We facilitate the execution of your contracts between contractors or suppliers and a public authority for the execution of works
Bonds on public contracts
Public contracts are defined as contracts signed between contractors or suppliers and a public authority for the execution of works, supplies, goods or services.
The bank intervenes in the financing of public markets and grants its assistance by granting credits or by acting as surety:
- The provisional bond or bid bond: is a bond intended to guarantee the solvency and technicality of companies bidding for a call for tenders. It is purely cleared if the tenderer is not declared the successful bidder.
- The final bond or performance bond: it is intended to guarantee that the work will be carried out successfully.
- The start-up advance deposit: is intended to guarantee the deposit made by the administration to the successful bidder when the clauses of the contract provide for it.
- The retention bond: on the payments it makes, the contracting authority (public authority) retains a certain percentage called “guarantee holdback” in order to protect itself against possible malformations that should be repaired. This deduction can however be replaced by a bank guarantee.
Tax bonds are bonds issued by the bank in favor of customs to guarantee customs transactions for customers.
These bonds are previously authorized by the customs administration in the form of annual submissions setting a ceiling for each type of bond:
- Fictitious warehouses: this is a system by which the customs administration grants import customers the authorization to store their goods in approved warehouses before liquidation and payment of customs duties and taxes against a bank guarantee.
- Temporary admissions: this is a regime by which customs authorizes the entry into circulation of certain bonded goods for a period generally of 18 months, guaranteed by a bank guarantee.
- Bonded assets: it is a customs procedure noting the entry of goods which must be released for consumption or re-exported after a period of three (03) months against a bank guarantee.
- Removal credit: this is a system by which the customs administration grants importing or exporting customers the facility to remove, as and when the checks are carried out, their goods before liquidation and payment of customs duties and taxes during a (1) year against a bank guarantee
- Guaranteed bonds or duty credits: are bills endorsed by the bank for 120 days drawn by the public administration on importing customers benefiting from delays in the payment of VAT or customs duties.