KazakhExport has supported the exportation of domestic cotton fiber to Czechia | 公司新闻 | Export insurance company «KazakhExport»

公司新闻

KazakhExport has supported the exportation of domestic cotton fiber to Czechia

Ramazan-Agro LLP used one of the export support tools provided by the EIC “KazakhExport” JSC - the importer’s advance payment insurance. For the season of 2016-2017, the Company concluded three contracts for cotton fiber supply with one of the key and permanent foreign counterparties - Cotton CZ S.R.O (Czechia).

As a rule, during the period of August to November, cotton companies incur a deficit in their own working capital to store up raw cotton. Thus, the transaction made with the assistance of KazakhExport will allow preparing much more raw materials for its further processing into cotton fiber. “The insurance limit established for Ramazan-Agro LLP in the amount of USD 4 000 000 will provide a volume of raw cotton in the quantity of 7 500-8000 tons that corresponds to 2400-2500 tons of cotton fiber”, says Zulpykhar Kozhakhmetov, the Deputy Director of Ramazan-Agro LLP.

Ramazan-Agro LLP has been working in the export market of Kazakhstan for more than three years but a deal with KazakhExport is the first experience with the application of the risk insurance tool for the importer’s non-payment of the importer’s advance payment. “The efficient consideration and decision-making, the experience in foreign trade activities of KazakhExport, as well as the level of qualification of its employees allows us to hope for the success of the launched project and the promising outlook for cooperation in the future”, - Ramazan-Agro LLP states.

In addition to Czechia, products of the Kazakhstan manufacturer are exported to Belarus, Russia and Moldova. The company plans to develop the cotton fiber production in the future and, accordingly, to increase export deliveries of products. We hope that this will take place not without the assistance of the national export insurance company.

Briefly about the scheme for the implementation of the “Importer’s Advance Payment Insurance” tool by the example of the transaction of Ramazan-Agro LLP with the Czech Cotton CZ S.R.O.

Ramazan-Agro LLP concluded contracts with the importer on the terms of advance payment and applied for insurance to KazakhExport. After the approval and agreement of terms and conditions of insurance, KazakhExport entered into a quadripartite insurance contract with Ramazan-Agro LLP, Cotton CZ S.R.O. and the Importer’s bank, in which case Československáobchodníbanka, A.S, the importer’s bank, opened a credit line to Cotton CZ S.R.O. In accordance with the terms and conditions of the contract, the Kazakhstan exporter shall pay an insurance premium to KazakhExport, shall receive advance payments from Cotton CZ S.R.O. to perform export contracts, shall purchase the necessary raw materials to produce cotton fiber, and shall ship the actual production to Cotton CZ S.R.O. If the exporter fails to perform its obligation on the cotton fiber delivery, KazakhExport shall effect an insurance payment in favor of the importer. And the rights of claims to the exporter shall pass to KazakhExport.

To use the above-mentioned and other tools, please contact the call-center by 8 (727) 250 00 21. You can also find additional information on the website: keg.kz.