Guarantee Release Fee

Guarantee Release Fee refers to the fee charged by a bank to the applicant for releasing the bank's liability under a guarantee, releasing related deposits or credit lines, in international trade, engineering contracting, or ship leasing, when the beneficiary has received a claim under the bank guarantee, or when the guarantee expires or is revoked. This fee typically occurs after the guarantee expires or the applicant completes the underlying contract obligations, and the bank needs to handle the cancellation of the guarantee, refund of deposits, or restoration of credit lines. Usage scenarios include: release procedures after the expiry of advance payment guarantees, performance guarantees, quality guarantees, etc. Note: This fee may vary depending on bank policies, guarantee types, and amounts. The applicant should clarify the calculation method and responsible party for the release fee when opening the guarantee; if the guarantee is released after a claim by the beneficiary, the fee may be higher. Unlike the 'Guarantee Issuance Fee', which is a one-time charge at issuance, the release fee is a termination-stage fee; it also differs from the 'Guarantee Amendment Fee', which is for clause changes. Foreign trade practitioners should stipulate the responsible party for this fee in the contract to avoid disputes.