China Export and Credit Insurance Corporation (" Sinosure ") promotes the development of foreign economy and trade by providing insurance and other services for foreign trade and investment cooperation, focusing on supporting the export of high-tech, high value-added mechanical and electrical products and other capital goods and technical services, making important contributions to promoting economic growth, employment and balance of international payments. Insuring Sinosure can reduce transaction risks, promote project financing, ensure the safety of foreign exchange collection and improve the competitiveness of enterprises. In order to facilitate international trading companies to choose suitable products of Sinosure, the lawyer will introduce the main products of Sinosure and the insurance process.
I. Product categories of Sinosure
1. Medium and long-term export credit insurance
It provides risk protection for financial institutions, export enterprises or financial leasing companies to recover receivables under financing agreements, business contracts or lease agreements. The insurance term of underwriting business is generally 2-15 years. Including export buyer's credit insurance, export seller's credit insurance, refinancing insurance and overseas finance lease insurance.
2. Overseas investment insurance
It provides risk protection for investors and financial institutions caused by political risks such as expropriation, exchange restrictions, war and political riots, and breach of contract in the countries where they invest. The insurance term of the underwriting business shall not exceed 20 years. Including overseas investment (equity) insurance and overseas investment (debt) insurance
3. Short-term export credit insurance
Provide protection against receivables collection risk for goods or services exported from China by letter of credit or non-letter of credit. The credit term of the underwriting business is generally less than one year and the longest is not more than two years.
4. Short-term export risks
This product is a short-term export credit insurance product provided to Chinese export enterprises to bear the loss of cost input under business contracts due to political and commercial risks. It is applicable to mechanical and electrical products, complete sets of equipment, project contracting, ships and other industries. Includes buyer's default insurance and contract specific insurance.
5. Domestic trade credit insurance
To protect the enterprises registered in China from the loss of the receivables due to the buyer's business risk or the loss of the unrecoverable advance payment due to the supplier's business risk in domestic trade. Applicable to enterprises or banks registered in China.
6. Guarantee
For clients' "going out" projects such as export of large capital goods, overseas project contracting, overseas investment and merger, as well as bulk commodity export and other businesses, we provide financing guarantee based on internal guarantee and external loan, and non-financing guarantee support based on guarantee of performance and advance payment. In the event that the guaranteed (debtor) fails to perform the contract or repay the debt according to the underlying contract, Sinosure shall, within the scope of responsibility agreed in the written contract, repay the debt on behalf of the guarantee beneficiary (creditor).
7. Credit insurance financing
Through the transfer of claims, the transfer of accounts receivable or the financing bank directly insurance credit insurance for the enterprise to provide financing services under the insurance.
8. Credit service
For foreign trade enterprises to provide enterprise credit investigation, country industry risk analysis, overseas investment consulting and enterprise credit management consulting services.
9. Import prepayment insurance
For enterprises with the right to import, guarantee the risk of non-recovery of advance payment in import trade due to the political risk of the country where the supplier is located or the commercial risk of the supplier. After the insured pays the prepayment in accordance with the provisions of the import contract within the validity period of the insurance policy, the insurer has the right to request and has requested the foreign supplier to refund the prepayment according to the import contract, but the insurer is liable to compensate the insurance products according to the insurance contract for the direct loss caused by the failure to recover the corresponding prepayment due to reasons within the scope of the insurance.
II. Insurance process of Sinosure
1. First of all, the enterprise needs to contact China Credit Insurance Business organization to determine the underwriting plan;
2. Then, the enterprise shall apply to Sinosure for the credit limit of each buyer/issuing bank involved in the export business. Sinosure will verify the specific information of the insured object, including the credit status, default status and litigation status, etc., and decide whether to accept the insurance from the enterprise and the premium amount accordingly;
3. After the premium amount is determined by both parties, the enterprise can go through the insurance procedures, and both parties can officially sign the policy and pay the premium;
4. In case of any loss due to trade, the enterprise shall timely file a claim with Sinosure and provide relevant materials;
5. Sinosure will pay compensation to the enterprise within a specified time after verifying the specific situation of the enterprise's losses, and generally can pay about 70% of the losses.
Post time: Apr-11-2023
