What Is a Bank Guarantee?

Bank guarantee is that when a general average or rescue action occurs, the bank to provide the shipper or rescuer with a guarantee for the shipper or rescuer is called "bank guarantee". After the bank issues this guarantee, it will need to bear the guarantee of payment of common average contributions and salvage remuneration in the future. Therefore, when issuing such a guarantee, the bank should carefully consider the creditworthiness of the guarantor and collect certain guarantee procedures fee. ^[1]

Bank guarantee

This service is provided to importers who purchase goods under a letter of credit. When the goods have arrived before the relevant documents arrive. Although the importer did not have the relevant documents under the letter of credit, he still demanded that the goods be picked up immediately. To this end, the bank issues a shipping company certificate to the shipping company, presents the cargo, and assumes all responsibility for the cargo.