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 ********************************************** 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