PCGS Banknote guarantees that all Chinese and World notes submitted to it shall be graded in accordance with the PCGS Banknote grading standards and under the procedures of PCGS Banknote. In addition;
In the event the purchaser of a Banknote certified by PCGS Banknote believes that the note has been overgraded with respect to such standards and procedures, or is non-authentic, he may submit such note to PCGS Banknote through the PCGS Banknote “Guarantee Resubmission” procedures and PCGS Banknote will re-examine the note to determine the note's grade and authenticity.
If the grade determined under such “Guarantee Resubmission” procedures is lower than the grade originally assigned to the note, or if the note is found to be misattributed, non-authentic, PCGS Banknote shall pay the current market value (up to $10,000) for the note in question at the originally assigned grade, or at the owner of the note's option, the difference between the current market value for the note in question at the newly established grade and the current market value of the note in question at the grade originally assigned (up to $10,000). PCGS Banknote will also refund the regrading fee and postage and insurance costs incurred by the note owner in sending the note to PCGS Banknote. The maximum amount PCGS Banknote shall be liable for any single note under the PCGS Banknote guarantee of Grade and Authenticity is $10,000. IT IS UNDERSTOOD THAT PCGS BANKNOTE WILL BE THE SOLE DETERMINER OF THE CURRENT MARKET VALUE OF THE NOTE AND THAT CURRENT MARKET VALUE IS DEFINED AS DEALER REPLACEMENT VALUE, I.E. THE PRICE A DEALER WOULD MOST LIKELY HAVE TO PAY TO REPLACE THE NOTE.
VERY IMPORTANT: CUSTOMER HEREBY CONSENTS THAT ANY LEGAL ACTION TO ENFORCE THIS GUARANTEE OR OTHERWISE ARISING UNDER OR WITH RESPECT TO THIS GUARANTEE SHALL BE GOVERNED BY THE LAWS OF HONKG KONG AND SETTLED BY THE COURTS OF THE HONG KONG SPECIAL ADMINISTRATIVE REGION IN ACCORDANCE WITH THE RULES APPLICABLE AT THE TIME. THE ARBITRATION SHALL BE FINAL AND BINDING. THE LOSING PARTY SHALL BE RESPONSIBLE FOR THE COSTS OF ARBITRATION INCLUDING THE ATTORNEY FEES, UNLESS THE ARBITRATION AWARD STIPULATES OTHERWISE.
This guarantee shall not apply to any note as to which an obvious clerical error has been made with respect to the description of the note. This guarantee shall also not apply to any note which has been removed from the PCGS Banknote holder or any note for which the PCGS Banknote holder shows evidence of tampering. This guarantee shall not apply to any note which has been environmentally damaged due to improper storage or natural disasters such as fire and flood. Further, this guarantee shall not apply to notes exhibiting environmental deterioration subsequent to certification, including spotting on modern notes.
If you have a note that you feel is overgraded or counterfeit, call PCGS Banknote Customer Service and they will help you fill out the proper submission forms. For approximate turnaround times, please ask a PCGS Banknote Customer Service Representative. After PCGS Banknote examines your note, if we feel your note has been overgraded or is counterfeit, you will be contacted by phone or email and given the current market values so you can decide which of the repayment options you wish to use. If PCGS Banknote determines that the original grade is correct, your note will be returned to you with the original grade and you will be responsible for the regrading fee and postage charges.
The following is further explanation of what the PCGS Banknote Guarantee does not cover.
Clerical or "mechanical" errors. PCGS Banknote occasionally makes clerical errors in inputting data which is shown on the insert in the PCGS Banknote holder; consequently the PCGS Banknote Guarantee does not cover obvious clerical errors, what we call "mechanical errors." The key concept is how obvious the error is to the naked eye. If you can easily tell just by looking at the note that the description on the holder is wrong, then the note/holder combination is not covered by the PCGS Banknote Guarantee. Some examples would include the following:
Notes Removed from PCGS Banknote Holders. The PCGS Banknote Guarantee does not apply to notes removed from PCGS Banknote holders. There are no exceptions to this policy. You remove a note from a PCGS Banknote holder at your risk.
Notes that have tampered or counterfeit holders. Unfortunately, some unscrupulous people occasionally try to defraud people by removing notes from PCGS Banknote holders, replacing them with less valuable notes and then resealing the holders. Most of these "reholders" are crude and obvious. Some are more sophisticated. There are also those who counterfeit PCGS Banknote holders. The PCGS Banknote Guarantee does not apply to notes that are in holders that have been tampered with. Nor does the PCGS Banknote guarantee cover notes in counterfeit PCGS Banknote holders.
Notes that are environmentally damaged. The PCGS Banknote holder, while excellent for long term storage and protection, does not protect notes from harsh environmental conditions. Consequently, the PCGS Banknote Guarantee does not apply to notes which have been environmentally damaged. For example, if your notes are damaged in a flood or fire, the PCGS Banknote Guarantee would not apply to those notes. This also applies to notes stored in environmentally risky locations (high humidity, see next paragraph.)
Notes exhibiting environmental deterioration. The PCGS Banknote Guarantee does not apply to notes exhibiting environmental deterioration subsequent to PCGS Banknote encapsulation and grading.