PROCEDURES

 PROCEDURES

The following procedures is standard requirement in the commodities business. It is communicated on this page, to ensure that deals  are initiated and executed  efficiently and flawlessly, to avoid any waste of time and possible misunderstanding  between parties involved. Therefore, we generally decline to pursue deals with customers who are not willing to follow this minimum and basic procedure.

1) The end-buyer send an  LOI (Letter of Intent) or ICPO (Irrevocable Corporate Purchase Order), signed and sealed by the end-buyer or his official mandate. This document must be on buyer's  letterhead and  must include buyer's banking details, allowing the supplier to check buyer's financial capability.  Some suppliers require, in addition, buyer's BCL (Bank Capability or Comfort Letter).

2) On receipt of the LOI/ICPO and BCL, the supplier sends to the buyer a CI (Commercial Invoice) , FCO (Full Corporate Offer) and/or SPA (Sale Purchase Agreement), to be signed and sealed by both buyer and seller.

The deal is then, executed in compliance with the terms of the agreement.
Notes:

 a)  Where brokers are involved, the NCND (Non-Circumvention and Non-Disclosure) and IMFPA ( Irrevocable Management Fee Protection Agreement) will be required and signed by parties involved.

b) method of payment is generally: Fully Funded Documentary L/C payable at sight (FFDLC), Revolving Documentary L/C (RDLC), Stand-by L/C (SBLC), Bank Guaranteed (BG)