Trading Procedures for Agribusiness Commodities

Commodities Trading Procedure go through interest, order analysis, purchase of goods, and the method of payment, it is essential to know our procedure. Remember that the entire process is not limited as shown below. However, this is the reference.

FOLLOW-UP STATEMENT

  1. Once this SCO is accepted, buyer returns with a ICPO( Irrevocable Corporate Purchase Order ), and a Proof of Funds, with all bank coordinates;
  2. Seller sends the FCO( Full Corporate Offer ), while we issue the draft of SPA( Sales & Purchase Agreement );
  3. Buyer returns signed and stamped FCO;
  4. Seller sends the Sales & Purchase Agreement to review;
  5. Buyer returns draft of signed, stamped and scanned Agreement by e-mail and will be considered legal and official Sales & Purchase Agreement until copies are exchanged;
  6. After this, we will send the Proforma Invoice for buyer sign, stamp and return it, based on SPA;
  7. Buyer opens 100% Irrevocable, Transferable Letter of Credit with Seller as the Beneficiary;
  8. Seller provides Proofs of Product;
  9. Seller’s Financial Institution reviews and confirms acceptance of Letter of Credit;
  10. Seller sends 2% Performance Bond in favor of Buyer, or Buyer can choose an Escrow Account Bank as Insurance resource;
  11. Seller starts arrangements for shipment and sends all original shipping documents to the Buyer’s bank evidencing that freight is on board and vessel has sailed to the destination. Copy of documents to be sent to the Buyer via e-mail;
  12. Buyer’s Bank pays integrally Seller after Shipping Documents validation.

CONFIDENTIALITY AND NON-CIRCUMVENTION

All parts, such as the Buyer, Seller and all Representatives, Consultants, and Intermediaries involved on this transaction, agree to act in complete confidentiality and shall not disclose the Agreement to any other party except on a Need-to-Know basis and shall observe strictly the rules of the International Chamber of Commerce (ICC) London, Latest Edition, relating to Non–Circumvention and Non- Disclosure Agreement( NCNDA ) valid for 5 years.

This Corporate Offer is for the exclusive benefit of the Addressee. This offer, cannot be published, reproduced, or transferred. PAST PERFORMANCE: no Past Performance Documents, no Lab Reports or no certificates and no Product or Packaging Pictures will be provided.

We often have some buyers asking us to provide past performance, or “sanitized” documents, such as BL’s or SGS reports. We do not supply any history documents. Supplying this type of document is considered illegal under ICC rules. When we refuse to supply the documents, we are often encouraged to “sanitize” these documents. Sanitized documents are mostly used by what we call “Flip – Artists”.

Flip-Artists are “Sellers” without Product or Allocation of the Soybeans. Frequently, we receive requests to provide sanitized BOL or SGS Certificate copy or Silo /Warehouse Receipts or Quantity & Quality certificates. These are valuable documents which could be used to defraud buyers. We therefore only issue not sanitized documents after the buyer Provide Confirmed Payment Instrument. These documents are provided during the final stage of production and delivery of the purchase process.

We encourage all buyers to perform thorough due diligence. We can provide ample information to the buyer at the time of the draft contract issuing. This information allows the buyer to obtain information about our organization. We confirm that the Seller has all the necessary documents and AQSIQ registrations to export to China.

To proceed with this order, the Buyer must sign and stamp this SCO and send it to Seller’s representative. Upon receipt of the signed SCO Buyer will receive the details of the Seller to whom he will address his Irrevocable Corporate Purchase Order (ICPO) and RWA/BCL bank letter.

ICPO must be on End Buyer’s company Letterhead and must contain full corporate and banking details of the purchasing company signing the SPA. Upon receipt of the ICPO + full documentation Buyer and Seller will follow the steps specified in the procedure of this SCO.

We are looking forward to doing great business with you.