Specific Medium & Long Term Shipments Policy
Scope of Cover
The Specific Medium & Long Term Shipments Policy (SMLTSP) is a Policy designed for Hong Kong exporters and manufacturers. The Policy provides cover of your export business on credit terms for more than 1 year.
HKECIC provides cover for such transactions under the Specific Medium & Long Term Shipments Policy (SMLTSP) as long as you are the principal in the contract of sale. All protection commences from the date of shipment.
- Percentage of Indemnity as high as 90%
- Credit Assessment Services
- Collateral for Financing
- Risk Management Services
- Sharing up to 90% of Your Expenses for Pursuing Debts
Risks covered can be classified as buyer risks and country risks.
- Insolvency and bankruptcy
- Default in payment
- Blockage or delay in foreign exchange remittance
- Cancellation of import licence
- Import ban
- Payment moratorium
- War, revolution, riot and natural disaster
- For all events of loss, the maximum percentage of indemnity is 90%.
- For insolvency or bankruptcy of the buyer, claims are settled as soon as practicable upon receipt of all relevant documents.
- Where the buyer fails to pay for goods he has taken delivery of, claims are settled 6 months from the due date of payment.
- For any other event of loss, claims are settled 6 months after the occurrence of the event.
Premium rates are calculated on the basis of the volume of insurable business, the spread of risks, the buyer’s country and the terms of payment. In general, the riskier the country and the longer the credit periods, the higher the premium rates.
All information provided to the Corporation will be kept strictly confidential. HKECIC staff is required to take an oath of secrecy as provided under Section 31 of the Hong Kong Export Credit Insurance Corporation Ordinance (Chapter 1115). The Corporation is a “public body” under the Prevention of Bribery Ordinance. Staff members are not permitted to accept any advantage from customers. Anybody offering any advantage to the staff for any assistance in their capacity as public servants under the Ordinance commits an offence.
For enquiries and application procedure, please contact us at 27329988.