Guarantee Issuance Fee

Guarantee Issuance Fee refers to a one-time handling fee charged by a bank or financial institution to the applicant (usually an importer, contractor, or bidder) when issuing a guarantee (such as a performance guarantee, advance payment guarantee, or bid guarantee) in favor of the beneficiary (usually an exporter, owner, or tendering party). This fee is typically calculated as a certain percentage of the guarantee amount (e.g., 0.1%-1%) and may have a minimum charge. Usage scenarios include international engineering contracting, bulk commodity trade, equipment import and export, and other transactions requiring bank credit guarantees. Notes: The party bearing the fee should be clearly stipulated in the contract (usually the applicant); the longer the guarantee period and the larger the amount, the higher the rate may be; if the guarantee is amended or extended, additional fees may be incurred. Unlike 'Guarantee Amendment Fee' or 'Guarantee Extension Fee', the issuance fee applies only to the initial issuance. Unlike a 'margin deposit', the issuance fee is a non-refundable service fee charged by the bank, whereas a margin deposit is funds deposited by the applicant with the bank and may be refunded.