Eximbank short-term export credit insurance program
PURPOSE:
The purpose of this Program is; Where the goods produced under the Manufacturing and Sales Contract, which has been signed between the insured and the buyer, have not yet been delivered, the expenses incurred by the insured in respect of the undelivered portions of the goods to the buyer in order to meet the requirements of the Manufacturing and Sales Contract are insured within certain limits against commercial and/or political risks.
CAPSAM:
Within the framework of this Program, the expenditures on Manufacturing and Sales Contracts that exporters will sign with various buyers in the countries covered by insurance within the Short-Term Export Credit Insurance Country Conditions and Premium Rates List of Turkish Eximbank are insured for the performance of the work.
Under a current Short Term Export Credit Insurance General Policy, exporters registered in Turkey who are insured for post-shipment risks and exporters registered in Turkey who will claim insurance for post-shipment risks under the Short Term Export Credit Insurance General Policy can benefit from the Programme.
In order for possible shipments to be subject to a Manufacturing and Sales Contract to be covered by insurance against pre-shipping risks, post-shipping risks to the said Manufacturing and Sales Contract must also be insured. However, the Insurance, Short-Term Export Loan Insurance General Policy has the right to request insurance from the Manufacturing and Sales Contracts it will make with its buyers during the validity period, only because they deem it appropriate.
The period of validity of the insurance guarantee to be issued for the pre-shipment period is 180 days and, upon the request of the Insurer, if deemed appropriate by the Turkish Eximbank, this period may be extended to a maximum of 180 days.
COVERING RISKS:
Pre-shipment commercial risks
a. The buyer's inability to pay;
i) The buyer's bankruptcy,
ii) If the buyer is a corporate person, a liquidation decision is made due to his inability to pay his debts,
iii) A restrictive decision by the court or an authorized body relating to the payment of the buyer's debts linking all creditors,
iv) Documenting by the exporter or another creditor himself that the buyer has fallen short of paying a loan,
v) Making a concordat or similar agreement on the buyer's debts,
vi) If it is not possible to document or bring such a document by the Insurer that the buyer's financial situation has become unable to make a partial payment and therefore any follow-up will not yield any results or even cover the tracking costs, this situation will be proven by the Insurer to Turkish Eximbank in any other way that will be accepted by the Bank.
Pre-ship period political risks
b. Except under the control of the buyer and/or the Insurer, the law preventing, restricting, delaying or controlling the transfer of foreign currency to Turkey by the recipient's government, the decree in the provision of the law, or the decision and/or administrative regulations with the same power as these,
c. War between the recipient's country and Turkey,
d. The occurrence of wars, revolutions, civil wars, riots, riots and so on in the recipient's country,
e. Except under the control of the Buyer and the Insurer, the importation of goods into the buyer's country shall be prevented by the law enacted, by decree in the provision of law, or by decisions and/or administrative regulations of the same power,
f. Except under the control of the buyer and the Insurer, the permit granted in advance in relation to the importation of goods in the buyer's country and valid in the manufacturing process prior to the date of dispatch of the goods shall be cancelled at a date before the date of dispatch of the goods,
g. The buyer has a state or state guarantee If, for reasons that cannot be uploaded to the Insurer, it is not possible for the buyer to be documented or such document to be brought in the pre-ship period, since it cannot meet the payment and/or other obligations arising from the Contract, this situation must be proven by the insured to Turkish Eximbank in any other way that will be accepted by Turkish Eximbank.
Country terms and premium rates:
The risks covered by insurance coverage under this Program will be limited to specific conditions to be determined under the Short Term Export Credit Insurance Country Conditions and the Premium Rates List, as well as the insurance coverage for pre-shipment risks, but the rates included in the Pre-shipment Term Premium Rates List will be based on the premium account. However, Turkish Eximbank has the exclusive right to determine the premium rate to be applied to each transaction covered by insurance.
Damage rate to be compensated:
The rate of compensation for damages arising from commercial and/or political risks undertaken under the Programme in question shall not exceed a maximum of 90%, provided that it is determined by Turkish Eximbank beforehand.
WORK OF THE PROGRAM:
ü Pre-Sential Risks along with the Bidname they will procure from Turkish Eximbank He will apply to Turkish Eximbank by filling the Letter of Request in full and correctly. Exporters who already own the General Policy of Short-Term Export Credit Insurance will only need to send the Pre-Sential Risks Request Letter to Turkish Eximbank.
ü Pre-Sential Risks If deemed appropriate by the Turkish Eximbank following the evaluation of the Request Letter, the Zeyilname, which is held in favour of the exporter and contains the general conditions for insurance coverage of the pre-shipping period, shall be sent to the exporter.
ü After signing the Zeyilname beneficiary exporters' Manufacturing and Sales Contract with their buyers, within 10 business days, the Pre-Selling Period Risks will apply by sending the Special Conditions Application Form to Turkish Eximbank. The special conditions that will determine the starting date with the special conditions of the pre-shipment period insurance coverage are sent to the exporter. The validity period of the Special Terms is 180 days, and the starting date is the date of entry into force of the relevant Manufacturing and Sales Contract. However, in the event that those who will receive an export fee subject to insurance coverage will be paid on the throne of a cashier's credit or bank guarantee, the special conditions period of validity will be the date on which the relevant credit is opened or the bank guarantee is granted.
ü The premium amount to be calculated based on the amount of the Manufacturing and Sales Contract, taking into account the premium rates set out in the Pre-Selling Period Premium Rates List, will be specified in the Special Conditions and will be paid to Turkish Eximbank accounts within 15 working days following the date of the Special Conditions.
ü Having completed the performance of the work subject to the Manufacturing and Sales Contract, the Insurer shall inform the Turkish Eximbank in writing within 5 business days of the date of the shipment. However, the date of final delivery to the buyer of the goods subject to the Manufacturing and Sales Contract may be extended for a maximum period of 180 days with the written pre-approval of the Turkish Eximbank, and the necessary changes will be notified to the insured in writing, provided that under the special conditions valid for 180 days with the agreement with the purchaser of the insured. The Short Term Export Credit Insurance General Policy shall apply to Turkish Eximbank in the event that the validity period expires before the Special Conditions validity period, requesting the extension of the Short Term Export Credit Insurance General Policy for one year to avoid any loss of the insured rights.
ü In the event of any damages arising from commercial and/or political risks under the Zeyilname, the Insurer applies to the Turkish Eximbank within 10 business days at the latest from the date of writing when the Turkish Eximbank notified that it has ceased manufacturing subject to the pre-shipment period insurance coverage and requests compensation with the Pre-shipment Compensation Request Form following the finalization of the damage.
ü After the receipt of the compensation request, the amount of damages decided on the compensation is paid to the Insurer as Turkish Lira, provided that the Insurer completes any transactions requested by the Turkish Eximbank and deposits any documents.
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