BONDS
This is a contract between three parties – the Contractor, Guarantor and the Principal - with the guarantor providing the guarantee that the principal who engages the services of any Contractor will be indemnified in the event of default in delivering of services as expected.

(I) General Bonds

i. Bid Bond/Bid Security:
This Bond is taken by contractors who want to tender for projects.
Vanguard guarantees to pay the principal for amounts up to the bond value, in the event that either:-
a. the Contractor or Bidder withdraws from the bidding process, or
b. the Contractor fails to sign the contract or take possession of the site and commence work.
The bond becomes void once the contract is awarded and the guaranteed contractor is not awarded the contract or if awarded the contractor signs on and commences work.

ii. Performance Bond:
This policy obliges the Guarantor (Vanguard) to ensure that the Contractor will perform the job awarded to completion and to the satisfaction of the principal (i.e. according to specifications and within the given time), or else arrange to complete the work. Failure by the Contractor to perform as expected, the guarantor will be called upon to pay the bond value guaranteed to the principal.

iii. Advance Payment/Mobilization Bond:
This Bond is given as a guarantee to the Contractor who wishes to take monies from the Principal as advance for the project. Vanguard guarantees that the Contractor will refund to the principal all monies paid to him for mobilization of equipment and other resources to enable him take over the site for the project.

iv. Retention Bond:
Some Companies or orgnisations allow a contractor to substitute a bond to guarantee the contractor’s faithful execution of repairs to any defects to the completed projects during a specified period.

(2) Customs Bonds
This is a guarantee to CEPS acting on behalf of the Republic of Ghana, that the insured will pay all duties due on imported/exported goods. Guarantees available are Warehouse or Security, Removal, Transit, Re-exportation, Customs House Agent and Exportation Bonds.

(i) Security or Warehouse Bond
This bond is granted to importers who have requested to be allowed to put their imported goods, on which duties have not been paid, at their Bonded warehouse(s) and to pay the duty later. Should the importer default in the payment of duty on the goods, Vanguard guarantees to pay CEPS up to the value of the Bond.

(ii) Removal Bond
This is a guarantee to CEPS that should the goods being removed from a given warehouse(s) not reach its destination leading to loss of duty to the State, Vanguard will pay to CEPS up to the value of the Bond.

(iii) Temporary Import Bond
Occasionally, there might me the need to import goods into the Country for a fixed period of time before re-exporting these goods to their final destination. Since all goods imported into the Country need to be taxed, importers are required to take this bond in order to guarantee the payment of taxes in case these goods are not re-exported.

(iv) Re-Exportation Bond
This is an insurance cover for the tax element on goods-in-transit from any of the neighboring countries through Ghana

It is issued to clients
(a) who want to re-export imported goods to other countries.
(b) who import goods to use in the country on their visit with the intention of sending them back.

(v) Transit Bond
This is a guarantee given to our clients who transport imported goods for which duties have not been paid from a stated point in the country through the border to a neighboring country. Should the goods not reach the stated destination, leading to loss of duty to the state, Vanguard guarantees to pay the duty on the goods.

(vi) Transshipment Bond
This is an insurance Cover for the tax element on goods being transported across the boarders of Ghana to any of the neighboring countries. This cover is normally for two weeks.

(vii) Exportation Bond
This bond is taken by exporters of locally produced goods to other countries.
Should the exporter fail to export the said goods and instead they are found to have been sold in the Country, Vanguard on behalf of the exporter guarantees to pay to CEPS up to the sales tax duty payable on the goods.

(vii) Customs House Agent General Exportation Bond
This bond is granted Clearing Agents as a guarantee to CEPS that should the misconduct of the clearing agent in the course of his duties result in loss of customs duty to the state Vanguard will pay to CEPS up to the value of the bond.