What does ECGC do on default of payment of any overseas buyer?

Posted on 06 April 2023 Category : Export

The information provided here is part of Import Export online Training

What does ECGC do on default of payment of any overseas buyer?

We have discussed about the default of payment by overseas buyer and insurance coverage by ECGC. Export Credit Guarantee corporation reimburse the export proceeds, if overseas buyer not paid the amount of export proceeds to exporter, if such transaction has been insured by ECGC.

Ok, now after reimbursement to exporter, what does ECGC do? Will ECGC keep quite? No, Export Credit Guarantee Corporation, with their network of connections, finds out actual cause of default. If ECGC’s investigation report is not satisfactory, such firm will be black listed.

What happens, if a firm is black listed by ECGC?

If a buyer/importer has been black listed by ECGC, such information is circulated among all international associates of ECGC in turn, such buyer can not buy/import goods from any other suppliers/sellers/exporters on a credit basis.

ECGC circulates this default of payment with all their international contacts and take up the matter legally with higher legal levels. Also this overseas buyer will be black listed by Export Credit Guarantee Corporation and circulated with all their associates’ counterparts. Once an overseas buyer has been black listed, he can not buy goods from anywhere in the country, as ECGC does not approve their credit worthiness to exporters and bankers.

Also read - ECGC Claim – Is it a Hurdle? How the comprehensive policy of ECGC works for exporters? Difference between EPCG and ECGC

What is ECGC and how does ECGC protect exporters?

Would you like to share your experience in handling default of payment by overseas importer/buyer and involvement of ECGC? Or would you like odd up more information about this subject about nonpayment of export value of goods by buyer/importer and the involvement of Export Credit Guarantee Corporation?

The above information is a part of Export Import Training course online

Share below your thoughts about this subject on default of payment by buyer/importer against export of goods and importance of ECGC.

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Comments

Himanshu Garg : On 16 February 2015 I want to start import of teak wood containers from latin america but i am new to it. Kindly tell me about how to start the business, first step, what things i need to take care of, how to get lc opened, how to buy on lc, etc. Looking ahead for your support.

Reema Vadehra : On 16 February 2015 We are a Cheese manufacturing Company in the name of M/s Dairy Craft India Pvt. Ltd. with its head office in Delhi and Manufacturing facilities in Uttar Pradesh. Presently we are manufacturing and distributing a variety of Cheeses in India ONLY. We are an ISO 22000:2005 certified unit. Our plant is certified by NABCB. We do have our certifications of FSSAI which has now become mandate for the Food Business Operators. I had been informed by an officer in Apeda that for exports we must have ISO certification with us and now when are certified we would like to initiate with the Exports of Cheese. I request you to kindly let us know the procedures and guidelines.

Veeresh Ravadi : On 16 February 2015 I am interested to foray into Import/Export business I have some queries about Export business. 1. How to know which products can be exported or imported. 2. How the billings will happen. 3. How to commission works for exporters. 4. How to fix the price of products according to different countries. 5. What is the task of freight forwarder. 6. I am new to it please give some suggestions

Nipun V. Patel: On 16 February 2015 hi i am from ahmedabad ,gujarat ,i have one supplier from africa i want to import cashew nut .the supplier ship me 1 mt quantity via air so at ahmedabad is there need of any custom clearance? i have doubt of quality if supplier send me bad quality then i have loss of certain amount so how to ensure quality which supplier send me good quality is there any responsible agency which verify when offloading material otherwise any insurance company takes responsibility of material if yes then give me name which deal in africa ?

Admin: On 16 February 2015 Hi Himanshu Garg, You may read more articles in this website

Admin: On 16 February 2015 Hi Reema Vadehra, APEDA registration helps you to have more support and financial assistance. Please contact APEDA office near your place.

Admin: On 16 February 2015 Hi Veeresh Ravadi, You may read more posts in this website to know more information in this website about international trade.

Admin: On 16 February 2015 Hello Nipun V. Patel, Please read more articles in this web blog about export import business

Kevin H Gonsalvez: On 26 November 2015 I run an Import - Export firm based in Mumbai. In 2010 we had supplied 50 nos of Motors to a company in Dubai. These motors were imported from UK. The End client was a regular customer and we going by past records of payment history we agreed for payment against delivery. But its been almost 4 years he is not making payment just promising dates after dates. My Question to you is is there any Import Export organisation in India to help us retrieve our funds and safe guard small time traders like us. If we have to make a Police complaint do i have to complain in Dubai or India. Kindly guide

BC TRIPATHI.: On 06 September 2016 WE ARE IMPORTER OF A4 PAPER AND WANT TO IMPORT FROM THAILAND AND NETHERLANDS, HOW ECGC CAN HELP US IN VERIFYING THE COMPANY .

Rahul jain : On 03 July 2017 Want to start export How to start

Rahul jain : On 03 July 2017 Want to start export business want risk cover of payment

Sanjeev : On 15 July 2018 I am freight forwarder rendering services to Exporters. How can I recover my dues if an exporter in business if agro products wilfully defaults in payments? Can he be blacklisted by APEDA

KETUL SHAH: On 04 March 2021 I would i like yo know if an buyer dose not make payment how will we get the payment through ecgc policy

Naseem Abdul Rahman: On 28 May 2021 As per the order of foreign importer the exporter exported the goods to him but after reaching the goods to importers port, the importer refused to take delivery of the goods from the port. in such case what will be the after effect?

gourav: On 19 July 2022 Dear sir we have IEC. We want to purchase from one country and sell to the company of another country. Please write how we can know the status of the company which demands advance payment. Also please inform if ECGC covers such international transactions.

Navin Jain: On 19 June 2023 My buyer is taking goods at 90 days DA Terms which means I have to extend credit for 90 days. The Buyer is from Ghana...Can ECGC be done?