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Administration Guide - Declarations
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What declarations must I submit in terms of the policy?
A monthly declaration of turnover. Declarations may also be submitted via Cregalink
 Click here to view the sample form
Why does Credit Guarantee require these declarations?
The premium is charged on the turnover declared.
What if I don't submit these declarations in time?
Your rights under the policy may be prejudiced (i.e. you may be precluded from claiming in the event of a cause of loss).
What information must this declaration contain?
The declaration must show the total gross invoiced value of shipments made to all insured buyers in each country listed in the schedule to the policy, split according to the terms of payment allowed. If you make shipments to government buyers, these must be listed separately. If your policy covers shipments to associated buyers and if you shipped goods during the relevant month to such buyers, these should also be declared separately, for example:
| United Kingdom |
cad
1-3m
4-6m |
R1 000
R2 000
R2 000 |
United Kingdom
Associated buyers |
1-3m |
R10 000 |
Germany
Government buyers |
cadLC
1-3m |
R1 000
R3 000 |
France
Government buyers |
1-3m |
R6 000 |
Must I give details for individual buyers?
In general, no. We are, however entitled to ask for this information, in which case it must be given. Normally, totals for the countries to which shipments are made are sufficient and the only split needed is that mentioned in the previous answer. You must, however, retain the information on which the declarations are based, to substantiate an eventual claim.
What period must each declaration cover?
It must cover the shipments for the previous month.
When must declarations be submitted?
By not later than the 21st of the month following that for which shipments are declarable. Thus, shipments during June should be shown in the June declaration which should be sent in by 21 July.
Must I submit a return if there were no shipments during that month?
Yes, a "nil" return must be submitted.
What must I do if a shipment is made on terms not included in the policy?
You should ask us if we can include the new terms in the policy. Cover only extends to transactions concluded on terms of credit within the period of credit shown in the schedule to the policy.
What must I do if a shipment is to be made to a country not listed in the Annexure A to the policy?
The fact that a country is not listed in Annexure A does not mean that we will not be able to cover that country. If you have an all-markets policy, then you must apply for cover in the usual way. If, however, your policy is for selected markets, then you may choose whether you wish to cover that country or not. The "whole turnover principle" in proviso 4 states that when a country is covered, then all buyers in that country must be offered for cover.
Must letter of credit transactions be included in monthly turnover declarations?
Yes, unless:
- The letter of credit is confirmed by a bank in South Africa before shipment, or unless
- The policy carries a special condition to the effect that shipments payable against presentation of documents under such letters of credit are specifically excluded from the cover of the policy.
Must invoice amounts in a foreign currency be declared in that currency, or in SA rand?
In South African Rand. Amounts in foreign currencies must be converted at the TT buying rate of exchange ruling at the date of shipment if no forward exchange cover contract was concluded in respect of the contract of sale. If such a forward exchange contract was concluded, then the rate of exchange quoted in that contract must be used.
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