The Export Seller's Credit (also "export supplier's credit") refers to the credit provided by China Eximbank to an exporter to finance its manufacturing or purchase of mechanical and electronic products, complete sets of equipment, and high- and new-tech products for export, targeting to satisfy the fund demand of the exporter for manufacturing and purchase of export goods and relevant labor services required in the course.

Nature of the Credit:

The credit extended in this line is not profit-oriented and bears the following official natures:
1. All the capital of the Bank comes from the government fiscal allocation;
2. The credit is provided for the purpose of lending strong government support by observing the state industrial, foreign trade, financial and fiscal policies.

Main Characteristics of the Credit:

1. A loan provided to the exporter;
2 . A loan with large amount, long maturity and preferential interest rate;
3. A loan that bearing official color and demonstrating the state purpose.

Purpose of the Credit:

The Export Seller's Credit is provided for the following purposes:
1. To support the export of Chinese products and improve their competitiveness in the world market;
2. To help earn foreign currencies and balance the country's revenues and expenditure of foreign exchange; and
3. To create domestic employment opportunities and contribute to the development of national economy.

Type of the Credit:

1. Export Seller's Credit for Ships
2 . Export Seller's Credit for Equipment
3. Export Seller's Credit for High- and New-tech Products
4. Export Seller's Credit for General Mechanical & Electronic Products
5. Loan to Overseas Construction Contract
6. Loan to Overseas Investment Project

1. Export Seller's Credit for Ships

Export Seller's Credit for Ships refers to the loans, denominated either in Renminbi or foreign currencies, provided by the Bank to Chinese shipbuilders and trade companies for financing their export of ships or repair and reconstruction of ships registered in foreign countries.

1.1 Prospective Clients

Prospective clients seeking for export credit for ships at the Bank include both Chinese shipbuilders and trade companies that are registered with the local Administration of Industry and Commerce, accredited with independent legal person status, and licensed to build ships for export and/or to repair such (for shipbuilders), or authorized to export ships and/or repair and reconstruct ships registered in other countries (for trade companies).

1.2 Requirements for Loan Application

* The borrower should be a shipbuilder or a proxy ship exporter that demonstrates competent shipbuilding capacity, reliable contract performance capability, sound management and financial status, favorable credit standing, and good capability to repay the principal and interest incurred;
* The borrower should have already signed a commercial contract for exporting ships or repairing/reconstructing ships registered in other countries;
* In the case of a cash payment contract, the down payment shall be no less than 30% of the total contract value in principle. In the case of a deferred payment contract, the down payment in principle should be no less than 20% of the contract value;
* In the case of a cash payment contract, except for the first installment, the Bank shall require a payment security for the ensuing installments due. In the case of deferred payment, a payment security acceptable to the Bank should be made available for the deferred amount;
* The importer should have a strong financial status and a reliable credit standing, devoid of any defective records;
* For projects assumed risky, appropriate export credit insurance should be arranged in accordance with the requirements of the Bank;
* A repayment guarantee acceptable to the Bank should be provided; and
* Other requirements that the Bank deems necessary.

1.3 Documents and Materials Required for Loan Application

* Formal Loan Application;
* The commercial contract for export of ship(s) and other related documents;
* Exchange memos for aged repayments collected, a repayment guarantee for aging payments receivable, and a security for payment of the amount overdue in the case of deferred payment contract;
* Cash flow statements of the export project together with an analysis of expected economic returns;
* A Letter of Intent for covering export credit insurance (if such insurance is required);
* The authorized permit of export of the borrower, profile statements of both the borrower and the guarantor, a duplicate copy of the business license of the borrower that has passed the annual examination, audited financial reports of the past three years together with the recent audited financial statement of the current year, and other documents that demonstrate the credit standings and the operations of both the borrower and the guarantor;
* A Letter of Intent for repayment guarantee, or in the case of mortgage or ledge, valid certificates of ownership of the property under mortgage or pledge and evaluation reports thereof; and
* Other documents required by the Bank.

2. Export Seller's Credit for Equipment

Export Seller's Credit for Equipment refers to the loans, denominated either in Renminbi or foreign currencies, provided by the Bank to Chinese companies to support their export project of complete sets of equipment, single units and related technical services. For those projects undertaken in China that are financed by the loans from the World Bank, Asian Development Bank and other international financial institutions and foreign governments, if there are Chinese contractors who successfully win the international tendering of equipment supply under those projects, the Bank could also be approached for providing this credit.

2.1 Prospective Clients

Prospective clients include Chinese companies that are registered with the local Administration of Industry and Commerce, accredited with independent legal person status, and authorized to export complete sets of equipment, mechanical and electronic products.

2.2 Requirements for Loan Application

* The borrower should be an equipment manufacturer or a proxy exporter that demonstrates appropriate production capacity, reliable contract performance capability, sound management and financial status, favorable credit standing, and good capability to repay the principal and interest incurred;
* The borrower has already signed an export contract, which, when necessary, should be accompanied with approval from competent government authorities;
* The export contract value should be no less than USD 1 million, while the down payment made by the importer shall amount to no less than 15% of the total contract value in principle;
* In the case of deferred payment, a payment guarantee acceptable to the Bank should be provided for the amount overdue;
* The importer should have a strong financial status and reliable credit standing, devoid of any defective records in its performance;
* For projects assumed risky, export credit insurance should be arranged in accordance with the requirements of the Bank;
* A repayment guarantee acceptable to the Bank should be provided; and
* Other requirements that the Bank deems necessary.

2.3 Documents and Materials Required for Loan Application

* Formal Loan Application;
* The equipment export contract and the approval documents from the competent government authorities when required;
* Exchange memos for aged repayment collected, a payment guarantee for aging payments receivable, and a security for payment of the amount overdue;
* Cash flow statement of the export project together with an analysis of economic returns;
* A Letter of Intent for covering export credit insurance if such is deemed necessary;
* The authorized permit of export of the borrower, profile statements of both the borrower and the guarantor, a duplicate copy of business license of the borrower that has passed the annual examination, audited financial reports of the past three years and the recent audited financial statement of the current year, and other documents that demonstrate the credit standings and operations of both the borrower and the guarantor;
* A Letter of Intent for repayment guarantee, or in the case of mortgage or pledge, valid certificates of ownership of the property under mortgage or pledge and evaluation reports thereof; and
* Other documents required by the Bank.

3. Export Seller's Credit for High- and New-tech Products (Including Software Products)

Export Seller's Credit for High- and New-tech Products (including software products) refers to the loans, denominated either in Renminbi or foreign currencies, provided by the Bank to Chinese companies for financing their export of high- and new-tech products excluding ships and equipment.

3.1 Prospective Clients

Prospective clients include Chinese companies that are registered with the local Administration of Industry and Commerce, accredited with independent legal person status, and authorized to export high- and new-tech products.

3.2 Requirements for Loan Application

* The borrower should demonstrate fine management and operation, have a sound financial status and a favorable credit standing, and should be capable of repaying the principal and interest incurred;
* The products to be exported shall be either entries on the Export List of High- and New-Tech Products and the List of High- and New-tech Products promulgated by Chinese government or products confirmed as high- and new-tech by competent government authorities;
* The yearly export volume of the high- and new-tech products of the borrower should reach USD 3 million and above, or USD 1 million in the case of software products;
* In the case of a software exporter, the borrower should demonstrate powerful research and product development capacities, having obtained either CMM Level * or above Certificate or GB/T19000-ISO9000 quality assurance certificate;
* A repayment guarantee acceptable to the Bank; and
* Other requirement that the Bank deems necessary.

3.3 Documents and Materials Required for Loan Application

* Formal Loan Application;
* The authorized permit of export of the borrower, profile statements of both the borrower and the guarantor, a duplicate copy of the business license of the borrower that has passed the annual examination, audited financial reports of the past three years and the recent audited financial statements of the current year, and other documents that demonstrate the credit standings and the operations of both the borrower and the guarantor;
* Statements and reports covering the export of high- and new-tech products in the past three years by the borrower, export plans for the current year, together with export contracts already signed;
* A Letter of Intent for repayment guarantee, or in the case of mortgage or pledge, valid certificates of ownership of the property under mortgage or pledge and evaluation reports thereof; and
* Other documents required by the Bank.

4. Export Seller's Credit for General Mechanical and Electronic Products

Export Seller's Credit for General Mechanical and Electronic Products refers to the loans, denominated either in Renminbi or foreign currencies, provided by the Bank to Chinese companies for financing their export of the mechanical and electronic products excluding ships, equipment and high- and new-tech products.

4.1 Prospective Clients

Prospective clients of the Loan include the Chinese companies that are registered with the local Administration of Industry and Commerce, accredited with independent legal person status, and authorized to export general mechanical and electronic products.

4.2 Requirements for Application

* The borrower should demonstrate fine management and operations, have a sound financial status and a favorable credit standing, and should be capable of repaying the principal and interest incurred;
* The products to be exported should be included in the List of Mechanical and Electronic Products promulgated by the Chinese government, or should be confirmed as such by competent government authorities;
* The yearly export volume of general mechanical and electronic products of the borrower should amount to USD 5 million and above, or USD 3 million in the case of private companies or state/public companies based in the central and western regions of China;
* Repayment guarantee acceptable to the Bank; and
* Other requirements that the Bank deems necessary.

4.3 Documents and Materials required for Loan Application

* Formal Loan Application;
* The authorized permit of export of the borrower, profile statements of both the borrower and the guarantor, a duplicate copy of the business license of the borrower that has passed the annual examination, audited financial reports of the past three years and recent audited financial statements of the current year, and other documents that demonstrate the credit standings and the operations of both the borrower and the guarantor;
* Statements and reports covering the borrower's export of general mechanical and electronic products in the past three years, export plans for the current year, and export contracts already signed;
* A Letter of Intent for repayment guarantee, or in the case of mortgage or pledge, valid certificates of ownership of the property under mortgage or pledge and evaluation reports thereof; and
* Other documents required by the Bank.

5. Loan to Overseas Construction Contract

Loan to Overseas Construction Contract refer to the loan, either in Renminbi or foreign currencies, that the Bank provides to Chinese companies for financing their construction project implemented in foreign countries, which may drive the export of Chinese equipment, construction machinery, building materials, technology, and labor services. This credit is also applicable to Chinese contractors who win the tendering in the international bidding on the projects that are financed by the World Bank, Asian Development Bank and other international financial institutions.

5.1 Prospective Clients
Prospective clients of the Loan include Chinese companies that are registered with the local Administration of Industry and Commerce, accredited with independent legal person status, authorized to handle contract construction abroad; and qualified with expertise, professional knowledge and technology for such operations.

5.2 Requirements for Loan Application

* The borrower should demonstrate fine management and operations, have a sound financial status and favorable credit standing, and should be capable of repaying the principal and interest incurred;
* The borrower has already signed a contract for undertaking overseas construction projects, which, when necessary, should be accompanied with authorization and approval by competent government authorities;
* The spin-off exports of Chinese equipment, materials, technology, labor service, and management services that derive from overseas construction contracts should account for no less than 15% of the total value of a specific project contracted;
* The value of the overseas construction contract should be no less than USD 1 million, with down payment amounting to no less than 15% of the total contract value in principle. In the case of deferred repayment, a payment guarantee should be provided as acceptable to the Bank;
* The overseas construction contract shall be expected to offer satisfactory economic returns;
* The contractor should have license and capability to perform the deal sealed;
* The host country should remain stable both politically and economically;
* In the case where repayment is assessed highly risky, appropriate export credit insurance should be arranged as per the requirements of the Bank;
* Repayment guarantee acceptable to the Bank should be provided; and
* Other requirement that the Bank deems necessary.

5.3 Documents and Materials required for Loan Application

* Formal Loan Application;
* The engineering construction contract and approval by competent government authorities (if required);
* Purchase contract and other commercial contracts that are related to the construction project;
* The analysis of economic returns and the cash flow statement of the construction project;
* A Letter of Intent for covering export credit insurance if such shall be deemed necessary;
* The authorized permit for undertaking overseas construction contracts of the borrower, profile statements of both the borrower and the guarantor, a duplicate copy of the business license of the borrower that has passed the annual examination, audited financial reports of the past three years and the recent audited financial statements of the current year, and other documents that demonstrate the credit standings and the operations of both the borrower and the guarantor;
* A Letter of Intent for repayment guarantee, or in the case of mortgage or pledge, valid certificates of ownership of the property under mortgage or pledge and evaluation reports thereof; and
* Other documents required by the Bank.

6. Loan to Overseas Investment Project

Loan to Overseas Investment Project refer to the loan, either in Renminbi or foreign currencies, provided by the Bank to Chinese companies for their overseas investment projects.

By "Overseas Investment Project", it refers to one or more of the following:
* Overseas resources exploration project;
* Overseas processing trade project that helps increase the export of Made-in-China equipment, technologies and products;
* Overseas investment on factory building project and infrastructure building projects;
* Investment on setting up overseas research & development centers, product marketing & sales centers, and post-sales service centers for the purpose of upgrading the product development capacity and market competitiveness of domestic manufacturers;
* Overseas acquisition, merging, or participation in share-holding ventures that aims to develop international markets and sharpen competitiveness of domestic companies.

6.1 Prospective Clients

Prospective clients include both Chinese companies and joint-ventures controlled by Chinese parties that are registered with the local Administration of Industry and Commerce and accredited with independent legal person status.

6.2 Requirements for Loan Application

* The borrower should prove competent financial strength and reliable administration capacity of handling and undertaking investment projects abroad, and should have certain working experience in business management with foreign parties;
* The borrower has already signed a contract for the planned overseas investment project, which should have been approved or authorized by competent government authorities of both the People's Republic of China and the host country/region;
* The total amount that the borrower plans to invest in the offshore venture project should be not less than USD 1 million, and the portion of self-owned capital should be not less than 30% of his total investment;
* The planned offshore investment project should have all the supporting measures in place, together with good expected economic returns and sound capacity of repaying the loan;
* A repayment guarantee should be provided as acceptable to the Bank;
* The host country should retain political stability and favorable economic conditions with a welcoming environment for foreign investors;
* For projects assumed high country risk, an overseas investment insurance should be arranged; and
* Other requirements that the Bank deems necessary.

6.3 Documents and Materials Required for Loan Application

* Formal Loan Application;
* The approval documents of the overseas investment project issued by competent government authorities of both the People's Republic of China and the host country / region of the project;
* The joint-venture agreement(s) on the overseas investment project, corporate charter of the invested joint venture, and other related contracts and arrangements;
* Feasibility study report on the project;
* A Letter of Intent for covering overseas investment insurance (if such shall be deemed necessary);
* Profile statements of both the borrower and the guarantor, a duplicate copy of the business license of the borrower which has passed the annual examination, audited financial statements for the last three years and recent audited financial statements of current year, other documents that demonstrate the credit standings and business performances of both the borrower and the guarantor, and other documents on the invested company / venture registered overseas;
* A Letter of Intent for Repayment Guarantee, or in the case of mortgage or pledge, valid certificates of ownership of the property under mortgage or pledge and evaluation reports thereof; and
* Other documents demanded by the Bank as deemed to be necessary.