What is the performance Bond in Import & Export contracts?

Question by Freakme: What is the performance Bond in Import & Export contracts?
I know it is something that the buyers should deduct from the totla value of the deal and be on hold to avoid any lack of delivery or lack of performanc from the seller.
But how and when can the seller release the amount and get it back.
How can buyer holds the amount? Is it be hold by th buyer’s or seller’s bank? what is the procedure? how and when can the seller release the amount and get it back to his pocket?

Best answer:

Answer by suretyguy
Generally a performance bond guarantees that the product will be delivered as agreed in the contract.

Add your own answer in the comments!