Bank guarantees can be divided into several categories
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I. Performance Guarantee In the general cargo import and export transactions, the performance guarantee can be divided into import performance guarantee and export performance guarantee.
1. Import performance guarantee.
The import performance guarantee refers to the pledge made by the guarantor to the beneficiary (exporter) on the application of the applicant (importer). The letter of guarantee stipulates that if the exporter delivers on schedule and the importer fails to pay in accordance with the contract, the guarantor is responsible for repayment. This performance bond is a simple, timely and definitive guarantee for exporters.
2. Export performance guarantee The export performance guarantee refers to the guarantee promised by the guarantor on the application of the applicant (exporter) to the beneficiary (importer). According to the guarantee letter, if the exporter failed to deliver the goods in accordance with the contract, the guarantor was responsible for compensating the loss of the importer. This kind of performance guarantee has certain protection for importers.
Second, repayment guarantees Repayment guarantees, also known as advance payment guarantees or deposit guarantees. It refers to the guarantee issued by the guarantor to the other party to the contract on the application of a party to the contract. The letter of guarantee stipulates that if the applicant fails to fulfill his obligation to enter into a contract with the beneficiary and does not refund or repay the beneficiaryâ€™s advance payment or payment to the beneficiary, the guarantor shall refund or pay the beneficiary.
In addition to the above two types of guarantees, it can be divided into other types of guarantees based on the differences in other functions and uses, such as: bid bonds, compensation trade guarantees, processing guarantees, technical import guarantees, repair guarantees, ** lease guarantees, Borrowing bonds and so on.
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