1. Tooling Ownership and Maintenance If the customer pays the mold fee in full, the ownership of the custom mold shall belong to the customer. During the term of the contract, Gstar shall be responsible for free mold maintenance, including but not limited to CNC tool wear repair, mold cleaning and rust prevention. If there are no orders for the mold for two consecutive years, Gstar will notify the customer in writing. The customer may choose to have the mold shipped back (at the customer’s expense) or ask Gstar to destroy the mold, and Gstar shall provide a destruction certificate upon request.
2. Intellectual Property Compensation The customer warrants that the brand logos, appearance designs, technical drawings or other intellectual property rights provided to Gstar are legally authorized and do not infringe upon the intellectual property rights of any third party. If Gstar suffers production suspension, fines, legal liabilities or other losses due to the customer’s intellectual property infringement, the customer shall bear all corresponding losses and compensate Gstar for all damages incurred.
3. Price Fluctuation Clause In view of the volatility of raw material prices (such as aluminum alloy, carbon fiber, etc.), if the price of key raw materials fluctuates by more than 10% (based on the raw material price quoted on the date of the order) before mass production, both parties shall negotiate and adjust the product unit price accordingly. Gstar shall provide the customer with a formal raw material price adjustment certificate to confirm the new price.
4. Incoterms and Risk Transfer The commonly used international trade terms for transactions between both parties are FOB Shenzhen, DAP (Delivered at Place) and DDP (Delivered Duty Paid), which shall be confirmed in the order contract.
The risk of the goods shall be transferred as follows:
① For FOB terms: Risk transfers to the customer when the goods are delivered to the carrier designated by the customer at the port of shipment
② For DAP terms: Risk transfers to the customer when the goods arrive at the designated destination
③ For DDP terms: Risk transfers to the customer when the goods are delivered to the customer’s designated address and cleared through customs.
5. Force Majeure Force majeure refers to unforeseeable, unavoidable and insurmountable events that prevent either party from performing its obligations under the contract, including but not limited to customs inspection delays, strikes, labor shortages, raw material shortages, natural disasters, wars, government policy adjustments and other events affecting international trade. If either party is affected by force majeure, it shall notify the other party in writing within 3 business days and provide relevant proof. Both parties shall negotiate to delay the performance of the contract or terminate the contract according to the impact of the event, without bearing liability for breach of contract.
