There has been a tendency for overseas buying offices in Hong Kong to act as the principals in their own right in transactions with local manufacturers or suppliers. Where credit sales are involved, the local manufacturer is exposed to the risks of non-payment and has no legal right to pursue payment from the parent company of the buying office.

To protect you, ECIC has created a facility to cover the credit risks arising from sales by Hong Kong manufacturers and suppliers to buying offices set up in Hong Kong.

l Eligibility for Cover l Risks Covered and Indemnity l Premium Rates l
l Form of Cover l Confidentiality l Application Procedure l

 

To be eligible for cover, the goods involved in the transaction must be intended for export to the parent company of the buying office or the parent's designated consignees. Documentary evidence such as contracts, transport documents, export declarations, etc. is normally sufficient for this purpose.

 

Risks covered include:

 

Insolvency and bankruptcy of the buying office

 

Payment default by the buying office

 

The maximum compensation is 90% of your loss.

 

Premium rates generally vary according to the length of credit, the volume of insurable business and the spread of risks.

 

Cover is available through the issue of an endorsement to the standard shipments policy.

 

All information provided to ECIC will be kept strictly confidential. ECIC staff are required to take an oath of secrecy as provided under Section 31 of the Hong Kong Export Credit Insurance Corporation Ordinance (Chapter 1115).

 

You only need to click here for application.