Yes you need to remove all the silicone from the bottom and sides, get as high as you can in the corners, use painters tape on the vertical corners to get a nice even finish, don't worry about taping the bottom as you can't see it anyway. Silicone doesn't stick to cured silicone.
There are some good videos on youtube.
I used Homehardware silicone on my sump and it turned yellow after a while.
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