These are guarantees issued by the Surety (GLICO General) in favour of the Bidder (Contractor) assuring the Client (i.e. any person, Corporate or Unincorporated Entity desiring to award a target project by duly awarded; and that if the bidder happens to be the winner, he would proceed to obtain a Performance Security for the contract. The surety pays a certain sum of money – i.e. the bond sum which is always stated in the Bond, if the Bidder withdraws from the tender before the contract is awarded
These are bonds that guarantee proper and timely execution of a contract by the Contractor. The guarantor/Surety (GLICO General) promises the client that the Contractor shall perform the contract in accordance with stated specifications and within set periods. The guarantor (GLICO General) pays a stated sum if the contractor fails to execute the contract and within the agreed period.
In some situations, a Principal who awards a contract to a Contractor agrees to make some advance payments to enable the Contractor mobilize resources towards effective performance of the job(s). Our Advance Mobilization Guarantee is a form of loan guarantee which protects the Principal against loss of advance payment. Our policy provides that we, as insurers, guarantee the judicious use of the monies advanced to the Contractor on the job failing which we shall pay whatever balances that may remain outstanding should the contractor fail to perform the contract.
Our Customs Bonds provide guarantee to the Republic of Ghana (through GHANA REVENUE AUTHORITY – CUSTOMS DIVISION who are the collecting agent), that an importer/exporter would pay all duties due on the imported/exported goods. We provide various types of Customs Bonds and notable among them are Warehouse or Security, Removal, Transit, Exportation Bonds and Customs House Agent.
Security or Warehouse Bond
In some instances, you as an importer may request that you be allowed to put your imported goods on which duties have not been paid, at specified Bonded warehouse(s) and pay the duty involved at a later date. GLICO General by issuing the Security Bond, guarantees that you would pay the duty to GHANA REVENUE AUTHORITY – CUSTOMS DIVISION and that should you default in the payment of duty on the goods, we shall pay GHANA REVENUE AUTHORITY – CUSTOMS DIVISION, but up to the value of the Bond.
You may remove goods from a bonded warehouse to your premises or the destination where the goods are needed. The State may lose revenue by way of duty lost if the goods being removed from a given warehouse(s) do not reach their destination. Our Removal Bond provides a guarantee to GHANA REVENUE AUTHORITY – CUSTOMS DIVISION that we shall pay any loss of duty to the State, up to the value of the Bond if the goods fail to get to the destination.
Temporary Import Bond
Your company may import goods into the country for a fixed period of time and there may be the need to re-export such goods to their final destination. As you may be aware, all goods imported into the country have to be taxed, and where the goods are not re-exported, it would mean loss of revenue to the State. Our Temporary Importation Bond guarantees to pay to the State the revenue lost as a result but up to the Bond amount.
Our Re-Exportation Bond provides a guarantee for our numerous clients who may re-export imported goods to other countries or import goods for use in the country when they visit, with the intention that such would be sent back. The Bond guarantees for the tax element on goods-in-transit especially from the neighbouring countries through Ghana.
Our clients may import goods into the country and then transport such imported goods for which duties have not been paid, from one point in Ghana. Where the importer does not transport the goods but sells them, the unpaid duty becomes revenue lost to the State. Our Transit Bond guarantees to pay the revenue lost but up to the Bond amount if our client fails to transport the imported goods to the neighbouring country.
As a local manufacturer, you may export some of your locally produced goods to other countries. Where you fail to export such goods and rather sell them locally, the State loses the sales tax duty payable on the goods. Glico General’s Exportation Bond guarantees to pay the sales tax duty to GHANA REVENUE AUTHORITY – CUSTOMS DIVISION if you fail to export the goods and instead sell them locally.
Customs House Agent Bond
Customs Clearing Agents, in the course of discharging their duties, may misconduct themselves in such a manner that could result in the State losing revenue in terms of customs duty. Our Customs Agent Bond guarantees to GHANA REVENUE AUTHORITY – CUSTOMS DIVISION that should the misconduct of the Clearing Agent result in loss of customs duty to the state we shall pay to GHANA REVENUE AUTHORITY – CUSTOMS DIVISION but up to the value of the bond.
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