The purpose of the advance payment guarantee is to relieve the importer's concerns and ensure that the exporter will use the advance payment for the import of equipment. Then, the equipment has been shipped for export, indicating that the exporter has used the advance payment for the production of equipment, and has completed the production of all equipment. Therefore, this guarantee is meaningless. <br><br>If the validity period of the advance payment guarantee is one month after the latest shipment date, the importer can claim the advance payment through the bank at any time within one month after the goods are shipped. <br><br>Therefore, the validity period of the letter of guarantee is before the date of shipment of the letter of credit. Regardless of whether it is shipped in advance or delayed (after modifying the letter of credit).
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