Category: Insurance tips Release Date: 2006-08-01
Buyers endemic arrears, bankruptcy frequently changing international situation, to engage in foreign trade of the day you may be asking this question. China People's Insurance Company will offer short-term credit insurance to protect its exchange earnings, export financing, buyers investigation function, good integrity and efficient operation for you to solve problems, relieve you from overseas buyers due to weak or unable to repay their loans risk. The form of questions and answers are brief introduction to your short-term export credit insurance from the insured to claim the entire process, hope you can help.
1 What is export credit insurance?
Export credit insurance is the country in order to promote their export trade, the exchange earnings from export enterprises to protect the safety of a developed by the state insurance reserve-for-profit insurance policy.
2, the main types of export credit insurance are there?
Export credit insurance by export contracts for the import side the length of the different credit credit terms can be divided into: short-term export credit insurance and long-term export credit insurance.
3, what is the short-term export credit insurance?
Short-term export credit insurance is that trade credit terms specified in the contract period of not more than 180 days of export credit insurance. Upon the written consent of the company, put off period may be extended to 360 days.
4, why should the insured short-term export credit insurance?
Short-term credit insurance, the insured can: exchange earnings to protect your safety; improve your competitive position in international markets and capabilities; for you to implement the "export diversification" strategy, helping to open up new markets; to provide you with buyer's credit investigation services; may so you get the convenience of financial intermediation to help solve their cash flow difficulties and expand business capabilities; to help you to recover debts, reduce corporate and state losses.
5, short-term export credit insurance, the insured can take what way?
You can choose to "ensure integration" or "ticket guarantee"
The so-called "unified security" means you will be the selected range (letters of credit and non-letters of credit, or part of the letter of credit and non-letters of credit, or non-credit mode) all exports within the insured obtained receipt risk protection.
The so-called "ticket guarantee" means that you get from the company's foreign to a region or a particular buyer in a contract or multiple contracts under the protection of exports of goods receipt risk.
6, short-term export credit insurance cover what risks?
Insurance for your insurance policies in force in the export of goods from China, and under the conditions stipulated in the contract to deliver the goods to the carrier, the result of the following causes of risk (including commercial risk and political risk) to be covered.
Business Risk:
Buyer's inability to repay debts that bankruptcy courts have declared the buyer or the buyer has received the court's ruling or decision of bankruptcy liquidation, or by the court to appoint a liquidator or insolvency a receiver, or the buyer has made all of its assets for clean-up of debt arrangement, or the buyer's creditors to receive all or most of the assets of the buyer; buyer rejected the goods and refused to pay the purchase price, means the buyer refused the goods and payment is not because of its breach of contract caused you, and you have taken the necessary measures including, if necessary to prosecute to the buyer, forcing the buyer receiving payment; the buyer defaulted loans that the buyer receiving more than four months after the payment period not more than pay for the goods;
Political Risk:
The buyer countries prohibit or limit the exchange, refers to both you and the buyer can not control circumstances, the buyer's country (or region, the same below) laws, decrees, orders, regulations or administrative measures to prohibit or restrict the buyer to write the invoice of goods specified currency or other freely convertible currency you pay the purchase price, but the buyer does not violate the host country laws, decrees, orders, or regulations under the premise must first request by the buyer by the Company in the designated bank or institution deposit He owed money income equal to the national currency; the buyer's country import controls, means both you and the buyer beyond the control of the situation, the buyer's country of laws, decrees, orders, regulations, or administrative measures to prohibit import of goods the buyer purchased ; the buyer countries to withdraw import permit, refers to circumstances beyond the control you and the buyer, the buyer country to revoke the import permit issued to the buyer or not to approve the renewal of import licenses; buyer's loan would be subject to the host country or third country promulgation of deferred payment order; buyer's country of war, hostilities, civil war, rebellion, revolution, insurrection, or other disturbances; you and the buyer are extraordinary events beyond the control of, means a country or region outside of China issued the Law to perform the contract.
7, short-term export credit insurance for what the risks are not responsible for?
Short-term export credit insurance does not cover the following losses: At the time of payment of the purchase price, or usually by the Carriage of Goods by insurance or other insurance contract insured losses; losses caused by exchange rate changes; by you or any person on behalf of your breach of contract or not losses caused by compliance with the law; in delivery of the goods before the buyer is serious breach of contract, you have the right to stop shipments, but still caused damage to its shipments; in the delivery of goods because the buyer failed to comply with host country laws, decrees, orders or regulations, and thus has not been an import license or import permit extension caused by the injury; because you or the buyer's agent or the carrier's bankruptcy, fraud, breach of contract or other losses arising out of acts; you to the company without the approval of credit limit and does not apply to your own master of their own buyer's credit limit exports of the loss occurred; you in complying with relevant provisions of the circumstances, the delivery of the goods within two years from the date the carrier is not to the company's claimed loss.
8, short-term export credit insurance coverage scope of what?
Policy stipulates that those who registered in the PRC, with foreign trade rights of economic entities, which use against payment (D / P), documents against acceptance (D / A), credit (OA) and all other commercial Credit terms of payment in whole or in part of products manufactured in China (except military), the credit period not more than 180 days of export, can insure short-term export credit insurance. Written consent by the insurance company could also apply to the following contract: requirements to banks or other financial institution letter of credit issued by the contract; re-exports from China in the production or manufacture outside of China but the Chinese government has declared imports of goods contracts; credit for a period exceeding 180 days of contract; letters of credit to non-credit approach against payment (D / P) conversion to a documents against acceptance (D / A) or by credit (OA) method contracts; extension of payment period more than 60 days contract. Short-term export credit insurance does not cover the export of goods or the quantity or nature of the payment terms or the currency of payment pending contracts.
9, the export letter of credit settlement could properly insured?
You are welcome to our company insurance settlement of export letters of credit, and give preferential treatment in the rates.
10, wire transfers, money they do?
In some cases, you may not be through a bank to pay bills, send documents to take from the buyer the way wire transfer payment transactions, the company this as credit. Please limit your application for export credit and export declarations that stated.
11, land or air how to deal with?
In the D / P, D / A manner, when the shipping documents to buyer as the consignee, as a credit.
12, short-term export credit insurance rates are determined?
The determination of rates by three factors: the host country-owned buyer's risk category; payment method the degree of risk; put off the length of the period.
13, right within the scope of the policy of export Why must all the insured?
The so-called "full coverage" refers to (the insured) will be the selected insurance coverage (non-credit approach; or in part, letters of credit plus non-credit approach; or letters of credit plus letters of credit) all exports within the transaction - on time to the company's declaration in accordance with the provisions of payment of premiums. Like other insurance, credit insurance also should follow the principle of risk diversification, "all insurance" is also for this purpose, it helps to develop a reasonable rate, to reduce your burden. If the insured a single - the buyer's receipt risk (ie, votes insurance) business, will inevitably lead to greatly increased rates.
14, insurance of export credit insurance are required to comply with the principle of confidentiality?
According to the policy provisions, without the written consent of the Company, you are not allowed to except any person other than the depositary bank, including the buyer and his agent, disclose the existence and details of the insurance.
15, what is the buyer's credit limit?
"Buy credit limit" is the Company granted to each buyer a payment method on the maximum credit limit. The amount that the buyer of the company's commitment to the highest limit of liability. You should be in the proper insurance coverage to every one buyer to apply for a credit limit. "Buyer's credit limit," the role of penetration of the entire insurance process, how to properly and timely application, use, increased amount relates to your personal interests.
16, how to apply for buyer's credit limit?
All you need to fill in with the policy attached to the "buyer credit limit application form" button. Information on buyers and other supporting information or in need of explanation, please attach.
17, when the credit limit for the buyer, I need to provide what information?
You should provide the application form as much as possible all the information required and requested to provide detailed and correctly fill out the contract the buyer (that is, the contract shall be liable to pay the purchase price of the party, different from the agent or the consignee) in English the name and address, telephone number, fax number, etc., to enable the company credit investigation. No or do not know please fill in "no" or "unknown." If you have a buyer's credit information updated, please submit the "buyer's credit limit application form", when attached together. Any additional information will help to our timely and accurate processing your application limit.
18, how much should I apply for buyer's credit limit?
You need credit limit shall be equal to the buyer at any time, the maximum amount of credit terms, rather than the total amount of contracts signed. Such as: the current total contract value was 100,000, D/A60 days and shipped in batches, respectively, 30000, 30000, 40000, return time of 3 months shall (in addition to document exchange time). Assume that you are a group of every month, then you need to apply for 100,000 limit; assume that you are a group every three months, then you can simply limit the application 40000.
19, for an unrealistic high credit limit have adverse effects on the buyer do?
Will. If you apply for a credit limit completely unrealistic, the Company will remain under the buyer's credit information and solvency, grant a reasonable credit limit. It is noteworthy that, if you need to exaggerate the credit limit will lead to relevant bodies of the Company to obtain additional credit information, careful examination and approval limits, which may affect your access to the time limit.
20 When should I apply for buyer's credit limit?
Policy issue, you should immediately appropriate insurance coverage for the existing credit limit of each overseas buyers. When you are seriously consider a new buyer to fit within the scope of transaction security transactions, or when the negotiations with this transaction, the buyer, the buyer should submit their applications. Because the data collected from overseas buyers is quite time-consuming, you must enable the company has sufficient time to process your application.
21, the insurance company issuing the buyer credit limit long will it take?
If the company already has a buyer, the details can be issued within three days credit limit. However, if the need to obtain information from overseas when the credit reference agencies will depend on local circumstances. You may only need a few days, it may take several weeks before they answered. So, if you are able to provide buyers the information will greatly assist the company to process your application.
22 What is called the master of their own limits?
The Company issued the "Policy Schedule" in a column for "master of their own limits," which is designed to provide you with a convenient conditions. When the shipment is less than the amount you are master of their own limits, I do not have to apply for credit limit can be shipped directly, but must be exported within the prescribed period after the declaration of
23, the buyer has limits, I would like to apply for a new contract for each of the new credit limit do?
When you put off amount does not exceed the credit limit amount, and the payment method and credit limits for consistent instruction, the buyer's credit limit can be reused, you can continue to ship and to be guaranteed. Otherwise, you must re-apply for a new buyer for the credit limit.
24, I need to apply for different payment method the buyer credit limit do?
If you are in a different form of payment transaction with the same buyer, you should be different form of payment apply for a credit limit, respectively.
25, if the contract amount is higher than the credit limit should I do?
Requests to the company to apply for an increase in the credit limit. If the company failed to increase the limit, you can still shipped, but this company is still based on the credit limit has been issued and the proportion of compensation under the policy to pay compensation. Failed to raise the credit limit can be regarded as an early warning signal that you the buyer with the larger-value transactions should be more careful.
26, the buyer credit limit is valid for how long?
The Company issued by the buyer's credit limit, if there is no special explanation, or at the end has been changed or canceled, will remain in effect.
27, the insurance company may cancel or reduce the buyer's credit limit do?
可以. When the buyer or the deterioration of the situation in their country, this company can under the circumstances to withdraw or reduce the credit limit. However, in eliminating or reducing the credit limit on pre-shipment of goods are still within the responsibility of the Company. In order to make joint efforts against risk, when you first learned of this company the buyer or the bad news in their country, please notify us, in order to take appropriate measures
28, when the I D / p method should pay attention to what matters receivables?
D / p mode, the company is to reject non-payment of underwriting risk. If you D / P mode shipments, and only holders of a "against payment," the credit limit, you must bear in mind the following causes of loss are not within the responsibility of the Company: Bank unauthorized release form; carrier or agents without authorization Fanghuo; export enterprises arbitrarily send a single.
29, the circumstances under which I should re-apply for buyer's credit limit?
When the original credit limit expires, you have to renew a new contract; when the shipment increases the amount of time; when the new payment terms inconsistent with the original quota.
30, I received approval of the buyer's credit limit should pay attention to what?
Please check the credit limit of the buyer name, address, and the buyer code is consistent with the buyer, and note the following: the amount of the credit limit; approval of payment; credit limit of the due date; attached special conditions.
31, insurance companies, why must or limit the coverage to my buyers?
May have the following reasons: the buyer's credit poor; the buyer is in arrears record; the buyer's country has taken place under the political risk events.
32, when the shipment after the buyer's request deferred payment or replacement payment method, I know how to do?
You should immediately notify the Company, having received a written response to the company, can only agree with the buyer's request, while in back the corresponding premiums.
33, trade disputes, what shall I do?
You should first buyer arbitration or litigation, in order to obtain post-judgment of the Company will damage Hepei.
34, I claim, what amounts were deducted from the amount of damage?
You should deduct the amount of damage: the buyer has paid, has been lending, has been bonded, and other you have the consent of the buyer counter-claim payments; you have the right to the funds allocated for loans; you have to recover the money through other channels, including the resale of goods or proceeds from the sale of the collateral; you are the buyer under the export contract should be charged interest on the part of the Company after the date of the interest portion of compensation; others you have received or will receive money or interest.
35, how much compensation could I get?
The amount of loss does not exceed the credit limit, the maximum amount of compensation = compensation for the loss percentage of the amount of x; losses exceeded the credit limit, the maximum amount of compensation credit limit x = the percentage of compensation for the percentage of compensation are as follows: reject non-payment of compensation for the ratio of 80% and the remaining export credit insurance coverage for damages under the ratio of 90%.
36, to obtain compensation from what should be done?
You should fill out the "receipt of compensation and rights assignment" will be compensated in part of the rights and interests of the transfer to the insurance company (to be covered for compensation under the contract rights, including the collection of payments and access to the right to liquidated damages, assignment or transfer to an insurance company; will be compensation for the goods involved as well as with documents relating to the goods, notes and guarantees transfer or be transferred to insurance companies), and with the companies to work together to take all necessary and reasonable, or the company, including legal proceedings, including calls for measures, to the buyer, the buyer's guarantor or any other person who may be recourse to recover debts, to reduce the country's loss. If you receive the buyer's payment, we must promptly notify the insurance company to recover the amount of compensation provided according to the policy schedule percentage share of the Company. Occurred during the recovery of arrears for all costs, but also by the same percentage of a large share. If the recovery of arrears by the company to recover the money and the costs incurred, but also by the same percentage allocation. Such as insurance companies in the recovery process that you have found fraud, the right to full indemnity back to the court.
37, export credit insurance procedures?
An application for insurance you will need to fill out the "short-term export credit insurance, comprehensive insurance coverage list" in triplicate, to the export business name, address, scope of coverage, the export situation, appropriate insurance coverage within the buyer's list and description of fill other needs clear, the enterprise legal person signature, to the insurance company for insurance of export credit insurance.
Second, apply for insurance companies limit you to receive and issue of the "short-term export credit insurance-risk insurance", you should export the scope of application of this policy as soon as possible for each one a written application to the company's credit limit, and fill out the "short-term a comprehensive buyer's export credit insurance credit limit application form, "a type triple, according to table the request, the buyer's circumstances, the two sides in terms of trade as well as the company truthfully fill out the required limits clearly oriented enterprises in the full range of appropriate security Overseas buyers applied for a credit limit of the old and new.
Third, the export insurance company declared through the "short-term export credit insurance buyer's credit limit approval of an integrated single" approved limits, you are shipped each batch, after 15 days, within (or on the 10th each month ago) batches fill out the "short-term export credit insurance export a comprehensive declaration form "(or" short-term export credit insurance, comprehensive insurance of export returns and premiums on the book "), in triplicate, according to the requirements in the table, the export situation to clearly fill in for the insurance company total premiums. For you do not export declaration within the specified time, the insurance company the right to ask you to repay a kindness. However, if the report after the event of loss of export has occurred or is likely to cause loss event has occurred, the Company has the right to refuse to accept the report after the event. If you have chosen not to report or serious omissions or misstatements, the company that you have to declare the loss of exports took place, the right to refuse the responsibility.
Fourth, to pay insurance premiums that you receive the insurance company's "premium invoice" and the collection documents within ten days from the date you must pay the premium. If not delivered within the prescribed time limit premiums, the company declared about your exports, not be liable; If you exceed the prescribed period of two months has still not paid premiums, the company's right to terminate the policy, the premium received non-refundable. The company's monthly report and reported according to your schedule set out in thin rate, calculate the premium due. For premium rate adjustments, the company will notify you in writing, two months after notification of the export of goods, insurance, according to the new rates.
5, fill in your shipment may be damaged, the buyer's insolvency or inability to pay debts have been, the buyer has been put forward to reject the goods and payment, the buyer pay overdue for three months unpaid or late payment or the occurrence of the Company under the underwriting of political risks The event, insurance companies should be furnished within 10 days "short-term export credit insurance, notice of potential losses." To clearly brief the case, and in the meantime waiting for compensation, payment collection efforts and close contact with insurance companies, timely warning of the recovery or disposal process and results.
6, claim the loss you do not receive payment and recover the arrears, the insurance provisions of the expiry of the waiting period for compensation shall be in writing as soon as possible in the form of a claim to the insurance company, and fill out the "short-term export credit insurance claims application," while complete the real way to provide "application" set out the required documents (including trade contracts, bills of lading, export declarations, invoices, packing lists, bills of exchange, buyers and sellers to exchange correspondence, "credit limit approval of a single" export declaration form and The Company requested additional information). Of your inability to pay debts due to the buyer for losses resulting from claims, insurance companies, confirmation of the bankruptcy or insolvency of the buyer as soon as payment; to claims for losses due to other reasons, the insurance company to wait for the expiry of the stipulated compensation as soon as payment. Inability to pay debts of the buyer for losses arising from, if you are not the buyer has been declared insolvent or bankrupt within a month after the claim for the loss of other causes, no waiting for the compensation claim within two months after the expiration, but also had not presented sufficient reasons, insurance companies have the right to refuse to accept your claim.
Insurance companies within the responsibility of insurance losses, respectively, according to the policy included in the schedules commercial credit and political risks of wind and the percentage of compensation for damages caused. But the compensation shall not exceed the Company approved the insurance buyer's credit limit or credit limit on their own to master limited to the above-mentioned percentage.
7, equity compensation insurance company informed of the transfer of your notice, shall be issued by the "claim receipt and rights assignment" (one each in English and Chinese) and in English "power of attorney to recover." Unpaid or overdue for three months if the buyer paid the purchase price, you are in the newspaper "may be the loss notice" when the insurance company agreed to entrust the first to recover, the case must provide contracts, bills of lading, invoices, correspondence and trade between the two sides in English and Chinese "Recovery of power of attorney."
If you want a more detailed understanding of the short-term export credit insurance or would like to receive the support short-term export credit insurance, you can contact directly with Chinese business people, but also with the Chinese People's Insurance Company International Insurance Company, Guangdong Province, the Department of Export Credit Division contact You will get satisfactory service. Wholeheartedly welcome the export companies and enterprises to actively participate in export credit insurance.
