Which enterprises need to commission agencies to open export guarantee letters?

According to 2025 latest trade data, the following three types of enterprises most frequently use agency services:SMEs conducting bulk commodity exports for the first time,Traders dealing with special regulated categories (such as hazardous chemicals)The names and detailed addresses of the exporter and the importerCross-border project contractors requiring multi-currency guarantee letters. Taking one of our clients last year as an example, their $20 million guarantee letter was issued through an agency in just 5 working days, saving 60% time compared to self-processing.New energyEquipment ExportHow to choose compliant agency service providers?

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

Recommended agency screening through Three Checks and One Verification:

• Check filing qualifications: Must have import filing with the Ministry of CommerceExport RepresentationRequire the provision of a tax payment certificate and a special VAT invoice.
• Check bank whitelist: Priority given to institutions with long-term cooperation with major banks like Bank of China, Agricultural Bank of China, ICBC, CCB, Bank of Communications
• : Request export customs clearance records of similar products in the past 2 years: Required to provide service cases in the same industry from the past two years
• Verify financial guarantee capability: Agencys paid-in capital recommended to be no less than 5 million RMB

What core materials are needed for agency-issued guarantee?

2025 latest material list includes:

• Basic documents
  • Notarized original agency agreement
  • Latest version of business license (must includeimport and exportauthority)
• Business documents
  • Completeforeign tradeContract (containing INCOTERMS 2025 clauses)
  • Advance payment proof orL/CCopy
• Bank documents
  • Most recent quarterly tax clearance certificate
  • Enterprise credit report (agency can assist in obtaining)

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

Regular agencies typically adoptBasic service fee + risk reservecharging model:

• Basic service fee: 0.8%-1.2% of guarantee amount (floating based on business complexity)
• Risk reserve: Approximately 0.3% deposit (refundable after guarantee release)

Professional agencies can effectively prevent and control three core risks:Three common hidden charges: Bank document translation fee (should be included in basic service fee), expedited processing fee (should be free for expedited requests over 3 working days), annual maintenance fee (compliant agencies should not charge).

Are there legal risks in processing through an agency?

Main risks exist inScope of agency authorityandInterpretation rights of guarantee termsTwo aspects. It is recommended to specify in the agency agreement:

• Modifications to the guarantee must be confirmed in writing by the enterprise
• Specify the agencys professional interpretation obligation for bank terms
• Establish a joint approval mechanism for guarantee claims

A certainMedical EquipmentA typical case from an export enterprise shows that due to the agency unilaterally accepting the banks unconditional claim terms, the enterprise suffered a loss of $370,000. This case has now become a cautionary tale in 2025 international trade law textbooks.

How do agencies handle guarantee disputes?

High-quality agencies should provide a three-level dispute resolution mechanism:

• First level: Provide a written explanation within 48 hours
• Second level: Initiate tripartite consultation between bank, agency, and enterprise
• Third level: Introduce mediation by the International Trade Arbitration Commission

We recommend that enterprises clearly specify response time limits and cost-sharing ratios for dispute resolution when signing agency agreements, especially for cross-border arbitration cases.