Payment Guarantee

A written warranty issued by Bank of China, at the request of the Buyer to the Seller under the contract, guaranteeing the Buyer will fulfill the payment obligations under the contract to purchase goods, technology, patent or services.

Provide contract payment protection.

1. Mediate the issue of mutual mistrust between both parties of a transaction. Bank of China who has good reputation acts as a guarantor to promote smooth transaction by providing guarantee for the parties;
2. Guarantee fulfillment of contractual obligations;
3. Guarantee payment of contract price. Timely payment for goods is guaranteed with similar effect as L/C in merchandise trade;
4. Wide application scope. Not only for merchandise trade, but also for construction projects.

Buyers involved in sales contracts, Owners involved in engineering contracts (tender offers) and so on.

I. Application for letter of guarantee

1. The applicant fills out an application form for issuance of a letter of guarantee;

2. The applicant provides margin deposit or submits other counter-guarantee;

3. The applicant submits  copy of contract agreement or any supporting documents related to the contract;

4. The applicant submits other documents necessary for issuance of a letter of guarantee as required by Bank of China.
 

II. Examination and issuance of letter of guarantee

1. Bank of China examines the customer qualification, underlying transaction and relevant documents;

2. Bank of China confirms the customer's margin deposit or credit line and other mortgages;

3. Bank of China examines the written application and form of letter of guarantee;

4. Bank of China issues the letter of guarantee accordingly

Request regarding the authenticity confirmation of the Bank Guarantee and/or Standby Letter of Credit (SBLC) issued by Bank of China (Hong Kong) Limited Jakarta Branch (“Bank”) can be submitted by (1) Official Letter or (2) Request via SWIFT by providing the related Bank Guarantee and/or SBLC data (“Related Data”), including:

• Bank Guarantee and/or SBLC reference number
• the issuance date of the Bank Guarantee and/or SBLC
• Applicant name and address
• Beneficiary name and address
• currency and amount of the related Bank Guarantee and/or SBLC

(1) Official Letter

1. Official letter is sent to the Bank Address using the company letterhead and signed by the Beneficiary's authorized person by including the Related Data.

   Bank Address:

   Attn. Trade Finance Department

   Bank of China (Hong Kong) Limited Jakarta Branch

   Tamara Center 10^th Floor

   Jl. Jend. Sudirman Kav. 24, South Jakarta 12920, Indonesia

   Tel : +6221-5205502

2. Bank will check and process the related request immediately after receiving the Official Letter from the Beneficiary’s address.
3. Bank will issue Letter of Authenticity Confirmation signed by Bank’s authorized personnel.
4. Letter of Authenticity Confirmation will be sent to the Beneficiary’s address or according to the instructions in the Official Letter.

(2) Request via SWIFT

1. Request is sent from Beneficiary’s Bank to the Bank via authenticated SWIFT by including the Related Data.

   Bank SWIFT Code: BKCHIDJAXXX

2. Bank will check and process the related request immediately after receiving the SWIFT request from the Beneficiary’s Bank.
3. Bank will provide the Authenticity Confirmation to the Beneficiary’s Bank via authenticated SWIFT.