GlossaryEN1 min readUpdated: Jun 9, 2026

Import Bank Guarantee

Unlike export guarantees, import guarantees protect not the seller but the buyer in an international transaction.

Last updated: 9 June 2026Published: 19 June 2025

Source: https://en.wikipedia.org/wiki/Bank_guarantee

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Unlike export guarantees, import guarantees protect not the seller but the buyer in an international transaction. The importer's bank commits in writing to the foreign exporter to pay a specified sum if the importer itself fails to meet payment obligations. From the importer's perspective, this guarantee unlocks or expands credit lines, enabling financing of larger purchase volumes. The exporter gains assurance that an established bank—not merely the importer itself—stands behind payment, significantly reducing default risk. Import bank guarantees are commonly used with long-lead goods, new business relationships, or substantial orders where the exporter requires enhanced security.

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Import Bank Guarantee

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