Research On Refund Guarantee In Shipbuilding

The Refund Guarantee in shipbuilding is a special model of guarantee in the shipbuilding contract and financial relationship.It generally refers to the ship-owner’s provision to the ship-owner and the beneficiary issued by banks or other warrantor to the ship-owner.Under certain conditions,it is guaranteed that the ship-owner will pay all guarantees for prepaid money to the shipyard.Such guarantees derive from the commercial banks’ financing of ships and are widely used in modern newbuilding business practices.Independent Refund Guarantees in shipbuilding are more adaptable to current international shipbuilding practices.They replace the shipyards’ commercial credits with bank credits,which is more privileged,making ship-owners more satisfied in confidence with shipbuilding business.Globally,many international shipbuilding contracts have stipulated the forms and details of Refund Guarantees in shipbuilding and have adopted a more cautious attitude toward the establishment,identification and recognition of Refund Guarantees in shipbuilding.It is precisely because of the independence requirements of the parties for the Refund Guarantee in shipbuilding;it will inevitably require that its issue and confirmation must meet the requirements of laws and regulations for independent guarantees.The " Provisions of the Supreme People’s Court on Several Issues Relating to Trial of Independent Letter of Guarantee Dispute Cases" issued on December 1,2016 is a judicial interpretation that directly guides the application of the law concerning independent guarantees.The introduction of this interpretation to a large extent was originally only international.The Chamber of Commerce has revised the “The Uniform Rules for Demand Guarantees” governing the development of independent guarantees,and the “United Nations Convention on IndependentGuarantees and Stand-by Letters of Credit” formulated by the United Nations Conference on Trade and Development.The three above-mentioned rules concerning independent guarantees have affected the responsibilities and obligations owed to each entity under the Refund Guarantee in shipbuilding.This thesis attempts to identify and confirm the form and substance of the Refund Guarantee in shipbuilding.To start with the risk prevention of the issue of validity standards and lack of effectiveness,to explore the use of Refund Guarantees in shipbuilding practice,and then discuss the law application and dispute resolution and jurisdiction.The contents of each chapter are briefly summarized as follows:The first chapter of the thesis is an overview of the Refund Guarantee in shipbuilding.The Refund Guarantee in shipbuilding plays an important role in the ship construction contract.Refund Guarantees in shipbuilding can be divided into independent Refund Guarantees in shipbuilding and dependent Refund Guarantees in shipbuilding.The guarantee which is based on an independent guarantee system is the focus of this thesis.The second chapter of the thesis describes the relevant provisions of the standard format of the Refund Guarantee in shipbuilding and the independent guarantee system.In the shipbuilding business practice,the shipbuilding contract generally refers to the internationally accepted standard format shipbuilding contract,and the Refund Guarantee in shipbuilding is attached to the standard format shipbuilding contract.This chapter further discusses its characteristics and compares it with the relevant provisions of China’s laws and regulations and international regulations on the independent guarantee system,and then discusses the provisions of independent guarantee systems in UK,German and France.The third chapter of the thesis is to study the validity and independence of the Refund Guarantee in shipbuilding,to start with the validity of the issue of the Refund Guarantee in shipbuilding,this chapter will also research on the identification criteria for the independence of Refund Guarantee in shipbuilding.The fourth chapter of the thesis introduces the applicable rules of international regulations for Refund Guarantee in shipbuilding,and then discusses in which situation international regulations can be used in the construction of Refund Guarantee in shipbuilding in China,and possible countermeasures for related issues.Changes in judicial interpretation,accession to the United Nations "Convention onIndependent Guarantees and Stand-by Letters of Credit" or the incorporation of relevant provisions of the independent guarantee system into the property code of the Civil Code of PRC will improve recent situation.In summary,this thesis studied the various issues of Refund Guarantee in shipbuilding from the perspective of the new development under the relevant provisions of the independent guarantee system under the PRC law,and defined the Refund Guarantee in shipbuilding from the perspective of independent guarantee.The Refund Guarantee in shipbuilding should not be applied to the rule system of the“Guarantee Law” in the traditional sense of the letter of guarantee subordination,and the Refund Guarantee in shipbuilding letter should be under the independent guarantee system in China and should be in accordance with the “Judicial Interpretation of Independent Guarantee”.In order to make legal disputes in the relevant Refund Guarantee in shipbuilding operations clearer,reduce the disputes arising from Refund Guarantees in the shipbuilding trade,and increase the determination and confidence of Chinese shipyards to go abroad with the Belt and Road initiative.