Shipping Guarantee
A Shipping Guarantee (SG) allows an importer to take possession of goods from a shipping company when the goods arrive at port before the Negotiable Bill of Lading is received. It is a written indemnity by the Bank to the shipping company. For shipment by air / post the Bank would endorse the airway bill / parcel post receipt, as the case may be, to the order of the customer to take the goods.

The SG is signed by the importer and countersigned by the Bank. It states that importer is the owner of the goods, and will indemnify the shipping company if the Bill of Lading is not subsequently presented. The bank guarantees the performance of the indemnity. Once the Negotiable Bill of Lading is received, importer would surrender it to the shipping company and redeem the SG by returning it to the Bank (for cancellation).

A SG is granted with Trade Finance facilities. This helps importers avoid unnecessary port and warehouse charges caused by delays in clearing goods.