Gpg (GnuPG) encryption and decryption

Hi Friends,

There are some 7 years script in out linux server. I am trying to understand them since Linux Server changed(A).

Below line in one of the encrypting script. Here scenario is encrypting bank files in our (A) server and doing Secure Copy to Server (B).

 GPG -v --batch --yes --armor --passphrase SOMEPASSWORD --trust-model always --sign -r PublicKEY_VENDOR -o /app/test.asc app/test.txt 

We generated GPG key ( Set the passphrase as SOMEPASSWORD)and shared public with B server owner.
PublicKEY_VENDOR is shared by B Server owner with us (Server A).
I have imported into our Server A.

Is the above code line is correct? why we are using SOMEPASSWORD? are we supposted to use passphrase of PublicKEY_VENDOR?

Your help is much appreciated.

Regards,
Babu

The passphrase is required because you're using the sign option which signs the file with your key.