| Commodities Division |
| © Copyright 2004 Spokane for Commercial Agencies. All rights reserved. |
| We have Direct connections to best suppliers of the world for SUGAR, UREA, CEMENT, OIL, RICE and any commodities you request form us. Procedure of Contracts 1. Buyer shall send to seller a valid Letter of Intent (LOI) with all bank references and the permission to perform a bank enquiry (ICPO). 2. Seller shall send a Full Corparated Offer (FCO). 3. Buyer signs the Full Corparated Offer (FCO) and sends it via SWIFT back to the seller’s bank along with the bank confirm letter (BCL). 4. Seller sends a draft contract (DC) to the buyer. 5. Buyer shall sign and stamp the draft contract (DC) and send it via courier back to the seller. 6. Seller shall sign and stamp the draft contract (DC) and send it via courier back to the buyer. Monetary instrument has to be confirmed by Credit Suisse or one of the other top 50 banks. 7. The buyer’s bank dispenses a latent fully founded revolving documentary letter of credit (FFRDLC), a revolving documentary letter of credit (RDLC) or a bank guarantee (BG) to the seller’s bank. 8. The seller’s bank shall give 2 per cent of performance bond (PB) and a proof of product (POP) via SWIFT to the buyer’s bank. 9. Monetary instrument will be valid. 10. Shipment starts as fixed in the contract. Please note: Procedures can be modified based on the standards of producers and suppliers we cooperate with. Frequently Asked Questions (FAQ) • We first have to receive a LOI and references of the bank or BCL before we will send a FCO. • The LOI has to contain all data of the buyer and the bank. • The LOI must not be delayed for more than 7 days. • The LOI has to contain the target price. • The LOI has to contain the shipping destination, which should not be sanctioned. • The LOI and BCL have to be signed and sealed. • The BCL must not be delayed for more than 7 days. • No trial order for discount prices. • No inspection in manufacturing-plants (can be arranged individually). Possible methods of payment (confirmed by top 50 banks) • Bank guarantee (BG) • Transferable stand by letter of credit or revolving documentary letter of credit (SBLC/RDLC) • Non-transferable stand by letter of credit or revolving documentary letter of credit (SBLC/RDLC) - additional charge of USD 6,-/MT Monetary instrument has to be provided irrevocably for one month of shipment appearance confirmed by the respective bank. Furthermore the issuer has to be authorized and it has to be operative on presentation of the standard documents (BL, shipping documents, warehouse documents). Confirmation has to be provided by at least one top 50 bank based in the US or Europe. |
