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Sources of information：未知Release time:2017-02-27 15:03 Reading times：次I would like to comment
In large equipment import contracts for purchasing raw materials, often require the buyer by the seller in 5%-15% in advance of the contract amount after the contract is signed and the buyer are worried that losses caused by the seller's delivery after payment. To resolve this problem, in the international trade practice, usually bythe buyer by the seller Bank that advance payment guarantee (also called performance bonds) payment method. Bond plays a protective role of buyer interest, in the case of the seller did not meet delivery obligations under the contract, the buyermay on request in advance of the validity period.
Advance payment guarantee includes the principal, the name and address of the beneficiary and guarantees the Bank, Bank responsibility commitment conditions, the guarantee amount, validity period, governing law, and so on.
What approval guarantee?
1, open a bank
A. advance payment bond guarantor that open letter of the banks was the first, direct payment, we require a bank guarantee issued by international first class should be, and good reputation of the big banks, so that the buyer's interests can be safeguarded.
B. guarantees issued by the Bank and buyer transmitted Bank or Bank-agent, checkthe seal to buyer's bank or test key to determine the authenticity of the letter.
2, conditions
Usually guarantees issued should be a force, but in actual practice, we frequently receive the guarantee conditions are in effect, such as some guarantees in order toopen a bank receipt of the buyer's payment or receipt of the buyer's payment onlycome into force after written confirmation, such a condition was unacceptable to us. If the buyer after payment, for various reasons (for example is not confirmed inwriting by the seller) guarantees will not be effective, and the seller cannot fulfil itsobligation of delivery stipulated in the contract, the buyer cannot guarantee protection of their interests. Guarantee will lose its "responsibilities" means.
Commitment 3, open a bank
Guarantee, bank guarantee issued by the promise of content is the most important, the Bank's commitment must be "unconditional" and "irrevocable". "Unconditional" means when the buyer alone guarantee in writing that the seller does not fulfil its obligation, require bank letter of guarantee the guarantee payment, the buyer need not provide any other proof, regardless of the actual cause, the bank letter ofguarantee must be paid immediately and unconditionally. "Irrevocable" refers to the guarantee after the opening, within the prescribed period cannot be undone.
4, amount
Generally the amount of the guarantee is the amount of advance payment. But foradvance payments and contract delivery for a long time and a large amount of thecontract, we may require a letter of guarantee in business negotiations as the advance amount plus the amount of claims paid out of the advances to the buyer the interest, interest rates buyers and sellers agreed in advance. Unless otherwise indicated, does not guarantee amount is reduced by partial performance of the contract.
5, period of validity
In theory, the purpose of the guarantee is to prevent the seller delivered in accordance with the contract and the buyer lost advance payments when seller discharged its delivery obligation, the guarantee function is over. So most of the validity of the guarantee from the opening date to the shipping date but not more than contract of shipment, at the latest, in principle is right. But the author found in the actualbusiness, such vulnerability exists in terms of:
A. guarantee practical time prior to the deadline for performance by the seller of the obligation of delivery. The guarantee of failure location in China, guarantees failure, due to the time difference, for sellers of the United States, there are more than 10 hours to no later than the time of shipment.
B. the buyer has no time for claim procedures. The failure location in seller's guarantee, when the buyer informed the seller failed to meet delivery obligations in the latest shipment date, guarantee limitation has to, due to differences in geographic location, the buyer has no time for the claims procedures. So we should ask the guarantee after the expiry of the contract at the latest shipment date several days more to complete. Our emphasis is "working days" mainly encountered holiday situations.
6, other
A. guarantee if you for some reason need to modify is required the consent of thebeneficiary and the trustee.
B. as a general rule, guarantees affected by the location of the open letter of Bank's jurisdiction.
Bank guarantee no standard format, so when we received the letter of guaranteemust carefully examine, if the above problem occurs modified to require the sellerto notify the Bank immediately. Of course, changes back and forth to avoid wasting time, the best guarantee in advance the basic information in business negotiations, conditions and format of talks, agreed upon as an appendix.
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Copyright 2012-2018. ALL RIGHTS RESERVED (International Trade Law)
Telephone：0086-13315171023 QQ:1215545143
Email：tradelawchina@hotmail.com Technical support：ZW0311