Guarantee Notification Method refers to the specific channel through which a bank, after issuing a guarantee, transmits the guarantee text or related information to the beneficiary. Common methods include SWIFT MT760, letter, fax, email, and courier. It is typically used in international engineering contracting, bulk commodity trade, complete equipment export, and other transactions requiring bank credit guarantees. Note: The beneficiary should explicitly require an acceptable transmission method, as different methods affect the guarantee's effective time, authenticity, and legal validity. For example, SWIFT MT760 is an electronic standard that is fast and verifiable; while letter or courier is formal but time-consuming. The difference from 'Guarantee Issuance Method' is that the latter concerns whether the guarantee is direct, indirect, or counter-guaranteed, while notification method only involves the transmission channel. In practice, the notification method should be stipulated in the contract or application to avoid default due to transmission delays.
📝 Examples
1. We apply to issue an advance payment guarantee. Please use SWIFT MT760 to notify the beneficiary to ensure they can confirm the guarantee before the bid deadline. (Note: Requires SWIFT message method, emphasizing timeliness.) 2. According to Article 5 of the contract, the original performance guarantee must be couriered via DHL to the buyer's address, and a scanned copy sent by email. This notification method is deemed valid delivery. (Note: Combines courier and email notification methods, clarifying delivery effectiveness.)
💡 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)
For unfamiliar terms, use GlobalSync's multilingual email helper to confirm with your partner