Friday, December 28, 2018

CBLR'18 - F & G CARD EXAM NOTES - DIFFERENCE BETWEEN BANK GURANTEE AND CORPORATE GURANTEE


BANK GUARANTEE
1.Wherever revenue is to be safeguarded a
BG is obtained from the importer by Customs.
2.This is a security
3.It is a more safer manner of protecting 
revenue since the Banks stand guarantee
for the amount of BG

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CORPORATE GUARANTEE
1.This is a guarantee given by a Big Corporate group of 
companies on behalf of its subsidiary company.
2.This is a surety
3.Safety of this gurantee to Government Revenue
is, parent company ( reasonably large company ) gurantees
the financial soundness of its group of companies.
 Hence more flexible to subsidiary companies and not required
to give individual BG's

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