What should Taiwanese companies do when faced with cross-border payments and international trade disputes? First, consider jurisdiction, applicable law, evidence, and enforcement.

When Taiwanese companies engage in international trade and disputes arise, the first question they most frequently ask is: "The other party is located overseas, so where do I file a complaint?"

However, the real issues that need to be addressed in cross-border business disputes are usually not just the courts of which country.

For example:

• The overseas customer refused to pay after receiving the goods.
• The foreign buyer suddenly claimed there was a quality problem;
• The Taiwanese company has already paid a deposit, but the overseas supplier has not delivered the goods.
• Foreign agents violated distribution agreements;
• OEM/ODM customers cancel orders;
• A foreign company suddenly terminated the contract and demanded compensation.

Or conversely: a foreign company has already filed a lawsuit against a Taiwanese company in Taiwan.

These cases typically involve:

• English or bilingual contracts;
• Order;
• International freight;
• Payment;
• acceptance;
• Applicable Law;
• Jurisdiction of the courts;
• arbitration;
• Cross-border evidence;

And the final execution of the judgment.

Therefore, the real first step is not: "Quickly send a lawyer's letter."

Instead, answer four questions first:Where should it be processed?Which country's laws apply?Where is the evidence?Even if you win the case, where will the judgment be enforced?

I. Cross-border business disputes cannot be resolved solely by considering "who breached the contract".

The same international transaction may involve:

• Taiwanese company;
• Italian company;
• Chinese factories;
• Singapore payment account;
• German customer;

US contract template.

So even if on the surface it's just: "Payment owed for goods"

Before legal proceedings actually begin, it is still necessary to confirm: who are the true parties to the contract?

Who placed the order?

Who pays?

Who will receive the goods?

Who issued the invoice?

Where should the goods be delivered?

Which country's law should be used in the contract?

Which court should I write about?

Is there an arbitration clause?

Where are the other party's main assets located?

Cross-border cases cannot rely solely on a single invoice to determine the entire legal strategy.

Such cases can be handled byCorporate Business and Cross-border Commercial Dispute LawyerIntegrate transaction, procedure and execution assessments.

3. If a Taiwanese company is a creditor, should the lawsuit be filed in Taiwan or abroad?

There is no single answer that applies to all cases.

First, we need to check whether the contract stipulates the court.

For example, a contract might state:

• Taipei District Court;
• Singapore courts;
• British courts;

Courts in other countries.

It could also be not a court at all, but rather: international arbitration.

If the contract does not explicitly stipulate this, further action is required:

• The defendant's location;
• Contract fulfillment;
• Transactional relationship;

Analysis of procedural laws in various countries to determine jurisdiction.

But "has jurisdiction"

That's not the only problem.

For example, a Taiwanese court might have the opportunity to hear the case, but all of the other party's assets are in Europe.

Even if Taiwan wins the case, it may still need to go to a foreign country for recognition and enforcement.

Therefore, when choosing a venue for litigation, the following should also be considered:Where can I file a lawsuit?and:Where is the money to carry out this?

V. What can Fidelity Law Firm do if a Taiwanese company wants to file a lawsuit overseas?

If the actual jurisdiction lies with a foreign court, Taiwanese lawyers cannot obtain the right to practice law in that country.

Therefore, the most professional way to handle cross-border litigation is not to pretend: "Taiwanese lawyers can appear in courts of any country."

Instead, it was handled by Fidelity Law Firm:Taiwan Duan Zhuzhi Legal Teamassist:

• Organize the transaction structure;
• Review the English contract;
• Confirming the Taiwan legal issue;
• Create a timeline;
• Organize order, invoice, and shipping documentation;
• Calculate the content of the claim;
• Prepare case summaries in both Chinese and English;
• Communicate with local lawyers overseas;

Assist the head office or management in understanding different litigation strategies.

When it is truly necessary to appear in a foreign court or submit procedural documents, the matter shall be handled by a lawyer qualified locally, in accordance with the regulations of that country.

This can prevent Taiwanese companies from directly:

• Hundreds of emails;
• Dozens of orders;
• Chinese accounting;

All the Chinese company documents were handed over to foreign lawyers, but no one first sorted out the real core of the case.

VI. What documents should be prepared in the first batch if overseas customers owe money?

7. Can I still pursue payment for goods without a formal, complete contract?

That doesn't mean it's impossible.

International trade is often a long-term endeavor.

The transaction may be conducted by:

• Quotation;
• Purchase Order;
• Order Confirmation;
• Invoice;
• Shipment;
• Receive goods;

Payments were made repeatedly.

Therefore, even if there is no document titled "International Sales Agreement"...

The official document still needs to include:

• The two parties have a long-standing trading relationship;
• Each order;
• price;
• delivery;
• acceptance;

The payments are linked together.

What really needs to be proven is: what exactly the two parties agreed upon, and whether the transaction has been fulfilled.

8. What should a Taiwanese company do if a foreign customer suddenly claims that the goods are defective?

Don't just reply, "There's nothing wrong with our product."

Should be retained immediately:

• Product specifications;
• sample;
• Quality inspection;
• Acceptance criteria;
• Photos taken before shipment;
• Third-party inspection;
• Customer complaint time;
• Return requirements;
• Repair records;
• Replace records;

And whether the other party continues to use or resell the product.

The real core of many payment disputes is not: "Whether there are defects or not".

The question is: when should it be raised?

How is acceptance carried out as stipulated in the contract?

Is the defect significant?

Was there an opportunity to make corrections?

Can the damage caused by defects be used to offset the entire payment for the goods?

9. Incoterms are important, but they cannot solve all legal problems.

International trade contracts often include terms such as EX, W, FOB, CI, FDA, PD, DP, etc.

Incoterms can help clarify:

• delivery;
• transportation;
• Risk transfer;

Partial cost allocation.

However, this does not mean that writing FOB automatically means:

• Payment terms;
• Liability for defects;
• Compensation for breach of contract;
• Applicable Law;

All court jurisdiction issues have been resolved.

Incoterms are only one part of the transaction structure.

The configuration details before signing the contract can be consulted together.Risks associated with overseas orders and international trade contracts.

10. When should an international lawyer's letter be sent?

A lawyer's letter is typically suitable for:

• Clearly list the amount of unpaid payments;
• Point out the breach of contract;
• Set a final payment deadline;
• Refuse unreasonable deductions;
• Reserve legal rights;

A settlement window has been proposed.

However, the lawyer's letter is not the purpose itself.

If the other party has already:

• Financial deterioration;
• Business closed;
• Transfer of assets;

Deliberately delaying and sending letters back and forth is not necessarily the best strategy.

At this point, a direct assessment may be necessary:

• Presumptive seizure;
• litigation;
• arbitration;

Or other preservation procedures.

11. Why should we examine the other party's assets first in international loan disputes?

Because winning a lawsuit and actually receiving the money are two different things.

If the overseas debtor does not:

• Bank deposits;
• real estate;
• Accounts receivable;
• equipment;

Other executable assets may have limited commercial value if a judgment is obtained.

Therefore, cross-border claims should also consider:

• Right of claim;
• evidence;
• Jurisdiction;
• assets;

implement.

Instead of asking, "Does the other party have any assets?" only after the lawsuit is over.

12. Can a Taiwanese company request a preliminary attachment before litigation?

It depends on the jurisdiction and local procedural laws.

If it's a Taiwanese procedure, the creditor must comply with our country's...Civil Procedure LawWhen the requirements are met,

It is possible to assess a false seizure.

But the court will review:

• Claims;
• The risk that enforcement may be impossible or difficult in the future;

And related legal requirements, and may involve guarantees.

No: The court will not necessarily freeze assets as long as the other party owes money.

If the assets are located overseas, a separate assessment of the preservation measures will be required in accordance with local laws and by a local lawyer.

The procedure preparation can also be referenced.Corporate Commercial Litigation, Presumptive Seizure and Evidence Strategy.

13. If a judgment has already been obtained from Taiwan, can it be directly enforced abroad?

It cannot be preset.

Each country has its own regulations regarding the recognition and enforcement of foreign court judgments.

If: the Taiwanese company wins the case in Taiwan, but the debtor's main assets are overseas, the next step may need to be in the country where the assets are located:

• Apply for recognition;
• Obtain an enforcement license;

Then it will be implemented locally.

Therefore, when signing a contract, one should consider: where will the future judgment be enforced?

14. Conversely, can foreign judgments be directly enforced in Taiwan?

It cannot be executed directly.

According to Article 402 of the Civil Procedure Law of Taiwan, the validity of a foreign court's judgment in Taiwan must still comply with the provisions of Taiwan law.

For example, it may involve:

• Does the foreign court have proper jurisdiction?
• Did the defendant receive proper procedural notice and opportunity to respond?
• Does the judgment or procedure violate my country's public order?

And factors such as mutual recognition.

according toEnforcement Law,

If a foreign court judgment is to be enforced in Taiwan, it must obtain permission from a Taiwanese court to enforce it in accordance with the law.

Therefore, if a foreign company has already obtained a judgment overseas, but the debtor's assets are in Taiwan, a "Taiwan recognition + enforcement procedure" should still be designed first.

According to Article 402 of the Code of Civil Procedure, the recognition of a foreign court's judgment in Taiwan must meet relevant legal requirements; according to Article 4-1 of the Enforcement Act, an application for enforcement of the judgment in Taiwan still requires permission from a Taiwanese court to enforce the judgment.

15. When disputes arise in English contracts, the truly important factor is not the translation, but the transaction structure.

For example, a sentence like: "Payment shall be made within 60 days after delivery."

It appears to be just a payment condition.

However, the actual case still needs to be clarified: how exactly is delivery defined?

Is it to hand it over to the carrier?

Arrival at port?

Customs clearance?

Delivered to the buyer's warehouse?

Or is the acceptance process complete?

If the contract contains:

• Incoterms;
• Acceptance;
• Inspection;
• Invoice;

All payment terms must be read together.

Therefore, reviewing English contracts is never just about translating English into Chinese.

Contract review includesEnglish contract review and cross-border contract termsOverall interpretation.

16. Taiwanese companies also need cross-border case strategies when sued by foreign companies.

Cross-border cases are not limited to Taiwanese companies pursuing foreign companies.

It could also be that a foreign company seeks compensation from a Taiwanese company.

At this point, Taiwanese companies need to confirm:

• Does a foreign court have jurisdiction?
• Have I legally received the procedural notification?
• Is it necessary to appoint a lawyer immediately overseas?
• Which country's laws apply to the contract?

Is it possible for foreign judgments to be enforced in Taiwan in the future?

It cannot be because: "I am in Taiwan."

They completely ignore overseas court documents.

Missing the deadline for responding to a lawsuit could make the case more difficult to resolve later.

17. Fidelity Law Firm currently possesses practical experience in handling litigation in Taiwan by foreign companies.

Our firm is currently representing an Italian company in a Taiwanese court to recover international transaction payments from a Taiwanese company.

These types of cases are handled by Fidelity Law Firm:

• Foreign companies trading with Taiwanese companies;
• English business documents;
• Cross-border evidence;
• Taiwanese court procedures;

International debt recovery.

Therefore, when Taiwanese companies find themselves in the opposite position and prepare to seek recourse from overseas companies, we can better understand their perspectives from both sides:

• What documents does a foreign company really need to prepare?
• How foreign headquarters make litigation decisions;

And how Taiwanese lawyers collaborate with overseas lawyers.

This case is still under trial and does not represent or predict any final judgment.

19. When a cross-border dispute actually occurs between enterprises, do these six things first.

1. Do not delete emails, chat logs, or transaction data.
2. Link the contract, purchase order, invoice, shipment, and payment together.
3. Find the Governing Law.
4. Find the Jurisdiction / Arbitration Clause.
5. Confirm which country the other party's assets are located in.
6. Before sending out an ultimatum or initiating a procedure, determine the actual execution strategy.

FAQ