(Yicai Global) Feb. 3 -- The governmental group China Council for the Promotion of International Trade issued the nation's first factual proof of force majeure over the novel coronavirus pneumonia epidemic to a manufacturing company in the industrial hub of Zhejiang province yesterday to help the firm cut its losses stemming from its corresponding inability to perform, Xinhua News Agency reported.

Force majeure clauses in contracts shield parties unable to discharge their duties because of acts of God, war, insurrection, natural disasters and the like, but they require a proven factual basis. The term in French roughly translates as 'with greater force.'

The company, which submitted its online application to the CCPIT on Feb. 1, was prevented from delivering its products to overseas customers on schedule by the deadly flu-like pneumonia outbreak that swept the country during its annual Lunar New Year travel peak. In addition to direct contract losses of CNY2.4 million (USD346,000) it sustained as a result, the firm may also have to pay CNY30 million in damages for causing two weeks of production stop for its clients if it fails to adduce legal proof that it was blameless in the delay.

The CCPIT's online certification platform instituted its application service for force majeure certification on Jan. 26. Its certificates are recognized by more than 200 national or regional governments, customs, chambers of commerce and companies around the world, and it has strong credibility overseas, said Yan Yun, deputy director of the body's Commercial Certification Center.

The CCPIT issues a factual proof of force majeure to establish the presence of the disabling events claimed upon request by petitioners. After a certificate issues, parties affected by unforeseeable circumstances beyond their control may be partially or entirely exempted from liability for their non-performing, incompletely performing or delaying performance of their contracts.

The council, formed in 1952, is a national foreign trade and investment promotion agency under China's cabinet the State Council. It promotes foreign commerce, international cooperation and economic and trade negotiations, and provides legal and intellectual property services to companies, according to its website. The CCPIT does not disclose the identity of applicants for its certifications.

Editor: Ben Armour