Release against Guarantee refers to a flexible practice where, after the goods arrive at the port, if the importer cannot normally take delivery because the original bill of lading has not yet arrived or the documents are discrepant, the importer issues a written guarantee (usually a joint and several liability guarantee provided by a bank or insurance company) to the carrier or its agent, undertaking to bear all liabilities and losses that may arise from releasing the goods, and thereby requests the carrier to deliver the goods first. Use scenarios include: delay of the bill of lading in transit, discrepancies in documents under a letter of credit, and the importer urgently needing to take delivery to avoid demurrage/port storage charges. Precautions: the guarantee letter must specify the guarantee amount, scope of liability, and validity period; the carrier may require a bank guarantee rather than an ordinary company guarantee; if the final holder of the original bill of lading asserts rights, the carrier may seek reimbursement from the guarantor. The difference from 'telex release' is that telex release is the shipper actively instructing the carrier to release the goods, while release against guarantee is a passive application by the importer; compared with 'release against original bill of lading', release against guarantee carries higher risk and is prone to disputes over title to the goods. Foreign trade practitioners should use it cautiously and try to reduce risk through bank guarantees or credit insurance.
📝 Examples
1. Because the original bill of lading was still in transit and the goods had already arrived at the port for three days, our company issued a bank guarantee letter to the shipping company and applied for release against guarantee, so as to clear customs and take delivery in time and avoid container demurrage. (Note: Due to the delay of the bill of lading, the importer exchanged a bank guarantee for early delivery.) 2. The documents under the letter of credit had discrepancies, and the issuing bank refused to pay, but the goods had already arrived at the port, so the importer had no choice but to take delivery by release against guarantee, while negotiating with the exporter to resolve the discrepancy issue. (Note: Document discrepancies made normal document release impossible, and the importer took delivery first by means of a guarantee.)
💡 Foreign Trade Tips
Foreign trade terms are the foundation of international business communication
Trade practices may vary slightly by country; pay attention when using them
When using terms in contracts, specify the applicable version (e.g., Incoterms 2020)
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