Confirmation of Documentary Credit is a commitment made by CEXIM, at the request of the beneficiary (our customer) or the issuing bank, to undertake irrevocable payment obligations without recourse provided that complying documents are presented to our bank.
Benefits for Exporters
Reduction of Risks: Adding confirmation to the documentary credit can prevent you from credit risk and country risk relating to the issuing bank and exchange control risk;
Double Guarantee: Besides the conditional payment undertaking from the issuing bank, you can obtain additional conditional payment undertaking from us, thereby possessing a double guarantee;
Payment Security: Upon receipt of complying documents presented to us, we will make the payment or payment undertaking without recourse.
When Do You Choose Confirmation of Documentary Credit?
The exporter wishes to have a payment confirmation from a bank other than the issuing bank;
The exporter wishes to obtain non-recourse payment after presentation of documents, even if the issuing bank has a good creditworthiness.
Please avoid “soft clauses” in the documentary credit during negotiation with the importer, and please choose a safe and expeditious payment instruction to secure the collection of proceeds;
Please present the following documents for our examination: a full set of documents stipulated by the documentary credit; the original documentary credit;
It is unlikely to be paid by us if you insist on presenting documents with discrepancies;
We will follow regulations of the State Administration of Foreign Exchange during the collection, settlement and bookkeeping of proceeds.