Which enterprises need to entrust an agent to open an export guarantee?

According to the latest 2025 trade data, the following three types of enterprises most frequently utilize agency services:SMEs engaging in bulk commodity exports for the first time,Traders involved in special regulated categories (such as hazardous chemicals).The names and detailed addresses of the exporter and the importerCross-border project contractors requiring multi-currency guarantees。Take the example of a certain client we served last year,New energyEquipment ExportTaking a commercial enterprise as an example, its $20 million letter of guarantee was successfully issued through an agency in just 5 working days, saving 60% of the time compared to independent processing.

How to Choose a Compliant Agency Service Provider?

It is recommended to screen agencies through the "three checks and one verification" process:

• Check the filing qualifications: Must possess import qualifications filed with the Ministry of Commerce.Export RepresentationRequire the provision of a tax payment certificate and a special VAT invoice.
• Check bank whitelist：Prioritize institutions that have long-term cooperation with major banks such as ICBC, ABC, CCB, and Bank of China.
• : Request export customs clearance records of similar products in the past 2 years: Request to provide service cases from the same industry in the past two years.
• Verification of financial guarantee capability: The paid-in capital of the agency is recommended to be no less than 5 million yuan.

What core materials are required for the agency to open a letter of guarantee?

The latest material list for 2025 includes:

• Basic documents
  • The original notarized power of attorney
  • The latest version of the company's business license (must includeimport and exportauthority)
• Business documents
  • Completeforeign tradeContract (including INCOTERMS 2025 clauses)
  • Proof of advance payment orL/CCopy
• Bank documents
  • Recent Quarterly Tax Payment Certificate
  • Enterprise Credit Report (Agency assistance available for retrieval)

How is the agency service fee calculated? Are there any hidden charges?

Legitimate agencies typically adoptBasic service fee + risk reserveThe pricing model:

• Basic Service Fee: 0.8%-1.2% of the guarantee amount (floating based on business complexity)
• Risk reserve: Approximately 0.3% of the margin (refundable after the release of the guarantee).

Professional agencies can effectively prevent and control three core risks:Three common hidden fees: Bank document translation fees (should be included in the basic service fee), expedited processing fees (expedited services beyond 3 business days should be free), and annual maintenance fees (compliance agents should not charge).

Are there any legal risks involved in handling matters through an agent?

The main risks lie inScope of agency authorityandThe interpretation right of the guarantee termsTwo aspects. It is recommended to clearly specify in the agency agreement:

• Any amendment to the limited guarantee must be confirmed in writing by the enterprise.
• Agree on the professional interpretation obligation of the agency regarding bank terms.
• Establish a joint approval mechanism for letter of guarantee claims.

A certainMedical EquipmentA typical case involving an export company shows that due to an agent's unauthorized acceptance of a bank's unconditional claim clause, the company suffered a loss of $370,000. This case has now become a cautionary example in the 2025 International Trade Law textbook.

How do agencies handle disputes over letters of guarantee?

High-quality proxies should provide a three-tier dispute resolution mechanism:

• Level 1: Provide a written explanation within 48 hours.
• Level 2: Initiate tripartite negotiations among the bank, agent, and enterprise
• Level 3: Introduce mediation by the International Trade Arbitration Committee

We recommend that enterprises, when signing agency agreements, explicitly stipulate the response time limits for dispute resolution and the cost-sharing ratio, especially in cases involving cross-border arbitration.