OPERATIONAL WORKING PROCEDURE FOR THE REQUIRED PRODUCT
1. The buyer sends an official LOI / ICPO with full detail information.
2. The seller sends FCO. Buyer signs / seals and returns to seller.
3- The seller issues draft contract open for amendments and correction if
necessary. Buyer signs / seals and returns to seller for acceptance and final
signatures / seals on every page along with IMFPA if any.
4- Both parties confirm draft contract, signs / seals and seller sends for
endorsement with the appropriate authorities.
5- Seller issues partial proof of product (POP), documents below to buyer via
secured email.
-1- Registered, legalised and notarised contract;
-2- Confirmation commitment to supply;
-3- Seller’s incorporation certificate;
-4- Certificate of origin of product;
-5- Quality/Availability of product;
6- Within 2 banking days, buyer do due diligence D/D to the said official
documents and issues satisfactory letter as proof of confident and readiness.
7- Upon buyer’s confirmation of the partial proof of product (P – POP)
documents, seller issues “Act of transfer product clearance procurement” for
endorsement. Buyer’s company signs / seals and returns to seller / supplier
that will guarantee the transaction on buyer’s entity to further proceed with
final execution. It must be completed by buyer within 7 banking days from the
signing of the contract by both parties. That simultaneously guarantees that
the transaction with buyer’s company name, and seller‘s bank issues bank
guarantee to the buyer’s bank for noncompliance to supply / deliver the
product.
8- Seller sends the hard copies of the contract to the end buyer to be lodge at
the countries of both respective banks.
9- Seller and buyer finalise railway agreement & charter party agreement with
the shipping company for the delivery schedules, both parties sign / seal and
seller immediately arranges for the transhipment of the products from factory
warehouse to the loading port.
10- Buyer issues the agreed payment term to seller’s bank , such as SBLC
MT760 , BG MT760 & DLC MT700, for first shipment from (Top 50 prime banks)
, for each shipment’s value. Then the buyer pays for each shipment via MT 103
T/T port of discharge, after inspection of the product by CIQ –SGS report.
11- Sellers’s bank sends to buyer’s bank the proof of product (POP), plus 2%
Performance Bond, which also includes the following documents :-
-A- Copy of SGS survey report
-B- Copy of license to export, issued by the ministry of mining industry in
Russia.
-C- Copy of approval to export, issued by the ministry of finance.
-D- Copy of statement of availability of product.
-E- Copy of manufacturer commitment to produce the product.
-F- Copy of the Charter party agreement to transport the product to the
discharge port.
-G- Copy of the port storage agreement.
-H- Copy of the bonded warehouse storage receipts.
-J- Copy of the assignment of ownership document.
12- ATTENTION! An alternative option if buyer fails to comply with the
commercial invoice validity. The buyer’s company would have to raise the sum
of 25% product face value for trial shipment to enable seller to proceed with
the delivery – transaction of the product. The remaining 75% will be paid
against shipping documents / inspection by SGS or CIQ at discharge port.
13- Shipment commences as per contract. The buyer releases payment to the
seller and seller releases payment to all brokers / agents, same time out-turn
shipment delivered per slot via swift fund transfer within 48 hours after
discharge of cargo and receipt of all relevant shipping and tittle of ownership
documents.
