Sinosure (China Export & Credit Insurance Corporation) is the abbreviation for the China Export & Credit Insurance Corporation, China's only policy-oriented export credit insurance institution, established in 2001. Its main function is to provide risk protection for Chinese enterprises' exports, outbound investments, and overseas engineering contracting activities, including short-term export credit insurance, medium- and long-term export credit insurance, overseas investment insurance, and guarantees. In foreign trade practice, Sinosure is commonly used to help enterprises mitigate buyer credit risk, political risk, and payment collection risk, especially when exporting to high-risk countries or using settlement methods such as open account (O/A) and documents against acceptance (D/A). By insuring with Sinosure, enterprises can obtain compensation in the event of buyer bankruptcy, default, refusal to accept goods, or political events, and can also use the policy for trade financing. Notes: Sinosure insurance is not mandatory; enterprises must decide based on their own risk tolerance and the buyer's credit status; when applying, buyer information must be truthfully declared, otherwise claims may be affected; in addition, unlike commercial insurance, Sinosure has policy-oriented objectives as a priority, with relatively lower rates but stricter approval. Compared with other terms such as 'factoring', Sinosure focuses more on risk protection than financing and is backed by national credit.
📝 Examples
1. We are exporting this batch of goods to Brazil under O/A 60 days. To guard against buyer default risk, the company decided to apply to Sinosure for short-term export credit insurance. (Note: Under open account settlement, using Sinosure to mitigate buyer credit risk.) 2. Because foreign exchange controls occurred in the buyer's country, the payment could not be remitted. We promptly reported the loss to Sinosure and submitted a claim application, and ultimately received 90% compensation. (Note: Sinosure covers political risk and helps enterprises reduce losses.)
💡 Foreign Trade Tips
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