 |
The
contract is put out to tender. |
 |
The
Exporter submits the Bid to the Importer and indicates that the Bid Bond will
follow. |
 |
The
Exporter requests issuance of Bid Bond from his or her bank. |
 |
The
Exporter's bank checks the creditworthiness of the Exporter and agrees to issue
the Bond. |
 |
The
Exporter's bank issues the Bid Bond direct to the Importer, if
acceptable. |
 |
The
Exporter's bank uses the service of the Importer's local bank to: |
|
a)
Advise the Exporter's bank Bond to the Importer. |
|
b)
Issue the local bank's own Bond to the Importer. |
 |
The
Importer receives: |
|
a)
Advice of the Exporter's bank Bond i.e. is dependent on Exporter's bank to
pay. |
|
b)
Advice of local bank's Bond i.e. is dependent on own local bank to
pay. |
 |
The
Importer awards the contract to the successful Exporter. The Importer holds the
Bid Bond pending signing of the contract and replacement with the Performance
Bond. |
|
|
