PROCEEDURES AND TERMS
PROCEDURES
1. An NCNDA (Non Circumvention Non Disclosure Agreement) will have to be signed between the parties. Please send it to us fully signed and sealed with all your corporate data. Then we will return it to you with our signatures, thank you.
2. We need an LOI (Letter of Intention) on the BUYER”S letterhead, in order to give you a firm price quotation. Buyer provides LOI addressed to the seller on buyer’s letterhead. LOI must include target price, quantity, destination port, shipping schedule, and payment terms (see format). The LOI must be not older than 10 days. We cannot accept an LOI issued by an intermediary but only by a direct buyer. Reasonable commissions for intermediaries must be mentioned by written at the same time the LOI from the buyer is being sent.
3. We require a BCL (Bank Comfort Letter) on the Bank’s letterhead before we issue our FCO and before the Sales Contract signature. The BCL must include full banking co-ordinates and names of the officers. We will confirm buyer Banking co-ordinates and availability of product with mills.
4. We will send and FCO (Full Corporate Offer) to the buyer, this FCO will be signed by buyer and returned to us within 48 hours.
5. The seller issues DRAFT CONTRACT and will send it by e-mail/fax for signing and return.
6. Buyer and seller sign and seal Final Contract.
7. Seller issues FPA to protect all intermediaries commission.
8. Buyer issues DRAFT LETTER OF CREDIT to Seller for approval with a copy to seller’s Bank.
9. Seller send POP against the POF (the draft LC provided by buyers bank)
10. Buyer issues non-operative L/C.
11. Seller issues operative 2% Performance Bond Guarantee activating Letter of Credit.
12. Shipments commence as per the Terms & Conditions of the Contract.
The above procedures are to be adjusted to the present circumstances by full agreement of the two parties at the time this contract is officially presented.
TERMS
- Final Contract should be signed, sealed and exchanged.
- Buyer sends Draft of the Letter of Credit for Seller/Seller’s Bank approval and acceptance.
- Hard copies are exchanged via Fax and courier.
- Buyer and Seller exchange Proof of Funds for Proof of Product, via Bank Confirmation Letter or Swift indicating that they hold funds and POP documents and are able to buy and sell the subject product.
- Buyer issues agreed and acceptable confirmed non-operative Letter of Credit.
- Seller issues 2% Performance Bond. The PB will be 2% of the monthly portion of the payment instrument available (US$ 0,000,000) and be either direct or in the form of a Standby Letter of Guarantee to activate the Non-Operative Letter of Credit. This can take 7 – 10 working days.
- Delivery and shipment commence as per shipping schedule.
- Shipment as mentioned in the contract starts not later than 30-45 days after issuance and the acceptance of the letter of credit. The Letter of Credit will have a validity of @ months after it becomes fully operative.
F. A. Q.
All possible answers to inquiries are within this document, please learn it before inquiring.
LOI must be fresh dated, not older than 10 days.
LOI must contain target price.
LOI must contain shipment destination (destination must be non-sanctioned).
BCL must indicate and available value at buyer’s account as necessary to complete the required deal.
Inquiries without LOI & BCL annexed will not be responded.
Buyer’s Bank must be Top 100 European or American, otherwise top 25 Confirming Bank will be provided.
SBLC pricing stands for the entire contract value.
FFDLC pricing stands for the entire contract value.
DLC pricing stands for monthly shipments value.
LC revolving per each shipment will not be acceptable.
Non-transferable payment instrument will be USD/MT extra charged.
2% PB will turn the L/C operative, never other value/way.
No past SGS/BL and/or samples will be provided.
No visits at refineries/silos/producers will be approved.
We don’t compete non-performers pricing, we compete only reliability, performance & fair pricing.
Unless otherwise published, products are available at any quantity.