D Insurance of an export buyer credit against the risk of non payment Annex No. 3 – Exporter's statement on the export value percentage

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Apendix 3
to application for insurance of an export buyer credit against the risk of non payment – „D“
Exporter's statement on the export value percentage

Exporter:
  Name:
  Company registration number:
  Tax registration number:
  Registered office:
  Represented by:
declares,
that the value percentage of goods and services of Czech origin in the export value1 ("Czech value percentage") which is the subject of insurance of export credit risks  at least  % of the export value, which is  CZK, and
undertakes to
  • inform Exportní garanční a pojišťovací společnost, a.s. (Export Guarantee and Insurance Corporation) ("EGAP") of reduction in the Czech value percentage referred to above in this statement if such reduction exceeds 5%, and explain the reasons for such change,
  • where such Czech value percentage drops below 50%, ask EGAP for additional exception approval,
  • in the case of an Application for insurance with a maximum insurance value exceeding 100 million CZK provide EGAP, no later than in the phase of final assessment of provision of insurance, with a structured overview of price calculation of the Export Contract and an overview of known and expected main sub-contractors for the Export Contract under part 7 of the Instructions for the calculation of value percentage of goods and services of Czech origin on the total export value
and acknowledges
the possibility of tightening up of conditions or non-provision of further insurance of export credit risks for business cases where the exporter is one of the entities in the event that the declared Czech value percentage has not been observed.

1 the export value percentage is calculated in accordance with instructions for the calculation of value percentage of goods and services of Czech origin in the total export value, which is part of this statement

  This statement is an integral part of the application for insurance dated ,
  submitted by  (applicant for insurance).
[Signature]
  Full name, signature and title of a person authorized to act for the exporter:
  Date: 
Instructions for the calculation of value percentage of goods and services of Czech origin in the total export value and other information related to insurance of export credit risks in relation to the above value percentage
  1. The value percentage of goods and services of Czech origin in the total export value ("Czech value percentage") must represent at least 50%" unless stipulated otherwise below.
  2. Goods and services that are subject of export are considered goods and services of Czech origins where the following conditions have been met:
    1. the Export Contract was concluded by the exporter, which is a legal entity based or a natural person residing in the Czech Republic or a foreign company controlled by a legal entity based in the Czech Republic through a direct or indirect share of more than 50% in its registered capital or controlling the absolute majority of rights of vote associated with share in the registered capital of the company or being entitled to appoint the majority of board members, members of supervisory board or other similar top authority of the company,
    2. goods and services, that are subject to export are invoiced by the exporter (defined in par. a.) to the importer,
    3. sub-delivery for export is considered Czech if it is delivered and invoiced to the exporter by a sub-contractor that is a legal entity based or a natural person residing in the Czech Republic ("Czech sub-contractor"),
    4. sub-deliveries (components, parts, material, etc.) bought abroad by the exporter or Czech sub-contractor, are only regarded as of Czech origin if the exporter or its Czech sub-contractor increases sufficiently their value in production the sufficiency is subject to assessment on the part of Exportní garanční a pojišťovací společnost a.s. (Export Guarantee and Insurance Corporation, "EGAP"). This condition is not met where goods is only re-exported without any modification to its state or in the case of only a very simple manipulation. In assessing the degree of improvement, especially the degree and complexity of improvement of sub-deliveries in the territory of the Czech Republic in the form of assembly or machining, particularly based on material description of the way of improvement presented by the exporter or by the inspection company as the case may be, completed with a price calculation by the exporter,
    5. sub-delivery from abroad, which is part of the Export Contract and for which EGAP obtained reinsurance from another ECA (Export Credit Agency) or a commercial reinsurance company is completely excluded from the calculation of Czech value percentage,
    6. in the event of insurance of export credit where the export is funded from several resources, sub-delivery from abroad which is part of the Export Contract and which is funded without state support for export pursuant to Act No. 58/1995 Coll., on Insurance and Financing of Exports with State Support and on Supplement to Act No. 166/1993 Coll., on the Supreme Audit Office, as amended, is completely excluded from the calculation of Czech value percentage,
    7. in the case of bank guarantee insurance, where a foreign sub-delivery is covered by counter-security, such sub-delivery shall be completely excluded from the calculation of the Czech value percentage,
    8. the value of insurance premium of EGAP is totally excluded from the calculation of Czech value percentage.
  3. Sub-deliveries bought by the exporter or its Czech sub-contractor abroad that do not meet conditions contained in par. 2 as to be regarded as of the Czech origin or that are not excluded from calculation of the Czech percentage of goods and services in accordance with conditions contained in par. 2, are regarded for the purpose of calculation of the Czech value percentage as foreign sub-deliveries.
  4. The provisions on foreign sub-deliveries as provided for in par. 2 (d) do not apply to sub-deliveries bought by the exporter from sub-contractors in the country of destination. Such sub-deliveries represent local costs and are covered by respective provisions of the OECD Consensus.
  5. If the subcontractor of any goods or services is a foreign company (that is the works are performed by its regular employees, not by its subcontractors), these goods and services are regarded as of the Czech origin.
  6. In the case that the insurance covers export credit risks potentially arising in connection with delivery of goods or services by the Exporter which is a foreign company, the Czech value percentage has to represent at the minimum 50%, and on top at least one of the following Czech national interest criteria has to be met:
    1. contribute to the employment in the Czech Republic,
    2. it is export to priority countries,
    3. support small-sized and medium-sized enterprises,
    4. export of advanced technology (in accordance with the high-tech goods classification of the Czech Statistical Office, in accordance with SITC),
    5. support research and development in the Czech Republic,
    6. reduce costs and maintain international competitive ability,
    7. promote new product or penetrate a new market,
    8. dividends from the foreign company are used in the Czech Republic, or
    9. other significant benefits for the Czech Republic over a long-term period.
  7. No later than in the phase of final assessment of provision of insurance, the exporter, where it is not an applicant for insurance, through the applicant for insurance (in the event of an application for insurance with a maximum insurance value not exceeding 100 million CZK only upon EGAP's request), shall provide the following documents:
    1. structured overview of price calculation of the Export Contract, clearly indicating the following categories (perhaps further itemized for the purpose of usefulness):
      1. own goods and services of the exporter including profit margin,
      2. Czech sub-deliveries of goods and services,
      3. deliveries from third countries improved in the Czech Republic,
      4. deliveries from the third countries,
      5. local costs,
      part of which shall be calculation of the Czech value percentage of the export value.
    2. overview of known and prospective main sub-contractors including estimated prices of their sub-deliveries. Where subcontractors are not known, please submit a list of potential subcontractors or indication of where a Czech subcontractor and where a foreign one is expected.
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