure:
Include a force majeure clause in your cancellation policy. This clause allows for cancellations without penalties in the event of unforeseeable and uncontrollable circumstances, such as natural disasters, political unrest, or other emergencies.

Termination for Cause:
Define conditions under which either party can terminate the contract for cause. Common reasons include non-payment, breach of contract, or other violations of the agreed-upon terms.

Refund Policy:
Clarify whether any payments made in advance are refundable and under what circumstances. It’s important to provide transparency about when and how refunds will be processed.

Rescheduling:
Specify your company’s policy regarding rescheduling of orders. This can be distinct from cancellation and might involve a separate set of terms.

Notification:
Establish clear communication channels and methods for cancellation notifications. Ensure that all parties involved are informed promptly and in writing.

Legal Compliance:
Ensure that your cancellation policy is in compliance with relevant international trade laws, regulations, and industry standards. Consult with legal counsel if necessary.

Record-Keeping:
Maintain records of all cancellations, including documentation of reasons, dates, and any associated costs. This will be valuable for transparency and auditing purposes.

Review and Update:
Regularly review and update your cancellation policy to adapt to changing market conditions, regulations, and industry practices.

Remember that a well-defined and fair cancellation policy is essential for maintaining trust and positive relationships with your clients and suppliers. It should protect both parties’ interests and provide clarity in case of unforeseen circumstances or disputes. Be sure to consult with a legal professional experienced in international trade to help you craft a policy that suits your specific business needs and complies with applicable laws.