Islamic Shipping Guarantee is an indemnity document issued by a bank that allows the importer to take possession of shipped goods from a shipping company in the absence of the original transport document (bill of lading or airway bill). This indemnity document is presented by the importer to the carrier or the agent so that the goods can be released in the event that the cargo arrives prior to the shipping documents. The document indemnifies the shipping company for any financial consequences incurred due to the release of the cargo without the presentation of a bill of lading. It helps importers to quickly collect goods and thus avoid high port demurrage charges, which facilitates smooth running of the business and minimises damage to goods due to delays.
|The bank issues shipping guarantess and clearance permits in a manner which implies that the client has opened the credit in his name at the bank, while the credit is actually opened in the name of the bank|