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TAN HOA CASE

On 13 November 2014, Bonanza and Tan Hoa signed the purchase and packing. Accordingly, Bonanza agreed to buy 15.876 kg of cashew nut from Tan Hoa with the total contract value of USD 121,838.92. According to Article 2 of the Contract, the quality of the goods must fulfill standard of AFI-1999 and ISO 6644:2000 but the breakage does not exceed 5% and the next lower size does not exceed 5%.

Based on the inspection result issued by VINACONTROL dated 19 November 2014, which showed the breakage, the next lower size and total defects were 2.7%, 5.2% and 5.4% respectively, Bonanza’s customer revealed its consent to take the goods if it was delivered as committed and Bonanza completed its payment obligation to Tan Hoa afterwards. However, on 4 December 2014, when the cargo was delivered to our customer’s  factory in Taiwan, Bonanza cross-checked and detected  that quality of the cargo  was really bad and significantly different from the inspection result of VINACONTROL and quality agreed by the parties under the Contract.  Our inspection result indicated that the breakage, the next lower size and the total defects of the goods were 7.4%, 7.8% and 10.8% respectively.

We immediately notify Tan Hoa the matter by email dated 1 December 2014 and requesting Tan Hoa to athorize its representatives and VINACONTROL to our Taiwan factory for reinspection on 19 December 2014 and 26 December 2014 but Tan Hoa did not cooperate and reject our requests.  The re-inspection result issued by the office of SGS Taiwan Co., LTd (“SGS”) in Ho Chi Minh City dated 10 February 2015 proved that the quality of the cargowas far below the agreed terms of quality by the parties in the Contract. Namely, the breakge was 10.8% and the total defect  was 16%.

Bonanza repeatedly requested Tan Hoa to remedy losses and damages suffered by Bonanza as a result of such serious breach of Tan Hoa but Tan Hoa failed to cooperate to solve the problem. 

( Tan Hoa Co. Ltd., Tax code: 3900370418; address: Tan Hoa commune, Tan Binh ward, Tay Ninh city, Tay Ninh province; email: This email address is being protected from spambots. You need JavaScript enabled to view it. ; Phone: 0663 819 567; Representative: Mr. Nguyen Quoc Nhu - director).

 Please refer documents of Tan Hoa cas here:

https://drive.google.com/drive/folders/0B8yBmdQyxUDHemFEMlVEYWtrbXc

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