Paragraph 13

Changes not yet applied. Later legislation changes this provision in ways not yet written into the text below:

Sch. 7A para. 3(4)(b) words repealed by Welfare Reform Act 2012 Sch. 14 Pt. 9
Sch. 7A para. 3(2)(a) words repealed by The Welfare Reform (Northern Ireland) Order 2015 Sch. 12 Pt. 8
Sch. 7A para. 3(3) words repealed by The Welfare Reform (Northern Ireland) Order 2015 Sch. 12 Pt. 8
Sch. 7A para. 3(4)(b) repealed by The Welfare Reform (Northern Ireland) Order 2015 Sch. 12 Pt. 8

(1)

A contract falls within this paragraph if it relates only to credit granted in relation to goods or services supplied under a relevant contract by a person carrying on business in the United Kingdom.

(2)

For the purposes of this paragraph a relevant contract is—

(a)

a contract to make a relevant supply of goods, or a supply of services, or both, to an overseas customer;

(b)

a contract to supply goods to a person who is to—

(i)

export those goods; or

(ii)

incorporate those goods in other goods which he is to export,

where the condition mentioned in sub-paragraph (3) below is satisfied;

(c)

a contract to supply to a person who is to export goods services consisting of the valuation or testing of, or other work carried out on, those goods where the condition mentioned in sub-paragraph (3) below is satisfied;

(d)

a contract to supply services to a person in order that he may comply with a legally binding obligation to make a supply of services to an overseas customer.

(3)

The condition referred to in sub-paragraph (2)(b) and (c) above is that the goods to be exported are to be exported in order that the person exporting them may comply with a legally binding obligation to make a relevant supply of goods to an overseas customer.

(4)

For the purposes of this paragraph—

(a)

“export” means export from the United Kingdom and cognate expressions shall be construed accordingly; and

(b)

any reference to a person who is to export goods shall be taken as including a reference to a person at whose direction the insured is to export them and the reference in sub-paragraph (3) above to the person exporting goods shall be construed accordingly.

(5)

Where a contract relates to—

(a)

credit of the description in sub-paragraph (1) above; and

(b)

loss resulting from the insured or any third party being required to pay the amount of any bond or guarantee against non-performance by the insured of the contract which involves him making the supply,

the contract shall be treated for the purposes of sub-paragraph (1) above as if it did not relate to loss of the description in paragraph (b) above.

Paragraph 13

Notes on Schedule 7A

Textual amendments

Notes on Part I

Textual amendments