Introduction

　　Delivery Guarantee refers to a financing method with the guarantee issued by Bank and applied by customers who have not received the original shipping documents under letters of credit but the goods have been shipping to the port. Customer delivers the delivery guarantee to the carrier units for advance delivery until obtains the original documents under letters of credit, customer exchanges for the original delivery guarantees to the original documents. Bank only applies for the delivery guarantee issued under letters of credit issued by bank of Kunlun. The mode of transport is limited shipping to Chinese ports.

　　Function

　　To meet the importers deliver the goods timely and to avoid the goods overstock, so that the importer can reduce the storage costs of goods in ports, also can avoid losses from market prices changing and quality changes.

　　Target Clients

　　Corporate customers

　　Business Operation

　　1) Business application. Customers need to provide basic information and also application form of issuing delivery guarantee, invoices under the letters of credit, a full set shipping bills and arrival notice from shipping company;

　　2) Business review. After the International Department receives the application form, the department should check whether the seal on the application form, the invoices under the letters of credit, shipping bills match with the letters of credit and demonstrate that the proposed goods are the goods under the letters of credit first, then fill in the delivery guarantee approval form and submit to Credit Management Department.

　　Credit Management Department should check with:

　　a) Whether the customers clearly ensure not to refuse to pay/ accept it upon the documents arrived, regardless of discrepancies;

　　b) Detail information, such as departure port, departure time, arrival time, goods description and quantity, storage costs, etc;

　　c) To investigate and review whether there are other agreements between importer and exporter, whether the agreements involves the validity of the delivery guarantee issued by Bank.

　　3) Issuing guarantee. After approved by authority approver, the International Department issues the delivery guarantee to shipping company. Bank can fill in the delivery guarantee sensitive amount matches the bank guarantee amount if the shipping company accepts. After reviewed, one copy of delivery guarantee should be delivered to customer and one copy should be filed. The letter of credit should be marked as “Delivery Guaranteed” with the delivery guarantee number;

　　4) After the International Business Department received the original documents under the letters of credit, they should match with the delivery guarantee. If the result is positive, the original documents should be handed over to the Customer Department for notifying the applicant to proceed the payment and acceptance procedure. It can be endorsed if endorsement is needed. Then pass to applicant to shipping company in exchange for the original delivery guarantee;

　　5) After received the delivery guarantee, the guarantee fee can be refunded or the credit line of delivery guarantee can be restored.