Study On Applications And Risk Prevention Of Independent Guarantee

With the continuous development of international trade, both trading parties face greater risks than before. In order to safeguard the rights and to avoid risks better,trading parties will make use of credit guarantee tools tools to ensure their own interests. In the early 70s of the 20th century, the new credit guarantee tools,independent guarantee developed in international trade practice.Because of the characteristics of independence and irrevocable nature,guaranteeing the conduct of trade and the interests of both sides, so ones it appeared,it had been highly appreciated by main trade body of the world, the scope and the amout of its application developing tremendously.Today, no matter in the non-trade financing field such as international goods sale or in the trade financing field such as international loans,independent guarantee is in widely application.Although the independent guarantee has been widely used in most of the world in different fields,there isn't a unified international convention or practice to standard the independent guarantee, leading to that various countries have different operating habits in practice,and trade parties in different countries will therefore subject to certain risks. Specific to China, research of our scholars for independent guarantee mostly focused on the legal level, research from trade practice perspective is relatively short,while China has made more use of independent guarantee in practice. It can be predicted, as China's economic activities has further integrated into the international market, especially as the expansion of China's international guarantee operations of banks and professional guarantee companies, independent guarantee will be used more and more extensivly in practice.Therefore, the research of the application and the risk prevention has important significance. This article first has an overview of the independent guarrantee,introducing the basic content such as the definition of independent guarantee, the classification of independent guarantee.Then introduces the application of independent guarantee in the international trade, including the field and the function, through case presentation specifying the application, and also introducing the application in different countries.As independent guarantee is widely used in international trade,there may be some problems in the application,so the article analyses some typical problems in the application according the cases, and poses the treatments.If the problems aren't be handled properly, the parties may face some risk, so the article finally analyses the risk that the parties may face,and poses the risk prevention strategies in order to guide the application of independent guarantee better.