Carrier Indemnity refers to a written indemnity, issued by CEXIM at the request of the importer (our customer), is presented by the importer to the carrier (such as a shipping company) for taking over the goods if the imported goods under a documentary credit arrive prior to the arrival of documents.
We only offer carrier indemnity service under documentary credits issued by CEXIM.
Benefits for Importers
Avoiding Demurrage: A carrier indemnity enables the importer to take delivery of the goods in time, avoiding demurrage and extra expenses;
Reducing the Funds Tied Up: With the bank’s indemnity, the importer can clear the goods and earn resale revenues before effecting payment, thus reducing the funds tied up and accelerating the cash flow;
Seizing Market Opportunities and Reducing Price Risks: When the goods arrives prior to the arrival of documents, only through presenting a carrier indemnity issued by bank can the importer take over the goods, seize the opportunities in the market and avoid price fluctuations.
When Do You Choose Carrier Indemnity?
It is applicable in the case of short sea journeys and the goods arriving prior to the documents.
The basic premises of issuing carrier indemnity: 1. documentary credit settlement; 2. ocean carriage; 3. the credit requiring full set of bills of lading;
Before applying for carrier indemnity, kindly note that an approved credit line is required;
When original bills of lading arrive, please surrender documents to the shipping company immediately in exchange for our outstanding indemnity, and then return the indemnity to us for cancellation. A delay in return may impose a negative influence on your credit in CEXIM;
In order to apply for a carrier indemnity, please provide the following documents: A. application form, B. copies of invoices, C. copies of bills of lading;
Reminder: Under carrier indemnity, you should sign a counter indemnity to undertake that you will not refuse the documents, when presented, irrespective of any discrepancies.