Import Insurance 

The Atradius Dutch State Business import insurance is divided into two types: Advance Payment Insurance and Processing Insurance.

Advance Payment

Advance Payment risk cover involves insurance for payments made to a supplier by an importer (the insured party) prior to receipt of the goods. The risk that the importer runs is that if the goods purchased are not delivered. Commercial and/or political reasons may prevent recovery of the advance payments made. Advance Payment Insurance is more widely used than Processing Insurance, particularly for imports of ships, but also for imports of silicon for the production of solar panels.

Advance Payment Insurance can be supplemented by Expropriation Insurance, which covers the risk that, although the goods have already been delivered to the importer in the supplier’s country, the importer is unable to send them to the Netherlands (or another country of destination) on account of expropriation or an export ban.

Processing

Cover of processing risk involves insurance of the value of the raw materials supplied by the importer (the insured party) to the supplier for the purpose of processing. This also covers any advance payment to the supplier in respect of the processing (the ‘processing fee’). The risks that the importer runs are that the raw materials supplied by him do not reach the importer for political reasons, that the processed goods do not reach the importer for political reasons, or that the processing firm cannot comply with his contractual obligations for commercial and/or political reasons. Processing insurance is used mainly for transactions for which processing is also part of the production process, for example, in the case of the building of  the hull of a ship that is then finished in the Netherlands.