Testimonials

Are You Reporting Shipments Correctly?

All Ex-Im Bank credit insurance policies require the insured exporter to report new shipments & pay the related premiums every month in order for coverage to apply. If you do not report your shipments or pay premiums on time, those shipments are not covered, and you are out of compliance with your policy. This can result in CLAIM DENIAL and non-payment by Ex-Im Bank in the event of a claim situation. "Unpaid premiums" is one of the top reasons that claims are denied.

What shipments do I have to report?

Most standard and small business multi-buyer insurance policies are "Whole Turnover" policies, which means that you are required to insure all of your export credit sales under your policy. Each month, you must report the value of ALL eligible export shipments made on open account terms in the previous month; check your policy declarations for any exceptions to this rule. Shipments must be accepted and premiums must be applied to your policy by Ex-Im Bank before your sales are considered insured. Late reporting or failing to report shipments can result in non-acceptance by Ex-Im Bank and can mean that you are not covered! *Click here for more information on late and rejected shipments.

   •   Please NOTE: Section E. 1-3 of your policy document describes the requirements of evidence of export via shipping documents and/or accompanying written instructions for delivery. This includes special notes regarding shipments to Mexico and Canada.

You are NOT required to report or pay premiums on any down payments you have received, invoices on cash-in-advance terms, sales to buyers where Ex-Im Bank is closed for business (check the CLS), or any exclusions specifically stated in your policy. Typical exclusions include Confirmed Irrevocable Letters of Credit, related party transactions, and/or sales to Canada. Find out for sure which exclusions apply to you by referencing the Declarations page of your policy.

Watch your buyer credit limits!

If you ship more product than your existing credit limit allows for any buyer, you are still required to report and pay premium on the total amount shipped, including the balance that is greater than the approved credit limit. While you are not insured on any amount above set buyer limits, the over-shipped balance may become eligible for coverage if the buyer makes partial payments that reduce the outstanding debt to within the approved credit limit. This encourages you to get the appropriate credit limit in place for each buyer and to monitor it closely. Click here or Contact Us for more information on determining the appropriate buyer credit limits.

What about those premiums?

You must pay the related premiums on time and in full in order to ensure coverage in the event of a claim. Premiums are due at Ex-Im Bank on or before the end of the month after the shipment takes place. So for example, a shipment in August will have reporting required and premium payment due by the last business day in September. Premiums are based on a split or blended rate and can be found in the Declarations page of your policy. Keep in mind that you are responsible for premium payments on the total invoice out on open account terms - even if that amount exceeds the applicable buyer limits. However, you are not insured on any amount exceeding set buyer limits.

What if I don't have any export shipments this month?

Even if you have not shipped under your policy in the previous month, you must still access the online policy management system (Ex-Im Online) and "REPORT NO SHIPMENTS." This will show Ex-Im Bank that you are actively managing your policy and remain in compliance.

As your broker, we are here to help. We will gladly review the details of your policy with you. We can also provide training on the online policy management tools, show you where your policy discusses these issues, and make sure that you have the best coverage to suit your business needs. Contact Us today!

As always, we are here to support you. Please feel free to contact us at TAG if we can be of assistance in any way.

Kind Regards,

Curt, Leslie, Ursula, Jackie and Sara
Trade Acceptance Group, Ltd.