Corporate & Commercial	Also in Corporate & Commercial: Introduction Aviation Charity Trustees Commercial Business Insurance Contractors/Building Services Credit Insurance Crime Insurance Cyber Liability Insurance Directors & Officers Liability Electronics Employers' Liability Engineering & Inspection Insurance Environmental Liability Food Industry Manufacturers Group Personal Accident Key Man Insurance Kidnap & Ransom Insurance Latent Defects Insurance Legal Expenses Insurance Libel Insurance Long Term Disability Insurance Marine Cargo Insurance Material Damage & Business Int. Medical Equipment Manufacturers Medical Malpractice Liability Motor Fleet Insurance Office Combined Insurance Pension Trustees Liability Political Risks Professional Indemnity Insurance Property Owners Public & Products Liability Surety Bonds & Guarantees ---------------------------------------- Contact Corporate & Commercial

Marine Cargo Insurance > Export Trade

Global trade finance has for many years been based on documentary Letters of Credit, (LOC) which is a system whereby payment for exports and imports is effected through the international banking system.

Trade between associated companies and those with long established relationships tend not to rely on documentary Letters of Credit. Their use is more common in a trader environment and where new import/export markets are being explored.

The importer (credit applicant) instructs his bank to make funds available to the exporter (beneficiary) in the exporter's country, either directly, or using a bank in the exporter's country as an intermediary. The instruction to release funds to the exporter will be dependent on the presentation by the exporter of specified documents, one of which will be a certificate of cargo insurance, evidencing shipment of specified goods, within a given time limit.

Almost all Letters of Credit issued are irrevocable, which means that once issued, the terms of the credit cannot be amended or cancelled without the agreement of the exporter. The use of revocable Letters of Credit is not recommended as these can be amended or cancelled by the issuing bank without the exporter's agreement.

When issuing a Cargo Insurance Certificate which is required under the terms of a Letter of Credit, it is essential that the details on the certificate conform exactly with those requested on the LOC, as any discrepancy can lead the bank to refuse to release the funds. Where a certificate is required urgently, or you are unsure as to whether the conditions requested by the LOC are catered for by the terms of your policy, or you are having any other problems with the bank on the question of cargo insurance, Please contact us.

Please use the drop down list below to select another page from the Corporate & Commercial section, or click here to return to the Corporate & Commercial introduction.