If a Subsidiary of an Overseas Company in China Applies to the Bank for Issuing a L/G for General Bond on Behalf of the Overseas Company, Will the GACC Accept Such a L/G?

Question: We are an intellectual property right (IPR) agency. A client intends to entrust us to apply to you for the general bond for IPR protection. The client is an overseas company and domestic banks do not want to issue a L/G to it. The client has a wholly-owned subsidiary in the mainland of China. Will you accept the L/G issued by a domestic bank to its China subsidiary? 

Answer: Yes. Applications by the subsidiary of your client to the bank for the L/G of general bond will not affect the performance of obligations under bond by the guarantor toward the Customs.

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General Administration of Customs of the People's Republic of China

Address: No.6. Jianguomennei Avenue, Dongcheng District, Beijing, China        Postcode: 100730