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Buying goods from China for an Adelaide business

An Adelaide importer should agree product quality, inspection and defect procedures before paying for goods from China. A purchase order that records only price and quantity can leave difficult questions about standards, rejection and responsibility for a failed shipment.

Updated October 2026

Consider the international sales regime

Sections 4 and 5 of the Sale of Goods (Vienna Convention) Act 1986 (SA) give the CISG force of law and priority over inconsistent local law within its scope. Under article 1, the Convention can apply to qualifying sales between businesses in different contracting states. Article 6 allows parties to exclude or vary its operation, subject to the Convention. Check the actual transaction and contractual choice rather than assuming ordinary domestic sales law alone applies.

Specify and inspect the goods

Article 35 addresses contractual quantity, quality, description and related conformity requirements. Articles 38 and 39 address examination and notice of non-conformity. A buyer can lose important rights by failing to give sufficiently specific notice within the applicable period. Agree measurable specifications, samples, testing, packaging and the documents needed for Australian regulatory compliance. Incoterms and payment terms should be consistent with the commercial allocation of risk.

A practical illustration from imported electronics

In Castel Electronics Pty Ltd v Toshiba Singapore Pte Ltd [2010] FCA 1028, the Federal Court applied the CISG in a dispute involving defective imported audiovisual products and considered article 35 obligations. The case involved a Singapore supplier and Victorian proceedings, not a South Australian buyer or Chinese defendant. It illustrates the relevance of contractual purpose and evidence of non-conformity, without determining every importer’s notice or remedy position.

Make the remedy workable

Identify the supplier’s legal entity and authorised signatory, record the agreed language version and plan dispute resolution before shipment. Keep inspection reports, photographs, batch details and communications about defects. Do not return or destroy goods without considering preservation and proof. Coordinate Australian and Chinese advice where needed so that a well drafted contractual right can be pursued against the correct party in a practical forum.

Key legislation and cases

Author: Pei Ling Cao

Last updated: October 2026

Jurisdiction: South Australia, Australia

Disclaimer: This article provides general information only and does not constitute legal, financial or tax advice. The law may change and its application depends on individual circumstances. You should obtain professional advice before acting on the information contained in this article.